Urea price trends across China as of September 12, 2016

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Urea price trends across China Author/Source: China Fertilizer Network Date: 2016-09-12 Clicks: 7 The export situation in the urea market has been poor this week, while domestic industrial compound fertilizer manufacturers have seen steady orders. In the agricultural sector, some regional distributors have begun stocking up on fertilizers. Overall, the utilization rate of urea production facilities is low; as a result, the situation is better in Shandong, Shanxi, Jiangsu, Anhui, and the southeastern regions. Manufacturers’ ex-factory prices have increased by 10–40 yuan per ton compared to last week. Over the weekend, some manufacturers in Shandong and Hebei reduced their prices by 10–20 yuan due to poor new orders. The urea markets in the northeast, northwest, and southwest remain stable but weak, with prices staying relatively constant. Prices offered by manufacturers in Yunnan have declined slightly. 　　Compared to last week, the order situation for compound fertilizer plants in Shandong remains stable. The main export price of urea has increased by 10–20 yuan, reaching 1190–1200 yuan. The purchase price in Linyi has also risen by 10–20 yuan compared to last week, to... (The omitted details can be found in the member area; the same applies hereafter.) ； In the Hebei region, the operating rate is only around 45%; mainstream factory prices have risen by 10–20 yuan to 1180–1210 yuan, with transaction prices being slightly lower ； In the Henan region, the mainstream ex-factory prices have increased by 20 yuan, reaching around 1,200 yuan. According to China Fertilizer Network, the volume of industrial purchases in that area remains limited; most transactions take place at... However, some manufacturers say that downstream distributors have begun stocking up on fertilizers, resulting in good sales figures ； A large factory in the Shanxi region resumed production this week; sales to external markets are improving, and the standard export price has risen by 20–40 yuan, reaching 1120–1140 yuan ； The mainstream ex-factory prices in Anhui region have risen by 20–40 yuan, reaching 1240–1260 yuan; prices are slightly lower for large orders. The production rate is…, and sales are performing well ； In the Jiangsu region, the mainstream ex-factory prices have increased by 20 yuan, reaching 1280–1290 yuan, as the production rate has risen back to…… ； The mainstream ex-factory prices in Hubei have risen by 10 yuan, to 1240–1250 yuan; manufacturers generally issue industrial orders at slightly lower prices in the early stages ； The mainstream ex-factory prices in Zhejiang region have risen by 20–40 yuan, reaching around 1,300 yuan ； The production rate in Fujian region... The mainstream ex-factory prices have increased by 30 yuan at the lower end, reaching 1330–1370 yuan. The mainstream ex-factory prices in Xinjiang region remain stable at 870–1000 yuan. As the situation for shipments to the Central Plains region is slightly better, the ex-factory prices for shipments outside this region have risen from 770–800 yuan to 800–830 yuan; it is reported that manufacturers are sending goods out... The market situation in the Northeast region is relatively stable, with some dealers showing active interest in placing orders. The price for goods sourced from Inner Mongolia and delivered to stations in Heilongjiang has risen from 1150–1180 yuan to 1200 yuan; prices can be negotiated upon settlement ； Production at Jilin Dachang has not started yet, and the price remains undetermined ； Liaoning manufacturer…… The Yunnan region is heavily impacted by low-priced goods from other provinces; the mainstream factory prices have dropped by 50 yuan, ranging from 1,400 to 1,530 yuan. 　　Offshore reference price for the export of small-particle urea in our country…… ； As of now, the total inventory of urea at China’s major ports such as Yantai Port has increased by nearly 100,000 tons again compared to last week,… 　　Overall, there are not many new orders for exports, while inventory levels in ports have increased significantly. Domestic industrial compound fertilizer manufacturers are seeing steady demand for their products (with an overall operating rate of around 63%, down 8 percentage points from last week). In some regions, downstream distributors have begun to stock up on fertilizers. The overall operating rate for urea remains low, at only about... It is expected that, supported by existing orders, urea prices will remain stable in the short term, this situation will continue until later in the autumn when fertilizer production picks up again. Moreover, the operating rate for urea production is set to rise (the rates in Shanxi and Jiangsu have already seen a slight increase, while manufacturers in Inner Mongolia and Xinjiang were shut down earlier...). Therefore, urea prices are likely to decline, probably by next weekend.