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Urea price trends across China on May 21 Author/Source: Yuege Agri-Materials Web Date: 2020-05-21 Clicks: 3 The domestic urea market continues to show a downward trend; new orders from manufacturers are not performing well, and there are no signs of improvement in market activity. Agricultural demand in China has yet to pick up, with dealers adopting a cautious attitude. Industrial demand remains relatively stable, and downstream buyers are cautious about purchasing, preferring to order only as needed. The domestic urea market is expected to remain weak in the short term. The domestic urea market continues to show a downward trend. In terms of price levels, taking the Linyi market in Shandong as an example, the price has dropped from 2,000 yuan per ton to an expected level of around 1,950 yuan per ton. Although prices are moving in line with expectations, this level does not hold much appeal for downstream users. The overall market atmosphere as well as the number of new orders placed by manufacturers have not shown any improvement, so the downward trend in prices is likely to continue. However, in the past two days, there have been many maintenance activities in the main production areas. Most of the large enterprises in Shandong are either using their own production capacity or carrying out equipment maintenance, etc. As a result of the reduced supply, manufacturers may temporarily maintain high prices. Yet, given the pressure from inventory levels and orders, prices are still likely to decline. In the Shandong region, the reference price for small and medium-sized particles at the factory level is 1,920–2,020 yuan per ton. The wholesale price in the Linyi market is around 1,980 yuan per ton, while in the Heze market it ranges from 1,970 to 1,980 yuan per ton. Some companies have reduced their prices by 10 yuan per ton. In the Hebei region, the reference price for small particles is around 1,910–1,990 yuan per ton; since the weekend, some manufacturers have lowered their prices by 10 yuan per ton. In the Henan region, the typical factory price for small particles is 1,950–1,980 yuan per ton, with some manufacturers reducing their prices by 10–30 yuan per ton since the weekend. In the Anhui region, the typical factory price for small particles is around 2,000–2,090 yuan per ton; a few companies have reduced their prices by 30 yuan per ton. In the Jiangsu region, the typical price for small and medium-sized particles is 2,020–2,080 yuan per ton, with some companies lowering their prices by 20 yuan per ton. In the Shanxi region, the reference price for small particles is around 1,860–1,870 yuan per ton, while for larger particles it’s around 1,860 yuan per ton. Since the weekend, some companies have reduced their prices by 10–20 yuan per ton. In the Inner Mongolia region, the typical transaction price for small and medium-sized particles is around 1,720–1,790 yuan per ton, with some manufacturers lowering their prices by 10 yuan per ton. In the Hubei region, the typical price for small particles is 2,020–2,050 yuan per ton, with prices remaining stable. In the Shaanxi region, the reference price at the factory level is around 1,920 yuan per ton, with a few companies reducing their prices by 40 yuan per ton. In the Guangxi region, the typical wholesale price is around 2,120 yuan per ton, with prices dropping by about 10 yuan. In the Sichuan region, the factory price for small and medium-sized particles is 2,000–2,100 yuan per ton, with prices remaining stable. In the Guangdong region, the typical transaction price for small particles is around 2,110–2,140 yuan per ton, with prices showing a downward trend. In the Xinjiang region, the reference price at the factory level is around 1,700–1,780 yuan per ton, with prices remaining stable. In the Jilin region, the factory price for urea is around 2,050 yuan per ton; larger orders can be negotiated at different prices, with prices remaining stable. In the Heilongjiang region, the transportation cost for small particles is around 2,000 yuan per ton, with prices remaining stable. In the Liaoning region, the transportation cost for small particles is 1,960–2,020 yuan per ton, with prices negotiable; a few companies have reduced their prices by 50 yuan per ton. Overall, market demand is weak, so urea manufacturers continue to lower prices in order to sell their products. Some manufacturers are also undergoing maintenance or routine repairs to reduce sales pressure. In most areas, demand from the agricultural sector is low during the off-season, and industrial users have limited demand; overall supply in the country remains ample. Downstream sectors continue to adopt a cautious approach, waiting for opportunities to buy at lower prices.