China's Urea Market Shows Weak Performance (3.13-3.19)

March 19th, News

I. Price Trends

According to the commodity market analysis system, as of March 19, the reference average price of urea in the Shandong region of China was 1865 CNY/ton, a decrease of 1.45% from the reference average price of 1892 CNY/ton on March 13.

2. Market Analysis

Market Conditions

This week, the urea market prices in China have shown a weak downward trend. As of March 19, the urea market quotations in Shandong region are around 1840-1880 CNY/ton, in Hebei region around 1830-1870 CNY/ton, in Henan region around 1810-1860 CNY/ton, in Hubei region around 1860-1900 CNY/ton, and in Liaoning region around 1880-1900 CNY/ton.

Supply and Demand Situation

This week, the urea market in China is characterized by oversupply. In terms of supply, the operating rate and daily production of urea are high this week, ensuring ample market supply. On the demand side, downstream compound fertilizer enterprises have rigid demand procurement, but the market generally adopts a wait-and-see attitude, resulting in a cautious trading atmosphere overall.

III. Future Market Forecast

Urea analysts believe: Recently, the urea market trend has been declining. The futures market performance is poor, coupled with a high inventory of urea in the market. It is expected that in the short term, the urea prices in China will mainly consolidate and operate on the strong side.