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Urea price trends across China on April 21 Author/Source: Yuege Agri Supplies Network Date: 2020-04-21 Clicks: 16 Urea prices in China remained relatively stable overall, with slight downward fluctuations in some areas. Compared to last Friday, prices in some areas of Hebei dropped by 10 yuan per ton, while large-sized particles saw a decrease of 50 yuan per ton. In Anhui, prices dropped by 10 yuan per ton in certain areas; in Jiangsu, prices increased by 10 yuan per ton in some places. In Shandong, small-sized particles dropped by 10–20 yuan per ton in certain areas, and large-sized particles dropped by 40 yuan per ton. In Shanxi, prices dropped by 10 yuan per ton in some areas. At present, during the fertilizer application period for rice in some domestic markets, combined with localized production cuts or shutdowns for maintenance, supply has decreased slightly. New orders are being placed at a moderate pace, with a cautious attitude prevailing among buyers. Meanwhile, large-scale production of compound fertilizers is coming to an end in the Northeast, and many domestic rubber sheet manufacturers have halted operations or reduced production, resulting in relatively weak industrial demand in the market. Traders remain cautious about stocking up, preferring to purchase and use goods as needed; thus, the trading atmosphere remains sluggish. It is expected that urea prices in certain areas of the country will continue to stay low in the near future. Hualu Hengsheng: medium-sized particles at 1700 (a decrease of 10), large-sized particles at 1870 (a decrease of 40); Hebei Dongguang: small-sized particles at 1720 (stable), large-sized particles at 1890 (a decrease of 60); Henan Xinlianxin: 1710 (stable); Shanxi Lanhua: small-sized particles at 1650 (stable), large-sized particles at 1670 (stable); Jiangsu Linggu: 1800 (stable); Anhui Haoyuan: 1740 (a decrease of 20); Inner Mongolia Boda: 1470 (stable); Shaanxi Shanhua’s direct sales: 1696 (stable); Xinjiang Yankuang: 1400 (stable). The urea production facility in Henan Xinxinxin is operating normally, with a current daily output of 5,600 tons, of which more than 2,000 tons are regular urea. The ex-factory price for small particles is 1,700 yuan per ton. Previous orders continue to be fulfilled, downstream purchases are made as needed, and new orders are processed slowly. The urea plant in Anhui Hong Sifang is operating normally, with a production capacity of 1,000 tons per day; inventory is limited. The factory price for small particles is 1,750 yuan per ton; prices are negotiated on a case-by-case basis. Supplies are mainly supplied to the surrounding areas; existing orders continue to be fulfilled, while new orders are modest in volume. In Shandong province, the ex-factory price for small and medium-sized particles is 1,700–1,770 yuan per ton; the prevailing transaction price is around 1,690–1,700 yuan per ton. In Linyi, the market price for such particles is 1,760 yuan per ton, while in Heze it ranges from 1,730–1,740 yuan per ton. Some manufacturers have reduced their prices by 10 yuan per ton. In Hebei province, the ex-factory price for small particles is around 1,710–1,720 yuan per ton, with the prevailing transaction price at around 1,690–1,700 yuan per ton. The ex-factory price for large particles is around 1,890 yuan per ton, with some manufacturers reducing their prices by 10 yuan per ton. In Henan province, the prevailing ex-factory price for small and medium-sized particles is 1,710–1,760 yuan per ton, with prices remaining stable for now. In Anhui province, the prevailing ex-factory price for small particles is around 1,760–1,790 yuan per ton, also with prices stable. In Jiangsu province, the prevailing price for small and medium-sized particles is around 1,750–1,790 yuan per ton; some companies have increased their prices by 10 yuan per ton since the weekend. In Shanxi province, 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 1,660 yuan per ton. Some manufacturers have reduced their prices by 10–20 yuan per ton since the weekend. In Inner Mongolia, the prevailing price for small and medium-sized particles for external delivery is around 1,490–1,550 yuan per ton, with the price for large particles around 1,600 yuan per ton, and prices remain stable. In Hubei province, the ex-factory price for small particles is around 1,770–1,780 yuan per ton, with prices stable. In Shaanxi province, the prevailing local sales price for small and medium-sized particles is 1,690 yuan per ton, with prices stable. In Guangxi province, the prevailing wholesale price for small and medium-sized particles is around 1,840–1,850 yuan per ton, with some prices dropping by 10 yuan per ton. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,720–1,790 yuan per ton, with prices stable. In Guangdong province, the prevailing wholesale price for small particles is around 1,850–1,8600 yuan per ton, with prices stable. In Xinjiang, the ex-factory and transaction prices are around 1,380–1,550 yuan per ton, with prices stable. In Jilin province, the price for small particles used in urea production 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-based price for small-grained urea in Liaoning ranges from 1,740 to 1,790 yuan per ton, with the actual transaction price subject to negotiation. The urea market is operating in a stable but weak environment, with reduced activity in market transactions. Downstream buyers are more cautious, and their enthusiasm for making purchases has declined. Manufacturers are seeing only average levels of new orders, and those companies that receive fewer prepayments are experiencing slight price reductions. On the supply side, recently the overall operating rate of urea producers has dropped to around 75%. Daily output is approximately 153,000 tons, which represents a decrease compared to previous supply levels. On the demand side, the downstream market is in a low-demand period; spring plowing has largely been completed, and the agricultural market is now 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 weak in the short term, with manufacturers adjusting their prices flexibly based on their own sales performance. Prices at factories in the northwest and Shandong provinces have seen a slight decrease, while factory prices in the areas along the river remain stable on the surface but are actually dropping, indicating pressure on factories further upstream. Upstream daily production has returned to 160,000 tons, leaving overall supply still ample. On the demand side, downstream agricultural demand remains relatively fragmented. The southwestern region is currently in the peak season for agricultural fertilizer use; preparations for rice cultivation-related fertilizer procurement are underway in Jiangsu, Anhui, and the two Hubei provinces. In the northeastern region, industrial fertilizer procurement has largely been completed, with only final touches remaining for agricultural fertilizer preparation. In the central and northern regions, production of high-nitrogen fertilizers is expected to continue for another 20 days to a month. Currently, factories have raw material inventories sufficient for about 10 days, and the pace of stockpiling has slowed down. The operating rate of board factories is less than 50%, marking a significant decline compared to the same period in previous years. Prices are expected to remain weak and range-bound in the short term.