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Urea price trends across China on March 24 Author/Source: Yuege Agri-Materials Web Date: 2020-03-24 Clicks: 8 The domestic urea market continued to show weak performance, with a clearly subdued trading atmosphere in the market. The operating capacity of domestic urea manufacturers has risen to around 77.5%, resulting in an ample supply in the market. At present, manufacturers are focusing on shipping orders placed earlier; due to low confidence in the market at the moment, downstream buyers are cautious, which puts pressure on manufacturers to secure new orders. As the amount of goods awaiting shipment decreases, prices in some areas are expected to continue falling. On the demand side, agriculture in the northern regions has largely come to an end; at present, downstream rubber sheet manufacturers and compound fertilizer companies are mainly making small-scale replenishments, with a strong atmosphere of caution among them. Hualu Hengsheng’s medium-sized particles are priced at 1720 (a decrease of 30), while large-sized particles cost 2020 (no change); Hebei Dongguang’s small-sized particles are priced at 1740 (a decrease of 20), and large-sized particles cost 1990 (no change); Henan Xinlianxin’s products are priced at 1740 (a decrease of 20); Shanxi Fengxi’s products are priced at 1650 (a decrease of 20); Jiangsu Linggu’s products are priced at 1810 (no change); Anhui Haoyuan’s products are priced at 1780 (a decrease of 20); Inner Mongolia Boda’s products are priced at 1580 (a decrease of 60). Shaanxi Shanhua’s products are priced at 1706 for local sales (a decrease of 60), and 1630 for external sales (a decrease of 50). On the international front, RCF India issued a tender for urea imports on March 21; the tender period will end on March 30, with shipments to take place by May 5. The volume of urea called for in this Indian tender is likely to exceed 1 million tons. It is expected that the domestic urea market will remain weak in the short term until the pricing in India becomes clear. In the Shandong region, the ex-factory price for small and medium-sized particles is 1,720–1,790 yuan per ton, with the typical transaction price ranging from 1,740–1,750 yuan per ton. In the Linyi area, the market price for such particles is 1,780–1,790 yuan per ton, while in the Heze area it is around 1,770 yuan per ton. Since the weekend, some companies have reduced their prices by 10–30 yuan per ton. In the Hebei region, the ex-factory price for small particles is around 1,750–1,770 yuan per ton, with the typical transaction price being around 1,730–1,740 yuan per ton; the ex-factory price for large particles is around 1,990 yuan per ton. Since the weekend, a few companies have lowered their prices by 10 yuan per ton. In the Henan region, the typical ex-factory price for small and medium-sized particles is 1,740–1,760 yuan per ton. Since the weekend, some companies have reduced their prices by 10–20 yuan per ton. The urea production facility in Henan’s Jin Kai plant is operating normally, with a daily production volume of around 4,000 tons. The price has been reduced by 10 yuan per ton today; the ex-plant price for medium-sized particles is 1740 yuan per ton, while that for large-sized particles is 1850 yuan per ton. The final price will be determined through further negotiation. Prepaid orders are being processed, but follow-up on new orders is poor, resulting in increasing sales pressure. Recently, the mainstream ex-factory prices of surrounding enterprises are around 1,700–1,730 yuan per ton. The urea production plant in Henan Xinxinxin is operating normally, with a current daily output of 5,400 tons, of which less than 1,000 tons is regular urea. The factory price for small particles is 1,740 yuan per ton; the final price will be negotiated. Previous orders are being fulfilled as usual; downstream customers place orders as needed, and shipments are proceeding satisfactorily. In Anhui province, the typical factory price for small particles is around 1780–1820 yuan per ton, with prices remaining stable for now. In Jiangsu province, the typical prices for small and medium-sized particles are around 1770–1810 yuan per ton; since the weekend, some companies have reduced their prices by 10 yuan per ton. In Shanxi province, the price for small particles for external delivery is around 1630–1670 yuan per ton, while the price for large particles for new orders is around 1770–1790 yuan per ton. Some companies have reduced their prices by 20–40 yuan per ton. In Inner Mongolia, the typical price for small and medium-sized particles for external delivery is around 1550–1590 yuan per ton, while the price for large particles is around 1800 yuan per ton. Since the weekend, some companies have reduced their prices by 40–100 yuan per ton. In Hubei province, the typical factory price for small particles is around 1830–1850 yuan per ton, with prices remaining stable. In Shaanxi province, the typical local selling price for small and medium-sized particles is around 1700 yuan per ton; since the weekend, some companies have reduced their prices by 60 yuan per ton. In Guangxi province, the typical wholesale price for small and medium-sized particles is around 1900 yuan per ton, with a decrease of 20 yuan per ton. In Sichuan province, the typical factory price for small and medium-sized particles is around 1820–1900 yuan per ton, with prices remaining stable. In Guangdong province, the typical wholesale price for small particles is around 1880–1910 yuan per ton, with a decrease of 10–20 yuan per ton. In Xinjiang province, the typical transaction price is around 1550–1600 yuan per ton, with prices remaining stable. In Jilin province, the price for small particle urea is around 1980 yuan per ton. Quotations remain stable. The transaction price for small-grained urea in Heilongjiang is around 1930–1970 yuan per ton; prices remain stable there as well. In Liaoning, the freight-cost adjusted price for small-grained urea is 1800–1840 yuan per ton, with the actual transaction price subject to negotiation. Nationwide, urea prices continue to decline; prices in Xinjiang have dropped by 50–100 yuan per ton. In Shanxi and Shaanxi, the actual transaction prices have fallen by 30–50 yuan per ton compared to last week. Prices in North China are approaching 1700 yuan per ton. Overall, demand from upstream suppliers remains weak, and demand from downstream markets remains low. Affected by the overall economic climate, both demand and confidence have declined; transactions in the Northeast market have come to a standstill, there are only occasional purchases in the agricultural sector in the South, industrial clients make purchases based on their needs, and traders continue to sell off their stocks. The tender, which was the focus of the industry last weekend, has been issued; the opening date is March 30, with the sailing date set for May 5. According to foreign media analysis, as heavy rainfall in India has boosted sales, the volume of goods up for bid this time is expected to exceed 1 million tons. However, it seems that the Indian tender has not yet had a significant positive impact on the market; with the deadline being less than a month before the shipping date, delivery schedules remain tight.