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Urea price trends across China on May 22 Author/Source: Yuege Agri-Materials Network Date: 2020-05-22 Clicks: 7 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 downward trend in the domestic urea market continues, with prices falling to varying degrees in production areas such as Shandong, Jiangsu, Shanxi, Shaanxi, Henan, and Sichuan. Prices in consumption areas like Guangdong and Guangxi have also dropped. Market prices are gradually approaching the expected levels, but downstream end-users and traders remain bearish and are still waiting for the right time to stock up. Recently, although manufacturers have continuously made slight downward adjustments to their quoted prices, this has not led to any significant increase in demand; the situation regarding newly received orders remains unsatisfactory. At present, the overall demand remains dominated by the industrial sector, with rubber sheet factories and compound fertilizer plants making purchases as needed, resulting in moderate demand levels. Agricultural demand is weak in many areas, and in places such as Sichuan, agricultural demand is also nearing its end. Due to manufacturer inventory and shipment pressures, as well as traders’ bearish sentiment, prices are still likely to fall in the short term. There are no significant positive factors to support the market at present, so it is expected to show a weak downward trend in the short term. Today, in Shandong, Hualu Hengsheng’s medium-sized particles cost 1900, while its large-sized particles cost 1970. In Hebei’s Dongguang region, small-sized particles are priced at 1890, and large-sized particles at 1960. In Henan, Xinchuanxin’s products cost 1950, while Yangmei Fengxi’s products cost 1850. In Jiangsu, Linggu’s products cost 2060, while Anhui Haoyuan’s products sold locally cost 2040, with a price of 2000 for those sold externally. In Inner Mongolia, Boda’s products cost 1720, while Xinjiang Yankuang’s products cost 1750. In Shandong region, the reference price for small particles at the factory level is around 1,900–1,980 yuan per ton. The wholesale price in Linyi market is about 1,970 yuan per ton, while in Heze market it ranges from 1,960 to 1,970 yuan per ton. Some companies have reduced their prices by 10 yuan per ton. In Hebei region, the reference price for small particles is around 1,890–1,900 yuan per ton; a few manufacturers have lowered their prices by 10 yuan per ton. In Henan region, the typical factory price for small particles is 1,930–1,970 yuan per ton, with some manufacturers reducing their prices by 10–20 yuan per ton. In Anhui region, the standard factory price for small particles is around 1,980–2,040 yuan per ton, and some companies have lowered their prices by 20–40 yuan per ton. In Jiangsu region, the typical price for small and medium-sized particles is around 2,010–2,080 yuan per ton, with a few companies reducing their prices by 20 yuan per ton. In 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. Some companies have reduced their prices by 30 yuan per ton. In Inner Mongolia region, the typical transaction price for small and medium-sized particles is around 1,720–1,770 yuan per ton, with some manufacturers lowering their prices by 20 yuan per ton. In Hubei region, the typical price for small particles is 2,000–2,030 yuan per ton, with prices showing a downward trend. In Shaanxi region, the reference price at the factory level is around 1,920 yuan per ton, with some companies reducing their prices by 40 yuan per ton. In Guangxi region, the typical wholesale price is around 2,120 yuan per ton, with a slight decrease of around 10 yuan. In Sichuan region, the factory price for small and medium-sized particles is 2,000–2,050 yuan per ton, with prices remaining stable for now. In Guangdong region, the typical transaction price for small particles is around 2,110–2,140 yuan per ton, again showing a downward trend. In Xinjiang region, the reference price at the factory level is around 1,700–1,780 yuan per ton, with prices remaining stable for now. In Jilin region, the factory price for urea is around 2,050 yuan per ton, with discounts possible for large orders; prices remain stable. In Heilongjiang region, the transport cost for small particles is around 2,000 yuan per ton, with prices remaining stable. In Liaoning region, the transport cost for small particles is 1,960–1,980 yuan per ton, with prices negotiable; some companies have reduced their prices by 40 yuan per ton. Today, the domestic urea market continues to show a downward trend. Urea manufacturers are continuing to reduce prices in an attempt to boost sales, but the effects are limited, and it seems that prices have not yet reached their bottom. The start of fertilizer preparation in summer has been delayed, resulting in a sluggish market for agricultural urea; industrial users are mainly making limited purchases. There are no significant positive factors to support the market at present, so it is expected to show a weak downward trend in the short term.