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This post was last edited by qiwu9981 on 2010-11-9 at 22:41. China’s urea production capacity is likely to be released in a more controlled manner in the future. Author/Source: China Chemical Industry Network. Date: 2010-09-20. Views: 19. Domestic urea prices continue to rise, with the increase spreading to regions such as the Northeast, Southwest, and Northwest. The price increase ranges from 20 to 80 yuan per ton compared to last week. At present, while some manufacturers in the Northwest still sell urea at prices of 1550–1650 yuan per ton, factory prices in most other regions have risen to between 1700–1800 yuan per ton. The average national factory price is around 1750 yuan per ton. The sharp rise in international urea prices this week is the main factor driving up urea prices in China. Although the export tariff was raised to 110% on September 16, its implementation period was short; many manufacturers in Shandong region have secured new orders for storage, leaving little inventory by the end of the month. In addition, energy conservation and emission reduction, fertilizers for autumn sowing, **and strategic stockpiling also played a certain supporting role. In terms of energy conservation and emission reduction, there have been no new developments recently. The factories that have stopped operating are still concentrated in Shanxi and Hebei provinces, and the time when they resume operations is uncertain (usually, one has to wait for local **notifications); no new factories have stopped operating in other provinces for this reason as of now. Due to the significant improvement in market conditions for urea and liquid ammonia, manufacturers in regions such as Shandong and the Northeast have begun to resume production, and it is expected that China’s urea production will gradually recover in the coming period. In terms of the market, urea products continue to be primarily directed toward the industrial market and for export, while distributors in the agricultural sector remain cautious; the establishment of a stockpiling strategy for lean periods is likely to be postponed until October. If deals are made at an offshore price of 312 dollars per ton in our country, the ex-plant price for export orders could reach around 1,850 yuan per ton. Moreover, urea prices in the international market remain on the rise, so urea prices in our country are likely to continue to increase driven by exports. In particular, there is significant room for an increase in urea prices in the northeast, northwest, and southwest regions. However, it is necessary to be cautious about the possibility of government intervention if urea prices rise sharply.