China's urea market shows weak performance (8.4-8.8)

August 8th News

I. Price Trends

According to the commodity market analysis system, as of August 8, the reference average price of urea in the Chinese market was 1792 CNY/ton, a decrease from the reference average price of 1812 CNY/ton on August 4. The price decrease of urea in the Chinese market this week was 1.10%.

II. Market Analysis

Market Conditions

This week, the urea market prices in China have shown a weak downward trend. This week, the futures market prices for urea have declined, and the spot market has followed the weakening trend of the futures market. The supply of urea is abundant, while demand is relatively weak, with downstream compound fertilizer enterprises only purchasing to meet immediate needs. As of August 8th, the urea market quotes in Shandong region are around 1740-1810 CNY/ton, in Hebei region around 1750-1780 CNY/ton, in Henan region around 1750-1790 CNY/ton, in Hubei region around 1790 CNY/ton, and in Liaoning region around 1780 CNY/ton.

Supply and Demand Situation

This week, the urea market in China is oversupplied. In terms of supply, urea inventories remain high, and the market is still well-stocked. On the demand side, agricultural demand for urea in the autumn season has entered a lull. Compound fertilizer manufacturers have rigid demand procurement. Industrial demand for urea has not seen significant improvement.

III. Future Market Forecast

Urea analysts believe: Recently, the urea market trend in China has been weak and downward. Currently, the futures market is performing poorly, with ample market supply and relatively weak demand. It is expected that in the short term, urea prices in China will mainly show a weak and consolidating trend.