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Urea price trends across China on July 29 Author/Source: Yuege Agri-Materials Website Date: 2020-07-29 Clicks: 76 The domestic urea market is operating in a stable but weak manner; the overall trading atmosphere has weakened. By the end of July, summer agricultural demand has reached its conclusion, and subsequent demand will mainly stem from fertilization for rice crops. Due to efforts to control air pollution, industrial demand remains moderate, and there is little willingness to stock up on fertilizers. Traders are being cautious in their purchases, while urea manufacturers are seeing modest interest in new orders. For on-site supply, the maintenance equipment from the earlier period has been gradually brought back into operation, ensuring an ample supply of available stock. 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 tenders in India. The large and medium-sized granule urea production facility in Henan Jin Kai is operating normally, with a daily output of around 4,000 tons. The price has been reduced by 20 yuan per ton today; the current reference price at the factory is 1580 yuan per ton. The final price will be determined upon completion of the transaction. Primarily serving advance orders; new order acquisition is slowing down, while shipments remain steady. Recently, the mainstream ex-factory prices of surrounding enterprises are around 1,540–1,570 yuan per ton. 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 1,570–1,590 yuan per ton. In Linyi, the market price for such particles is 1,630 yuan per ton, while in Heze the price ranges from 1,600–1,610 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. 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. In 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 1,570–1,580 yuan per ton. The ex-factory price of large particles is around 1,680 yuan per ton, with prices remaining stable for now. In Henan region, the prevailing ex-factory prices for small and medium-sized particles range from 1,570–1,620 yuan per ton; some companies have reduced their prices by 10–20 yuan per ton. In Anhui region, the prevailing ex-factory price for small particles is around 1,660–1,720 yuan per ton, with prices remaining stable. In Jiangsu region, the prevailing prices for small and medium-sized particles are around 1,630–1,700 yuan per ton, also remaining stable. In Shanxi region, the export prices for both small and large particles are around 1,500–1,530 yuan per ton, with prices stable. In Inner Mongolia region, the prevailing export prices for small and medium-sized particles are around 1,380–1,450 yuan per ton, while the price for large particles is around 1,420–1,480 yuan per ton, with prices stable. In Hubei region, the prevailing ex-factory price for small particles is around 1,640–1,680 yuan per ton, with prices stable. In Shaanxi region, the prevailing local sales price for small and medium-sized particles is around 1,600 yuan per ton, with prices stable. In Guangxi region, the prevailing wholesale price for small and medium-sized particles is around 1,700–1,720 yuan per ton, with prices stable. In Sichuan region, the ex-factory prices for small and medium-sized particles are around 1,580–1,610 yuan per ton, with prices stable. In Guangdong region, the prevailing wholesale price for small particles is around 1,790–1,810 yuan per ton, with prices stable. In Xinjiang region, the ex-factory and transaction prices are around 1,250–1,350 yuan per ton, with prices stable. In Jilin region, the transaction price for small particles of urea is around 1,550 yuan per ton, with prices stable. In Heilongjiang region, the transaction price for small particles of urea is also around 1,550 yuan per ton, with prices stable. In Liaoning region, the transportation cost for small particles of urea by road is around 1,610–1,660 yuan per ton, with prices negotiable and remaining stable. MMTC in India has added additional conditions to its bidding requirements for July 30th, making it more difficult for Chinese suppliers to participate in bids. Upon the release of this news, market confidence was significantly dampened, and futures markets fell in response today. The spot market also showed a reaction: factory prices in regions such as Shandong and Hebei, where quotes were previously on the high side, dropped slightly, and overall transaction activity slowed down. But I just received news that India has issued another statement indicating its acceptance of bids from Chinese suppliers. It is expected that this news will once again have a positive impact on China’s futures market tomorrow, while also boosting confidence in the spot market.