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Urea price trends across China on April 2 / Author/Source: Yuege Agri Supplies Network / Date: 2020-04-02 / Clicks: 40. The domestic urea market continued to show a slight downward trend; demand from end-users was weak, resulting in an oversupply situation in the market. Trading activity remained sluggish, and sentiment among industry players was pessimistic. On the supply side, as plants have resumed operations one after another recently, the operational rate of enterprises has risen to around 79%, with daily production approaching 160,000 tons; as a result, inventory pressure on manufacturers is increasing. On the demand side, April is traditionally a slow period for the domestic urea market; agricultural demand in the north has largely come to an end, and there is only limited fertilizer use for early rice cultivation in the south, which provides little support for the market. In terms of industrial demand, compound fertilizers are mainly used to consume existing inventory, with only small amounts being purchased. Demand from plywood factories remains weak, and recovery is slow. The short-term domestic urea market is still expected to decline; ongoing attention should be paid to developments regarding Indian pricing. Hualu Hengsheng: medium-sized particles at 1670 (stable), large-sized particles at 1950 (20% decrease); Hebei Dongguang: small-sized particles at 1720 (stable), large-sized particles at 1940 (20% decrease); Henan Xinlianxin: 1680 (stable); Shanxi Fengxi: 1610 (20% decrease); Jiangsu Linggu: 1790 (stable); Anhui Haoyuan: 1740 (stable); Inner Mongolia Boda: 1510 (stable); Shaanxi Shanhua’s direct sales: 1706 (stable); Xinjiang Yankuang: 1400 (stable). In Shandong province, the ex-factory price for small and medium-sized particles is 1,670–1,740 yuan per ton; the prevailing transaction price is around 1,670–1,680 yuan per ton. In Linyi, the market price for such particles is 1,740 yuan per ton, while in Heze it is around 1,730 yuan per ton. Some companies have reduced their prices by 10 yuan per ton. In Hebei province, the ex-factory price for small particles is around 1,700–1,720 yuan per ton, with the prevailing transaction price at around 1,700 yuan per ton. The ex-factory price for large particles is around 1,940–1,960 yuan per ton; some companies have lowered their prices for large particle urea by 20 yuan per ton. In Henan province, the prevailing ex-factory price for small and medium-sized particles is 1,690–1,740 yuan per ton, with some companies reducing their prices by 10 yuan per ton. In Anhui province, the prevailing ex-factory price for small particles is around 1,720–1,780 yuan per ton, with prices remaining stable for now. In Jiangsu province, the prevailing price for small and medium-sized particles is around 1,740–1,780 yuan per ton, also remaining stable. In Shanxi province, the export price for small particles is around 1,550–1,640 yuan per ton, while the price for large particles is around 1,670 yuan per ton. Some companies have reduced their prices by 20–50 yuan per ton. In Inner Mongolia, the prevailing export price for small and medium-sized particles is around 1,480–1,550 yuan per ton, while the price for large particles is around 1,750–1,780 yuan per ton. Some companies have reduced their prices by 10–20 yuan per ton. In Hubei province, the ex-factory price for small particles is around 1,750–1,800 yuan per ton, with prices remaining stable. In Shaanxi province, the local sales price for small and medium-sized particles is around 1,700 yuan per ton, also remaining stable. In Guangxi province, the prevailing wholesale price for small and medium-sized particles is around 1,870–1,880 yuan per ton, with prices remaining stable. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,820–1,900 yuan per ton, with prices remaining stable. In Guangdong province, the prevailing wholesale price for small particles is around 1,850–1,860 yuan per ton, with prices remaining stable. In Xinjiang, the transaction price is around 1,450–1,620 yuan per ton, with prices remaining stable. In Jilin province, the transaction price for small particle urea is around 1,980 yuan per ton. Quotations remain stable. The transaction price for small-grain urea in Heilongjiang is around 1,790 yuan per ton; some companies are offering prices 70 yuan lower per ton. In Liaoning, the freight-cost adjusted price for small-grain urea ranges from 1,720 to 1,770 yuan per ton, with possible discounts of 40 yuan per ton depending on the negotiations. Urine prices across the country continue to stay at low levels. Prices at factories in Shanxi and Inner Mongolia have dropped slightly, while sales at lower price points have seen some improvement; however, sales at higher price points remain sluggish. Overall, there is still an excess supply in the market. On the demand side, agricultural demand in the south has started to increase; purchases of large-grain products in the northeast have improved compared to last week. The overall operation level of compound fertilizer factories is satisfactory, but those involved in the production of panels and melamine are operating at a lower level. Internationally, the export price has been delayed in being announced, and domestic expectations continue to decline. When converted to China’s FOB price of 240 dollars per ton, the prices in Inner Mongolia are now roughly on par with that figure; however, prices in Shandong, Hebei, and Shanxi are still lower. It is expected that domestic prices will remain largely stable in the short term, with ongoing attention needed to the printing and marking situation. The domestic urea market is showing a downward trend but remains stable; urea producers in Shandong have stopped price declines and kept their prices steady, with the mainstream ex-factory price ranging from 1670 to 1700 yuan per ton, while the price at the lower end is 1630 to 1650 yuan per ton. In Shanxi, the price at the lower end is 1550 yuan per ton. Currently, the overall domestic fertilizer market is dominated by negative factors; demand for urea is weak, and there is insufficient positive support, so the market is likely to continue its downward trend in the short term.