Urea price trends across China on April 16
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Urea price trends across China on April 16Author/Source: Yuege Agricultural Supplies Network
Date: April 16, 2020
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In the domestic urea market, prices showed mixed trends. Urea producers in Shandong raised their prices by 10 yuan across the board. In Inner Mongolia, some producers with previously low prices increased them by 20 yuan. In Jiangsu, a few manufacturers and producers in Shanxi lowered their high-end quotes by 10–30 yuan. In other regions, prices remained largely stable, with market participants adopting a wait-and-see attitude. Currently, market demand is still dominated by the industrial sector, with only occasional replenishments in agriculture; overall, the trading atmosphere in the market remains moderate. For most manufacturers, pending orders are satisfactory, and there is no pressure in terms of shipments. The short-term domestic urea market is likely to remain stable with only slight fluctuations. The domestic urea market remains generally stable, with prices fluctuating in some regions. In certain areas, market trading activity has slowed down, and downstream buyers have become less eager to place orders. On the supply side, current maintenance or short-term shutdowns of some facilities have led to a decrease in available market stock. The domestic urea market is operating in a stable and moderate manner; thanks to smooth logistics, manufacturers primarily use road transport for shipments, and supply levels in various regions are satisfactory. Corporate inventories are gradually easing; meanwhile, due to reduced output at some facilities, the spot supply remains tight. In the short term, the domestic urea market is expected to remain relatively stable. Attention should continue to be paid to developments regarding production facilities. On the demand side, spring plowing is now largely complete, and the agricultural market is in the process of addressing any remaining gaps. Fertilizer manufacturers have already started 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. In the short term, the domestic urea market is expected to remain stable, with manufacturers flexibly adjusting their quotes based on their actual sales performance. Hualu Hengsheng’s medium-sized particles are priced at 1710 (a 10% increase), while large-sized particles cost 1930 (no change); Hebei Dongguang’s small-sized particles are priced at 1720 (a 10% increase), and large-sized particles cost 1950 (no change); Henan Xinlianxin’s products are priced at 1710 (no change); Shanxi Fengxi’s products are priced at 1620 (no change); Jiangsu Linggu’s products are priced at 1800 (no change); Anhui Haoyuan’s products are priced at 1770 (no change); Inner Mongolia Boda’s products are priced at 1470 (no change); Shaanxi Shanhua’s local sales products are priced at 1696 (no change); Xinjiang Yankuang’s products are priced at 1400 (no change). In the Shandong region, the ex-factory prices for medium and small-sized granules range from 1,700 to 1,780 yuan per ton. The prevailing transaction prices are around 1,680–1,720 yuan per ton. In the Linyi area, the market purchase price for medium and small-sized granules is 1,770–1,780 yuan per ton; in the Heze area, it is approximately 1,740–1,750 yuan per ton. Some manufacturers have raised their quotes by 10–20 yuan per ton. In Hebei, the ex-factory price for small-sized granules is around 1,710–1,720 yuan per ton, with the typical transaction price being about 1,690 yuan per ton. The ex-factory price for large-sized granules is roughly 1,940–1,950 yuan per ton; a few manufacturers have increased their quotes by 10 yuan per ton. In Henan, the typical ex-factory price for medium and small-sized granules remains stable at 1,710–1,760 yuan per ton. In Anhui, the typical ex-factory price for small-sized granules is also stable at 1,760–1,790 yuan per ton. In Jiangsu, the typical price for medium and small-sized granules is around 1,740–1,790 yuan per ton; however, some manufacturers have lowered their quotes by 10 yuan per ton. In Shanxi, the reference price for exporting small-sized granules is approximately 1,620–1,670 yuan per ton, while that for large-sized granules is around 1,660–1,680 yuan per ton; these prices remain unchanged for now. In Inner Mongolia, the typical export price for medium and small-sized granules is about 1,490–1,550 yuan per ton, while the price for large-sized granules is roughly 1,600 yuan per ton; a few manufacturers have reduced their quotes for large-sized urea by 20 yuan per ton. In Hubei, the typical ex-factory price for small-sized granules is around 1,770–1,780 yuan per ton, with no changes observed. In Shaanxi, the typical local sales price for medium and small-sized granules is approximately 1,690 yuan per ton, which remains stable. In Guangxi, the typical wholesale price for medium and small-sized granules is around 1,860–1,870 yuan per ton, with no fluctuations. In Sichuan, the ex-factory price for medium and small-sized granules stays stable at 1,720–1,800 yuan per ton. In Guangdong, the typical wholesale price for small-sized granules is about 1,740–1,780 yuan per ton, with no changes. In Xinjiang, the ex-factory transaction price ranges from 1,380 to 1,550 yuan per ton, remaining unchanged. In Jilin, the transaction price for small-sized urea is approximately 1,980 yuan per ton. Quotations remain stable. The transaction price for small-grain urea in Heilongjiang is around 1,790 yuan per ton; quotations remain stable as well. The freight cost for small-grain urea in Liaoning is between 1,740 and 1,790 yuan per ton, with the actual transaction price subject to negotiation. Quotations remain stable; the daily production of urea has declined slightly to 158,000 tons, but it remains at a relatively high level. It is expected that urea production in April will increase by 400,000 tons compared to the same period last year. On the demand side, the production of high-nitrogen fertilizers and the preparation of fertilizers for agriculture along the rivers in the Northeast were the main drivers of the market during this period; the overall pace of stockpiling was moderate, supply was somewhat ample, and the process of printing labels, shipping, and unloading helped to relieve some of the pressure on factories. India has issued new long-term contract tenders, but the target is mainly factories in the Middle East, and the prices required are lower than current market rates; this is likely to be unattractive to suppliers in the international market, with no impact on the domestic market for now. Short-term market prices are expected to remain relatively stable.