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Urea price trends across China Author/Source: China Fertilizer Network Date: 10-10-2016 Clicks: 2 The overall demand in the urea market is weak; however, some manufacturers still have a small number of orders pending fulfillment. The overall production level remains low. Urea prices remain relatively stable across different regions, but certain manufacturers in Shanxi and Jiangsu are facing tougher sales conditions, leading to lower price quotes. Demand in the downstream areas of Shandong is somewhat weak, with an operating rate of only around 54%. The prevailing factory prices remain stable at 1180–1200 yuan per ton (the same unit is used throughout). Some manufacturers have plans to carry out maintenance work in mid-month; the purchase price in Linyi… (some details are available in the member area; the same applies here). Fertilizer manufacturers are now purchasing very little of this product ； The mainstream ex-factory prices in the Two Rivers region remain stable; demand in the areas surrounding Hebei is weak. However, some manufacturers have secured new orders for 10,000 tons each, so there is no significant pressure to ship goods at present. Manufacturers in Henan are seeing sales and shipments taking place…… ； It is somewhat difficult for manufacturers in the Shanxi region to ship their products outside the region; the prevailing factory prices remain stable at 1100–1120 yuan, with most transactions taking place at these levels…… ； In the Jiangsu region, demand in both the industrial and agricultural sectors is somewhat weak; the standard factory prices have dropped by 10–20 yuan, to between 1290–1310 yuan, while larger orders enjoy a reduction of 20 yuan ； The mainstream ex-factory prices in Hubei region remain stable at around 1,250 yuan, with most manufacturers reporting a slowdown in shipments ； Due to poor sales performance, and with the recent decline in the prices of low-grade urea in Sichuan, the ex-factory prices of urea in Chongqing have also been adjusted. The mainstream ex-factory prices have dropped by 80 yuan for the low-grade products, while those for the high-grade products have increased by 20 yuan, reaching 1200–1300 yuan; pricing is determined based on the quantity shipped and the region ； Manufacturers in Zhejiang region resumed production for a short period of 10 days before stopping operations again for maintenance; they plan to resume production by the end of October. Currently, there is no inventory available, and no quotes can be provided. On the international front, India’s MMTC company concluded its urea tender on September 22, with the final winning bid amounting to around 980,000 tons; China… Overall, there are few positive factors on the export front; domestic demand remains weak, and the operating rate of urea plants stays low. Most urea manufacturers face significant cost pressures and are reluctant to lower prices further. It is expected that urea prices will remain stable but on a downward trend. Those manufacturers with higher inventory pressures might see their prices drop further. In the long term, the urea market is likely to remain weak. If there is some demand in certain areas, manufacturers may try to keep prices stable or see them rise slightly. Regional market prices: Unit: yuan/ton (bold numbers in the table refer to large-grain urea) http://img8.fert.cn/image/20161009/20161009152236843684.bmp