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Urea price trends across China on August 18 Author/Source: Yuege Agri-Materials Network Date: 2020-08-18 Clicks: 10 Downstream users and end-users have been gradually stocking up in advance, with a cautious attitude toward purchases. Some companies are still negotiating export orders, and there have been slight price increases in certain cases. It is expected that the domestic urea market will remain stable in the short term, with attention paid to the loading, unloading, and transportation activities at major ports such as Tianjin Port. The urea market is operating in a weak condition, with reduced trading activity. Domestic demand is low; following the previous rise in urea prices, downstream buyers have become more cautious in their purchases. Some urea manufacturers have reduced prices in an attempt to attract customers. Due to the tendency to buy when prices are rising and avoid buying when they fall, downstream buyers’ willingness to purchase has significantly decreased, resulting in difficulties for some manufacturers in securing new orders and putting pressure on their sales. In Shandong, the ex-factory price for small and medium-sized particles is 1,670–1,790 yuan per ton, with the typical transaction price ranging from 1,650–1,720 yuan per ton. In Linyi, the market price for such particles is 1,690–1,700 yuan per ton, while in Heze it ranges from 1,690–1,750 yuan per ton. Since the weekend, some manufacturers have reduced their prices by 10–50 yuan per ton. In Hebei, the ex-factory price for small particles is around 1,730–1,800 yuan per ton, with the typical transaction price being around 1,710–1,740 yuan per ton; again, some manufacturers have lowered their prices by 10–60 yuan per ton since the weekend. In Henan, the ex-factory price for small and medium-sized particles is 1,610–1,730 yuan per ton, with some manufacturers reducing their prices by 10–20 yuan per ton since the weekend. In Anhui, the typical ex-factory price for small particles is around 1,730–1,780 yuan per ton, with prices remaining stable for now. In Jiangsu, the typical price for small and medium-sized particles is around 1,700–1,810 yuan per ton, though some companies have reduced their prices by 20 yuan per ton. In Shanxi, the price for small particles sent to other regions is around 1,600–1,650 yuan per ton, while the price for larger particles is around 1,670–1,700 yuan per ton. Some companies there have lowered their prices by 10–30 yuan per ton since the weekend. In Sichuan, the ex-factory price for small and medium-sized particles is around 1,640–1,690 yuan per ton, with prices remaining stable. In Liaoning, the price for small particles transported by truck is 1,610–1,670 yuan per ton, with prices negotiable; prices remain stable for now. In regions such as Shandong, Henan, and Hebei, prices have been reduced by 30–50 yuan per ton. Indian RCF has purchased 958,000 tons of urea in its tender issued on August 10, with 400,000–450,000 tons expected to be loaded from Chinese ports. However, with less than a month left until the shipping date on September 15, this will pose a significant challenge to port logistics in China. Meanwhile, the launch of compound fertilizers in the domestic market remains slow, and declining domestic demand has further accelerated the drop in market prices; it is expected that the domestic market will remain weak for the time being.