October 19th, News
I. Price Trends
According to the commodity market analysis system, as of October 19, the reference average price of urea in Shandong, China was 1,735 CNY per ton, a decrease of 2.39% from the reference average price of 1,777 CNY per ton on October 8 in the Chinese urea market.
2. Market Analysis
Market Conditions
Recently, the urea market in China has shown a weak downward trend. As of October 19, the urea market quotes in Shandong region are around 1700-1740 CNY/ton, in Hebei region around 1700-1750 CNY/ton, in Henan region around 1670-1740 CNY/ton, in Hubei region around 1690-1740 CNY/ton, and in Liaoning region around 1770-1790 CNY/ton.
Supply and Demand Situation
Supply-wise, the urea market in China is currently well-supplied, with inventories remaining at high levels. Demand-wise, industrial and agricultural demand is currently weak, with downstream enterprises only replenishing stocks out of necessity, showing a lack of enthusiasm for procurement. The urea market in China is oversupplied, putting pressure on manufacturers to sell their products.
III. Future Market Outlook
Urea analysts believe that due to the higher-than-expected export volume of urea from China in September, the market price of urea in China rebounded and increased today. However, the current industrial and agricultural demand for urea is still insufficient, limiting the potential for further increases. It is expected that in the short term, the price of urea in China will mainly fluctuate and consolidate.
