Urea price trends across China on May 19

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Urea price trends across China on May 19 Author/Source: Yuege Agri-Materials Website Date: 2020-05-19 Clicks: 3 The domestic urea market continued to show a steady or slightly upward trend, with a moderate level of trading activity. Some downstream distributors purchased goods in moderation, driven by the strategy of buying when prices are rising rather than falling. Following recent purchases, manufacturers have accumulated a certain amount of stock ready for shipment, so there is no significant pressure in the short term. Some manufacturers in Shandong, Hebei, Henan, Shanxi, Anhui, Jiangsu and other regions have raised their prices by 10–30 yuan per ton since the weekend. On the supply side, the operating rate of domestic urea manufacturers is currently around 72%, with a daily production volume of about 150,000 tons, which represents a decrease compared to previous levels. On the demand side, agricultural producers in some areas of the south are making moderate purchases to stock up at present, but demand is fairly scattered, which limits its impact on the market. Companies that produce compound fertilizers and panels are cautious in their purchases, opting to buy only what they need as it is required. Yuege Agri-Inputs Network expects that the domestic urea market will remain stable with only slight fluctuations in the short term, as manufacturers adjust their prices flexibly based on their own circumstances. In Hebei, prices rose slightly by 20 yuan/ton in some areas; in Shandong, they increased by 20 yuan/ton. In Henan, prices went up by 10–20 yuan/ton in some regions, while in a few areas they dropped by 50 yuan/ton. In Jiangsu, prices rose by 40 yuan/ton. In Anhui and Shanxi, prices increased by 10–20 yuan/ton in certain areas. In Heilongjiang, prices fell by 60 yuan/ton in some places; in Inner Mongolia, they decreased by 30 yuan/ton. In Ningxia, prices dropped by 10–30 yuan/ton, and in Xinjiang, they fell by 20 yuan/ton in a few areas. At present, some urea production facilities in East China, North China, and Central China have ceased operations or plan to do so. The market atmosphere remains fairly favorable, with some companies still intending to raise prices slightly. However, most agricultural demand in the north has not yet emerged, industrial production is limited, and market demand is insufficient; as a result, the situation of supply exceeding demand persists. Sales in certain areas of Northwest China and North China are poor, and a pessimistic atmosphere prevails. It is expected that domestic urea prices will remain volatile in the near term, showing fluctuations with an overall weak trend. To understand the specific market trends, attention should be paid to the operation status of urea production facilities and the onset of agricultural demand. Shandong Hualu Hengsheng’s medium-sized particles are priced at 1600 (a rise of 10), while large-sized particles cost 1670 (also a rise of 10); Hebei Dongguang’s small-sized particles are priced at 1620 (a rise of 20); Henan Xinlianxin’s products are priced at 1610 (stable); Shanxi Fengxi’s products are priced at 1520 (stable); Jiangsu Linggu’s small-sized particles are priced at 1720 (stable), and its medium-sized particles are priced at 1710 (stable); Anhui Haoyuan’s products are priced at 1710 (a rise of 10); Inner Mongolia Boda’s products are priced at 1420 (a drop of 30); Shaanxi Shanhua’s locally sold products are priced at 1586 (stable); Xinjiang Yankuang’s products are priced at 1360 (stable). In the Shandong region, the ex-factory price for small and medium-sized particles is 1,610–1,660 yuan per ton, while the typical transaction price ranges from 1,590–1,640 yuan per ton. In the Linyi area, the market price for such particles is 1,660–1,670 yuan per ton, whereas in the Heze area it is around 1,640–1,650 yuan per ton. Since the weekend, some companies have raised their prices by 10–20 yuan per ton. In the Hebei region, the ex-factory price for small particles is around 1,620–1,650 yuan per ton, with the typical transaction price being around 1,590–1,610 yuan per ton; the ex-factory price for large particles is around 1,680 yuan per ton. Since the weekend, a few companies have increased their prices by 20 yuan per ton. In the Henan region, the typical ex-factory price for small and medium-sized particles is 1,610–1,650 yuan per ton, while the typical transaction price ranges from 1,580–1,620 yuan per ton. Since