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Urea price trends across China on March 13 Author/Source: Business Society Date: 2020-03-13 Clicks: 134 Urea prices nationwide remained relatively stable, with upstream manufacturers showing a strong willingness to maintain high prices. From the perspective of supply and demand, the increase in supply exerts some pressure on the upward price trend. However, it is still the peak season for fertilizers used in industry and agriculture; although downstream users are reluctant to accept high prices from earlier periods, demand remains relatively firm, and currently there is a balance of power between suppliers and consumers. Market prices in the south are relatively stable; there is a limited supply of high-priced goods, and spot transactions are performing fairly well. Rumors suggest that India will issue a tender around the end of the month, which is expected to support prices in China. The impact of the sharp drop in crude oil prices on the international urea market remains highly uncertain at present, but the short-term impact is limited. In the short term, domestic prices will continue to fluctuate within a narrow range. Today, the price for medium-sized particles of Hualu Hengsheng is 1800 (stable), while large-sized particles cost 2020 (stable). In Hebei’s Dongguang region, small-sized particles are priced at 1800 (stable), and large-sized particles at 2040 (stable). Henan’s Xinxianxin offers particles at 1800 (stable). Shanxi’s Fengxi has a price of 1750 (stable). Shanxi’s Lanhua sells large-sized particles at 1890 (a 30% decrease). Jiangsu’s Linggu charges 1860 (stable). Anhui’s Haoyuan has a price of 1830 (stable). Inner Mongolia’s Yiding lists the price at 1680 (stable). Shaanxi’s Shanhua offers products at 1810 (stable). Xinjiang’s Yankuang has a price of 1570 (stable). In Shandong province, the ex-factory price for small and medium-sized particles is 1,800–1,850 yuan per ton; the prevailing transaction price is around 1,780–1,800 yuan per ton. In Linyi, the market price for such particles is 1,860–1,870 yuan per ton, while in Heze it is around 1,850–1,860 yuan per ton, with prices remaining stable for now. In Hebei province, the ex-factory price for small particles is around 1,800 yuan per ton, with the prevailing transaction price at around 1,790 yuan per ton. The ex-factory price for large particles is around 2,040 yuan per ton, also with prices stable for now. In Henan province, the mainstream ex-factory price for small and medium-sized particles is 1,780–1,850 yuan per ton, with prices stable. In Anhui province, the mainstream ex-factory price for small particles is around 1,820–1,850 yuan per ton, with prices stable. In Jiangsu province, the mainstream price for small and medium-sized particles is around 1,820–1,860 yuan per ton, with some companies offering prices 10–20 yuan lower per ton. In Shanxi province, the price for small particles for external delivery is around 1,750 yuan per ton, while the price for large particles under new orders is around 1,880–1,890 yuan per ton; a few companies are offering prices 10 yuan lower per ton. In Inner Mongolia, the mainstream price for small and medium-sized particles for external delivery is around 1,650–1,680 yuan per ton, while the price for large particles is around 1,870 yuan per ton, with prices stable. In Hubei province, the mainstream ex-factory price for small particles is around 1,830–1,850 yuan per ton, with prices stable. In Shaanxi province, the mainstream local sales price for small and medium-sized particles is around 1,810 yuan per ton, with prices stable. In Guangxi province, the mainstream wholesale price for small and medium-sized particles is around 1,950–2,000 yuan per ton, with prices stable. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,910–1,930 yuan per ton, with prices stable. In Guangdong province, the mainstream wholesale price for small particles is around 1,970–2,000 yuan per ton, with prices stable. In Xinjiang, the ex-factory and transaction price is around 1,550–1,600 yuan per ton, with prices stable. In Jilin province, the price for small particles used in urea production is around 2,000 yuan per ton. Some companies have raised their prices by 50 yuan per ton. The transaction price for small-grained urea in Heilongjiang is around 1930–1970 yuan per ton, with prices remaining stable for now. In Liaoning, the freight cost for small-grained urea is 1900–1950 yuan per ton, and the actual transaction price can be negotiated; prices are also stable at present. The overall urea market in China remains stable, with manufacturers adjusting their prices flexibly based on their own circumstances. Currently, as urea prices continue to rise, the willingness of downstream buyers to make purchases decreases, and manufacturers receive few new orders; as a result, they mainly issue orders based on advance payments, which helps to stabilize urea prices. On the supply side, as enterprises that underwent maintenance in the earlier period resumed operations gradually, the overall production level of domestic urea manufacturers continued to rise, leading to an increase in the total supply of urea. On the demand side, about 80% of the fertilizer preparation for agriculture in the north has been completed, while preparations in the south have not yet begun. Orders for factory-based agriculture are gradually decreasing. In the industrial sector, the production volume of compound fertilizers and panels is increasing steadily, with purchases being made based on actual needs. It is expected that the domestic urea market will remain stable with only slight fluctuations in the short term. The domestic urea market is showing a trend of stability with slight declines; the prices of large-grain urea in Shanxi continue to fall, while some manufacturers in Jiangsu have reduced their prices significantly. Demand for industrial urea continues to improve, but the demand for fertilizer preparation in preparation for spring plowing has weakened significantly in many areas. Transactions in the agricultural urea market have slowed down, with downstream buyers purchasing at a reduced pace. There is a strong atmosphere of caution in the overall market. Urea manufacturers have not made any significant adjustments to their prices yet, but transaction volumes have declined slightly. The short-term domestic urea market is showing a weak trend. (Yuege Agricultural Supplies Network