August 17 news
I. Price Trends
According to the commodity market analysis system, as of August 17th, the reference average price of urea in the Shandong region of China was 1,702 CNY per ton, a decrease of 1.87% from the reference average price of 1,755 CNY per ton on August 10th.
II. Market Analysis
Market Conditions
This week, the urea market in China has been operating weakly. The overall futures market for urea is weak, which negatively impacts the spot market. Currently, the supply of urea in the market is sufficient, but demand remains low. As of August 17th, the urea market quotes in Shandong region are around 1650-1710 CNY/ton, in Hebei region around 1690-1720 CNY/ton, in Henan region around 1640-1700 CNY/ton, in Hubei region around 1670-1710 CNY/ton, and in Liaoning region around 1750-1790 CNY/ton.
Supply and Demand Situation
On the supply side, urea enterprises currently maintain high operating rates, and daily production remains at a high level. On the demand side, downstream compound fertilizer companies are engaging in rigid demand procurement, while demand from both industrial and agricultural sectors remains weak, resulting in limited new orders being concluded in the market.
III. Future Market Forecast
Urea analysts believe that the recent trend in China's urea market has been weak and downward. Currently, the demand for urea is low, and the supply-demand situation has not improved, with a prevailing bearish sentiment in the market. It is expected that China's urea market will continue to operate weakly in the short term.
