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Urea price trends across China on August 27 Author/Source: Yuege Agri Supplies Network Date: 2020-08-27 Clicks: 5 The urea market remains weak, with strong caution among downstream buyers, and there is little demand for new domestic orders. Some maintenance companies have gradually resumed operations, while a few facilities have reduced their output; overall, there are no significant changes in supply at present. On the demand side, domestic essential demand is currently moderate; the agricultural sector is in its off-season, and downstream companies involved in the production of compound fertilizers and panels have low production levels. Purchases are mainly made in small quantities for specific needs, while the urea market remains stagnant. 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 Linyi, the market price for such particles is 1,660 yuan per ton, while in Heze it is around 1,640 yuan per ton. In Shanxi, the export price for small particles is approximately 1,550–1,600 yuan per ton, and that for large particles is around 1,570–1,600 yuan per ton. In Sichuan, the ex-factory price for small and medium-sized particles is around 1,640–1,690 yuan per ton. In the North China region, prices have increased by 10–20 yuan per ton. Factories in Shanxi are limiting their orders, focusing mainly on exports; factories that previously maintained high prices are now keeping them stable. On the demand side at home, the second round of payments for autumn compound fertilizers has begun, with factory inventories at low levels, leading to an increase in purchase inquiries. The results of the bidding process conducted by India’s MMTC have been announced; the lowest price on the east coast is 283.52 US dollars per ton CFR, which is equivalent to around 267–268 US dollars per ton FOB in China (including shipping costs, various fees, and a reasonable profit margin for traders). It is expected that at this price level, the volume of goods awarded in the bids will be substantial, thereby boosting market confidence.