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Urea price trends across China on August 26 Author/Source: Business Society Date: 2020-08-26 Clicks: 12 The domestic urea market remains weak, with a poor trading atmosphere; downstream buyers are cautious and have little willingness to make purchases. At present, domestic urea producers mainly focus on shipments to ports, and there is little demand for new domestic sales orders. On the supply side, some maintenance companies have resumed operations recently, leading to a slight increase in available stock. On the demand side, domestic demand remains moderate at present. The urea top-dressing in 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 operate at low capacity levels. There are no expectations of an increase in production in the short term, with purchases being limited to small orders on a modest scale. The domestic urea market is expected to remain stagnant in the near future. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,630–1,710 yuan per ton; the prevailing transaction price is around 1,610–1,650 yuan per ton. In the Linyi area, the market price for such particles is 1,650–1,660 yuan per ton. In the Heze area, the purchase price for small and medium-sized particles remains stable at around 1,640 yuan per ton. In the Henan region, the standard ex-factory price for these particles is 1,610–1,660 yuan per ton, with some companies offering prices 10 yuan per ton lower. In the Shanxi region, the export price for small particles is around 1,550–1,600 yuan per ton, while the export price for large particles is around 1,580–1,600 yuan per ton; some companies are offering prices 10–20 yuan per ton lower. Factory prices in the Northwest and Xinjiang regions continue to decline, while prices at factories in the North China region have shown some improvement at the lower end of the range. In the futures market, the closing price of the main contract for urea futures was 1,655 yuan per ton, up 6 yuan per ton from the previous day’s settlement price. Today, trading volume in futures was significantly higher, with over 120,000 contracts traded throughout the day. In terms of the goods collection process, the capacity of major ports to receive freight by rail remains relatively limited, but the capacity for unloading by road transport has improved somewhat. In terms of domestic trade, there has been an increase in requests for urea raw materials from compound fertilizer manufacturers in the East China and Central China regions, while agricultural demand remains in a low season. Currently, the domestic market is still awaiting the announcement of prices for printing tomorrow; however, given that export volumes in the domestic market will be relatively limited, the trend in market conditions will still depend on the level of demand within the country. (Yuege Agricultural Inputs Website