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Urea price trends across China on August 5 Author/Source: Yuege Agri-Materials Network Date: 2020-08-05 Clicks: 1 Prices of urea in the domestic market continued to show strong growth; market activity improved significantly. Some companies have received new export orders, leading to a slight shortage of supply. On July 30, the bidding price set by India’s MMTC was roughly on par with current domestic levels, which was higher than expected. On August 1, RCF in India issued another round of bids, with the opening of bids scheduled for August 10 and delivery dates set for September 15. These successive bidding efforts by India are a significant positive factor for the domestic market. Additionally, urea futures have been rising recently, providing strong support for market participants; it is expected that domestic urea prices will rise slightly in the short term. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,650–1,730 yuan per ton; the prevailing transaction price ranges from 1,630–1,710 yuan per ton. In the Linyi area, the market price for such particles is 1,700 yuan per ton, while in the Heze area it ranges from 1,680–1,700 yuan per ton. Some companies have increased their prices by 10–30 yuan per ton. Shandong Jinmei Mingshui Chemical Group Co., Ltd. has completed the maintenance of its urea production equipment; the price for small-sized urea is 1,690 yuan per ton, with prices remaining stable for now. 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 1,670 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 1,640 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-grained urea is around 1,690–1,740 yuan per ton, with the prevailing transaction price being around 1,680–1,690 yuan per ton. Some companies have raised their prices by 10–40 yuan per ton. In the Henan region, the ex-factory price of medium and small-grained urea ranges from 1,630–1,690 yuan per ton, with some companies increasing their prices by 10–20 yuan per ton. The Xinchuanxin urea production facility in Henan is operating normally, with a daily production capacity of around 4,700 tons, of which about 2,000 tons are ordinary urea. The ex-factory price for small particles has risen by another 20 yuan per ton, reaching 1640 yuan per ton. Initial orders were shipped first, new orders are being followed up on, and shipments are proceeding smoothly. The large and medium-sized particle urea production facility in Henan Jin Kai is operating normally, with a daily output of around 4,000 tons. The price increases by another 20 yuan per ton; the reference price for large and medium-sized particles at the factory is 1650 yuan per ton, with the final price to be determined upon settlement. Orders are being processed as usual; downstream purchases are made as needed. New orders are handled with caution, and shipments remain stable. Currently, the mainstream ex-factory price of surrounding enterprises is around 1,610–1,640 yuan per ton. In Anhui region, the typical ex-factory price for small particles is around 1680–1720 yuan per ton; some companies have raised their prices by 10–20 yuan per ton. In Jiangsu region, the typical price for medium and small particles is around 1680–1750 yuan per ton, with some companies increasing their prices by 10–20 yuan per ton. In Shanxi region, the price for both large and small particles is around 1590–1650 yuan per ton, though some companies have raised their prices by 20–40 yuan per ton. In Inner Mongolia region, the typical price for medium and small particles is around 1460–1560 yuan per ton, while the price for large particles is around 1440–1480 yuan per ton; a few companies have increased their prices by 10 yuan per ton. In Hubei region, the typical ex-factory price for small particles is around 1700 yuan per ton, with a price increase of 20 yuan per ton. In Shaanxi region, the typical local sales price for medium and small particles is around 1600–1640 yuan per ton, with some companies raising their prices by 40 yuan per ton. In Guangxi region, the typical wholesale price for medium and small particles is around 1850–1860 yuan per ton, with a price increase of 10 yuan per ton. In Sichuan region, the typical ex-factory price for medium and small particles is around 1600–1650 yuan per ton, with prices remaining stable for now. In Guangdong region, the typical wholesale price for small particles is around 1880–1900 yuan per ton, with a price increase of 20–40 yuan per ton. In Xinjiang region, the typical ex-factory price is around 1250–1350 yuan per ton, with prices remaining stable. In Jilin region, the typical price for small particle urea is around 1550 yuan per ton, with prices staying stable. In Heilongjiang region, the price for small particle urea is around 1550–1590 yuan per ton, also remaining stable. In Liaoning region, the price for small particle urea transported by truck is around 1610–1660 yuan per ton, with prices negotiable and generally stable. Some factories have increased their prices by more than 50 yuan per ton, indicating an overall upward trend in prices. The market expects that the opening price on August 10 will remain high, thereby driving up international market prices as well. At present, traders continue to purchase goods for delivery to ports, and the domestic market is gradually following suit. Due to suppliers’ reluctance to sell, supply of goods for the domestic market is somewhat tight at the moment. However, the rapid rise in prices has led to chaotic market quotes, which affects customers’ willingness to place orders. It is expected that prices will continue to rise in the short term.