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Urea price trends across China on July 15 Author/Source: Yuege Agri-Materials Network Date: 2020-07-15 Clicks: 8 The domestic urea market continued to show a stable trend with slight increases in some areas. At present, urea production facilities in China are gradually resuming operations, with the daily output of urea increasing. Some facilities in Shandong Province have switched to producing peptide urea, resulting in a decrease in the shipment of conventional urea. On the demand side, some areas are still supported by certain agricultural demands. Regarding industrial demand, the operating capacity of companies producing compound fertilizers and panels remains low, so purchases are made in moderation when prices are low. On the international front, India’s MMTC announced a new round of urea tenders on July 9; the bidding deadline is July 17, the submission deadline is July 24, with delivery scheduled for August 20. Overall, summer agricultural demand and export orders have provided some support to the market. Factories tend to maintain high prices, while downstream buyers adopt a cautious approach; moderate buying is expected, so the domestic urea market is likely to see steady fluctuations on a small scale in the short term. The ex-factory price for small and medium-sized particles in Shandong region is 1,600–1,670 yuan per ton, while the typical transaction price ranges from 1,590–1,630 yuan per ton. In Linyi region, the purchase price for such particles is 1,680 yuan per ton, whereas in Heze region it ranges from 1,650–1,660 yuan per ton; these prices remain stable for now. The urea production equipment at Yangmei Pingyuan Chemical Co., Ltd. is operating normally. Small-particle urea costs 1,640 yuan per ton; the quoted price remains stable, with the actual transaction price determined through negotiation. Shandong Ruixing Chemical Co., Ltd. has an annual urea production capacity of 1.6 million tons, and currently its daily production is around 5,000 tons. The spot price for small-particle urea is 1,630 yuan per ton; the quote remains stable for now, with the actual transaction price determined through negotiation. Shandong Hualu Hengsheng offers medium-sized particles at 1,620 yuan per ton, while large-sized particles are priced at 1,670 yuan per ton. In Hebei, the ex-factory price for small-sized particles is around 1,590–1,610 yuan per ton, with the typical transaction price being around 1,560–1,580 yuan per ton; the ex-factory price for large-sized particles is around 1,680 yuan per ton, with prices remaining stable for now. In Henan, the typical ex-factory prices for medium and small-sized particles are 1,600–1,640 yuan per ton, also remaining stable. In Anhui, the typical ex-factory price for small-sized particles is around 1,670–1,720 yuan per ton, with prices stable as well. In Jiangsu, the typical prices for medium and small-sized particles are around 1,690–1,720 yuan per ton, though some companies have raised their prices by 10 yuan per ton. In Shanxi, the ex-shipment prices for both small and large-sized particles are around 1,500–1,540 yuan per ton, with prices stable. In Inner Mongolia, the typical ex-shipment prices for medium and small-sized particles are around 1,370–1,430 yuan per ton, while large-sized particles are priced at around 1,420–1,480 yuan per ton; some manufacturers have increased their prices by 20 yuan per ton. In Hubei, the typical ex-factory price for small-sized particles is around 1,660–1,680 yuan per ton, with prices stable. In Shaanxi, the typical local sales price for medium and small-sized particles is 1,600 yuan per ton, with prices stable. In Guangxi, the typical wholesale price for medium and small-sized particles is around 1,700 yuan per ton, with prices stable. In Sichuan, the typical ex-factory prices for medium and small-sized particles are around 1,580–1,690 yuan per ton, with prices stable. In Guangdong, the typical wholesale price for small-sized particles is around 1,750–1,770 yuan per ton, with prices stable. In Xinjiang, the typical transaction price is around 1,250–1,350 yuan per ton, with prices stable. In Jilin, the typical transaction price for small-sized urea is around 1,720–1,750 yuan per ton, with prices stable. In Heilongjiang, the typical transaction price for small-sized urea is 1,580 yuan per ton, with prices stable. In Liaoning, the transportation cost for small-sized urea by truck is around 1,640–1,700 yuan per ton, with prices negotiable, and overall prices remain stable. China National Coal Group has resumed production, and other factories in Inner Mongolia have started to take on new domestic orders; overall prices remain unchanged from before. The volume awaiting shipment in Xinjiang, Shanxi, and Shaanxi is fairly substantial, while there is a shortage of goods available for pickup at some trucking factories. Production and consumption in the North China region are basically in balance. On the demand side, agricultural demand in North and Central China continues to provide some support for the market, while agricultural demand in the areas along the rivers is nearing completion. In the early stage, compound fertilizer manufacturers maintained relatively low inventory levels of raw materials; recently, some large manufacturers have entered the market to make purchases. Currently, the market expects that the price in this bidding round will be better than that in the previous round, boosting confidence in the domestic market. The market is expected to remain stable in the short term.