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Urea price trends across China on July 7 Author/Source: Yuege Agri-Materials Network Date: 2020-07-07 Clicks: 6 Urea prices in China have seen both increases and decreases; market activity has slowed down. Manufacturers are responding modestly to new orders, focusing instead on fulfilling previously placed orders. With low inventory levels, manufacturers currently face little sales pressure. Recently, some urea production facilities in Shandong, Henan, and Anhui were shut down for maintenance, reducing the daily urea production to around 140,000 tons. On the demand side, there is limited support from essential domestic needs at present; agricultural demand in the North China and East China regions is gradually declining, with retailers being more cautious in their purchases. Industrial compound fertilizer and panel manufacturing companies operate at low capacity levels, and they tend to make purchases only when prices are low. It is expected that the domestic urea market will remain stable in the short term, with only slight fluctuations in some areas. Some factories in Inner Mongolia send their products to certain destinations in the south, where they enjoy preferential shipping rates; this gives them a competitive advantage over goods from Shanxi and Shaanxi. Due to the end of the market in Xinjiang, prices at factories there have dropped significantly; as a result, these factories are seeking to sell their products outside Xinjiang, which will put pressure on the market in the southwestern region. It is expected that the market will remain weak and stable in the short term; the timing at which compound fertilizer factories start production preparations for autumn is worth paying attention to. In Shandong, the ex-factory price for small and medium-sized particles is 1,590–1,660 yuan per ton; the prevailing transaction price is around 1,580–1,600 yuan per ton. In Linyi, the market price for such particles is 1,640 yuan per ton, while in Heze it ranges from 1,620–1,630 yuan per ton. Prices remain stable for now. In Hebei, the ex-factory price for small particles is around 1,600–1,630 yuan per ton, with the prevailing transaction price at around 1,560–1,590 yuan per ton. The ex-factory price for large particles is around 1,680 yuan per ton, with prices remaining stable. In Henan, the mainstream ex-factory price for small and medium-sized particles is 1,600–1,640 yuan per ton, with prices stable. In Anhui, the mainstream ex-factory price for small particles is around 1,670–1,720 yuan per ton, with prices stable. In Jiangsu, the mainstream price for small and medium-sized particles is around 1,690–1,710 yuan per ton, though some companies have raised their prices by 10 yuan per ton. In Shanxi, the export price for both small and large particles is around 1,500–1,520 yuan per ton, with some companies lowering their prices by 10 yuan per ton. In Inner Mongolia, the mainstream export price for small and medium-sized particles is around 1,380–1,440 yuan per ton, while the price for large particles is around 1,420–1,500 yuan per ton, with prices stable. In Hubei, the mainstream ex-factory price for small particles is around 1,670–1,700 yuan per ton, with prices stable. In Shaanxi, the mainstream local sales price for small and medium-sized particles is 1,600 yuan per ton, with some companies lowering their prices by 20 yuan per ton. In Guangxi, the mainstream wholesale price for small and medium-sized particles is around 1,780 yuan per ton, with prices stable. In Sichuan, the ex-factory price for small and medium-sized particles is around 1,580–1,690 yuan per ton, with prices stable. In Guangdong, the mainstream wholesale price for small particles is around 1,770–1,800 yuan per ton, with prices stable. In Xinjiang, the ex-factory and transaction prices range from 1,250–1,380 yuan per ton, with some companies lowering their prices by 20–50 yuan per ton. In Jilin, the transaction price for small particle urea is around 1,720–1,750 yuan per ton. Prices remain stable for now. The transaction price of small-grain urea in Heilongjiang is around 1620 yuan per ton, with a reduction of 50 yuan per ton. In Liaoning, the freight-cost adjusted price for small-grain urea ranges from 1640 to 1700 yuan per ton, and the actual transaction price can be negotiated. Prices remain stable for now. Agricultural demand in regions such as Shandong has not yet subsided, so there is moderate replenishment by downstream users; sales at lower prices are still possible. Manufacturers in northern Jiangsu have raised their prices by 30 yuan, while demand in peripheral regions such as Liaoning, Shaanxi, Inner Mongolia, and Xinjiang has weakened significantly, leading to price cuts. In some cases in Xinjiang and Liaoning, manufacturers have reduced prices by as much as 90–100 yuan. Agricultural demand across most of the country is nearing its end; industries such as those involved in industrial compound fertilizers and rubber sheets place small orders as needed, resulting in a weakening overall trading atmosphere. In the short term, there are no significant positive factors supporting the domestic urea market, so prices are likely to decline steadily. Businesses are entering the market cautiously, with an increased willingness to sell. Local plant short-term shutdowns lead to reduced production, resulting in a slight decrease in available supply. Grassroots agricultural demand is gradually being addressed; downstream industries are restocking at lower prices, while the arrival of new orders is slowing down. The manufacturer issues pre-paid orders, with each transaction being negotiated individually. Zhuochuang believes that the urea market will continue to show narrow-range fluctuations in the near term, with attention focused on the direction of new orders.