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At present the market remained stable and urea are falling trend, the international market although some transactions, but the price has not improved; domestic urea market is neither the price nor the transaction, regardless of dealers, manufacturers traders or the headaches. Internationally, the recent days in particular, exports to Brazil, 20,000 tons of urea, FOB price of 230 U.S. dollars, China's exports to Bangladesh 2-2.5 million tons of bags of urea, FOB price of 260-263 U.S. dollars, exports to Vietnam CFR price of 272-273 U.S. dollars, the overall a slight decrease compared to the previous period. Domestically, although the central plains of corn fertilizer markets were launched, but the lack of confidence in the market outlook, dealers, so most purchases are controlled, resulting in the overall market stocking dispersed, and the recent floods in the south more serious, on fertilizer sales have transportation greater impact. These negative factors in the domestic urea market remains stable and there is off the trend last week, Shandong, Hebei, Henan, Jiangsu, Anhui and other regions in southwestern part of manufacturers offer a small reduction in the factory 10-20 yuan / ton, while the northeast and northwest region dominated the mainstream market Zeyi stable, but the situation is relatively flat transactions. Low end of the current domestic price of urea is generally concentrated in North China 1480-1530 yuan / ton, Shandong, Henan outsourcing low-end prices down to 1500-1520 yuan / ton; high-end prices concentrated in the Yunnan-Guizhou region, to sell about 1,700 yuan / ton from top to bottom, individual high-end offer is still 1,800 yuan / ton; most other manufacturers offer factory focused at 1550 - 1650 yuan / ton range.
Exports can not ease the domestic pressure
Currently about 150 million tons of products each port to wait for July 1 after off-season window of export tariffs, can smoothly exit, will greatly affect the trend of China's urea market late. But the foreign market downturn, market supply exceeds demand, the current view, the export will not necessarily ease the domestic pressure, coupled with domestic supply of urea exports account for a small fraction of the total, China's most urea or personal use, so even if exports go, it may not stimulate the improvement of the domestic market.
Business loss is inevitable
June 1 natural gas from industrial average was up 0.23 yuan / cubic meter (in addition to price increases and the floating pipeline fee of 10% of the factors, some companies actually rose from 0.4 yuan / cubic meters), the gas from urea urea manufacturers costs 180 ~ 280 yuan / ton. Though head of raw materials due to the national gas production capacity of urea plant only 27% of total capacity, combined with market demand, flat, natural gas prices could not leveraging the market price of urea is running low, but natural gas prices rise significantly to make solid the first significant increase in the cost of gas installations, almost all gas companies into a loss situation first urea. A large number of companies were forced to stop or early repair, some enterprises are facing bankruptcy.
Industry or to reshuffle
China's urea market oversupply is very obvious, but covered by the export performance is not so obvious. Problems are solved, the future will be unleashed. Now businesses operating rate normal. However, from industry, enterprises in expanding their production capacities, while the market demand is very limited. All in all, the contradiction between supply and demand of China's urea industry increasingly clear that the industry or to reshuffle and changes may be large. (Di Jing)
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