Urea price trends across China on April 22

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Urea price trends across China on April 22 Author/Source: Yuege Agri-Materials Network Date: 2020-04-22 Clicks: 4 The domestic urea market is operating in a weak condition; trading activity has declined, downstream buyers are more cautious, and their enthusiasm for making purchases has slowed down. New orders from manufacturers are also being processed at a modest pace. Today, some manufacturers in Shandong, Hebei, Anhui, Shanxi and other regions have reduced their prices by 10–30 yuan per ton. On the supply side, the overall operating rate of urea manufacturers has recently dropped to around 75%, with a daily production volume of about 153,000 tons, which represents a decrease compared to previous levels of supply. 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 started producing fertilizers suitable for the summer season. 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. The domestic urea market shows weak growth, with insufficient demand in many areas, which has led to more cautious purchasing by downstream users. Manufacturers are facing difficulties in securing new orders and are primarily fulfilling previous orders. Market prices fluctuate frequently, and most businesses remain cautious about the market outlook in the future, hesitating to stock up rashly. Zhuochuang believes that the domestic urea market is likely to face pressure and see a decline in the short term, with variations across different regions. Hualu Hengsheng: medium-sized particles at 1680 (a decrease of 20), large-sized particles at 1870 (stable); Hebei Dongguang: small-sized particles at 1700 (stable), large-sized particles at 1880 (a decrease of 10); Henan Xinlianxin: 1700 (stable); Shanxi Lanhua: small-sized particles at 1650 (stable), large-sized particles at 1670 (stable); Jiangsu Linggu: 1800 (stable); Anhui Haoyuan: 1720 (a decrease of 20); Inner Mongolia Boda: 1470 (stable); Shaanxi Shanhua’s direct sales: 1696 (stable); Xinjiang Yankuang: 1400 (stable). In Shandong province, the ex-factory price for small and medium-sized particles is 1,690–1,760 yuan per ton; the prevailing transaction price is around 1,680–1,690 yuan per ton. In Linyi, the market price for such particles is 1,750–1,760 yuan per ton, while in Heze it’s around 1,730–1,740 yuan per ton. Some manufacturers have reduced their prices by 10 yuan per ton. In Hebei, the ex-factory price for small particles is around 1,700–1,720 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 1,880 yuan per ton, with some manufacturers reducing their prices by 10 yuan per ton. In Henan, 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, the prevailing ex-factory price for small particles is around 1,740–1,760 yuan per ton, though some companies have reduced their prices by 20 yuan per ton. In Jiangsu, the prevailing price for small and medium-sized particles is around 1,750–1,790 yuan per ton, with prices remaining stable. In Shanxi, the export price for small particles is around 1,570–1,660 yuan per ton, while the price for large particles is around 1,660 yuan per ton. Some manufacturers have reduced their prices by 10–30 yuan per ton. In Inner Mongolia, the prevailing export price for small and medium-sized particles is around 1,490–1,550 yuan per ton, while the price for large particles is around 1,600 yuan per ton, with prices remaining stable. In Hubei, the ex-factory price for small particles is around 1,770–1,780 yuan per ton, with prices remaining stable. In Shaanxi, the local sales price for small and medium-sized particles is around 1,690 yuan per ton, with prices remaining stable. In Guangxi, the prevailing wholesale price for small and medium-sized particles is around 1,840–1,850 yuan per ton, with prices remaining stable. In Sichuan, the ex-factory price for small and medium-sized particles is around 1,720–1,790 yuan per ton, with prices remaining stable. In Guangdong, the prevailing wholesale price for small particles is around 1,850–1,8600 yuan per ton, with prices remaining stable. In Xinjiang, the ex-factory and transaction prices are around 1,380–1,550 yuan per ton, with prices remaining stable. In Jilin, the transaction price for small particle 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-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. In terms of supply, following the price drop in the northwest region yesterday, there was a slight increase in orders received, but factory orders in the North China region remain weak. The factory in Xinjiang is under significant inventory pressure and is seeking to sell its products outside the region. On the demand side, current market inventory levels remain low, and spot transactions are still satisfactory. Demand for high-nitrogen fertilizers remains stable, while demand from sheet metal manufacturers is weak. Demand in Jilin and Liaoning within the Northeast market has essentially come to an end; there is slight replenishment in the Heilongjiang market, while the agricultural markets in the South are gradually starting to stock up. In the short term, the market remains stagnant; factories are likely to have demand for orders ahead of the May Day holiday, so prices will continue to fluctuate only slightly.