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Urea price trends across China on April 27 Author/Source: Yuege Agri-Materials Network Date: 2020-04-27 Clicks: 22 Prices of urea in various parts of the country continued to decline. On the supply side, the ex-plant prices of upstream factories continued to drop by 10–20 yuan per ton, but demand remained weak. On the demand side, the operating rate of compound fertilizers continued to decline slightly, while sales downstream to sheet metal factories were poor, leading to a reduction in demand. The main focus in the market today is the possible changes in the transportation sector. Although tolls are not currently in effect on national highways, barriers have been reinstalled in many areas, and the exact timing for the resumption of toll collection remains unclear. As for railways, according to the information available so far, the freight cost for fertilizers on some routes has decreased by 30%, and this measure will benefit most factories in Shanxi. Overall, the market sentiment is bearish; purchases are primarily aimed at meeting current demand. Factories still face pressure to accept orders ahead of the holiday, and prices have further room to drop. Market trading activity remains moderate, with downstream parties remaining cautious; new order volumes from manufacturers continue to be average, and some companies are under pressure to collect payments in advance. On the supply side, the operating rate of domestic urea manufacturers is currently around 78%, with a daily production volume of about 160,000 tons. On the demand side, the downstream market is in a low-demand period; spring plowing has largely been completed, and the agricultural market is focused on filling any remaining gaps. Industrial demand is mainly driven by actual needs. Yuege Agricultural Inputs Network predicts 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 prevailing ex-factory prices of small-particle urea in the Shandong region have seen a slight decline: Ruixing Chemical quotes 1,690 yuan per ton, with prices remaining stable for now; Mingshui Chemical quotes 1,740 yuan per ton, also with stable prices; Yangmei Pingyuan quotes 1,675 yuan per ton, showing a slight drop of 10 yuan per ton. Overall, the ex-plant price of urea in Shandong region declined slightly today, with actual transaction prices determined through negotiation. Shandong Ruixing Chemical Co., Ltd. has an annual urea production capacity of 1.6 million tons, and currently its daily production is around 4,000 tons. The spot price for small-particle urea is 1,690 yuan per ton; the quote remains stable for now, with the actual transaction price determined through negotiation. The enthusiasm for purchasing downstream is moderate, and the supply of urea is normal. The urea production equipment at Yangmei Pingyuan Chemical Co., Ltd. is operating normally. Small-grain urea costs 1,675 yuan per ton, with a slight decrease in price of 10 yuan per ton. The enthusiasm for purchasing downstream is moderate, and the supply of urea is normal. The urea production equipment at Shandong Jinmei Mingshui Chemical Group Co., Ltd. is operating normally, with a daily production capacity of around 1,200 tons. The price of small-particle urea is 1,740 yuan per ton; this price remains stable for now, while the actual transaction price is determined through negotiation. Henan Xinlianxin’s automotive urea is being produced as usual, with prices remaining unchanged for now. The ex-factory price of Hai Lan automotive urea is 2,030 yuan per ton, while that of Tian Lan automotive urea is 2,130 yuan per ton. No price has been set yet for Meng Lan automotive urea; the price will be determined on a case-by-case basis depending on the order. Continue to process previous orders, while adding a moderate number of new orders.