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Weekly Report on the Urea Market for the First Week of April Author/Source: China Fertilizer Network Date: 2016-04-11 Clicks: 2 There were few new orders in the urea market this week, and urea prices declined in most regions. The order volume for industrial compound fertilizer factories in Shandong region is gradually declining, and there is insufficient support from agricultural orders. The prevailing factory prices have dropped by 30–50 yuan per ton, to between 1320–1350 yuan. In Linyi region, the purchase prices for compound fertilizers by factories have fallen by 20–30 yuan compared to before the holiday, reaching 1340–1350 yuan ； In the Hebei region, sales are mainly directed to ports and local markets; the pace of sales has slowed slightly, with the standard factory prices dropping by 20 yuan to 1300–1330 yuan ； Manufacturers in Henan still focus on processing industrial orders on a subcontracting basis; there is currently a certain amount of orders awaiting shipment. However, new orders are not performing well, and the standard export prices have dropped by 30 yuan, ranging from 1320 to 1360 yuan ； Orders for industrial and agricultural products in Shanxi region have been postponed; the main factory prices have dropped by 30 yuan, ranging from 1250 to 1280 yuan ； Fertilizer preparation for agricultural use in Jiangsu region has slowed down slightly, with mainstream factory prices dropping by 30 yuan to 1380–1480 yuan ； The urea market in Hubei is performing fairly well; however, the prices for high-end grades have dropped by 50 yuan, to between 1400–1450 yuan. The typical selling price at the factory level is around 1380–1400 yuan ； Fertilizer preparation in the Liaoning region has gradually begun; the mainstream factory prices have increased by 10 yuan, reaching 1,440–1,500 yuan. However, these are provisional prices ； Fertilizer preparation for agricultural use in the lower reaches of Heilongjiang region has begun to pick up, with the local standard ex-factory price reaching 1,470–1,500 yuan; this price is also provisional. Internationally, the offshore price of urea has seen an increase; the price for small-grain urea in the Baltic Sea rose by $4 to $195–200, while in the Black Sea it increased by $3 to $200–205 ； Large-sized Baltic grades rose by $5 to $215-$220, while Egyptian grades increased by $2 to $233-$233 ； New Orleans barges drop 11 dollars to 220-256 dollars (short ton) ； China’s offshore reference price for urea has seen a slight increase; the price for small pellets is now 222–227 dollars, up by 5 dollars ； Large particles: $213–$223, an increase of $8. According to China Fertilizer Network, as of the end of this weekend, the operating rate of the urea industry across the country was around 73.45%, a decrease of about 4 percentage points compared to the previous week. Although international urea prices have risen slightly, the large inventory levels at domestic ports mean that there is yet no impact on domestic market conditions as a result of exports. There are rumors that India will issue new procurement tenders for around 500,000 tons (the tendering might take place by the end of April), but this has not been confirmed yet ； The weak domestic market conditions may lead to further slight declines in urea prices, but given factors such as future agricultural demand and electricity price adjustments, the drop will not be significant, remaining around 30 yuan.