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Urea price trends across China on April 22 Author/Source: Yuege Agri-Materials Network Date: 2021-04-22 Clicks: 32 The domestic urea market continued to show an upward trend today, with trading activity gradually increasing. Manufacturers are placing new orders at a steady pace. Orders for export via ports are now in the final stages of processing. Downstream manufacturers in the panel and compound fertilizer industries have low inventory levels of raw materials, so they remain willing to make purchases; in the agricultural sector, purchases are still limited to occasional cases. On the supply side, some urea-producing plants have reduced production or increased maintenance activities, resulting in a daily production volume of less than 150,000 tons. Manufacturers’ inventory levels are low, and supply is tight in certain areas; this tightened supply situation is supporting the current market conditions. It is expected that the domestic urea market will see further price increases in the short term. Below are the latest prices across various regions in China today: The main ex-factory prices for urea on April 22nd, along with changes in prices in different areas. In Shandong, the ex-factory price for small and medium-sized particles is 2,110–2,180 yuan per ton, while the typical transaction price ranges from 2,080–2,120 yuan per ton. In Linyi, the market price for small and medium-sized particles is around 2,170–2,180 yuan per ton. In Heze, the purchase price for such particles is around 2,150–2,160 yuan per ton, with some companies raising their prices by 10 yuan per ton. In Hebei, the ex-factory price for small particles is around 2,100–2,120 yuan per ton, while the typical transaction price is around 2,090–2,100 yuan per ton; a few companies have raised their prices by 10 yuan per ton. In Henan, the main ex-factory price for small and medium-sized particles is 2,100–2,150 yuan per ton, with some companies increasing their prices by 10 yuan per ton. In Anhui, the main ex-factory price for small particles is around 2,160–2,200 yuan per ton, with some companies raising their prices by 20 yuan per ton. In Jiangsu, the main price for small and medium-sized particles is around 2,180–2,200 yuan per ton, with some companies increasing their prices by 10–20 yuan per ton. In Shanxi, the price for small particles is around 2,020–2,060 yuan per ton, while the price for large particles is around 2,020–2,050 yuan per ton; some companies have raised their prices by 10–20 yuan per ton. In Inner Mongolia, the main export price for small and medium-sized particles is around 1,900–1,980 yuan per ton, with prices remaining stable for now. In Hubei, the main ex-factory price for small particles is around 2,150 yuan per ton, with prices stable. In Shaanxi, the local sales price for small and medium-sized particles is around 1,980–2,050 yuan per ton, with prices stable. In Guangxi, the main wholesale price for small and medium-sized particles is around 2,220–2,230 yuan per ton, with prices stable. In Sichuan, the ex-factory price for small and medium-sized particles is around 2,100–2,130 yuan per ton, with some companies raising their prices by 20 yuan per ton. In Guangdong, the main wholesale price for small and medium-sized particles is around 2,220 yuan per ton, with prices stable. In Xinjiang, the transaction price at the factory level is around 1,700–1,770 yuan per ton, with prices stable. In Jilin, the ex-factory price is around 2,150 yuan per ton, with prices stable. In Heilongjiang, the price for small particles transported by road or train is around 2,120 yuan per ton, with prices stable. In Liaoning, the price for small particles transported by road is around 2,130–2,190 yuan per ton, with prices stable. The overall urea market remains in a positive trend. Major factories in regions such as Shandong, Henan, Hebei, and Anhui are maintaining firm pricing, with good demand for their products; some of these factories have raised prices by 10–20 yuan per ton. Currently, large compound fertilizer plants continue to operate at high capacity rates, while distributors show clear reluctance to purchase high-priced compound fertilizers. As raw material prices rise, the operating capacity of smaller plants has decreased. The demand from melamine and plywood factories is good; currently, purchases are made based on actual needs. Signs of increased agricultural demand in the markets along the river are evident; agricultural traders are asking for more quotes. Coupled with low inventory levels in the end-market, this is expected to lead to a wave of concentrated purchasing activity. The bidding process in India continues to be postponed; it is said that this might not take place until early May. It will still be necessary to keep an eye on developments in the international market as well as the progress made in pandemic control by India’s Ministry of Fertilizers. Overall, in the short term, domestic supply and demand will remain in a tight balance, with prices likely to stay firm and stable.