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Urea price trends across China on March 2 / Author/Source: Yuege Agri Supplies Network / Date: 2020-03-02 / Clicks: 52. The domestic urea market continues to show a steady upward trend. Following the increase in prices set by urea manufacturers recently, trading activity in this market has slowed down slightly, with downstream buyers being more cautious. However, manufacturers have an ample supply of orders in hand, and shipments are proceeding smoothly. In some areas, supply is tight, yet manufacturers remain determined to maintain high prices. On the demand side, agricultural needs and compound fertilizers remain the main drivers of demand. The production capacity of compound fertilizer manufacturers is continuing to increase, while there is currently no strong demand from panel manufacturers; these companies will gradually resume operations after March. It is expected that the domestic urea market will remain stable with only slight upward trends in the short term. The urea plant of Henan Jinkai is operating at a stable capacity, with a daily output of approximately 4,000 tons. The ex-plant price today is 1,750 yuan per ton for medium-sized particles, and 1,760 yuan per ton for large-sized particles; the final price will be determined upon completion of the transaction. Mainly serving advance orders, with related industries in agriculture and manufacturing following up sequentially; downstream clients are actively placing purchases, so there is no pressure on shipments. Recently, the mainstream ex-factory price for enterprises in the province is around 1,720–1,740 yuan per ton. The urea production facility in Henan Xinxinxin is operating normally, with a daily output of 5,500 tons, of which more than 4,000 tons are regular urea. The price for small particles at the factory is 1,740 yuan per ton. Previous orders are being processed as usual; there is a sufficient amount of pre-paid orders, ensuring smooth shipments. Anhui Hong Sifang’s small-grain urea is now available at 1,800 yuan per ton at the factory; prices are negotiable on a case-by-case basis. The plant is operating normally, with a daily production of 1,000 tons, and there is some inventory available. Supplies are mainly supplied to the surrounding areas; existing orders are being fulfilled as usual, and shipment is progressing well. Agricultural demand in North China is approaching its end phase, while industrial demand, driven by compound fertilizers, is gradually recovering, with a moderate level of acceptance for current prices. Demand for large particles in the Northeast market is strong, but transactions have been hindered by rapid price increases in Shanxi and Inner Mongolia. The MERCOSUR market continued to rise slightly, but it was still at a lower price level compared to those in the main production areas. The market is expected to enter a consolidation phase over the weekend. Next week, as some enterprises resume production, daily output is expected to rise further. Whether supply and demand can remain balanced still depends on closely monitoring the growth in demand from downstream industries.