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Urea price trends across China as of October 26, 2016

2016-10-27View Original

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Urea price trends across China Author/Source: China Fertilizer Network Date: 2016-10-26 Clicks: 21 The production cost of urea remains high, and the operating rates remain low. Some urea manufacturers have a good backlog of orders, while in many regions there is a shortage of transportation resources for urea, which results in lower volumes of urea being shipped to external markets. Some urea manufacturers in Shandong, Hebei, Shanxi, Jiangsu and other regions have raised their prices again; However, as it is the off-season for demand in the domestic market, urea prices in other regions remain relatively stable. Some manufacturers in the Shandong region are still processing previous orders, and their operation rate is only... (the omitted details can be found in the member area; the same applies below). The standard export prices have increased by 10–20 yuan per ton, reaching 1260–1280 yuan, though actual transaction prices are slightly lower ; The order situation at the two major factories in Hebei region is good; the standard export prices have increased by 10–20 yuan, reaching 1260–1290 yuan. It is reported that some manufacturers are facing difficulties with shipments ; In the Henan region, the mainstream ex-factory prices have risen and are currently stable at 1280–1300 yuan. Most manufacturers are seeing good orders at present, and some local manufacturers have raised their prices by about 20 yuan ; Most manufacturers in the Shanxi region still have a large number of orders pending shipment. The standard export prices have increased by 50–70 yuan, reaching 1220–1250 yuan. Some manufacturers are controlling cash collections, while the shipment situation is generally average ; The production rate in Jiangsu Province is… Moreover, the volume of urea arriving from other provinces is not large. The prevailing ex-factory prices in Jiangsu have increased by 10 yuan, ranging from 1320 to 1360 yuan, while the actual transaction prices are 20 yuan lower. For large particles, the mainstream ex-factory prices in Shanxi region have risen by 40–60 yuan, reaching 1220–1250 yuan. Internationally, …… Overall, there is significant pressure on urea costs, with overall production levels remaining low. Some manufacturers have a good volume of orders pending fulfillment. Additionally, as railways continue to transport large quantities of grain and coal recently (it is reported that freight rates at the Hohhot railway station have also increased), the export of urea at low prices from regions such as Xinjiang and Inner Mongolia has been hindered, further straining the supply of urea in the market. It is expected that urea prices will continue to rise in certain areas, while overall domestic demand remains weak and new orders are limited. In the future, there should be fewer areas where prices see further increases; urea prices are likely to remain stable, with possible slight declines in the medium to long term. Going forward, attention should be paid to transportation progress and export orders. Regional market prices: Unit: yuan/ton (bolded in the table refers to large-grain urea)

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