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Urea price trends across China on July 22. Author/Source: Yuege Agricultural Supplies Network. Date: July 22, 2020. Page views: 142. Although factory prices in East and North China saw a slight decline, overall transaction activity nationwide was better than the previous day. Market rumors suggest that only a few traders are willing to accept India’s MMTC’s bid at the low1 price. India is set to issue another tender in the short term, and international market prices have risen slightly. As a result, Chinese products have increased competitiveness in terms of export, and factories with export advantages have begun receiving orders for shipment, which has helped alleviate some of the pressure. On the demand side, there are no major changes at present. Agricultural demand is nearing completion, the preparation of compound fertilizers is progressing slowly, and there remains demand from exports to alleviate pressure, although the passive situation has eased somewhat. The domestic urea market remains weak. Agricultural demand in the north is gradually coming to an end, while heavy rainfall in many areas in the south affects both transportation and agricultural usage. In terms of industrial demand, panel manufacturers in Linyi, Shandong, have seen a significant decline in demand due to measures taken to control air pollution. The maintenance work on the urea production equipment at Shandong Jinmei Mingshui Chemical Group Co., Ltd. has been completed. The price of small-particle urea is 1,660 yuan per ton; this price remains stable for now, with the actual transaction price being determined through negotiation. The urea production equipment at Yangmei Pingyuan Chemical Co., Ltd. is operating normally. Small-particle urea costs 1,620 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. In Shandong, the ex-factory price for small and medium-sized particles is 1,560–1,660 yuan per ton, with the typical transaction price ranging from 1,590–1,610 yuan per ton. In Linyi, the market price for such particles is 1,630–1,640 yuan per ton, while in Heze it is around 1,620–1,630 yuan per ton. Some companies have reduced their prices by 10–20 yuan per ton. In Hebei, the ex-factory price for small particles is around 1,590–1,600 yuan per ton, with the typical transaction price being around 1,560–1,580 yuan per ton. The ex-factory price for large particles is around 1,680 yuan per ton, though some companies have lowered their prices by 10 yuan per ton. In Henan, the typical ex-factory price for small and medium-sized particles is 1,590–1,620 yuan per ton, with some companies reducing their prices by 10–20 yuan per ton. In Anhui, the typical ex-factory price for small particles is around 1,650–1,720 yuan per ton, with prices remaining stable for now. In Jiangsu, the typical price for small and medium-sized particles is around 1,650–1,700 yuan per ton, also remaining stable. In Shanxi, the export price for both small and large particles is around 1,490–1,520 yuan per ton, with some companies reducing their prices by 10 yuan per ton. In Inner Mongolia, the typical export price for small and medium-sized particles is around 1,360–1,400 yuan per ton, while the price for large particles is around 1,420–1,480 yuan per ton, with prices remaining stable. In Hubei, the typical ex-factory price for small particles is around 1,640–1,680 yuan per ton, with prices remaining stable. In Shaanxi, the local sales price for small and medium-sized particles is around 1,600 yuan per ton, with prices remaining stable. In Guangxi, the typical wholesale price for small and medium-sized particles is around 1,700–1,720 yuan per ton, with prices remaining stable. In Sichuan, the ex-factory price for small and medium-sized particles is around 1,580–1,610 yuan per ton, with prices remaining stable. In Guangdong, the typical wholesale price for small particles is around 1,750–1,770 yuan per ton, with prices remaining stable. In Xinjiang, the ex-factory and transaction prices are around 1,250–1,350 yuan per ton, with prices remaining stable. In Jilin, the transaction price for small urea particles is around 1,720–1,750 yuan per ton, with prices remaining stable. In Heilongjiang, the transaction price for small urea particles is around 1,550 yuan per ton, with prices remaining stable. In Liaoning, the transportation cost for small urea particles by truck is around 1,640–1,700 yuan per ton, with prices negotiable, and overall prices remain stable. Expectations regarding labeling are not favorable, and sentiment in the domestic market is poor. The lowest price on the East Coast is 240.5 USD per ton CFR. Calculations show that the ex-factory price in Shandong is less than 1,500 yuan per ton, while the current typical ex-factory price there is 1,550–1,560 yuan per ton. With limited support from domestic demand, trade prices are likely to continue falling in the short term. We will continue to monitor the supply situation from China for this printing order as well as the developments in domestic production facilities. Currently, most agricultural regions in the country are in their off-season; additionally, in some areas, agriculture has been affected by heavy rains, leading to a further decline in demand. The domestic urea market enjoys ample supply, but demand lacks sufficient support. Overall, the market sentiment remains bearish, and the market is expected to remain weak in the short term.