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Urea price trends across China on May 14 Author/Source: Yuege Agri-Materials Network Date: 2020-05-14 Clicks: 43 The domestic urea market remains weak; there is little activity in trading. There is a strong bearish sentiment among traders, and enthusiasm for stockpiling is low. Manufacturers face increased pressure to sell their products, so some of them continue to reduce prices in an attempt to attract buyers. On the demand side, domestic demand has not shown any improvement yet. Fertilizer manufacturers producing high-nitrogen fertilizers are gradually reducing such production, which leads to a decrease in the demand for urea as a raw material. The operating capacity of panel manufacturing plants is low, with production being carried out on an as-needed basis. In the agricultural sector, demand is low during the off-season in many areas, and purchases are scattered, resulting in limited support for the market. On the international front, the bidding results in India were announced on May 8; 14 companies submitted bids, with a total bidding volume of 2.393 million tons. The price on the east coast was 231.90 USD per ton CFR, which translates to approximately 1,530 yuan per ton when adjusted for delivery costs at the port. The possibility of supply from within India is low. The domestic urea market is expected to remain weak in the short term. Shandong Hualu Hengsheng: medium-sized particles at 1570 (a rise of 10), large-sized particles at 1620 (stable); Hebei Dongguang: small-sized particles at 1600 (stable), large-sized particles at 1680 (stable); Henan Xinlianxin: 1600 (stable); Shanxi Lanhua: small-sized particles at 1540 (a drop of 10), large-sized particles at 1530 (a drop of 10); Jiangsu Linggu: medium-sized particles at 1730 (stable); Anhui Haoyuan: 1680 (stable); Inner Mongolia Boda: 1450 (stable); Shaanxi Shanhua’s direct sales: 1626 (stable); Xinjiang Yankuang: 1360 (stable). In Shandong province, the ex-factory price for small and medium-sized particles is 1,560–1,620 yuan per ton; the prevailing transaction price is around 1,550–1,600 yuan per ton. In Linyi, the market price for such particles is 1,630 yuan per ton, while in Heze it ranges from 1,610 to 1,620 yuan per ton. Some companies offer prices 10 yuan lower per ton. In Hebei province, the ex-factory price for small particles is around 1,600–1,650 yuan per ton, with the prevailing transaction price at around 1,580–1,600 yuan per ton. The ex-factory price for large particles is around 1,680 yuan per ton, with prices remaining stable for now. In Henan province, the ex-factory price for small and medium-sized particles is 1,600–1,650 yuan per ton, while the prevailing transaction price is around 1,570–1,620 yuan per ton. Some companies offer prices 10–20 yuan lower per ton. In Anhui province, the ex-factory price for small particles is around 1,680–1,720 yuan per ton, with prices remaining stable. In Jiangsu province, the prevailing price for small and medium-sized particles is around 1,630–1,740 yuan per ton; some manufacturers offer prices 30 yuan lower per ton. In Shanxi province, the export price for small particles is around 1,510–1,540 yuan per ton, while the price for large particles is around 1,530 yuan per ton. Some companies offer prices 20 yuan lower per ton. In Inner Mongolia, the prevailing export price for small and medium-sized particles is around 1,440–1,520 yuan per ton, while the price for large particles is around 1,570 yuan per ton, with prices remaining stable. In Hubei province, the ex-factory price for small particles is around 1,700 yuan per ton, with prices remaining stable. In Shaanxi province, the local sales price for small and medium-sized particles is around 1,540–1,620 yuan per ton, with prices remaining stable. In Guangxi province, the prevailing wholesale price for small and medium-sized particles is around 1,800 yuan per ton, with prices remaining stable. In Sichuan province, the ex-factory price for such particles is around 1,690–1,740 yuan per ton, with prices remaining stable. In Guangdong province, the prevailing wholesale price for small particles is around 1,790–1,820 yuan per ton, with prices reduced by 10 yuan per ton. In Xinjiang, the transaction price is around 1,380–1,470 yuan per ton, with prices remaining stable. In Jilin province, the price for small particles containing urea is around 1,700–1,740 yuan per ton. Quotations remain stable. The transaction price for small-grain urea in Heilongjiang is around 1,660 yuan per ton; quotations remain stable as well. The freight-cost adjusted price for small-grain urea in Liaoning ranges from 1,660 to 1,720 yuan per ton, with the actual transaction price subject to negotiation. Quotations remain stable; urea manufacturers in Shanxi and other regions have reduced their prices by another 10-20 yuan. Overall, there is no significant improvement in market conditions. In some areas of Shanxi, a few manufacturers are charging slightly higher prices, with an increase of around 10 yuan in their quotations. Demand for agricultural urea remains weak, and there is insufficient support from industrial demand; therefore, it is difficult for demand to improve in the near term. The situation of supply exceeding demand will continue, and the domestic urea market is expected to remain in a state of weak stability in the short term. The domestic urea market continues to show a downward trend, with weak demand support and low confidence among market participants, leading to a generally cautious attitude. Both domestic and international markets are showing signs of weakness; the operating load on production facilities remains high, resulting in a situation where supply exceeds demand for now. Agricultural demand provides weak support, while industrial orders are placed on a demand-driven basis; Yuege Agricultural Inputs Network expects the domestic urea market to remain weak in the short term.