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Urea price trends across China on April 17 Author/Source: Yuege Agri-Materials Web Date: 2020-04-17 Clicks: 9 The domestic urea market remains stable. Following recent price increases in some areas, there is little momentum for further rises in urea prices; market activity has declined, and downstream buyers are less enthusiastic about placing orders. 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, spring plowing is now largely complete, and the agricultural market is in the process of making up for any shortages. Fertilizer manufacturers have already begun producing fertilizers suitable for use in the summer. The demand for urea remains relatively stable, which provides some positive support for the urea market. However, measures such as power restrictions, safety inspections, and environmental regulations in certain areas have led to serious inventory buildup among plywood manufacturers, thereby affecting their demand for urea. It is expected that the domestic urea market will remain stable in the short term, with manufacturers adjusting their prices flexibly based on their own sales performance. Hualu Hengsheng: medium-sized particles at 1710 (stable), large-sized particles at 1910 (down 20); Hebei Dongguang: small-sized particles at 1720 (stable), large-sized particles at 1950 (stable); Henan Xinlianxin: 1710 (stable); Shanxi Lanhua: small-sized particles at 1650 (up 10), large-sized particles at 1670 (down 10); Jiangsu Linggu: 1800 (stable); Anhui Haoyuan: 1770 (stable); Inner Mongolia Boda: 1470 (stable); Shaanxi Shanhua’s direct sales: 1696 (stable); Xinjiang Yunchuang: 1400 (stable). In the Shandong region, the ex-factory price for small and medium-sized particles is 1,700–1,780 yuan per ton; the prevailing transaction price is around 1,680–1,720 yuan per ton. In the Linyi area, the market price for small and medium-sized particles is 1,770–1,780 yuan per ton, while in the Heze area the price is around 1,740–1,750 yuan per ton, with prices remaining stable for now. In the Hebei region, the ex-factory price for small particles is around 1,710–1,720 yuan per ton, with the prevailing transaction price at around 1,700 yuan per ton. The ex-factory price for large particles is around 1,940–1,950 yuan per ton, again with prices remaining stable. In Henan, the Jin Kai urea plant’s medium-sized particle production facility is currently under maintenance, resulting in a reduction in daily production of 1,400 tons. Prices remain stable today: the ex-plant price for medium-sized particles is 1,710 yuan per ton, while that for large-sized particles is 1,730 yuan per ton. Prices can be negotiated upon settlement. Primarily supplies prepaid orders, with downstream purchases made as needed; most shipments go to the industrial sector, and sales remain steady. Recently, the mainstream ex-factory prices of surrounding enterprises are around 1,680–1,700 yuan per ton. In the Henan region, the mainstream ex-factory price for small and medium-sized particles is 1,710–1,760 yuan per ton, with prices remaining stable. In the Anhui region, the mainstream ex-factory price for small particles is around 1,760–1,790 yuan per ton, also stable. In the Jiangsu region, the mainstream price for small and medium-sized particles is around 1,740–1,790 yuan per ton, with prices stable. 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 under new orders is around 1,660–1,680 yuan per ton, with prices stable. In the Inner Mongolia region, the mainstream price for small and medium-sized particles for external delivery is around 1,490–1,550 yuan per ton, and the price for large particles is around 1,600 yuan per ton, with prices stable. In the Hubei region, the mainstream ex-factory price for small particles is around 1,770–1,780 yuan per ton, with prices stable. In the Shaanxi region, the mainstream local sales price for small and medium-sized particles is 1,690 yuan per ton, with prices stable. In the Guangxi region, the mainstream wholesale price for small and medium-sized particles is around 1,860–1,870 yuan per ton, with prices stable. In the Sichuan region, the ex-factory price for small and medium-sized particles is around 1,720–1,800 yuan per ton, with prices stable. In the Guangdong region, the mainstream wholesale price for small particles is around 1,740–1,780 yuan per ton, with prices stable. In the Xinjiang region, the ex-factory transaction price is around 1,380–1,550 yuan per ton, with prices stable. In the Jilin region, the transaction price for small particle urea is 1,980 yuan per ton. Prices remain stable. The transaction price for small-granule urea in Heilongjiang is around 1,790 yuan per ton; prices remain stable. The freight cost for small-granule urea by road in Liaoning ranges from 1,740 to 1,790 yuan per ton, with the actual transaction price subject to negotiation. Prices remain stable. Pressure from factories in the Northwest region is starting to show, resulting in slight decreases in both rail and road transportation costs. The two factories in Shandong have completed maintenance work and resumed operations. Thanks to the production of compound fertilizers and related logistics services in the regions of Shandong, Hebei, and Henan, it is generally possible to maintain a balance between supply and demand in these areas; the latest price changes in Shanxi do not have an impact on them at present. In the MERCOSUR region, the preparation of agricultural fertilizers is carried out in a scattered manner, and industrial demand is weakening. As a result of the accident at a furniture factory in Jiangsu at the beginning of April, safety authorities in various places have intensified inspections of potential hazards in the plywood manufacturing industry, leading to a significant decline in demand for plywood factories. There is currently no clear announcement regarding the duration of the free toll policy for road transport; the provisional implementation period of this policy is until June 30. Overall, market demand remains weak; a slight decline in premium prices is expected, but there are no reasons for a significant drop in the short term. The domestic urea market remains stable but volatile; some urea producers in Shandong have reduced the prices of their large-grain urea by 20 yuan, while those in Shanxi have continued to lower the prices of large-grain urea by 10–20 yuan. At present, most manufacturers have a high volume of pre-paid orders; there is no significant pressure on the sales of small and medium-sized particles at the moment, so they continue to hold their prices and wait to see what happens. Some manufacturers have halted production for maintenance or reduced output, resulting in a decrease in supply. However, given limited demand, the market supply remains relatively ample.