Urea price trends across China on April 24

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Urea price trends across China on April 24 Author/Source: Yuege Agri-Materials Network Date: 2020-04-24 Clicks: 8 The domestic urea market is operating in a weak state; market activity has declined, with downstream buyers being more cautious and showing less enthusiasm for making purchases. New orders from manufacturers are also at a modest level. Some manufacturers in Shandong, Hebei, Anhui, Shanxi and other regions have reduced their prices by 10–30 yuan per ton. Based on the current data available, there is no significant support for an increase in domestic urea prices; Yuege Agrochemicals expects that the domestic urea market will remain weak in the short term. Currently, the market supply is relatively sufficient, and enterprises’ advance purchases have decreased slightly. In terms of demand, demand remains low in various regions; there is limited essential demand in the agricultural sector, while industrial demand is modest, with downstream companies making purchases based on their own circumstances. Production enterprises are facing moderate pressure in terms of sales and production. 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. On the demand side, the downstream market is in a slow period of demand; spring plowing has largely been completed, and the agricultural market is in the process of addressing any remaining gaps. 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. Hualu Hengsheng: medium-sized particles at 1680 (stable), large-sized particles at 1870 (stable); Hebei Dongguang: small-sized particles at 1690 (stable), large-sized particles at 1880 (stable); Henan Xinlianxin: 1700 (stable); Shanxi Fengxi: 1600 (stable); Jiangsu Linggu: 1780 (20% decrease); Anhui Haoyuan: 1720 (stable); Inner Mongolia Boda: 1470 (stable); Shaanxi Shanhua’s direct sales: 1696 (stable); Xinjiang Yankuang: 1400 (stable). The ex-factory price for small and medium-sized particles in Shandong region is 1,690–1,750 yuan per ton, with the typical transaction price ranging between 1,680–1,690 yuan per ton. In Linyi region, the market price for such particles is 1,740 yuan per ton, while in Heze region it ranges from 1,720–1,730 yuan per ton. Some manufacturers have reduced their prices by 10 yuan per ton. Ruixing Chemical quotes 1,710 yuan per ton, with prices remaining stable for now; Mingshui Chemical quotes 1,740 yuan per ton, also with stable prices; Yangmei Pingyuan quotes 1,685 yuan per ton, again with stable prices. Overall, the ex-plant price of urea in Shandong region remains stable today, with actual transaction prices determined through negotiation. In Hebei region, the ex-factory price of small particles is around 1,700–1,720 yuan per ton, with the prevailing transaction price being around 1,690–1,700 yuan per ton. The ex-factory price of large particles is around 1,880 yuan per ton; some manufacturers have reduced their prices by 10 yuan per ton. In Henan region, the prevailing ex-factory prices for small and medium-sized particles are around 1,710–1,750 yuan per ton, with some manufacturers reducing their prices by 10 yuan per ton. In Anhui region, the prevailing ex-factory price for small particles is around 1,740–1,760 yuan per ton, with prices remaining stable for now. In Jiangsu region, the prevailing prices for small and medium-sized particles are around 1,740–1,770 yuan per ton, with some manufacturers reducing their prices by 20 yuan per ton. In Shanxi region, the ex-factory price for small particles is around 1,570–1,660 yuan per ton; the price for large particles under new orders is around 1,660 yuan per ton, with some manufacturers reducing their prices by 10–30 yuan per ton. In Inner Mongolia region, the prevailing ex-factory prices for small and medium-sized particles are 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 for now. In Hubei region, the prevailing ex-factory price for small particles is around 1,750–1,770 yuan per ton, with some manufacturers reducing their prices by 20 yuan per ton. In Shaanxi region, the prevailing local sales price for small and medium-sized particles is around 1,690 yuan per ton, with prices remaining stable. In Guangxi region, the prevailing wholesale price for small and medium-sized particles is around 1,830–1,850 yuan per ton, with prices remaining stable. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,740–1,780 yuan per ton, with prices remaining stable. In Guangdong region, the prevailing wholesale price for small particles is around 1,840–1,860 yuan per ton, with prices remaining stable. In Xinjiang region, the prevailing transaction price is around 1,380–1,550 yuan per ton, with prices remaining stable. In Jilin region, the transaction price for small particle urea is around 1,760–1,820 yuan per ton. Prices remain stable. The transaction price for small-grain urea in Heilongjiang is around 1690–1740 yuan per ton; prices remain stable as well. The freight cost for small-grain urea in Liaoning is 1740–1760 yuan per ton, with the actual transaction price subject to negotiation. The urea market is stable but showing a slight decline; demand is low during this off-season, and the overall trading atmosphere is not favorable. Urea manufacturers are seeing a noticeable slowdown in receipts from new orders, and with fewer orders pending shipment, inventory pressures are increasing. In the short term, the domestic urea market is operating in a weak, stagnant state.