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Urea price trends across China on April 14 Author/Source: Yuege Agri-Materials Website Date: 2020-04-14 Clicks: 47 The domestic urea market continued to show a steady, slight upward trend; market activity was satisfactory, companies were receiving good orders, and there was a sufficient amount of orders pending shipment. Manufacturers maintained relatively firm pricing. On the supply side, some facilities are currently under maintenance or temporarily shut down, resulting in a decrease in available market inventory. On the demand side, agricultural markets in some areas are making up for any shortages; production volumes at plywood factories and compound fertilizer manufacturers remain satisfactory, with additional orders placed as needed. It is expected that the domestic urea market will remain stable with only slight price increases in some areas in the short term, as manufacturers adjust their prices flexibly based on their own sales performance. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,700–1,780 yuan per ton, with the typical transaction price ranging from 1,680–1,720 yuan per ton. In the Linyi area, the market price for such particles is 1,760–1,770 yuan per ton, while in the Heze area it’s around 1,740–1,750 yuan per ton. Since the weekend, some companies have raised their prices by 10–20 yuan per ton. In the Hebei region, the ex-factory price for small particles is around 1,700–1,720 yuan per ton, with the typical transaction price at around 1,690 yuan per ton; the ex-factory price for large particles is around 1,940–1,950 yuan per ton. A few companies have increased their prices by 10 yuan per ton. In the Henan region, the typical ex-factory price for small and medium-sized particles is 1,710–1,760 yuan per ton; since the weekend, some companies have raised their prices by 10–20 yuan per ton. In the Anhui region, the typical ex-factory price for small particles is around 1,760–1,790 yuan per ton; since the weekend, some companies have increased their prices by 10 yuan per ton. In the Jiangsu region, the typical price for small and medium-sized particles is around 1,750–1,790 yuan per ton; since the weekend, some companies have raised their prices by 10–30 yuan per ton. In the Shanxi region, the price for small particles for external delivery is around 1,620–1,670 yuan per ton, while the price for large particles for new orders is around 1,710–1,720 yuan per ton; prices remain stable for now. In the Inner Mongolia region, the typical price for small and medium-sized particles for external delivery is around 1,510–1,550 yuan per ton, while the price for large particles is around 1,750–1,780 yuan per ton. Since the weekend, some companies have increased their prices by 10 yuan per ton. In the Hubei region, the typical ex-factory price for small particles is around 1,750–1,800 yuan per ton; prices remain stable. In the Shaanxi region, the typical local sales price for small and medium-sized particles is 1,670 yuan per ton; prices remain stable. In the Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,860–1,870 yuan per ton; prices remain stable. In the Sichuan region, the ex-factory price for small and medium-sized particles is around 1,720–1,800 yuan per ton; prices remain stable. In the Guangdong region, the typical wholesale price for small particles is around 1,850–1,870 yuan per ton; prices remain stable. In the Xinjiang region, the typical transaction price is around 1,380–1,500 yuan per ton; prices remain stable. In the Jilin region, the price for small particles containing urea is around 1,980 yuan per ton. Quotations remain stable. The transaction price for small-grained urea in Heilongjiang is around 1,790 yuan per ton; quotations remain stable as well. The freight cost for small-grained urea in Liaoning ranges from 1,720 to 1,770 yuan per ton, with the actual transaction price subject to negotiation. In terms of supply, due to rising prices of synthetic ammonia, some factories have shifted to producing synthetic ammonia, and temporary shutdowns have further reduced production volumes. As a result, the daily output of urea has decreased, and the inventory pressure on factories has largely been alleviated; however, a few factories are facing difficulties in obtaining supplies. On the demand side, the downstream compound fertilizer industry has entered the high-nitrogen fertilizer production season, resulting in a slight increase in the demand for urea compared to previous periods. Fertilizer preparation for agricultural needs in the northeast continues; rice seedling cultivation has begun in the markets along the rivers, and fertilizer preparation in the agricultural sector is getting under way, with increased shipments in factory-based agriculture. In the Shandong region, supply has become slightly tight due to temporary maintenance at two factories, resulting in a slight increase in delivery prices in the market. In the short term, the market is expected to remain stable and strong. Currently, demand for urea in the domestic market is limited, while supply remains ample. The overall trading atmosphere remains fairly normal; downstream traders remain cautious in their stockpiling efforts. However, with the start of fertilizer use for rice cultivation, some production facilities are reducing output or have plans for maintenance, which leads to a slight decrease in supply. Coupled with the fact that some traders are stocking up to an appropriate extent, companies are able to secure new orders fairly easily, and shipments proceed smoothly. There is a tendency to raise prices further, and it is expected that prices for urea in the domestic market will remain volatile, with some areas showing continued upward trends.