Changes in supply and demand have caused the price of urea to drop by as much as 310 yuan per ton in a single day!
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This weekend, the persistently high prices of urea finally saw a significant drop! Let’s take a look at the latest price trends. Since the weekend, urea prices have dropped across the board! Today (July 4), the decline was around 20–310 yuan per ton. Among them, the price cuts in provinces such as Shandong, Hebei, Anhui, Jiangsu, Heilongjiang, Inner Mongolia, and Guangdong exceeded 100 yuan per ton, while the price of urea in Liaoning dropped by as much as around 310 yuan per ton. Currently, the main domestic factory price of urea has dropped below 2,850 yuan per ton, once again falling below 3,000 yuan per ton. Specifically, the latest factory price for small and medium particle urea in Shandong region is 2,730–2,830 yuan per ton, a decrease of 170–220 yuan per ton compared to last Friday ； The prevailing ex-factory price for small and medium particle urea in the Henan region is 2,900–2,930 yuan per ton, a decrease of 70–80 yuan per ton compared to last Friday ； The prevailing ex-factory price for small-grain urea in Anhui region is 2,950–3,050 yuan per ton, down by 70–150 yuan per ton compared to last Friday ； The price cuts in regions such as Heilongjiang, Inner Mongolia, and Guangdong also exceeded 100 yuan per ton. Even more extreme was the situation in Liaoning, where the price of urea dropped by a staggering 310 yuan per ton.
Why has the price of urea in the domestic market dropped significantly? The main reason is that the market currently holds a bearish outlook regarding the future price of urea. At such high prices, local agricultural suppliers are reluctant to purchase urea due to concerns over excessive risks; as a result, the supply of urea is relatively ample. Companies receive few new orders, and sales pressure is increasing steadily. In order to sell their products, they are forced to keep lowering prices. Furthermore, the supply and demand dynamics for urea have changed recently; agricultural demand is low, and farmers remain reluctant to pay high prices for fertilizers. The peak season for fertilizer use has not yet arrived. Although there have been production cuts and maintenance activities by urea manufacturers in regions such as Xinjiang, Inner Mongolia, and Henan, resulting in a decline in daily urea production, increased shipments of urea from manufacturers in the Northwest and North China are putting pressure on the overall market situation. Previously, Indian officials had predicted a sharp drop in fertilizer prices, and the fertilizer export situation in countries such as Russia has also improved, which could lead to significant changes in the international fertilizer market. Overall, domestic urea prices are likely to continue to decline in the short term, with a significant drop not ruled out.
In the Shandong region, the factory price for small to medium-sized particles is around 2,540–2,600 yuan per ton. In Jianglou Town, Huimin District, Binzhou City, Shandong, the retail price of 50 kilograms of urea is 138 yuan. Jinan area, Shandong: Hualu Hengsheng medium-grained version costs 140 yuan per bag, while the small-grained version costs 135 yuan per bag; each bag weighs 50 kilograms. Jianglou Town, Huimin District, Binzhou City, Shandong Province: The retail price of 50 kilograms of urea is 138 yuan. In the Henan region, the typical factory price for small to medium-sized granules is around 2570–2650 yuan per ton ； Xinxiang, Henan: The purchase price of granular urea at \"Heart to Heart\" is 2695 yuan per ton, while at Anyang Zhongying it is 2625 yuan per ton. In Hebei province, the typical ex-factory price for small granules is around 2530–2560 yuan per ton. In Anhui province, the typical ex-factory price for small granules is around 2630–2660 yuan per ton. In Jiangsu province, the ex-factory price for medium and small granules is around 2700–2720 yuan per ton ； Guyun area, Jiangsu: The retail price for 50kg bags of urea in larger granules is 137 yuan per bag, while the purchase price per ton is 2720 yuan. For the Hubei region, the reference ex-factory price for small particles is around 2,620–2,650 yuan per ton ； Xiangcheng District, Xiangyang City, Hubei: Sanning urea is sold at 140 yuan per 50 kilograms. Jingmen City, Hubei Province: 40 kilograms of urea is sold at 125–130 yuan per pack. In the Shanxi region, the typical ex-factory price for urea is around 2420–2500 yuan per ton. In the Shaanxi region, the average price for small and medium-sized granules is around 2430–2480 yuan per ton ； In the Liaoning region, the reference price for small and medium-sized particles at the factory is around 2,560 yuan per ton. On the Hot Agrochemical Investment Promotion Website, the exit price for such particles in the Tieling market is around 2,570–2,650 yuan per ton. In the Inner Mongolia region, the factory price for small and medium-sized particles is around 2,390–2,500 yuan per ton ； Baotou City, Inner Mongolia: The retail price of 50 kilograms of urea is 130 yuan. In the Guangxi region, the mainstream price for pick-up delivery of small to medium-sized particles in the market is around 2680–2700 yuan per ton. In the Guangdong region, the mainstream pricing for such particles is around 2670–2690 yuan per ton. In the Sichuan region, the factory outlet price for small to medium-sized particles is approximately 2520–2600 yuan per ton. Pingchang County, Sichuan: Dealers report that there is no new supply of urea at the moment; they are mainly selling the inventory from earlier periods, as it is a slow sales season. Fujian region: Quanzhou area: The delivery price at the urea loading station is 2,780 yuan per ton.