Rise in Chinese Urea Market Prices (1.12-1.16)

January 16th, News

I. Price Trends

According to the commodity market analysis system, as of January 16, the reference average price of urea in the Chinese market was 1,767 CNY/ton, which is a 1.29% increase from the reference average price of 1,745 CNY/ton on January 12.

II. Market Analysis

Market Conditions

This week, urea prices in the Chinese market showed a strong upward trend. As of January 16, urea prices in Shandong were around 1,730-1,770 CNY per ton, in Hebei around 1,760 CNY per ton, in Henan around 1,720-1,760 CNY per ton, in Hubei around 1,720-1,750 CNY per ton, and in Liaoning around 1,740-1,790 CNY per ton.

Supply and Demand Situation

This week, urea supply and demand both increased. In terms of supply, some urea plants in China resumed production, leading to a slight increase in daily output, ensuring a relatively ample supply. On the demand side, the need for compound fertilizer replenishment in downstream markets in China slightly increased, resulting in more new orders being placed.

III. Future Market Forecast

Urea analysts believe: Recently, the urea market trend has been strongly increasing. Currently, both the supply and demand for urea have increased, with a generally optimistic market sentiment. It is expected that in the short term, urea prices in China will remain strong and stable.