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Weekly Report on the Urea Market for the Fourth Week of December Author/Source: China Fertilizer Network Date: 2016-12-26 Clicks: 4 Under the pressure of environmental inspections, the operating rates of urea production facilities in some areas remained low, resulting in a tight supply in the market. Some manufacturers stopped accepting payments. Meanwhile, the tight supply also led to an increase in the export volume of urea from provinces surrounding these areas. As a result, urea prices rose significantly in most regions this week. Compared to last weekend, the operating capacity of most urea manufacturers in Shandong is relatively low; their production rates are only... (the omitted details can be found in the member area; the same applies hereafter). A few manufacturers have started to control payments, and the mainstream ex-factory prices for urea have risen by 70–80 yuan per ton, reaching around 1560 yuan. Fertilizer manufacturers continue to increase their purchases of urea, and due to the tight supply of urea, the purchase prices in Linyi keep rising, having increased by 90 yuan compared to last weekend…… ； The mainstream ex-factory prices in Henan region have risen by 70–90 yuan, reaching around 1,550–1,570 yuan; one large manufacturer operating at reduced capacity has suspended taking orders ； The sales of products manufactured by various companies in Shanxi Province to Shandong, the Two Rivers region, and the Northeast are all performing well. However, difficulties in railway transportation have led to an increase in the standard factory prices by 50–70 yuan, bringing them to 1390–1450 yuan. It is reported that the arrival price of urea destined for Xuzhou in Jiangsu Province…… ； A urea manufacturer in Guangxi region has finally resumed production, with a factory outlet price of 1,800 yuan; however, the factory states that orders at present are fairly modest ； Recently, the Ili region in Xinjiang held a tender for the purchase of 45,000 tons of urea (25,000 tons in small granules and 20,000 tons in SODM small granules). The winning bid price for the regular small granules was…; as a result, the mainstream selling prices in Xinjiang increased by 50 yuan, reaching 1,000–1,100 yuan. However, manufacturers say that demand for local sales is modest, and there is still no improvement in orders for shipment to other regions ； Demand in Inner Mongolia has also increased slightly; the mainstream factory prices have risen by 50 yuan, reaching 1250–1300 yuan. For a few manufacturers, the prices for shipments to the Northeast region have increased by 50 yuan, reaching 1600 yuan. The shipping situation by train for most manufacturers remains average. During this period, the main ex-factory prices of urea in other regions such as Hebei, Jiangsu and Anhui, Hubei, Shaanxi, Fujian, etc. also increased by 30–70 yuan, while prices remained stable in the southwest and northeast. Regarding large particles, the mainstream ex-factory price in Shandong has risen to around 1,600 yuan ； The mainstream ex-factory price in Shanxi has risen to 1,390–1,450 yuan ； The mainstream ex-factory price in Inner Mongolia has risen to 1,350–1,400 yuan ； The quotes in Jiangsu for the Two Rivers product have also increased. International urea prices are generally on the rise, …… Overall, environmental inspections continue to cause urea manufacturers in certain areas to operate at reduced capacity; the overall utilization rate of the urea industry across the country remains low (down by about 5 percentage points from the previous weekend, at around 45%). Meanwhile, demand for industrial compound fertilizers in regions such as Shandong is strong (the national utilization rate for compound fertilizers increased by another 4 percentage points compared to the previous week, reaching around 65%). It is expected that urea prices in a few regions will continue to rise, though the pace of increase may slow down slightly.