Weak Demand Leads to Decline in Urea Market Prices in China (9.8-9.15)

September 15, News

I. Price Trends

According to the commodity market analysis system, as of September 15, the reference average price of urea in the Chinese market was 1,665 CNY per ton, a decrease from the reference average price of 1,703 CNY per ton on September 8. The price of urea in China decreased by 2.27% this week.

2. Market Analysis

Market Conditions

This week, the urea market in China showed a weak downward trend. The futures market prices for urea continued to fall this week, and the spot market fluctuated in line with the futures market. As of September 15, the urea market quotes in Shandong were around 1,630-1,670 CNY/ton, in Hebei around 1,650-1,670 CNY/ton, in Henan around 1,640 CNY/ton, in Hubei around 1,670 CNY/ton, and in Liaoning around 1,690 CNY/ton.

Supply and Demand Situation

This week, the urea market in China is characterized by oversupply. In terms of supply, some previously suspended facilities have resumed production this week, leading to a slight increase in daily output and ample market supply. On the demand side, agricultural demand remains weak, with downstream rigid demand procurement being the main focus, resulting in poor market transaction sentiment.

III. Market Forecast

Urea analysts believe: Recently, urea prices in the Chinese market have continued to decline. Currently, urea inventory levels are high, and downstream purchases are cautious. Demand remains weak, and market transactions are sluggish. It is expected that in the short term, urea prices in China will continue to operate on the weaker side.