July 9th News
I. Price Trends
According to the commodity market analysis system, as of July 9, the reference average price of urea in the Shandong region of China was 1803 CNY/ton, a decrease of 0.55% from the reference average price of 1813 CNY/ton on July 1.
2. Market Analysis
Market Conditions
As we enter July, the Chinese urea market is operating on the weaker side. Urea futures prices have declined, putting downward pressure on spot market prices. Currently, the urea market boasts ample supply but weak demand. As of July 9, urea prices in the Shandong region are quoted at around 1,755–1,810 CNY per ton; in Hebei, prices range from approximately 1,760 to 1,850 CNY per ton; in Henan, prices are around 1,740–1,800 CNY per ton; in Hubei, prices are roughly 1,720–1,770 CNY per ton; and in Liaoning, prices are quoted at about 1,850–1,880 CNY per ton.
Supply and Demand Situation
Supply-wise, the current operating rate of urea enterprises in China is above 90%, with daily production and inventory at high levels. Demand-wise, the industrial and agricultural demand for urea in China is currently flat. Downstream enterprises are purchasing according to their needs, and the market trading atmosphere is light, with demand yet to be released.
III. Future Market Forecast
Urea analysts believe: Recently, the trend in China's urea market has been mainly downward. Currently, the urea market is oversupplied, and market transactions are cautious. It is expected that in the short term, China's urea market will continue to operate with a weak and consolidating trend.
