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Urea price trends across China on March 9 / Author/Source: Business Society / Date: 2021-03-09 / Clicks: 4. The domestic urea market continues to face downward pressure; recent trends have been weak. Due to a tendency among buyers to wait for price increases rather than make purchases at lower prices, there is a strong atmosphere of caution among buyers, and their willingness to place orders is low. New orders from urea manufacturers are few and far between, and the selling prices in key regions for low-quality urea have dropped below 2,000 yuan per ton. On the supply side, some of the inventory held for off-peak periods has been gradually released, production volumes at urea manufacturers have increased significantly, resulting in a relatively ample supply. On the demand side, agriculture relies on consumption as it occurs; the operating load of industrial compound fertilizer manufacturers is fairly decent, with small orders being placed continuously when prices are low. It is expected that the domestic urea market will remain weak in the short term; going forward, attention will be focused on downstream demand trends and international bidding developments. In the Shandong region, the ex-factory prices for medium and small-sized granules range from 2,020 to 2,070 yuan per ton. The prevailing transaction prices are around 2,000–2,030 yuan per ton. In the Linyi area, the market purchase price for such granules is approximately 2,030–2,040 yuan per ton; in the Heze area, it is around 2,020 yuan per ton. Since the weekend, some enterprises have lowered their quotes by 20–60 yuan per ton. In the Hebei region, the ex-factory price for small-sized granules is about 2,030–2,050 yuan per ton, with prevailing transaction prices at roughly 2,020–2,030 yuan per ton. Again, since the weekend, certain enterprises have reduced their quotes by 20–60 yuan per ton. In Henan, the typical ex-factory price for medium and small-sized granules is 2,000–2,080 yuan per ton; some enterprises have cut their quotes by 30–60 yuan per ton. In Anhui, the typical ex-factory price for small-sized granules stands at 2,140–2,180 yuan per ton; this figure remains unchanged for now. In Jiangsu, the typical quoted price for medium and small-sized granules is around 2,000–2,190 yuan per ton; since the weekend, some enterprises have lowered their quotes by 20–30 yuan per ton. In Shanxi, the quoted price for small-sized granules is approximately 1,940–1,960 yuan per ton, while that for large-sized granules is around 1,970–1,980 yuan per ton. Since the weekend, several enterprises have reduced their quotes by 20–40 yuan per ton. In Inner Mongolia, the actual ex-factory price for medium and small-sized granules is negotiated on a case-by-case basis; the external sales price is estimated at 1,950–2,050 yuan per ton, which remains stable for now. In Hubei, the typical ex-factory price for small-sized granules is about 2,150 yuan per ton; this price remains unchanged as well. In Shaanxi, the typical local sales price for medium and small-sized granules is 2,020–2,030 yuan per ton; since the weekend, one enterprise has lowered its quote by 100 yuan per ton. In Guangxi, the typical wholesale price for medium and small-sized granules is around 2,230 yuan per ton; this price remains stable. In Sichuan, the ex-factory price for medium and small-sized granules is estimated at 2,100–2,120 yuan per ton; this figure has decreased by 20 yuan per ton. In Guangdong, the typical wholesale price for such granules is about 2,200–2,230 yuan per ton; this price has dropped by 30 yuan per ton. In Xinjiang, the ex-factory transaction price is estimated at 1,650–1,730 yuan per ton; this price remains stable. In Jilin, the ex-factory price is roughly 2,200 yuan per ton; this figure also remains unchanged. In Heilongjiang, the quoted price for small-sized urea via road or rail transport is 2,200 yuan per ton; this price stays stable. In Liaoning, the quoted price for small-sized urea transported by road is 2,200–2,260 yuan per ton; this price remains unchanged as well. Upstream manufacturers in Shandong, Hebei, Henan, and Liaoning, after maintaining seemingly stable prices while actually implementing subtle price cuts earlier, have now officially set their ex-factory prices. Consequently, the overall situation regarding orders at lower price levels has improved somewhat; some factories continue to receive orders for port shipments, thus significantly alleviating short-term sales pressure. Given that overall demand remains weak, it is expected that this will drive prices in regions such as Shanxi and Inner Mongolia to align with market levels. It is worth noting that the price of small-particle urea in China is currently at a low level globally, which is expected to boost export volumes. Market confidence is still recovering at present, and the inventory accumulated during the low-demand period is being gradually absorbed. It is expected that once this round of price adjustments is complete, demand will increase, allowing prices to stabilize.