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Urea price trends across China on March 19 / Author/Source: Yuege Agri-Materials Website / Date: 2020-03-19 / Clicks: 89. The domestic urea market remains weak, with a poor trading atmosphere. Agricultural demand has declined at present, while the operating rates of downstream industries are increasing slowly. Plywood manufacturers and compound fertilizer companies are mainly placing limited new orders, showing reduced enthusiasm for purchasing. A cautious attitude is growing among downstream buyers, resulting in difficulties for companies in securing new orders, and transaction volumes have dropped in some areas. Currently, domestic urea manufacturers are operating at high capacity, resulting in high daily urea production levels; thus, there is an ample supply of urea in the market. It is expected that urea prices in some domestic regions will continue to decline slightly in the short term. Hualu Hengsheng’s medium-sized particles are priced at 1750 (a 10% decrease), while large-sized particles cost 2020 (no change); Hebei Dongguang’s small-sized particles are priced at 1770 (no change), and large-sized particles cost 2000 (no change); Henan Xinlianxin’s products are priced at 1760 (a 20% decrease); Shanxi Fengxi’s products are priced at 1690 (a 20% decrease); Jiangsu Linggu’s products are priced at 1810 (a 20% decrease); Anhui Haoyuan’s products are priced at 1800 (a 20% decrease); Inner Mongolia Boda’s products are priced at 1650 (no change). Shaanxi Shanhua’s products are priced at 1766 for local sales, and 1690 for external sales (no change). The price of small particles at the Northwest factory has dropped by nearly 100 yuan per ton compared to earlier periods. The price drop at the North China factory is around 50 yuan per ton. Currently, sales in the Northeast market have come to a standstill. The operation rates of compound fertilizer and rubber sheet factories in Shandong remain decent; although agricultural demand is fading, industrial demand persists. The agricultural demand in MERCOSUR is relatively fragmented, with a cautious bearish market sentiment that focuses on absorbing existing inventory. Today, rumors are circulating in the market that India will announce a new round of tendering on March 20, with the deadline for submissions set for March 27 and the validity period lasting until March 31; the intended quantity to be purchased is over 1 million tons. However, this information has not yet been confirmed by Indian authorities. Affected by this, a few traders believe that Indian pricing will provide support for domestic prices, and they have begun to build positions at current levels. The international pandemic situation remains severe, commodity prices continue to fall sharply, and a general pessimistic atmosphere has spread to the global fertilizer market. It is expected that urea prices will continue to fluctuate slightly downward in the short term. It remains to be seen whether the printing mark can serve as a turning point to break the current situation. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,750–1,820 yuan per ton, with the typical transaction price ranging from 1,740–1,750 yuan per ton. In the Linyi area, the market price for such particles is 1,810–1,820 yuan per ton. In the Jiaozuo area, the purchase price for small and medium-sized particles is around 1,790 yuan per ton; some companies offer prices 10 yuan lower per ton. In the Hebei region, the ex-factory price for small particles is around 1,750–1,780 yuan per ton, with the typical transaction price being around 1,750–1,760 yuan per ton. The ex-factory price for large particles is around 2,000 yuan per ton; a few companies offer prices 10 yuan lower per ton. In the Henan region, the typical ex-factory price for small and medium-sized particles is 1,760–1,780 yuan per ton, with some companies offering prices 10–20 yuan lower per ton. In the Anhui region, the typical ex-factory price for small particles is around 1,800–1,850 yuan per ton; a few companies offer prices 10 yuan lower per ton. In the Jiangsu region, the typical price for small and medium-sized particles is around 1,780–1,830 yuan per ton, with some companies offering prices 10 yuan lower per ton. In the Shanxi region, the export price for small particles is around 1,650–1,710 yuan per ton, while the price for large particles for new orders is around 1,820–1,830 yuan per ton. Prices remain stable for now. In the Inner Mongolia region, the typical export price for small and medium-sized particles is around 1,620–1,680 yuan per ton, with the price for large particles around 1,800 yuan per ton. A few companies offer prices 70 yuan lower per ton for large particle urea. In the Hubei region, the typical ex-factory price for small particles is around 1,830–1,850 yuan per ton, with prices remaining stable. In the Shaanxi region, the typical local sales price for small and medium-sized particles is 1,760 yuan per ton, with prices remaining stable. In the Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,940–1,950 yuan per ton, with prices remaining stable. In the Sichuan region, the ex-factory price for small and medium-sized particles is around 1,820–1,900 yuan per ton, with prices remaining stable. In the Guangdong region, the typical wholesale price for small particles is around 1,920–1,960 yuan per ton, with prices remaining stable. In the Xinjiang region, the transaction price at the factory is around 1,550–1,600 yuan per ton, with prices remaining stable. In the Jilin region, the transaction price for small particle urea is around 1,980 yuan per ton. The price has been reduced by 20 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. The freight-cost-based price for small-grained urea in Liaoning is 1840–1950 yuan per ton, and the actual transaction price can be negotiated; prices are also stable at present. The opening price of the main urea contract (UR005) on March 17 was 1699.0000 yuan, and the closing price was also 1699.0000 yuan, representing a decrease of 9.0000 yuan compared to the previous trading day, or a change of (-0.53)%. The settlement price was 1695.0000 yuan. The open interest of the main contract decreased by 3,980 contracts, with a total of 50,100.0000 contracts traded during the day. The opening price of today’s main urea contract (UR005) was 1,696 yuan.