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Urea price trends across China on March 25 Author/Source: Yuege Agri-Materials Website Date: 2020-03-25 Clicks: 12 The domestic urea market continued to show a downward trend, with a weak trading atmosphere. Domestic urea manufacturers have gradually increased production, resulting in an ample supply in the market. At present, manufacturers are mainly handling orders placed earlier; there is a lack of confidence in the market at the moment, and downstream buyers are cautious in their purchases. This creates pressure on manufacturers to secure new orders, leading to a decrease in shipments, and prices in some areas continue to fall. On the demand side, agriculture in the northern regions has largely come to an end; at present, downstream rubber sheet manufacturers and compound fertilizer companies are mainly making minor replenishments, with a strong atmosphere of caution among them. On the international front, RCF India issued a tender for urea imports on March 21; the tender will close on March 30, with shipment to take place by May 5. The volume of urea called for in this Indian tender is likely to exceed 1 million tons. It is expected that the domestic urea market will remain weak in the short term until the pricing in India becomes clear. In the main production areas, urea manufacturers are maintaining stable but downward pricing, with transaction prices continuing to decline slightly; actual transactions are generally settled on a case-by-case basis. Most agricultural fertilization is complete, with industrial users mainly making occasional purchases at low prices. Domestic urea production remains high, the supply-demand imbalance is evident, and a pessimistic attitude prevails. Although India has launched a new round of bidding, the price has not yet been determined. The domestic urea market is expected to experience weak downward adjustments in the short term. Hualu Hengsheng: medium-sized particles at 1720 (stable), large-sized particles at 2020 (stable); Hebei Dongguang: small-sized particles at 1750 (stable), large-sized particles at 1990 (stable); Henan Xinlianxin: 1720 (20% decrease); Shanxi Fengxi: 1650 (stable); Jiangsu Linggu: 1790 (20% decrease); Anhui Haoyuan: 1770 (10% decrease); Inner Mongolia Boda: 1580 (stable); Shaanxi Shanhua’s domestic sales: 1706 (stable), external sales: 1630 (stable). In Shandong region, the ex-factory price for small and medium-sized particles is 1,720–1,790 yuan per ton; the prevailing transaction price is around 1,720–1,740 yuan per ton. In Linyi region, the market price for small and medium-sized particles is 1,780 yuan per ton, while in Heze region it ranges from 1,760–1,770 yuan per ton. Some companies offer prices 10 yuan lower per ton. In Hebei region, the ex-factory price for small particles is around 1,750–1,760 yuan per ton, with the prevailing transaction price at around 1,730 yuan per ton. The ex-factory price for large particles is around 1,990 yuan per ton, though some companies offer prices 10 yuan lower per ton. In Henan region, the mainstream ex-factory price for small and medium-sized particles is 1,720–1,760 yuan per ton, with some companies offering prices 10–20 yuan lower per ton. In Anhui region, the mainstream ex-factory price for small particles is around 1,760–1,820 yuan per ton, with some companies offering prices 20 yuan lower per ton. In Jiangsu region, the mainstream price for small and medium-sized particles is around 1,750–1,800 yuan per ton, with some companies offering prices 20–30 yuan lower per ton. In Shanxi region, the price for small particles sold externally is around 1,600–1,670 yuan per ton, while the price for large particles for new orders is around 1,740–1,750 yuan per ton. Some companies offer prices 50 yuan lower per ton. In Inner Mongolia region, the mainstream price for small and medium-sized particles sold externally is around 1,550–1,590 yuan per ton, while the price for large particles is around 1,780 yuan per ton. Some companies offer prices 20 yuan lower per ton for large particle urea. In Hubei region, the mainstream ex-factory price for small particles is around 1,750–1,800 yuan per ton, with some companies offering prices 30–50 yuan lower per ton. In Shaanxi region, the mainstream local sales price for small and medium-sized particles is 1,700 yuan per ton, with prices remaining stable for now. In Guangxi region, the mainstream wholesale price for small and medium-sized particles is around 1,880 yuan per ton, with prices lowered by 20 yuan per ton. In 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 for now. In Guangdong region, the mainstream wholesale price for small particles is around 1,850–1,860 yuan per ton, with prices lowered by 30–40 yuan per ton. In Xinjiang region, the ex-factory and transaction prices are around 1,550–1,600 yuan per ton, with prices remaining stable for now. In Jilin region, the transaction 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; prices remain stable. The freight cost for small-grained urea in Liaoning is 1,800–1,840 yuan per ton, with the actual transaction price subject to negotiation. Quotations remain stable. The price of urea across the country continues to decline; domestic supply remains high, but demand remains weak. Industrial users in the Northeast have reduced their inventory levels to a minimum, while traders are selling at lower prices. Prices of large-grain products in Shanxi and Inner Mongolia have dropped significantly; there is less new purchasing in the southern markets, while a few traders are optimistic about taking advantage of the current situation to buy at low prices. Today, there are rumors that the printing and marking process might be delayed; if these reports are confirmed by the Indian side, domestic market prices are likely to continue falling, so close monitoring is necessary.