Urea price trends across China as of October 28, 2016

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Urea price trends across China Author/Source: China Fertilizer Network Date: 10-28-2016 Clicks: 9 The production cost of urea remains high, and the operating rates remain low. Some manufacturers have received good orders in the recent period; freight transportation is strained in many areas, mainly due to the transport of goods such as coal. The freight costs for urea manufacturers have also increased, prompting some urea producers in Shandong, Jiangsu, Gansu and other regions to raise their prices again. Manufacturers in Shandong region are operating at low capacity, with a large number of orders pending fulfillment. The standard ex-plant price has increased by 20 yuan per ton, reaching around 1300 yuan; transactions at these prices are possible... (Some details can be found in the member area; same applies below) ； The order volumes awaiting shipment at the two major factories in Hebei region remain high; the mainstream factory prices have increased by 20 yuan, reaching around 1,300 yuan, while the shipping situation for some manufacturers is still not satisfactory ； The mainstream ex-factory prices in Henan region remain stable at around 1,300 yuan, with some large manufacturers raising their prices by 20 yuan ； Most manufacturers in the Shanxi region have a good level of pending orders; a few have stopped providing quotes and are not accepting new orders at the moment. The standard factory prices have increased by 10–30 yuan, reaching 1250–1260 yuan ； Continuous rainy weather in Anhui region has led to slightly slower delivery times, while the production rate... The prevailing factory prices remain stable at 1340-1350 yuan ； Sales in the Jiangsu region are performing well; the mainstream factory prices have increased by 20 yuan, reaching around 1360 yuan, while the actual transaction prices are slightly lower ； Due to poor transportation conditions, the volume of goods arriving from other regions in Hubei is low; as a result, the local standard factory prices have increased by 30 yuan, reaching 1320–1350 yuan ； Manufacturers in Gansu region have been out of production for maintenance for a long time, resulting in limited inventory. Additionally, due to rising prices in other regions, the standard factory prices have increased by 50 yuan, reaching around 1400 yuan. Overall, there continues to be strict enforcement against overloading in road transport, while freight transportation is in short supply; freight costs have increased in some areas. The shipment of urea is hindered by high cost pressures, resulting in a low overall level of production. This limits the amount of urea available on the market. It is expected that urea prices will continue to rise in certain areas. Meanwhile, demand from domestic industries and agriculture remains weak, and downstream distributors are not inclined to stock up heavily. Therefore, price increases should ease in those areas, with urea prices likely to remain stable. Going forward, it will be necessary to keep an eye on developments in transportation as well as the situation regarding urea export orders. Regional market prices: Unit: yuan/ton (bold in the table refers to large-grain urea)