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Urea price trends across China on July 31 Author/Source: Yuege Agri-Materials Network Date: 2020-07-31 Clicks: 26 The domestic urea market is showing an obvious upward trend; plants that were shut down for maintenance have begun to resume operations, resulting in an increase in available supply. Currently, the daily production of urea is around 158,000 tons. On the demand side, summer agricultural needs were in the final stages by the end of July; subsequent activities would focus on top-dressing rice crops. Due to efforts to control air pollution, industrial demand remained moderate, and traders had little incentive to stock up on fertilizers, leading to cautious purchasing behavior. It is expected that domestic urea prices will remain stable with slight fluctuations in the short term; the focus will next be on the results of the tenders in India. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,580–1,660 yuan per ton; the prevailing transaction price is around 1,580–1,600 yuan per ton. In the Linyi area, the market price for such particles is 1,650–1,660 yuan per ton, while in the Heze area it is around 1,610–1,620 yuan per ton. Some companies have increased their prices by 10 yuan per ton. Shandong Jinmei Mingshui Chemical Group Co., Ltd. has completed the maintenance of its urea production equipment; the price of small-sized urea is now 1,640 yuan per ton. This price remains stable for now, but the actual transaction price is 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. 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 1,610 yuan per ton; the quote remains stable for now, with the actual transaction price determined through negotiation. In the Hebei region, the ex-factory price of small particles is around 1,600–1,640 yuan per ton, while the prevailing transaction price is around 1,590–1,620 yuan per ton. The ex-factory price of large particles is around 1,700 yuan per ton; some companies offer prices that are 20 yuan per ton higher. In the Henan region, the prevailing ex-factory prices for small and medium-sized particles range from 1,570 to 1,620 yuan per ton, with these prices remaining stable for now. The urea production facilities in Henan’s Jin Kai company are operating normally, with a daily production volume of around 4,000 tons. Today’s price has increased by 10–20 yuan per ton. The reference price for large-sized particles at the factory is 1600 yuan per ton, while that for medium-sized particles is 1590 yuan per ton; the final price will be determined upon settlement. Prepaid orders are processed as usual, while new orders are handled on a demand basis; the trading atmosphere has seen some improvement recently. Currently, the mainstream ex-factory price of surrounding enterprises is around 1,550–1,580 yuan per ton. In Anhui region, the typical ex-factory price for small particles is around 1,660–1,720 yuan per ton, with prices remaining stable for now. In Jiangsu region, the typical prices for medium and small particles are around 1,630–1,700 yuan per ton, also stable at present. In Shanxi region, the prices for both large and small particles for external sales are around 1,500–1,530 yuan per ton, with no changes observed. In Inner Mongolia region, the typical prices for medium and small particles for external sales are around 1,400–1,460 yuan per ton, while the price for large particles is around 1,440–1,480 yuan per ton; some manufacturers have increased prices by 40 yuan per ton. In Hubei region, the typical ex-factory price for small particles is around 1,650–1,680 yuan per ton, with some manufacturers raising prices by 10 yuan per ton. In Shaanxi region, the typical local selling price for medium and small particles is 1,600 yuan per ton, remaining stable. In Guangxi region, the typical wholesale price for medium and small particles is around 1,700–1,780 yuan per ton, stable as well. In Sichuan region, the typical ex-factory price for medium and small particles is around 1,580–1,610 yuan per ton, stable. In Guangdong region, the typical wholesale price for small particles is around 1,790–1,810 yuan per ton, stable. In Xinjiang region, the transaction prices at the factory level are around 1,250–1,350 yuan per ton, stable. In Jilin region, the price for small particle urea is around 1,550 yuan per ton, stable. In Heilongjiang region, the price for small particle urea is around 1,550–1,590 yuan per ton, stable. In Liaoning region, the price for small particle urea when transported by truck is around 1,610–1,660 yuan per ton, with negotiation possible regarding the final price, and prices remain stable. The bidding results for MMTC in India have been announced: the lowest bid price on the east coast is 259.59 CFR dollars per ton, while on the west coast it’s 257.7 CFR dollars per ton. The total bidding volume is 1.6315 million tons. Based on these price estimates, factory prices in China’s main export regions can now be aligned, which will boost confidence in the domestic market. Factories with export advantages will raise their prices again based on the prices in India; the overall domestic market trend will also be upward, which may further boost the activity in domestic trade and prompt downstream industrial customers to start stockpiling goods. Going forward, it will be necessary to continue monitoring the total procurement volume in India for this product, as well as the volume of domestic supply available, in order to assess its medium- to long-term impact on the domestic market.