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Urea price trends across China Author/Source: China Fertilizer Network Date: 10-12-2016 Clicks: 9 The overall utilization rate in the urea market is low; a few manufacturers have seen good demand for new port orders, while domestic demand remains weak. Urea prices across different regions are under pressure. Some urea manufacturers have increased their discount offers. For instance, one factory in Hebei recently signed orders for approximately 30,000 tons of urea to be shipped via port, and its ex-factory price has risen. Demand in the downstream areas of Shandong is somewhat weak, making it difficult for manufacturers to sell their products. The prevailing ex-factory prices remain stable at 1180–1200 yuan per ton (the same unit is used throughout). Some manufacturers have introduced preferential policies or increased the flexibility in pricing; the actual transaction prices are generally around... (Further details can be found in the member area, the same applies here) ； Two manufacturers in the Hebei region have recently signed port orders totaling around 40,000 tons (price upon arrival…), with a production capacity of…; the mainstream ex-factory prices have increased by 5–10 yuan to 1,180–1,190 yuan ； Demand in the areas surrounding Henan remains weak; the two major manufacturers are operating at high capacity for extended periods, resulting in difficulties in selling their products. Additionally, costs have increased recently, and manufacturers are reluctant to lower prices. The current official selling price remains stable at 1170–1190 yuan, with discounts available for bulk purchases. It is reported that there are some cases of products being sold externally…… ； The mainstream ex-factory prices in Hubei region remain stable at around 1,250 yuan; some manufacturers have a slightly slower delivery pace, with transaction prices as low as 1,220 yuan ； The amount of top-dressing applied in the Xinjiang region this time is very small, and sales there remain poor. As the end of the year approaches, the number of trains departing from various regions for Xinjiang has decreased, and some local crops such as grain and cotton are being sent to other parts of the country. This has led to a shortage of trucks available for transporting urea. Starting today, railway companies will abolish all the preferential rail transport rates that fertilizer manufacturers had previously enjoyed, which amounts to an increase in the shipping costs for goods leaving Xinjiang. Manufacturers face difficulties in selling their products, and with the situation worsening, local urea manufacturers that planned to resume production soon say they may not produce any urea this year. Overall, urea manufacturers are under significant cost pressure, with overall production levels remaining low. As it is a slow season for demand in the domestic market, distributors are less inclined to stock up on urea. It is expected that urea prices will remain stable but on a downward trend, and those manufacturers facing high inventory pressures may see their prices drop further. Furthermore, if it remains difficult to export urea from Xinjiang in the long term, the operating rate is likely to continue to decline. Urea prices in destination markets such as Sichuan and Chongqing might see an increase. However, urea producers in Xinjiang say they are in discussions with railway companies regarding this issue; please stay tuned to the daily updates on China Fertilizer Network for more information. Regional market prices: Unit: yuan/ton (bold numbers in the table refer to large-grain urea) http://img8.fert.cn/image/20161011/20161011151534953495.bmp