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Urea price trends across China on April 28 Author/Source: Yuege Agri-Materials Website Date: 2020-04-28 Clicks: 55 The price of urea in China continues to decline; manufacturers are having difficulty securing new orders, and there is no improvement in terms of sales. With the May Day holiday approaching, many manufacturers need to accumulate orders to be shipped during the holiday. Some manufacturers in Shandong, Hebei, Henan, Shanxi, Anhui, Jiangsu and other regions have further reduced their prices. On the demand side, domestic end-market demand remains weak at present; agricultural purchases are spread out, production levels in compound fertilizer and panel manufacturing industries have slightly declined, and industrial demand has weakened. The domestic urea market is expected to remain under pressure and decline in the short term. Hualu Hengsheng: medium-sized particles at 1670 (stable), large-sized particles at 1830 (a 20% decrease); Hebei Dongguang: small-sized particles at 1680 (a 10% decrease), large-sized particles at 1860 (a 20% decrease); Henan Xinlianxin: 1680 (stable); Shanxi Fengxi: 1600 (stable); Jiangsu Linggu: 1800 (stable); Anhui Haoyuan: 1720 (stable); Inner Mongolia Boda: 1470 (stable); Shaanxi Shanhua’s direct sales: 1696 (stable); Xinjiang Yankuang: 1400 (stable). In the Shandong region, the ex-factory price for small and medium-sized particles is 1,670–1,730 yuan per ton, with the typical transaction price ranging from 1,660–1,680 yuan per ton. In the Linyi area, the market price for such particles is 1,720–1,730 yuan per ton, while in the Heze area it’s around 1,700–1,710 yuan per ton. Since the weekend, some manufacturers have reduced their prices by 10–20 yuan per ton. In the Hebei region, the ex-factory price for small particles is around 1,680–1,700 yuan per ton, with the typical transaction price at around 1,660–1,680 yuan per ton; the ex-factory price for large particles is around 1,880 yuan per ton. Again, since the weekend, some manufacturers have lowered their prices by 10–20 yuan per ton. In the Henan region, the typical ex-factory price for small and medium-sized particles is 1,680–1,720 yuan per ton. Since the weekend, some companies have reduced their prices by 10–30 yuan per ton. In the Anhui region, the typical ex-factory price for small particles is around 1,720–1,760 yuan per ton; since the weekend, a few companies have lowered their prices by 20 yuan per ton. In the Jiangsu region, the typical price for small and medium-sized particles is around 1,720–1,770 yuan per ton; again, since the weekend, some companies have reduced their prices by 20 yuan per ton. In the Shanxi region, the export price for small particles is around 1,570–1,620 yuan per ton, while the price for large particles is around 1,640 yuan per ton. Since the weekend, some manufacturers have lowered their prices by 10–20 yuan per ton. In the Inner Mongolia region, the typical export price for small and medium-sized particles is around 1,460–1,550 yuan per ton, while the price for large particles is around 1,600 yuan per ton. In the Hubei region, the typical ex-factory price for small particles is around 1,750–1,770 yuan per ton, with prices remaining stable for now. In the Shaanxi region, the typical local sales price for small and medium-sized particles is 1,660 yuan per ton, with a decrease of 30 yuan per ton. In the Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,820 yuan per ton, with prices remaining stable. In the Sichuan region, the ex-factory price for small and medium-sized particles is around 1,720–1,770 yuan per ton, with prices remaining stable. In the Guangdong region, the typical wholesale price for small particles is around 1,820–1,850 yuan per ton, with some prices reduced by 10 yuan per ton. In the Xinjiang region, the ex-factory and transaction prices are around 1,380–1,470 yuan per ton, with prices remaining stable. In the Jilin region, the price for small particles containing urea is around 1,760–1,820 yuan per ton. Quotations remain stable. The transaction price for small-grained urea in Heilongjiang is around 1690–1740 yuan per ton. Quotations remain stable as well; the freight-cost adjusted price for small-grained urea in Liaoning is 1700–1760 yuan per ton, with the actual transaction price subject to negotiation. Some companies are offering prices 10 yuan per ton lower. The ex-factory prices of manufacturers upstream continue to decline, with mainstream ex-factory prices in North China dropping by 10–20 yuan per ton, though it is expected that further declines will be limited. The preferential railway policies for Shanxi came into effect today, leading to stability in factory prices in this region where rail transport plays a key role. On the demand side, downstream demand continues to weaken; the production capacity for high-nitrogen fertilizers is gradually decreasing. Affected by the power supply interruptions during the May Day holiday, the operating rates of some sheet metal factories in Shandong will drop significantly. Meanwhile, due to difficulties in selling finished products, the operating rates of sheet metal factories in North China after the holiday will be even lower than they are currently. The overall market is characterized by a strong atmosphere of caution; most urea manufacturers are facing difficulties in collecting payments for new orders, so they continue to reduce prices as a promotional tactic. Yuege Agri-Resources Network expects the market to remain in a weak downward trend in the short term.