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Urea price trends across China on July 8 Author/Source: Yuege Agri-Materials Network Date: 2020-07-08 Clicks: 31 Factory prices in the Northwest region have declined slightly; prices in the Southwest and Jianghuai regions are under pressure due to the export of goods from Xinjiang. Factories in the Shandong, Jiangsu, Anhui and Jiangsu regions see stable prices supported by local demand; however, as supplies from Inner Mongolia begin to arrive, it is unlikely that prices will rise. As the maintenance plant resumes operations, the daily urea production volume has returned to around 150,000 tons. Prices are expected to remain stable this week, with the southern market possibly showing a slight decline. The ex-factory price for small and medium-sized particles in Shandong is 1,580–1,660 yuan per ton, with the typical transaction price ranging from 1,580 to 1,600 yuan per ton. In Linyi, the market price for such particles is 1,640 yuan per ton, while in Heze the price ranges from 1,620 to 1,630 yuan per ton; these prices remain stable for now. Shandong Ruixing Chemical Co., Ltd. has an annual urea production capacity of 1.6 million tons, with a current daily production of around 5,000 tons. The spot price for small-particle urea is 1,610 yuan per ton; the quote remains stable for now, with the actual transaction price determined through negotiation. The urea production equipment at Yangmei Pingyuan Chemical Co., Ltd. is operating normally. Small-particle urea costs 1,640 yuan per ton; the price remains stable for now, with the actual transaction price determined through negotiation. Urea production equipment at Shandong Jinmei Mingshui Chemical Group Co., Ltd. is under maintenance; operation is expected to resume on July 9. The prevailing ex-factory price for small-grained urea in Henan is between 1,600 and 1,640 yuan per ton, with prices remaining stable for now. The ex-factory price for Xinxin Heart urea in small grains in Henan is 1,630 yuan per ton; prices are subject to negotiation based on actual orders. The plant is operating normally, with a current daily production of around 5,200 tons, of which about 1,500 tons are ordinary urea. Initial orders are placed in the early stage, with downstream parties making purchases as needed, and new orders follow at a slow pace. The urea production facility in Anyang, Henan is operating normally, with a daily output of around 600 tons; the price is subject to negotiation on a case-by-case basis. The market is moving in a steady manner, with moderate new orders arriving. The mainstream ex-factory price for small particles from surrounding enterprises is 1,550–1,600 yuan per ton. In Hebei region, the ex-factory price of small particles is around 1,590–1,610 yuan per ton, while the prevailing transaction price is around 1,560–1,580 yuan per ton. The ex-factory price of large particles is around 1,680 yuan per ton; some companies offer prices 10–20 yuan per ton lower. In Anhui region, the typical ex-factory price for small particles is around 1,670–1,720 yuan per ton, with prices remaining stable for now. In Jiangsu region, the prevailing prices for small and medium-sized particles are around 1,690–1,710 yuan per ton; some companies offer prices 20 yuan per ton lower. In Shanxi region, the export prices for small and large particles are around 1,490–1,520 yuan per ton, with some companies offering prices 10 yuan per ton lower. In Inner Mongolia region, the prevailing export prices for small and medium-sized particles are around 1,370–1,440 yuan per ton, while the price for large particles is around 1,420–1,500 yuan per ton; some companies offer prices 10 yuan per ton lower. In Hubei region, the typical ex-factory price for small particles is around 1,670–1,700 yuan per ton, with prices remaining stable. In Shaanxi region, the prevailing local sales price for small and medium-sized particles is around 1,600 yuan per ton, with some companies offering prices 20 yuan per ton lower. In Guangxi region, the prevailing wholesale price for small and medium-sized particles is around 1,780 yuan per ton, with prices remaining stable. In Sichuan region, the ex-factory price for small and medium-sized particles is around 1,580–1,690 yuan per ton, with prices remaining stable. In Guangdong region, the prevailing wholesale price for small particles is around 1,770–1,800 yuan per ton, with prices remaining stable. In Xinjiang region, the transaction price at the factory is around 1,250–1,350 yuan per ton, with some companies offering prices 50 yuan per ton lower. In Jilin region, the transaction price for small particle urea is around 1,720–1,750 yuan per ton. Quotations remain stable. The transaction price for small-grained urea in Heilongjiang is around 1,620 yuan per ton; quotations remain stable as well. The freight cost for small-grained urea in Liaoning is between 1,640 and 1,700 yuan per ton, with the actual transaction price subject to negotiation. Quotations remain stable. Recently, some urea production facilities in Shandong, Henan, and Anhui have been shut down for maintenance, resulting in a daily urea production volume of 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 suppliers being more cautious in their purchases. Industrial compound fertilizer and panel manufacturing companies operate at low capacity levels, and purchases are mainly made at lower prices when such opportunities arise. New orders from manufacturers are performing moderately; the focus is on fulfilling pre-existing orders. There are no positive factors at present, and it is expected that the domestic urea market will remain weak in the short term.