Weekly Urea Market Report for the Third Week of July 2016

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Weekly Report on the Urea Market for the Third Week of July Author/Source: China Fertilizer Network Date: 2016-07-25 Clicks: 3 The export situation for the urea market is not optimistic, and domestic demand from industry and agriculture is weak. To make matters worse, heavy rains have hit the North China, Central China, South China, and other regions, further deteriorating an already sluggish urea market situation. This week, except for a slight increase in the main factory prices in Guangxi, and stable prices in the Northeast, Fujian, and Zhejiang regions, prices generally declined in other areas. In the Shandong Lianghe region, where agricultural top-dressing helped in the earlier stages, the agricultural demand there has now basically come to an end. Currently, the mainstream export prices in Shandong have dropped by 20-30 yuan per ton compared to last week, reaching 1220-1240 yuan per ton ； Although the production rate in Hebei region is only … (the omitted details can be found in the member area; the same applies below), the mainstream factory prices are lower by 20 yuan, ranging from 1200 to 1220 yuan ； The mainstream ex-factory prices in Henan region have dropped by 10–20 yuan, reaching 1200–1240 yuan; for large local sales orders and shipments to other areas, the price is only 1150–1170 yuan ； The mainstream ex-factory prices in Shanxi region have dropped by 30 yuan compared to last week, reaching 1120–1130 yuan ； The mainstream ex-factory prices in Jiangsu and Anhui have also dropped by 10–15 yuan ； Competition among manufacturers in the Xinjiang region for selling products externally is fierce; the standard factory prices have dropped to 950–1000 yuan. Most sales within the region take place at this lower price point, while products are sent out for sale elsewhere…… ； Competition among manufacturers in Inner Mongolia is also fierce when it comes to exporting products; the standard factory prices have dropped by 10–20 yuan, ranging from 1020 to 1180 yuan, according to market feedback…… ； In the southwest market, the continued influx of low-cost goods from regions such as Xinjiang is putting pressure on this area; as a result, the standard export prices in Yunnan have dropped by 100 yuan, to between 1,450 and 1,600 yuan. In Sichuan, the higher-end prices have fallen by 25 yuan, to between 1,250 and 1,350 yuan. It is reported that due to the impact of heavy rain on the railways, the Chengdu-Kunming Railway Bureau has restricted the amount of goods coming from Xinjiang, and this restriction is expected to continue until the 25th or even longer. 　　International urea prices remain weak overall, with slight rebounds in some areas; for small-grain urea, prices in the Black Sea region dropped by $3 to 172–174 dollars,... 　　As of the weekend, the purchase price in Linyi, Shandong… The operating rate in the compound fertilizer industry increased slightly from around 30% last weekend to around 43%, mainly due to the production of autumn fertilizers (primarily high-phosphorus and high-potassium fertilizers); this did not have a significant impact on the urea market. 　　Overall, there are still negative factors affecting exports, and there is little improvement in the domestic industrial and agricultural sectors; the overall utilization rate of urea has dropped to... However, for industrial compound fertilizer manufacturers that produce goods on demand as well as downstream distributors, the supply remains sufficient. It is expected that the urea market will remain weak in the coming period, with prices continuing to fall. Taking Shandong’s Lianghe area as an example, in the long term its mainstream ex-plant prices for local sales could drop below 1100 yuan.