August 21 news
I. Price Trends
According to the commodity market analysis system, as of August 21, the reference average price of urea in Shandong region, China, was 1720 CNY/ton, an increase of 1.03% from the reference average price of 1702 CNY/ton on August 17.
2. Market Analysis
Market Conditions
This week, the urea market in China showed a strong upward trend. The strengthening of the urea futures market this week has driven up the spot market. Currently, the supply of urea in the market is sufficient, but demand remains relatively weak. India's latest tender volume exceeded expectations, providing support for exports. As of August 21, urea market prices in Shandong were around 1,690-1,720 CNY/ton, in Hebei 1,700-1,740 CNY/ton, in Henan 1,690-1,730 CNY/ton, in Hubei 1,700-1,740 CNY/ton, and in Liaoning 1,750-1,790 CNY/ton.
Supply and Demand Situation
On the supply side, urea enterprises currently operate at around 90% capacity, and daily production remains at a high level. On the demand side, downstream compound fertilizer companies are engaging in rigid demand procurement, while industrial and agricultural demand remains subdued, resulting in limited new orders being placed in the market.
III. Future Market Forecast
Urea analysts believe that the recent trend in China's urea market has been strongly upward. Currently, the supply and demand situation in the urea market has not improved, with supply still exceeding demand. It is recommended to pay attention to policy directions and changes in supply and demand. It is expected that in the short term, the China urea market will mainly undergo fluctuating consolidation.
