China's Urea Market First Rises Then Falls (8.18-8.22)

August 22, News

I. Price Trends

According to the commodity market analysis system, as of August 22, the reference average price of urea in the Chinese market was 1,775 CNY/ton, compared to the reference average price of 1,766 CNY/ton on August 18. The price increase of urea in the Chinese market this week was 0.50%.

2. Market Analysis

Market Conditions

This week, the urea market prices in China first rose and then fell. The futures market prices for urea this week first increased and then decreased, with the spot market following the fluctuations of the futures market. As of August 22, the urea market quotes in Shandong region were around 1,740-1,780 CNY/ton, in Hebei region around 1,770 CNY/ton, in Henan region around 1,750-1,780 CNY/ton, in Hubei region around 1,770 CNY/ton, and in Liaoning region around 1,760 CNY/ton.

Supply and Demand Situation

This week, the urea market in China is oversupplied. On the supply side, some urea plants are undergoing maintenance this week, with daily production slightly increasing, and the market supply remains ample. On the demand side, the autumn agricultural demand for urea has entered a low season, and the purchasing enthusiasm of downstream compound fertilizer enterprises is not high.

III. Market Forecast

Urea analysts believe: Recently, the trend of China's urea market has been weak and declining. Currently, the trading atmosphere in the urea market has become quieter, with downstream buyers making limited purchases and no significant improvement in demand. It is expected that in the short term, China's urea prices will mainly remain in a weak consolidation phase.