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Urea price trends across China on August 4 Author/Source: Yuege Agri-Materials Website Date: 2020-08-04 Clicks: 2 India has launched another round of urea tendering; the price in the previous round was higher than expected. Coupled with factors such as an increase in the number of manufacturers undergoing maintenance in the future, these elements have boosted confidence in the industry. Urea manufacturers in Shandong, the Two Rivers region, Jiangsu and Anhui provinces, Shanxi, and Shaanxi have all raised their prices. It has become difficult to find supplies at low prices, and the trend toward higher prices continues; some manufacturers have paused accepting orders in preparation for price increases. The short-term domestic urea market is showing a steady upward trend. In the tender held on July 30, India’s MMTC finalized its purchase order for 700,000 tons. On the night of August 1, India’s RCF issued another tender, with the bidding deadline set for August 10 and the shipment date scheduled for September 15. Affected by this news, urea market prices opened higher, with factory quotes rising by 30–50 yuan per ton, and futures prices hit their upper limit. Recently, attention has been focused on the commissioning of urea plants and the bidding situation in India. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,620–1,710 yuan per ton; the prevailing transaction price ranges from 1,620–1,670 yuan per ton. In the Linyi area, the market price for such particles is 1,670–1,680 yuan per ton, while in the Heze area it is around 1,660–1,670 yuan per ton. Some companies have raised their prices by 10–20 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 1,690 yuan per ton, representing a slight increase of 50 yuan per ton. The actual transaction price is 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 1,640 yuan per ton; the quote has seen a slight increase of 20 yuan per ton, 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 1,670 yuan per ton; the price remains stable for now, with the actual transaction price determined through negotiation. In the Hebei region, the factory price for small particles is around 1,660–1,670 yuan per ton, with the prevailing transaction price ranging from 1,620 to 1,660 yuan per ton. Some companies have raised their prices by 10–20 yuan per ton. In the Henan region, the typical factory price for small and medium-sized particles is 1,620–1,690 yuan per ton; since the weekend, some companies have increased their prices by 10–30 yuan per ton. In the Anhui region, the typical factory price for small particles is around 1,680–1,720 yuan per ton, with some companies raising their prices by 10–20 yuan per ton. In the Jiangsu region, the typical price for small and medium-sized particles is around 1,670–1,720 yuan per ton, with some companies increasing their prices by 20 yuan per ton. In the Shanxi region, the typical price for both small and large particles is around 1,560–1,590 yuan per ton; since the weekend, some companies have raised their prices by 10–30 yuan per ton. In the Inner Mongolia region, the typical price for small and medium-sized particles is around 1,460–1,550 yuan per ton, while the price for large particles is around 1,440–1,480 yuan per ton. Since the weekend, a few companies have increased their prices by 50 yuan per ton. In the Hubei region, the typical factory price for small particles is around 1,680 yuan per ton, with prices remaining stable for now. In the Shaanxi region, the typical local sales price for small and medium-sized particles is 1,640 yuan per ton, with prices up by 40 yuan per ton. In the Guangxi region, the typical wholesale price for small and medium-sized particles is around 1,850 yuan per ton, with prices rising as well. In the Sichuan region, the typical factory price for small and medium-sized particles is around 1,600–1,650 yuan per ton, with some companies increasing their prices by 20 yuan per ton. In the Guangdong region, the typical wholesale price for small particles is around 1,840–1,860 yuan per ton, with prices up by 30 yuan per ton. In the Xinjiang region, the typical transaction price is around 1,250–1,350 yuan per ton, with prices remaining stable for now. In the Jilin region, the typical price for small particle urea is 1,550 yuan per ton, with prices stable. In the Heilongjiang region, the typical price for small particle urea is around 1,550–1,590 yuan per ton, also stable. In the Liaoning region, the price for small particle urea transported by truck is 1,610–1,660 yuan per ton; negotiation is possible regarding the transaction price, with prices remaining stable for now. Currently, export traders are purchasing large quantities of goods to be shipped to ports. Meanwhile, many factories are in maintenance mode at present, resulting in a tight supply situation domestically, which in turn leads to higher demand for goods and increased enthusiasm among buyers. Market prices are expected to continue rising this week. In Shandong, the price increased by 10–50 yuan per ton; in Hebei, there was an overall increase of 30–50 yuan per ton. In Henan, prices rose by 30–40 yuan per ton in some areas. In Anhui, prices increased slightly by 10 yuan per ton in certain areas. In Jiangsu, prices rose by 20–40 yuan per ton overall. In Shanxi, prices increased by 30–50 yuan per ton in some areas, while in Shaanxi they rose by 40 yuan per ton in certain areas. In Ningxia and Qinghai, prices increased by 20 yuan per ton in some areas. In Chongqing, prices rose by 30–40 yuan per ton, and in Hainan they increased by 40 yuan per ton. Currently, the overall demand for urea in the domestic market remains weak, with relatively low levels of actual transactions. However, the price set in the last bidding round was slightly high, and the fact that India has issued another round of bidding offers positive implications for the domestic export market. Port traders are more active in purchasing urea, which also boosts the domestic sales market. Companies that have a steady demand for products such as industrial compound fertilizers are replenishing their stock levels in appropriate amounts. The attitude of downstream traders toward purchasing urea has also improved slightly, and companies intend to raise prices further in small increments. It is expected that urea prices in the domestic market will continue to remain stable or rise slightly in the short term.