September 23 report:
I. Price Trends
According to the commodity market analysis system, as of September 22, the reference average price of urea in Shandong region, China was 1,767 CNY/ton, a decrease of 1.94% from the reference average price of 1,802 CNY/ton on September 16 in the Chinese urea market.
2. Market Analysis
Market Conditions
Recently, the urea market in China has shown a weak downward trend. The urea market is oversupplied. The impact of the news about the urea export quota distribution has weakened. As of September 22, the urea market quotations in Shandong region are around 1700-1770 CNY/ton, in Hebei region around 1740-1780 CNY/ton, in Henan region around 1700-1750 CNY/ton, in Hubei region around 1680-1740 CNY/ton, and in Liaoning region around 1780-1800 CNY/ton.
Supply and Demand Situation
Supply-wise, the urea market in China is currently well-supplied, with inventories still at high levels. Production facilities are expected to gradually resume operations later on. On the demand side, downstream compound fertilizer enterprises show low procurement enthusiasm, and agricultural fertilizer preparation has not yet accelerated. There is no significant improvement in demand.
3. Future Market Forecast
Urea analysts believe that the recent trend in China's urea market has been downward. With the autumn fertilizer preparation period approaching, the demand for urea has not yet been released, and there is a high inventory in the market. It is expected that China's urea prices will mainly fluctuate in the short term.
