Beginning in late August, by the autumn market launch, the influence of the domestic urea prices stabilised stop falling. And with the recent international urea price of coal, oil prices rebound, presents the same trend. But, in contrast, the international price rise is still lower than the domestic market gains, so the current enterprise is given priority to with domestic market.

　　Urea prices stabilised edged up

　　"Is affected by the markets in the autumn, urea price falling stabilizing, prices have risen by more in August to the lowest price of 40-50 yuan/ton, the current mainstream ex-factory price 1150 yuan/ton in shandong district." Shandong liaocheng luxi chemical group Li Baoquan nitrogen fertilizer sales company general manager, told reporters that as a result of the urea prices falling, dealer stock up enthusiasm is low, so the stock market is small, but because of long-term low prices led to the losses of enterprises, the industry as a whole starts fell obviously, which to a certain extent eased the urea enterprises inventory pressure.

　　Surplus fertilizer company in anyang ming-jie zhang also said that the recent compound fertilizer enterprises improve capacity utilization, autumn for fat also have scattered, urea present low prices steady trend, the current industrial offer up 20 yuan/ton to 1120 yuan/ton, agricultural price rise 20 to 30 yuan/ton to 1150-1170 yuan/ton. "The recent price increases on the one hand is the demand side, on the other hand, the market supply of relative decline, although several large enterprises in henan region still maintain full production, but around the small businesses because of cost pressures, has been shut down for a long time."

　　Supply and demand is the main factor determining price, although the urea industry as a whole is still present the trend of supply, but starts the apparent decline in market supply pressure is reduced. Ming-jie zhang stressed that at current prices, let alone to small business, large enterprises and a little support not bottom go to. Although the henan region of several large enterprises still maintain the higher capacity, but the big companies are also beginning to dwell production in shandong district. Overall, the current market supply is indeed have declined.

　　Export still don't

　　1 - June 2016, China's total exports of urea only about 5.0498 million tons, compared with the same period in 2015, 6.7444 million tons of exports fell by almost 25.1%, the damping of 1.7 million tons, and for the price, is also a record low, in the face of the second half of the export market, the industry generally believe that exports have difficult to change, some domestic enterprises may choose to cut production to maintain operations, at a lower price for domestic, rather than at lower export prices, export quantity and price may be in the second half of urea down.

　　"Current urea market demand is still mainly in the domestic market is given priority to, although international urea prices recovered, but the enterprise basically is given priority to with domestic market." Li Baoquan thinks, with the recent rebound, coal, oil prices stabilised international urea prices will stop falling, fob China urea also rise to $195 - $197 / ton, but as a result of India the bidding price is still low, so the domestic enterprises are still will give priority to with domestic market.

　　Gibson ca also think that with the approaching of the autumn domestic fertilization, the current domestic urea supply decreased, even international prices recovered, but the domestic price is still higher than the international market price, so companies everywhere will give priority to with domestic market. "The price of urea in China still has a gap between the international market, if the international price rise is lower than the domestic market, the enterprise will not go to export collection, from a few times this year India's bidding, urea in China because he still has to execute quota tariffs for 80 yuan/ton, not completely let go, so almost no competition strength."

　　Autumn market steady character overhead

　　Although late August stabilised present stop falling trend of urea market, prices are appeared around the rose slightly, but face the fall in the market, the industry is still cautious optimism.

　　Li Baoquan thinks, if the demand of industry and agriculture focuses late release, urea price may present steadily rose slightly in the market. "The current price for most enterprises has been running a deficit, so production quotation or device rotation production has become the main means of enterprises to cope with market, and from the point of the national market, the supply is still present state of supply, so the market also didn't expect rises in price considerably, but overall, with declining capacity utilization, and fall in the market may be stabilizing edged up."

　　Relative to the Li Baoquan optimistic, Gibson ca is more cautious. Autumn, he argues, the market should be given priority is steady. "The price has been recognised by the market, it is not possible a significant decline, but as prices rose significantly more difficult, once a significant rise in price, early production of a few small factory may resume, industry overall capacity utilization will be improved significantly, price will be limited."

　　Steady word pledge has become the consensus of the autumn urea market movements, according to the current prices, urea industry overall losses may in the short term not conducive to the development of the industry, but in fact, if the price is low for a long time, some "zombie" or small business will be permanently shut down, some backward device also because cost of big companies, or environmental reasons will exit the market completely, the urea industry to capacity can be realized, low urea industry is good in the long run.