Thread Content
Urea price trends across China on March 4 Author/Source: Business Society Date: 2020-03-04 Clicks: 16 The domestic urea market remains stable with some prices continuing to rise. Manufacturers are receiving satisfactory orders for new shipments; most companies currently have a backlog of orders covering 2–3 weeks, and logistics operations are smooth. As a result, manufacturers face no inventory pressure and tend to maintain their prices. On the demand side, downstream demand remains strong. There is ongoing purchasing for agricultural use, and the country has entered the peak season for the production of blended BB fertilizer. The operating rate of industrial compound fertilizers in the downstream sector continues to rise, and there is strong demand for large-grain urea. As March arrives, rubber sheet factories also start operating again, leading to an increase in raw material purchases by these industries. It is expected that in the short term, the domestic urea market will remain stable, with modest upward adjustments continuing in some areas. In Shandong province, the ex-factory price for small and medium-sized particles is 1,760–1,800 yuan per ton; the typical transaction price is around 1,730–1,740 yuan per ton. In Linyi, the market price for such particles is 1,800–1,810 yuan per ton, while in Heze it is around 1,770–1,780 yuan per ton. Some companies have increased their prices by 10 yuan per ton. In Hebei province, the ex-factory price for small particles is around 1,750–1,760 yuan per ton, with the typical transaction price being around 1,730–1,740 yuan per ton. The ex-factory price for large particles is around 1,990 yuan per ton, with some companies raising their prices by 10 yuan per ton. The urea production facility in Henan’s Xinlianxin is operating normally, with a daily production capacity of 5,500 tons, of which more than 2,000 tons are ordinary urea. The factory price for small particles is 1,740 yuan per ton. Previous orders are being fulfilled as planned, with ample pre-paid orders and smooth shipments. The urea production facility of the Shandong Alliance has reduced its capacity, with a daily output of around 1,800 tons (equipment restoration is in progress). The reference price for small particles at the factory is 1,760–1,810 yuan per ton, and business volume for new orders is on the rise. Current stock is mainly used to fulfill surrounding orders; demand from the agricultural sector for deliveries is strong, so there is no pressure on shipments. Recently, the prevailing transaction price for small-particle urea from nearby companies has been around 1,750 yuan per ton. Anhui Hong Sifang small-grained 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, along with some inventory on hand. Supplies are mainly supplied to the surrounding areas; existing orders continue, new orders are satisfactory, and shipments remain steady. The mainstream ex-factory price for small to medium-sized particles in Henan is 1,740–1,780 yuan per ton, with prices remaining stable for now. In Anhui, the mainstream ex-factory price for small particles is around 1,780–1,810 yuan per ton, also stable at present. In Jiangsu, the mainstream price for small to medium-sized particles is approximately 1,790–1,810 yuan per ton, with no changes yet. In Shanxi, the price for small particles for external delivery is around 1,700–1,730 yuan per ton; some manufacturers have raised their prices by 10 yuan per ton. In Inner Mongolia, the mainstream price for small to medium-sized particles for external delivery is around 1,610–1,640 yuan per ton, stable as well. In Shaanxi, the local sales price for small to medium-sized particles is 1,790 yuan per ton, with a rise of 20 yuan per ton. In Guangxi, the mainstream wholesale price for small to medium-sized particles is around 1,930–1,950 yuan per ton, stable currently. In Sichuan, the ex-factory price for small to medium-sized particles is around 1,880–1,940 yuan per ton, stable as well. In Guangdong, the mainstream wholesale price for small particles is around 1,930–1,960 yuan per ton, with a rise of 10 yuan per ton. In Xinjiang, the ex-factory transaction price is around 1,350–1,410 yuan per ton, stable. In Jilin, the price for small particle urea is 1,980 yuan per ton. Prices remain stable. The transaction price for small-grained urea in Heilongjiang is around 1,930–1,970 yuan per ton; prices are also stable there. The freight-cost-based price for small-grained urea in Liaoning is 1,820–1,880 yuan per ton, with the actual transaction price subject to negotiation. Company quotes have increased by 20–40 yuan per ton. In the urea market, demand for large-grained urea is strong, and prices of such urea have risen significantly in regions such as Shandong, Hebei, and Guangdong. The price of small particles remains firm and stable, and the stock available at factories can last for over 10 days. Agricultural demand in North China is winding down; rubber sheet factories are set to resume operations, leading to an increase in inquiries from the market. The Northeast, following the North China market, has become the next key area for agricultural demand in the market. However, at present, there is significant pressure on factories to ship goods, and traders’ enthusiasm for purchasing at higher prices has declined. In addition, a gas production enterprise in Inner Mongolia has resumed operations, with daily output increasing by 2,500 tons; prices are expected to remain stable and range-bound in the short term. (Yuege Agricultural Inputs Network