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Urea price trends across China on July 14 Author/Source: Yuege Agri-Materials Website Date: 2020-07-14 Clicks: 11 The domestic urea market remains stable with slight price increases in some areas; urea manufacturers continue to focus on fulfilling pre-paid orders, adjusting their prices flexibly based on their own circumstances. On the supply side, production cuts and maintenance activities carried out earlier have gradually resumed, and some facilities in Shandong Province have shifted to producing peptide urea, which has led to a decrease in shipments of conventional urea. It is expected that the domestic urea market will remain stable with only slight fluctuations in the short term. On the demand side, some areas are still supported by certain agricultural demands. In terms of industrial demand, the operating capacity of companies producing compound fertilizers and panels remains low, so purchases are made in moderation when prices are low. On the international front, India’s MMTC announced a new round of urea tenders on July 9; the bidding deadline is July 17, the submission deadline is July 24, with delivery scheduled for August 20. The ex-factory price for small and medium-sized particles in Shandong region is 1,600–1,670 yuan per ton, while the typical transaction price ranges from 1,590–1,630 yuan per ton. In Linyi, the market price for such particles is 1,680 yuan per ton, whereas in Heze it ranges from 1,650–1,660 yuan per ton. Since the weekend, some companies have increased their prices by 10 yuan per ton. The urea production equipment at Yangmei Pingyuan Chemical Co., Ltd. is operating normally. Small-particle urea costs 1,640 yuan per ton; the quoted price remains stable, with the actual transaction price determined through negotiation. Shandong Ruixing Chemical Co., Ltd. has an annual urea production capacity of 1.6 million tons, and at present its daily production is around 5,000 tons. The spot price for small-particle urea is 1,630 yuan per ton; the quote remains stable for now, with the actual transaction price determined through negotiation. In Hebei region, the ex-factory price of small particles is around 1,590–1,610 yuan per ton, while the prevailing transaction price is around 1,560–1,580 yuan per ton. The ex-factory price of large particles is around 1,680 yuan per ton, with prices remaining stable for now. In Henan region, the prevailing ex-factory prices for small and medium-sized particles are around 1,600–1,640 yuan per ton; some companies have raised their prices by 10 yuan per ton. In Anhui region, the prevailing ex-factory price for small particles is around 1,670–1,720 yuan per ton, with prices remaining stable. In Jiangsu region, the prevailing prices for small and medium-sized particles are around 1,690–1,710 yuan per ton, also remaining stable. In Shanxi region, the ex-shipment prices for both small and large particles are around 1,500–1,540 yuan per ton; some companies have raised their prices by 10 yuan per ton. In Inner Mongolia region, the prevailing ex-shipment prices for small and medium-sized particles are around 1,370–1,430 yuan per ton, while the price for large particles is around 1,420–1,480 yuan per ton, with prices remaining stable. In Hubei region, the prevailing ex-factory price for small particles is around 1,660–1,680 yuan per ton, with prices remaining stable. In Shaanxi region, the prevailing local sales price for small and medium-sized particles is around 1,600 yuan per ton, with prices remaining stable. In Guangxi region, the prevailing wholesale price for small and medium-sized particles is around 1,700 yuan per ton, with prices remaining stable. In Sichuan region, the ex-factory prices for small and medium-sized particles are around 1,580–1,690 yuan per ton, with prices remaining stable. In Guangdong region, the prevailing wholesale price for small particles is around 1,750–1,770 yuan per ton, with prices remaining stable. In Xinjiang region, the ex-factory and transaction prices are around 1,250–1,350 yuan per ton, with prices remaining stable. In Jilin region, the transaction price for small particles of urea is around 1,720–1,750 yuan per ton, with prices remaining stable. In Heilongjiang region, the transaction price for small particles of urea is around 1,580 yuan per ton, with prices remaining stable. In Liaoning region, the transportation cost for small particles of urea by road is around 1,640–1,700 yuan per ton, with prices negotiable; overall, prices remain stable. Two factories in Xinjiang have temporarily stopped production, resulting in a decrease in the supply of goods heading out of the region. As a result, prices in the Hubei and Hunan regions, which previously received such goods, remain firm. On the demand side, agricultural activities in North China and the Two Lakes region are coming to an end, resulting in a gradual decline in agricultural demand. Demand for compound fertilizers has increased, and factories are more enthusiastic about making purchases. Overall, most areas across the country are currently in the off-season for industry and agriculture, resulting in a relatively stable market. In the coming days, special attention should be paid to the price policies once the goods from Inner Mongolia arrive at the ports.