Urea price trends across China as of September 14, 2016

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Urea price trends across China Author/Source: China Fertilizer Network Date: 2016-09-14 Clicks: 1 The urea market is facing weak demand from the agricultural sector, and the purchasing activity by industrial compound fertilizer manufacturers has slowed down slightly. In some areas, the overall production rate of urea has begun to increase gradually; in most areas, urea prices remain stable, while in a few areas they have declined slightly. Manufacturers in Shandong region still mainly supply industrial compound fertilizer plants, and the order volume received by these plants has decreased. Due to weak demand from the agricultural sector, the prevailing ex-factory prices remain stable at 1180–1200 yuan per ton (the same unit is used throughout). Some manufacturers have further reduced their ex-factory prices by 10 yuan ； In the Hebei region, demand in both the industrial and agricultural sectors is low; moreover, the operating rate of urea production has seen a slight increase, with mainstream factory prices dropping by 10 yuan to range between 1,160 and 1,200 yuan ； In the Henan region, urea prices remain stable for now; the mainstream ex-factory prices range from 1180 to 1190 yuan, while manufacturers of industrial compound fertilizers show a slight decrease in enthusiasm for purchasing urea ； The prevailing ex-factory prices in the Shanxi region remain stable at 1,120–1,140 yuan; individual high-end products have seen a slight drop of 5 yuan, while larger orders come at slightly lower prices ； Downstream demand in the Anhui region has also decreased slightly, with the main factory prices for high-end products dropping by 10 yuan to 1240–1250 yuan. The production rate in the Jiangsu region is recovering slowly; the mainstream ex-factory prices have increased by 20 yuan to 1300–1310 yuan, while prices for large orders have decreased by 20 yuan. Regarding large-grain urea, a factory in Shanxi has resumed production; however, the output is not yet stable, and the operation rate is set to increase soon. The prevailing ex-factory price remains steady at 1120–1140 yuan. Internationally, Indian company MMTC has announced that it will conclude a new tender for the purchase of urea on September 22, with a potential purchase volume of 1.5 million tons of urea ； ……(The omitted parts are available in the member area; the same applies below). Overall, the overall operating rate of urea production has been slowly recovering. Demand from the agricultural sector is low, and the amount of urea purchased by industrial compound fertilizer manufacturers has decreased slightly. Some industrial plywood manufacturers have also experienced issues with their purchases due to environmental regulations. In most regions, urea prices have remained stable or have declined slightly. Going forward, purchases by industrial compound fertilizer manufacturers will continue to decrease, which will lead to a more noticeable drop in urea prices. It will be important to pay attention to the winning bid prices in India as well as the volume of urea purchased in China; given the high inventory levels of urea in our country’s ports, there are currently no significant positive factors expected. 　　Regional market prices: Unit: yuan/ton (bolded values in the table refer to large-grain urea) http://img8.fert.cn/image/20160913/20160913150660626062.bmp http://www.nmtech.com.cn/sys/sec_zxwz.jpg