Urea price trends across China on May 7

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Urea price trends across China on May 7 Author/Source: Yuege Agri Supplies Network Date: 2020-05-07 Clicks: 63 The domestic urea market is operating in a weak condition; manufacturers are receiving fewer advance orders, and new orders are not coming in easily, leaving some companies under pressure to sell their products. In the mainstream regions, the quotes offered by most companies remain stable for now, but sales of new orders are generally modest. In peripheral areas such as Inner Mongolia and Shanxi, prices have dropped significantly, by around 50 yuan per ton, returning to the level seen at the start of the previous price cycle. Recently, the market has been primarily focused on processing orders ahead of the festival, but demand has not improved significantly after the festival. Industrial activity has declined, while agricultural activities have progressed slowly due to high price levels. Additionally, there is a generally cautious attitude among participants, resulting in a slightly relaxed supply and demand situation in the market at present. Currently, prices in Inner Mongolia and Shanxi have seen a significant decline first, serving as a benchmark for the current market trend. However, these prices are mostly inverted compared to market prices in major regions, making them less attractive to merchants. As a result, merchants continue to fulfill their earlier orders, leading to a brief period of market stagnation for a few days. Downstream sheet metal and compound fertilizer manufacturers are operating at a decent level, with production generally carried out on demand. For India’s new round of tenders, the opening bid prices are 279.74 cfr for the west coast and 285.70 cfr for the east coast; these prices represent an increase of 23–28 dollars per ton compared to the previous round, but they remain lower than domestic prices, resulting in modest enthusiasm among suppliers to participate. It is expected that the domestic urea market will remain stable with only slight fluctuations in the short term. Today, in Shandong, Hualu Hengsheng: medium-sized particles at 1990, large-sized particles at 2160. In Hebei, Dongguang: small-sized particles at 1980, large-sized particles at 2140. In Henan, Xinlianxin: 2000; Yangmei Heshun: 1920. In Jiangsu, Linggu: 2090; Anhui Haoyuan: 2100. In Inner Mongolia, Boda: 1800. In Xinjiang, Kuitun Jinjiang: 1820. In Shandong region, the reference price for small and medium-sized particles at the factory level is 1,990–2,060 yuan per ton. The wholesale price in Linyi market is around 2,050 yuan per ton, while in Heze market it remains stable at around 2,050 yuan per ton. In Hebei region, the quoted price for small particles is around 1,990–2,020 yuan per ton, with no changes for now. In Henan region, the mainstream factory price for small particles is 2,000–2,040 yuan per ton, also stable. In Anhui region, the mainstream factory price for small particles is around 2,060–2,100 yuan per ton, stable as well. In Jiangsu region, the mainstream prices for small and medium-sized particles are around 2,070–2,100 yuan per ton, stable. In Shanxi region, the reference price for small particles is around 1,900–1,910 yuan per ton, while that for large particles is around 1,930–1,940 yuan per ton. Some companies have reduced their prices for small particles by 40 yuan per ton. In Inner Mongolia region, the mainstream transaction price for small and medium-sized particles is around 1,800–1,840 yuan per ton; some companies have lowered their prices by 50 yuan per ton. In Hubei region, the mainstream price for small particles is 2,030–2,060 yuan per ton, stable. In Shaanxi region, the reference factory price is around 1,960 yuan per ton, stable. In Guangxi region, the mainstream wholesale price is around 2,180–2,200 yuan per ton, stable. In Sichuan region, the factory price for small and medium-sized particles is 2,000–2,100 yuan per ton, stable. In Guangdong region, the mainstream price for small particles is around 2,180–2,200 yuan per ton, stable. In Xinjiang region, the reference transaction price is around 1,700–1,780 yuan per ton, stable. In Jilin region, the factory price for urea is around 2,050 yuan per ton; larger orders can be negotiated at different prices, still stable. In Heilongjiang region, the reference price for urea imported from other regions is around 2,100 yuan per ton, stable. In Liaoning region, the freight cost for transporting small particles of urea is around 2,060–2,070 yuan per ton; the actual price can be negotiated, still stable. There are no significant changes in the prices offered by urea manufacturers in the main production areas; actual prices are determined on a case-by-case basis, and sales of new orders are not performing well. Manufacturers near the port are able to take on a moderate number of small export orders without any pressure in terms of delivery; whereas manufacturers in other regions face increasing sales pressure due to insufficient payments for new orders, resulting in a shift in the focus of transactions to lower-value orders. The short-term market is likely to remain stable or experience a slight decline.