Urea prices experienced more than a month of frenzied rise, the overall market gradually subsided; and in the near future on the basis of mainstream stability, part of the factory price of urea has been down. Some brands of urea in Henan area first price, along with the Hebei, Shanxi area is gradually fall; although the price fluctuations throughout the country within the scope of the manufacturers around the urea mixed, but the price dealer said is not optimistic about the market outlook of urea. And recently learned from the distribution level, some areas of wholesale prices have dropped by 20-40 yuan / ton. With the end of local dressing, strong high urea price performance is slightly difficult, the majority of dealers also have slowed the progress of the operation, a more cautious attitude, and to the end of August and early September production and purchasing fertilizer plant fertilizer for wheat high degree of concern in some.
Most dealers said urea prices rose contrarian and not because of the increased downstream demand, but nearly 1-2 months or even nearly half a year since the urea enterprises by the environmental inspection, maintenance, production plan in effect of ammonia and other factors, the industry operating rate is not high, basically in the 5-6 on the market around, the limited supply of goods in addition, the downstream distributors reserve volume, compound fertilizer manufacturers basically no inventory of raw materials, local urea supply shortage, is mainly caused by the rising prices of urea.
The current domestic urea prices slightly adjusted, the northeast and Inner Mongolia Jan Huojin price of urea, urea granules to the northeast area price has risen to 1600-1700 yuan / ton, Inner Mongolia individual brand urea ex factory price rose to 1550 yuan / ton. In some areas of Yunnan, Sichuan, Hubei, Jiangsu, two rivers such as agricultural fertilizer poor base were relatively light, the wholesale price stability in the downturn, such as the Sichuan market on board price distribution of Xinjiang urea only 1550-1600 yuan / ton; in addition, Shandong, Jiangsu two rivers urea factory price decline, in the range of 10-40 yuan / ton, the market wholesale prices have taken advantage of lower, such as Jiangsu market wholesale price of urea in about 1640-1670 yuan / ton. That led to the formation of such a difference in the urea market at this time, because of the following aspects:
The reason is nothing more than urea enterprises operating rate is low, such as Inner Mongolia, Xinjiang area most manufacturers stop device or urea by environmental inspection of production, enterprise to supply the local market, so the foreign sales of less; the northeast corn dressing up single demand, prices skyrocketing; Inner Mongolia area is also off the stage temporary price rise.
Look at the urea grassroots circulation price drop reasons. This is mainly concentrated in the south, one is the end of corn, rice fertilizer, agricultural demand weakened, local areas affected by dry weather caused by topdressing time delays; two is the winter wheat in most areas at the end of August to early September, in addition to some of the funds sufficient amount of compound fertilizer factory procurement of raw materials, there are still a lot of compound fertilizer manufacturers procurement schedule did not advance, wait and see, so the industrial demand of urea, poor support; three is still in port urea reflux, increase sales in the domestic market pressure. It is understood that local such as Sichuan, Jilin and other places will carry out environmental inspection in July, expected urea industry operating rate may be reduced, while other areas of urea manufacturers in preparing to resume production or lifting load, supply quantity of urea on the market will be more adequate to the operating rate of this factor is still uncertain, always is in the state of fluctuation, the amplitude should not be too large. On the whole, lower wholesale price of urea at the grassroots level has been established. In the short term, it is expected that local prices will continue to go down steadily, and dealers and grassroots farmers should be rational in their purchasing.