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Urea price trends across China on March 5 Author/Source: Yuege Agri-Materials Network Date: 2020-03-05 Clicks: 154 The domestic urea market is performing strongly; trading activity is satisfactory. Most manufacturers have an ample supply of pre-orders, and shipments are smooth without any inventory pressure, which keeps their willingness to maintain high prices intact. On the supply side, as prices have been rising steadily recently, the operating capacity of urea production plants in various regions has increased, leading to a slight rise in urea supply. On the demand side, agricultural demand has tightened slightly; agricultural procurement in regions such as North China is entering its final phase, with purchases being made mainly to cover any shortages. In the industrial sector, China is currently in the peak season for the production of BB fertilizer, and the operating rate of industrial compound fertilizers continues to rise. There is strong demand for large-grain urea, and board manufacturing companies are also resuming operations, leading to an increase in inquiries and purchases from suppliers. It is expected that the domestic urea market will continue to rise in the short term, driven by strong demand. 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’s around 1,770–1,780 yuan per ton. Some companies have raised their prices by 10–20 yuan per ton. In Hebei, the ex-factory price for small particles is around 1,760 yuan per ton, with the typical transaction price at around 1,750 yuan per ton. The ex-factory price for large particles is around 2,020 yuan per ton; some companies have increased the price of small particles by 10 yuan per ton and that of large particles by 20 yuan per ton. In Henan, the typical ex-factory price for small and medium-sized particles is 1,760–1,800 yuan per ton, with a price increase of 10–20 yuan per ton. In Anhui, the typical ex-factory price for small particles is around 1,780–1,810 yuan per ton, with prices remaining stable for now. In Jiangsu, the typical price for small and medium-sized particles is around 1,790–1,820 yuan per ton, with some companies raising their prices by 10 yuan per ton. In Shanxi, the price for small particles for external delivery is around 1,680–1,730 yuan per ton, while the price for large particles via road transport is around 1,830–1,840 yuan per ton, and around 1,880 yuan per ton via rail transport. Some companies have increased their prices by 10–20 yuan per ton. In Inner Mongolia, the typical price for small and medium-sized particles for external delivery is around 1,610–1,640 yuan per ton, while the price for large particles is around 1,770 yuan per ton, with prices remaining stable for now. In Hubei, the typical ex-factory price for small particles is around 1,800 yuan per ton, with prices remaining stable. In Shaanxi, the typical local sales price for small and medium-sized particles is around 1,790 yuan per ton, with prices remaining stable. In Guangxi, the typical wholesale price for small and medium-sized particles is around 1,930–1,950 yuan per ton, with prices remaining stable. In Sichuan, the ex-factory price for small and medium-sized particles is around 1,880–1,940 yuan per ton, with prices remaining stable. In Guangdong, the typical wholesale price for small particles is around 1,930–1,960 yuan per ton, with prices remaining stable. In Xinjiang, the typical transaction price is around 1,350–1,410 yuan per ton, with prices remaining stable. In Jilin, the price for small particles used in urea production is around 1,980 yuan per ton. Prices remain stable. The transaction price for small-grain urea in Heilongjiang is around 1,930–1,970 yuan per ton; prices remain stable as well. The freight-cost-based price for small-grain urea in Liaoning is 1,820–1,870 yuan per ton, with the actual transaction price subject to negotiation. Prices remain stable. The operating rate of compound fertilizer plants has improved significantly, and plate manufacturers in various regions have plans to restart operations and are gradually purchasing urea, which keeps the price of small-grain urea steady. Due to the shortened preparation period for fertilizer production, BB Fertilizer Factory is currently rushing to acquire large-grain fertilizers in stock; as a result, the price of these large-grain fertilizers has risen rapidly. This has led to significant cost disparities in the supplies held by traders, while higher prices are gradually being accepted by the market. In addition, as several large agricultural input distributors have recently received **agriculture-supportive loans and have begun to place orders in bulk from upstream manufacturers, in the agricultural sector, as demand shifts from the north to the south, the demand for fertilizer in North China has slowed down significantly. Manufacturers are focusing on ensuring timely delivery of fertilizers for local agricultural use, resulting in a decrease in shipments from other areas. Due to low order volumes at high price points, the overall inventory costs in the southern market remain relatively low, which results in a slight delay in price increases. Overall, short-term urea prices are expected to remain strong. Currently, various regions are in the phase of preparing fertilizers for agricultural use; the distribution process at the grassroots level is becoming more smooth, and conditions related to loading and unloading at stations as well as logistics have also improved significantly, resulting in better transaction activity in the overall market. In terms of supply, urea manufacturers have increased their production levels recently. On the demand side, plate production is gradually resuming, and suppliers are placing more orders for purchases. Zhuochuang believes that the market has been relatively strong recently, driven by demand from essential needs.