China's Urea Market First Rises Then Falls (9.1-9.8)

September 8, News

I. Price Trends

According to the commodity market analysis system, as of September 8, the reference average price of urea in the Chinese market was 1703 CNY/ton, a decrease of 0.22% from the reference average price of 1707 CNY/ton on September 1.

2. Market Analysis

Market Conditions

This week, the urea market prices in China first increased and then decreased. The futures market prices for urea this week also first increased and then decreased, with the spot market following the fluctuations in the futures market. As of September 8th, the urea market quotations in Shandong region were around 1,680 CNY/ton, in Hebei region around 1,710 CNY/ton, in Henan region around 1,690 CNY/ton, in Hubei region around 1,710 CNY/ton, and in Liaoning region around 1,710 CNY/ton.

Supply and Demand Situation

This week, the urea market in China is characterized by oversupply. In terms of supply, devices that were previously shut down have gradually resumed operations, leading to an increase in daily production, and the market supply remains ample. On the demand side, there has been no significant improvement in the industrial and agricultural demand for urea. Downstream compound fertilizer enterprises are purchasing at low prices, and new orders in the market are not performing well.

III. Market Forecast

Urea analysts believe: Recently, the urea market trend in China has been weak and downward. Currently, the trading atmosphere in the urea market is poor, with fewer new orders, and there is no positive news in the short term. It is expected that the urea prices in China will mainly show a weak and consolidating trend in the short term.