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Urea price trends across China on March 20 Author/Source: Yuege Agri-Materials Web Date: 2020-03-20 Clicks: 11 Urea prices nationwide remain weak; factory prices continue to fall, with no significant improvement in transaction volumes. Currently, the international economic situation is quite volatile; crude oil prices have dropped to around $25, and global financial markets have been significantly affected by this decline in oil prices. The domestic urea market is focusing on whether the tender will be issued tomorrow; the market hopes that the release of this tender will help stabilize the domestic market. However, based on current international prices, there is still a significant price disparity. Given the current supply and demand situation in the country, daily production levels remain high. The price of melamine, which is a downstream product of urea, remains around the break-even point. Demand for finished products from plate manufacturers has declined, and urea still holds an advantage over liquid ammonia; therefore, it is difficult to reach a bottom price at the current levels. Hualu Hengsheng: medium-sized particles at 1750 (stable), large-sized particles at 2020 (stable); Hebei Dongguang: small-sized particles at 1760 (10% decrease), large-sized particles at 1990 (10% decrease); Henan Xinlianxin: 1760 (stable); Shanxi Fengxi: 1690 (stable); Jiangsu Linggu: 1810 (stable); Anhui Haoyuan: 1800 (stable); Inner Mongolia Boda: 1650 (stable); Shaanxi Shanhua’s domestic sales at 1766 (stable), while external sales are at 1680 (10% decrease). In Shandong province, the ex-factory price for small and medium-sized particles is 1,750–1,810 yuan per ton; the prevailing transaction price is around 1,740–1,750 yuan per ton. In Linyi, the market price for such particles is 1,800–1,810 yuan per ton, while in Heze the price is around 1,790 yuan per ton, with some companies offering prices 10 yuan lower per ton. In Hebei province, the ex-factory price for small particles is around 1,750–1,780 yuan per ton, with the prevailing transaction price at around 1,750–1,760 yuan per ton. The ex-factory price for large particles is around 2,000 yuan per ton, with prices remaining stable for now. In Henan province, the typical ex-factory price for small and medium-sized particles is 1,760–1,800 yuan per ton, though some companies offer prices 10 yuan lower per ton. Henan Xinchuanxin produces vehicle urea as usual; the ex-factory price for Hailan vehicle urea is 2,080 yuan per ton, while that for Tianlan vehicle urea is 2,180 yuan per ton. Menglan vehicle urea currently has no fixed price, and deals are negotiated on a case-by-case basis. Previous orders will continue to be fulfilled, with appropriate replenishments to the downstream side. The reference outlet price for small-particle urea in Anhui region is 1,800–1,850 yuan per ton, with prices remaining stable for now. The urea production facility in Anhui’s Hong Sifang is operating normally, producing 1,000 tons per day, and inventory levels are limited. The current factory price for small particles is 1,820 yuan per ton; prices are negotiable on a case-by-case basis. Supplies are mainly supplied to the surrounding areas; existing orders continue to be fulfilled, while demand from downstream customers remains steady but modest. In Jiangsu, the standard price for small and medium-sized particles is around 1,780–1,820 yuan per ton; some companies offer prices 10 yuan per ton lower. In Shanxi, the price for small particles for external delivery is around 1,650–1,690 yuan per ton, while the price for large particles for new orders is around 1,820–1,830 yuan per ton, with prices remaining stable for now. In Inner Mongolia, the standard price for small and medium-sized particles for external delivery is around 1,580–1,680 yuan per ton, and the price for large particles is around 1,800 yuan per ton; some companies offer prices 20 yuan per ton lower. In Hubei, the standard price for small particles at the factory is around 1,830–1,850 yuan per ton, with prices remaining stable. In Shaanxi, the standard price for small and medium-sized particles for local sales is around 1,760 yuan per ton, with prices staying stable. In Guangxi, the average wholesale price for small and medium-sized particles is around 1,930 yuan per ton, with a decrease of 10 yuan per ton. In Sichuan, the factory price for small and medium-sized particles is around 1,820–1,900 yuan per ton, with prices remaining stable. In Guangdong, the average wholesale price for small particles is around 1,900–1,940 yuan per ton, with a decrease of 20 yuan per ton. In Xinjiang, the price at the factory is around 1,550–1,600 yuan per ton, with prices remaining stable. In Jilin, the price for small particle urea is around 1,980 yuan per ton. Quotations remain stable. The transaction price for small-grained urea in Heilongjiang is around 1,930–1,970 yuan per ton; these prices remain stable as well. In Liaoning, the freight cost for small-grained urea is 1,800–1,840 yuan per ton, with the actual transaction price subject to negotiation. Quotations remain stable. The urea market continues to show weak performance, with poor trading activity; companies are receiving few new orders. Following the recent decline in urea prices, some manufacturers have seen a slight improvement in order intake. Currently, procurement demands in the agricultural sector are relatively scattered; downstream plywood manufacturers and compound fertilizer companies mainly place small-scale orders, with reduced enthusiasm for purchasing. There is a strong atmosphere of caution among these downstream entities, and prices have continued to decline slightly in some areas. The domestic urea market is expected to remain weak in the short term, with attention focused on upcoming tenders in India.