Urea price trends across China on May 15

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Urea price trends across China on May 15 Author/Source: Yuege Agri Supplies Network Date: 2020-05-15 Clicks: 13 The mainstream urea market in China remains stable, with fluctuations in prices in some areas; overall, trading activity in the market is still weak, and there is a strong tendency among downstream buyers to wait and see. In Shandong province, the arrival of urea from other provinces has decreased, which has led to a slight improvement in new orders from local companies, and some manufacturers have tentatively raised their prices. Currently, the operating capacity of domestic urea manufacturers remains high, resulting in a relatively ample supply in the urea market. On the demand side, downstream companies in the compound fertilizer and panel manufacturing sectors are cautious with their purchases, opting to buy only as needed; meanwhile, there is little enthusiasm among agricultural entities for stockpiling supplies. On the international front, the bidding results in India were announced on May 8; 14 companies participated in the bidding, with a total bid 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. Based on various sources of data, Yuege Agricultural Inputs Network predicts that the domestic urea market will remain stagnant in the short term, with manufacturers adjusting their prices flexibly according to their own circumstances. Shandong Hualu Hengsheng: medium-sized particles at 1580 (a rise of 10), large-sized particles at 1660 (a rise of 40); Hebei Dongguang: small-sized particles at 1600 (stable), large-sized particles at 1680 (stable); Henan Xinlianxin: 1610 (a rise of 10); Shanxi Fengxi: 1520 (stable); Jiangsu Linggu: small-sized particles at 1750 (stable), medium-sized particles at 1710 (a drop of 20); Anhui Haoyuan: 1690 (a rise of 10); Inner Mongolia Boda: 1450 (stable); Shaanxi Shanhua: local sales price at 1586 (a drop of 40); Xinjiang Yankuang: 1360 (stable). In Shandong province, the ex-factory price for small and medium-sized particles is 1,560–1,640 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 1,640 yuan per ton, while in Heze it ranges from 1,610 to 1,620 yuan per ton. Some companies have raised their prices by 10–20 yuan 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 1,560–1,620 yuan per ton. A few companies have increased their prices by 10 yuan 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, with prices remaining stable. In Shanxi province, the wholesale price for small particles is around 1,490–1,540 yuan per ton, while the price for large particles is around 1,530 yuan per ton, with prices remaining stable. In Inner Mongolia, the prevailing wholesale 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 selling price for small and medium-sized particles is around 1,580–1,620 yuan per ton, with a few companies having reduced their prices by 40 yuan per ton. 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 1,660–1,740 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 remaining stable. 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. Prices remain stable. The transaction price for small-grained urea in Heilongjiang is around 1,660 yuan per ton; prices remain stable as well. The freight-cost adjusted price for small-grained urea in Liaoning ranges from 1,660 to 1,720 yuan per ton, with the actual transaction price subject to negotiation. Prices remain stable; market conditions in regions such as Shandong have improved, leading to a slight increase of 10 yuan per ton in factory prices. In other regions, factory prices have stopped falling and sales conditions have seen some improvement. Today’s market performance lacked some momentum, remaining generally stable, with new orders being average. The rise in prices this time is due, on the one hand, to low inventory levels at the end-users, which leads to more concentrated purchasing based on demand, as well as a strengthening trend in coal prices with expectations of further increases. On the other hand, some factories have announced maintenance plans for the near future and in June, leading the market to believe that the oversupply situation will ease. However, at present, before there is a real reduction on the supply side, if demand in the industrial and agricultural sectors does not see substantial improvement, then the effect of merely some traders building up their inventory levels will still be limited in terms of driving up market prices. Manufacturers in Shandong offer low prices; cash collection has improved slightly, with prices rising by 10 yuan. There is a strong element of speculation, and the atmosphere for making deals has not improved markedly. In the agricultural sector, demand remains low during off-seasons; industrial users purchase as needed, resulting in scattered demand and considerable barriers to price increases. In the short term, the domestic urea market will continue to show weak consolidation.