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Urea: port loading restriction seal does not lift crisis and transfer to China
Time:2020-09-16   Read:627second  

In the off-season of the domestic urea market, the agricultural grass-roots units have no price but market, the industrial demand is light, and the overall demand level remains cautious. Under the support of successive bidding in India, the international market has opened round after round of demand heat, and the domestic urea price has continuously increased. However, as the Indian standard is in the past, the urea price has returned to calm and rational decline; recently, the urea market has been struggling Some enterprises have slightly increased 10 yuan / ton, but the terminal transaction is actually light, and there are still some problems to be solved, that is, port loading restriction. At present, the seal of port loading restriction has not been lifted, the port inventory pressure is large, loading and unloading is blocked, and the export is not smooth. The industry is worried about the risk of backflow of port urea, so the crisis is transferred to China's domestic market.

Although export demand is good, but loading and unloading at the port is blocked. The shipping dates of the first two occasions were September 15 and October 5, respectively. However, the urea inventory in each port is high. Tianjin port, Yantai port and other ports are still in the limitation of loading. The lifting time may be on the 20th of this month. Moreover, the possibility of re restriction is not ruled out. The international market demand is good, which is good for the domestic urea industry. However, the export pressure is still under pressure, which is a step closer to the price drop.

The start-up of urea enterprises is still at a high level, and the supply level will continue to increase in the later stage. Some urea enterprises in Inner Mongolia have shut down and some enterprises have slightly reduced their production load. However, the mainstream of enterprises is in normal state. Urea plants in Northeast China and Inner Mongolia are ready to resume production or have just resumed production. According to the statistics of China fertilizer network, up to now, the overall industry of urea enterprises has started about 55.56%, and the total daily output is about 156000 tons. Since we talk about the start-up of urea enterprises, we have to mention liquid ammonia. At present, the liquid ammonia market is mainly stable, and the local prices are slightly consolidated, but the overall high-level operation, and the demand for liquid ammonia in some markets will increase. The price is expected to rise slightly, so the production focus of the enterprise will not tilt to urea. The trend of liquid ammonia is a certain support for urea.
Removing the aura of urea export market, the domestic market is weak in purchasing urea, and the expectation is pessimistic, and the market at all levels is cautious. In the off-season of domestic agricultural demand, it is difficult to provide impetus for urea price increase with a small amount of purchase or replenishment. The wholesale price in the primary market is not available. Large traders are pessimistic about the trend of urea, and their purchasing enthusiasm is not high, and they are basically ready to use and harvest. The industrial compound fertilizer plants are operating at a low level, and some of them are even reduced. In addition, the sales of finished fertilizer are slow, and the winter storage price is not clear Due to the fluctuation of material market, the production progress and procurement of compound fertilizer plant are more cautious; the same is true for plywood plant. Under the weak market, the enterprise's production enthusiasm is not high, and the overall industry starts low, so the demand for urea is limited.

However, there are still some advantages to be found in the urea market. First, the demand for urea in some parts of the market will continue to follow up, and the start-up of compound fertilizer enterprises in some markets will pick up at the end of the month, and the purchase of raw urea can still be expected; second, the urea inventory accumulated in the port will be gradually digested when the port loading restriction is eased and the export is no longer blocked; third, according to market rumors, it is said that this month India may issue a new round of bidding later or early next month, and the domestic market is profitable.
To sum up, the contradiction between supply and demand in urea market is still obvious, so the attitude of the industry is pessimistic. It is expected that the urea market will remain weak in the short term, and the quotation will be slightly consolidated. However, the transaction price should be loose. It is expected that potential favorable factors will emerge and urea will have a better chance.

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