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Urea price trends across China on August 25 Author/Source: Yuege Agri-Materials Website Date: 2020-08-25 Clicks: 5 The domestic urea market is operating in a weak manner, with low activity in transactions. There is a strong tendency among downstream users to wait and see, resulting in limited willingness to make purchases. At present, domestic urea producers mainly focus on shipments to ports, while there is little demand for new domestic sales orders. In Shandong, prices dropped by 10–50 yuan per ton in some areas; in Shanxi, they fell by 10–20 yuan per ton. In Hebei, prices dropped by 30 yuan per ton in certain areas, while in Henan they decreased by 10–20 yuan per ton. In Jiangsu, prices remained stable within a range of 10–20 yuan per ton. In Anhui, prices dropped by 30–50 yuan per ton in some areas, and in Sichuan, prices fell by 30 yuan per ton in certain regions. At present, domestic agricultural demand has not yet picked up; the industrial sector is operating at a normal level, with purchases being made in accordance with actual needs. Overall, there is insufficient demand, which leads to high prices. New orders are not performing well, and companies still face restrictions on shipping from ports. The overall market atmosphere is sluggish, with a strong tendency to wait and see; the market is in a state of stagnation. It is expected that domestic urea prices will remain stable for now, with only slight downward fluctuations in some areas. Recently, particular attention has been paid to the operation status of urea plants and the bidding situation in India. In Shandong, the ex-factory price for small and medium-sized particles is 1,630–1,710 yuan per ton, while the typical transaction price ranges from 1,610–1,650 yuan per ton. In Linyi, the market price for such particles is 1,660 yuan per ton, whereas in Heze it is around 1,640 yuan per ton. Some companies have reduced their prices by 20–40 yuan per ton. In Hebei, the ex-factory price for small particles is approximately 1,680–1,760 yuan per ton, with the typical transaction price ranging from 1,660–1,720 yuan per ton. Since the weekend, some companies have lowered their prices by 20–40 yuan per ton. In Henan, the typical ex-factory price for small and medium-sized particles is 1,610–1,660 yuan per ton, and since the weekend, company prices have dropped by 10–30 yuan per ton. In Anhui, the typical ex-factory price for small particles is around 1,700–1,750 yuan per ton, and since the weekend, some companies have reduced their prices by 40–50 yuan per ton. In Jiangsu, the typical price for small and medium-sized particles is around 1,670–1,790 yuan per ton, with prices remaining stable for now. In Shanxi, the price for small particles sold externally is around 1,560–1,600 yuan per ton, while the price for large particles is around 1,600 yuan per ton, with prices also remaining stable for now. On the supply side, some maintenance companies have resumed operations recently, leading to a slight increase in available stock. On the demand side, domestic essential demand is currently modest. The urea top-dressing during the summer has been fully completed, and the agricultural sector is in its off-season; as a result, downstream companies involved in the production of compound fertilizers and panels have low operating levels, with no expectations of an increase in production in the short term. Purchases are mainly limited to small orders at moderate volumes. The domestic urea market is expected to remain stable and stagnant in the near term. Demand in the domestic market remains weak, downstream buyers are somewhat uncertain, and their willingness to stock up is limited. Recently, some companies that had reduced production for maintenance have begun to resume operations, leading to a slight increase in supply. Coupled with weak support from the international market, confidence in the market remains low. However, there remains a demand for agricultural fertilizers in the domestic market in the later period; as a result, domestic prices will face slight pressure in the short term, but may gradually stabilize.