Urea price trends across China on March 26

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Urea price trends across China on March 26 Author/Source: Yuege Agri-Materials Network Date: 2020-03-26 Clicks: 128 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 in advance; confidence in the market is low at the moment, and downstream buyers are cautious, which puts pressure on manufacturers to secure new orders. As the amount of goods awaiting shipment decreases, prices in some areas are expected to fall further. On the demand side, agriculture in the northern region has largely come to an end; at present, downstream rubber sheet manufacturers and compound fertilizer companies are only making minor replenishments, with a strong tendency among them to wait and observe. The ex-factory price of Henan Xinlianxin urea in small granules is 1,720 yuan per ton; the final price will be determined through negotiation. The plant is operating normally, with a current daily production of 5,400 tons, of which less than 1,000 tons is ordinary urea. Previous orders continue to be fulfilled; market demand is weak. The urea production unit at Shandong Luxi Chemical is still shut down, and no price is available for medium-grain urea at the moment. Market activity remains steady; currently, the reference ex-plant price for small and medium-sized particles from nearby manufacturers is around 1,720 yuan per ton. Hualu Hengsheng: medium-sized particles at 1720 (stable), large-sized particles at 2020 (stable); Hebei Dongguang: small-sized particles at 1740 (10% decrease), large-sized particles at 1980 (10% decrease); Henan Xinlianxin: 1720 (stable); Shanxi Fengxi: 1650 (stable); Jiangsu Linggu: 1790 (stable); Anhui Haoyuan: 1750 (20% decrease); Inner Mongolia Boda: 1510 (70% decrease); Shaanxi Shanhua’s direct sales: 1706 (stable). On the international front, RCF India issued a tender for urea imports on March 21; the tender period will end 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. The domestic urea market is expected to remain weak until the pricing in India becomes clear. In Shandong province, the ex-factory price for small and medium-sized particles is 1,720–1,790 yuan per ton, with the typical transaction price ranging from 1,700–1,740 yuan per ton. In Linyi, the market price for such particles is 1,770–1,780 yuan per ton, while in Heze it is around 1,760–1,770 yuan per ton; prices remain stable for now. In Hebei, the ex-factory price for small particles is about 1,740–1,760 yuan per ton, with the typical transaction price at around 1,720–1,730 yuan per ton. The ex-factory price for large particles is around 1,980 yuan per ton, though some companies have reduced their prices by 10 yuan per ton. In Henan, the typical ex-factory price for small and medium-sized particles is 1,720–1,760 yuan per ton, with some companies lowering their prices by 20 yuan per ton. In Anhui, the typical ex-factory price for small particles is around 1,760–1,780 yuan per ton, with some companies reducing their prices by 20–60 yuan per ton. In Jiangsu, the typical price for small and medium-sized particles is around 1,750–1,800 yuan per ton; prices remain stable for now. In Shanxi, the price for small particles for external delivery is around 1,600–1,660 yuan per ton, while the price for large particles for new orders is around 1,710–1,720 yuan per ton. Some companies have reduced 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 1,550–1,590 yuan per ton, with the price for large particles around 1,780 yuan per ton. Some companies have reduced the price of large particle urea by 20 yuan per ton. In Hubei, the typical ex-factory price for small particles is around 1,750–1,800 yuan per ton; prices remain stable for now. In Shaanxi, the typical local sales price for small and medium-sized particles is 1,700 yuan per ton; prices remain stable. In Guangxi, the typical wholesale price for small and medium-sized particles is around 1,880 yuan per ton; prices remain stable. In Sichuan, the ex-factory price for small and medium-sized particles is around 1,820–1,900 yuan per ton; prices remain stable. In Guangdong, the typical wholesale price for small particles is around 1,850–1,860 yuan per ton; prices remain stable. In Xinjiang, the typical transaction price is around 1,450–1,620 yuan per ton; prices remain 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 1930–1970 yuan per ton; prices remain stable there as well. In Liaoning, the freight-cost adjusted price for small-grained urea is 1760–1810 yuan per ton, with the actual transaction price subject to negotiation – it can be reduced by 40 yuan per ton. The domestic urea market is characterized by a state of stagnation, with manufacturers in the main production areas offering prices that are slightly lower while actual transactions are determined on a case-by-case basis. Market demand remains insufficient, the overall market trend is weak, there is an oversupply situation, and further price declines are expected in many areas. The domestic urea market is expected to experience weak adjustments in the short term. On the supply side, the prices of large-grain urea at upstream factories in Shanxi and Inner Mongolia regions continued to decline. On the demand side, the demand from compound fertilizer manufacturers and sheet metal factories in North China remained stable, with no significant increase; purchases were made cautiously. On the international front, Indian President Modi said yesterday that the country would implement a three-week lockdown; several Indian ports have declared force majeure, which is expected to have a significant negative impact on India and Bangladesh, putting pressure on urea prices. In the short term, close attention must still be paid to the development of the international pandemic situation.