the weekend, some companies have raised their prices by 10 yuan per ton. The ex-factory price for the small particles produced by Henan Xinlianxin Urine Company is 1,610 yuan per ton. The plant’s capacity is not fully utilized; currently, it produces around 4,000 tons per day, of which about 1,500 tons are ordinary urea. Previous orders are being fulfilled as usual; trading is moderate, and shipments are satisfactory. The large-grain urea production plant in Henan Jin Kai has been shut down for maintenance due to equipment issues, with restoration expected this week. Prices remain stable today; the reference price for large and medium-sized particles at the factory is 1,610 yuan per ton, with prices negotiable upon transaction. Primarily serving advance orders; recent purchases by downstream clients at an appropriate level have led to a slight improvement in trading activity. Currently, the mainstream ex-factory price of similar enterprises in the vicinity is around 1,580–1,600 yuan per ton. In Anhui region, the typical ex-factory price for small particles is around 1680–1740 yuan per ton; some companies have raised their prices by 20 yuan per ton. In Jiangsu region, the typical price for small and medium-sized particles is around 1660–1740 yuan per ton. Since the weekend, some companies have increased their prices by 30 yuan per ton. In Shanxi region, the price for small particles for external delivery is around 1520–1540 yuan per ton, while the price for large particles for new orders is around 1540 yuan per ton. Since the weekend, some companies have raised their prices by 10–20 yuan per ton. In Inner Mongolia region, the typical price for small and medium-sized particles for external delivery is around 1430–1460 yuan per ton, while the price for large particles is around 1440–1500 yuan per ton; these prices remain stable for now. In Hubei region, the typical ex-factory price for small particles is around 1700 yuan per ton, with prices remaining stable. In Shaanxi region, the typical local sales price for small and medium-sized particles is around 1580–1620 yuan per ton, with prices remaining stable. In Guangxi region, the typical wholesale price for small and medium-sized particles in the market is around 1800 yuan per ton, with prices remaining stable. In Sichuan region, the typical ex-factory price for small and medium-sized particles is around 1660–1740 yuan per ton, with prices remaining stable. In Guangdong region, the typical wholesale price for small particles is around 1820–1830 yuan per ton; since the weekend, some companies have increased their prices by 10–20 yuan per ton. In Xinjiang region, the typical transaction price at the factory is around 1380–1470 yuan per ton, with prices remaining stable. In Jilin region, the typical price for small particle urea is around 1700–1740 yuan per ton. Quotations remain stable. The transaction price for small-grained urea in Heilongjiang is around 1,660 yuan per ton; quotations remain stable as well. The freight-cost-based price for small-grained urea in Liaoning ranges from 1,670 to 1,720 yuan per ton, with the actual transaction price subject to negotiation. Quotations remain stable; however, sales at higher prices are facing difficulties in regions such as Shandong, Hebei, and Henan. Traders who acquired goods earlier are focused on selling them, which has led to a slight decline in quotations. Urea manufacturers in East China and North China have raised their prices by 10–20 yuan, while some manufacturers in Inner Mongolia, Heilongjiang, and Hainan have lowered their prices by 20–60 yuan each. Demand for top-dressing and fertilizer preparation for corn in specific areas has increased; sales by manufacturers in key production regions such as Shandong are improving, prices continue to rise, and downstream buyers are showing greater enthusiasm for making purchases. The short-term domestic urea market is showing stable fluctuations within a narrow range. Due to consistently low inventory levels in recent times, downstream users made moderate purchases a few days ago when market prices saw a slight rise. After building up a certain level of raw material stockpiles, their purchasing enthusiasm has somewhat diminished. The southern market is currently relatively stable; there are signs of gradual recovery in the agricultural market, while industrial demand is being met as needed. Overall, as there is still some inventory pending shipment from upstream factories, the market is expected to remain stable in the short term.