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Urea price trends across China on August 6 Author/Source: Yuege Agri-Materials Website Date: 2020-08-06 Clicks: 11 There is strong demand for urea in the international market, which continues to drive demand in the domestic market. Additionally, many manufacturers are reducing production due to maintenance work, further pushing up domestic prices. Quotations in major producing regions such as Shandong continue to rise, and prices in the southwest and northwest regions are also increasing. Most urea manufacturers are able to receive payments for new orders smoothly, though many limit the number of orders they accept; an optimistic atmosphere persists. Market transactions are proceeding smoothly; some companies are gathering their goods at the ports, and manufacturers have a relatively ample amount of pre-orders, so there is no sales pressure in the short term. Meanwhile, as some production facilities in China reduce output or are under maintenance, supply in the market has become slightly tight. Today, prices in regions such as Shandong, Hebei, Henan, Shanxi, Inner Mongolia, Anhui, and Jiangsu rose by 10–70 yuan per ton. It is expected that domestic urea prices will see a slight increase in the short term. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,720–1,750 yuan per ton; the prevailing transaction price ranges from 1,660–1,710 yuan per ton. In the Linyi area, the market price for such particles is 1,730 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 20–60 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 1,720 yuan per ton, representing an increase of 30 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 at present its daily production is around 5,000 tons. The spot price for small-particle urea is 1,672 yuan per ton; the price has increased by 80 yuan per ton, with the actual transaction price determined through negotiation. The urea production equipment at Yangmei Pingyuan Chemical Co., Ltd. is operating normally. Small-grain urea costs 1,750 yuan per ton; the price has increased by 80 yuan per ton, with the actual transaction price being determined through negotiation. In Hebei province, the ex-factory price of small particles is around 1,740–1,800 yuan per ton; the prevailing transaction price is around 1,720 yuan per ton. Some companies have raised their prices by 10–40 yuan per ton. In Henan province, the ex-factory price of medium and small particles ranges from 1,650–1,720 yuan per ton, with some companies increasing their prices by 10–30 yuan per ton. In Anhui province, the ex-factory price of small particles is roughly 1,690–1,720 yuan per ton, and some companies have raised their prices by 20 yuan per ton. In Jiangsu province, the prevailing price for medium and small particles is around 1,690–1,790 yuan per ton, with some companies increasing their prices by 20–30 yuan per ton. In Shanxi province, the export price for both large and small particles is around 1,590–1,650 yuan per ton, with some companies raising their prices by 10–20 yuan per ton. In Inner Mongolia, the ex-shipment price for medium and small particles is around 1,540–1,630 yuan per ton, while the price for large particles is around 1,480–1,490 yuan per ton. Some companies have increased their prices by 20–70 yuan per ton. In Hubei province, the ex-factory price of small particles is around 1,720 yuan per ton, with a price increase of 20 yuan per ton. In Shaanxi province, the local selling price for medium and small particles is around 1,640 yuan per ton, with some companies raising their prices by 30 yuan per ton. In Guangxi province, the prevailing wholesale price for medium and small particles is around 1,850–1,860 yuan per ton, with prices remaining stable for now. In Sichuan province, the ex-factory price of medium and small particles is around 1,620–1,680 yuan per ton, with some companies increasing their prices by 10–30 yuan per ton. In Guangdong province, the prevailing wholesale price for small particles is around 1,880–1,900 yuan per ton, with prices remaining stable. In Xinjiang province, the ex-factory and transaction prices are around 1,250–1,350 yuan per ton, with prices remaining stable. In Jilin province, the transaction price for small particle urea is around 1,550 yuan per ton, with prices remaining stable. In Heilongjiang province, the transaction price for small particle urea is around 1,550–1,590 yuan per ton, with prices remaining stable. In Liaoning province, the transportation cost for small particle urea by truck is around 1,610–1,660 yuan per ton, with prices negotiable and remaining stable for now. Many manufacturers have pre-orders, so there is no sales pressure in the short term. Additionally, international market conditions have continued to improve thanks to positive factors such as increased demand in India. Some domestic production facilities have reduced output or are under maintenance, resulting in a shortage of supply in certain areas. Currently, demand in the market is fairly moderate, but intermediaries tend to buy in when prices are low. Zhuochuang expects that in the short term, market conditions in East and Central China will be supported by positive news, suggesting further modest price increases. During the off-season for domestic agricultural demand, sales are mainly driven by purchases by industrial users and exports to ports; some manufacturers supply primarily to ports, while the market in Guangdong and Guangxi, the main consumption areas, continues to show upward trends. However, due to the rapid increase in prices, demand from downstream buyers has slowed down, and price inversion has occurred in some areas. Countries such as India and Ethiopia continue to issue tenders, and export prospects are favorable; thus, the domestic urea market is expected to remain strong in the short term. Upstream manufacturers continue to raise prices, while those with export advantages adjust their prices to match international levels. Optimistic about future prospects, their sales strategy remains focused on maintaining low inventory levels and accepting orders in limited quantities. Port trade remains very active, but there is significant pressure for domestic trade prices to rise as well; price disparities in certain areas have reached over 100 yuan, which clearly suppresses demand. At current domestic prices, exports can continue, and prices are expected to remain strong in the short term.