Weekly Urea Report, August 19–24, 2016: Urea prices may stabilize

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Weekly Urea Review: Urea prices may stabilize Author/Source: Date: 2016-08-29 Clicks: 3 Market Trends This week (August 19–24), the average ex-factory price of urea from 61 production companies across the country, as recorded by our reporters, was 1,188 yuan per ton. This represents a slight increase of 3 yuan per ton compared to last week, indicating signs that prices are stabilizing. The ex-factory prices of urea in regions such as Shandong, Henan, and Anhui have seen a slight increase of 10–20 yuan per ton, while prices in Hubei have continued to drop slightly. Currently, the mainstream pricing for urea manufacturers in North China is 1,080–1,120 yuan per ton, while the actual transaction price is 1,050–1,100 yuan per ton ； The mainstream ex-factory price of urea in the East China region is 1,130–1,220 yuan per ton, while the actual transaction price ranges from 1,100–1,180 yuan per ton ； The mainstream ex-factory price in Central China is 1,130–1,220 yuan per ton, while the industrial transaction price is 1,100–1,200 yuan per ton. There is a lack of market information in the Northeast region; the arrival price of urea from other provinces is currently set at 1080–1100 yuan per ton, while local factories quote prices ranging from 1060 to 1200 yuan per ton. There is supply but no demand ； Demand in the south is weak; wholesale prices in Guangdong and Guangxi remain stable at 1,360–1,380 yuan per ton ； Urea prices in the southwest region remain stable at low levels, with factory prices in Sichuan and Chengdu ranging from 1,300 to 1,320 yuan per ton ； Local sales prices for enterprises in the Northwest region range from 1,050 to 1,100 yuan per ton; the price of urea exported from Xinjiang is below 850 yuan per ton, while some urea producers in Inner Mongolia offer prices below 1,000 yuan per ton. 　　Future outlook: Although the domestic urea market is unlikely to escape a weak trend this week, slight rebounds in some areas have provided some relief to the market. In terms of the negative factors alone, the overall trend of supply-demand imbalance remains unchanged; factories are moving slowly to reduce production, there is a off-season in agriculture on the downstream purchasing side, and there has been a significant increase in the use of alternative raw materials by compound fertilizer manufacturers compared to previous years; furthermore, it is difficult for other industrial sectors to see an increase in their demand at present. The domestic urea market is sluggish; in some areas, factories are forced to maintain high prices due to severe price inversion. Downstream manufacturers remain on the sidelines, leading to a pause in sales at the grassroots level; the imbalance between supply and demand for urea has not shown any signs of improvement. It is expected that domestic urea prices will fluctuate slightly in the short term. (Chinese Agricultural Inputs)