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Urea price trends across China on December 29 Author/Source: Yuege Agri Supplies Network Date: 2020-12-29 Clicks: 26 Today, urea prices have shown mixed trends in various regions; currently, sales of new orders by domestic urea manufacturers remain at a moderate level. On the demand side, there are sporadic purchases in the agricultural sector. The areas downstream in Shandong and the Two Rivers regions are greatly affected by efforts to control air pollution; as a result, the operating capacity of panel and compound fertilizer manufacturers has declined, and new orders for purchases have slowed down, leaving industrial demand weak. On the supply side, constraints remain in place; many urea manufacturers are operating at reduced capacity. According to statistics, the daily production volume in the urea industry has reached its lowest level this year, and the operational rate remains low for the time being. As a result, some manufacturers are inclined to maintain high prices. The domestic urea market is expected to remain stable with slight fluctuations in the short term. In Shandong province, the ex-factory price for small and medium-sized particles is 1,780–1,810 yuan per ton, with the prevailing transaction price ranging from 1,750–1,790 yuan per ton. In Hebei province, the ex-factory price for small particles is around 1,790–1,810 yuan per ton, while the typical transaction price is about 1,780–1,810 yuan per ton. In Henan province, the ex-factory price for small and medium-sized particles is 1,780–1,820 yuan per ton. In Shanxi province, the reference price for small particles shipped elsewhere is around 1,740–1,760 yuan per ton, while the reference price for large particles shipped elsewhere is around 1,780 yuan per ton. In Hubei province, the ex-factory price for small particles is around 1,880 yuan per ton. The urea production facility in Sichuan’s Meifeng area has been shut down, and all fertilizer factories in that region have also ceased operations. Given the poor operating conditions of downstream fertilizer production facilities in Sichuan, market prices remain relatively stable. Stricter environmental protection measures regarding production limits in the lower reaches of Shandong and Henan have created some pressure on manufacturers in the upper reaches, resulting in a slight decline in the actual export prices of some factories. Due to the concentrated arrival of goods at certain stations such as Jianggao Town and Guotang in the Guangzhou Railway Bureau, service was suspended from 6 p.m. on December 28 to 6 p.m. on December 31; however, this has not yet had a significant impact on the market. The market is expected to remain stable in the short term. Affected by measures to address air pollution, new order trading was slightly sluggish in Shandong and the Two Rivers regions; whereas in the South China and Southwest markets, new order acquisition was somewhat better due to limited supply within those regions. Manufacturers monitor their advance receipts and make appropriate, flexible adjustments to prices. Domestic urea prices are expected to remain stable within a narrow range in the near term.