June 15 news
I. Price Trends
According to the commodity market analysis system, as of June 15, the reference average price of urea in the Shandong region of China was 1,802 CNY/ton, up 0.91% from the reference average price of 1,786 CNY/ton on June 7.
II. Market Analysis
Market Conditions
This week, the urea market prices in China first increased and then decreased. At the beginning of the week, the cancellation of the export guidance price policy boosted the urea market, leading to a continuous rise in prices. On Thursday, urea prices began to fall as the benefits from exports were limited, downstream demand was moderate, and the futures market weakened, causing the urea spot market to continue declining. As of June 15, the urea market quotes in Shandong were around 1740-1800 CNY/ton, in Hebei 1760-1780 CNY/ton, in Henan 1730-1790 CNY/ton, in Hubei 1750-1790 CNY/ton, and in Liaoning 1850-1890 CNY/ton.
Supply and Demand Situation
On the supply side, urea enterprises currently have an operating rate of over 90%, with daily production remaining at a high level; overall inventory still faces downward pressure. On the demand side, agricultural demand for urea has weakened, and downstream compound fertilizer companies are purchasing only as needed. Demand for industrial urea is also beginning to decline.
III. Future Market Forecast
Urea analysts believe: Recently, the trend in China's urea market has mainly been downward. Currently, it is the off-season for urea demand, with downstream purchasing slowing down and market transactions being cautious. It is expected that in the short term, China's urea market will continue to operate on a weak note.
