On February 14th, urea futures rose significantly, and market sentiment surged, driving up urea spot prices. Many urea manufacturers across the country have raised their prices, resulting in improved efficiency in new orders and delivery. Recently, the demand for winter wheat topdressing has started in some regions, leading to an increase in the purchase of urea. Some spring plows have also started to purchase fertilizer in moderation. The operating rate of industrial customers such as plywood factories gradually increased after the holiday, leading to an increase in urea procurement volume. The operating rate of compound fertilizer enterprises has increased, and Northeast compound fertilizer enterprises have also begun to purchase and purchase raw materials such as urea. The demand for urea has increased, and the price of urea has started to rise.

After the improvement of market demand, the inventory in the hands of traders has slightly decreased, and the inventory in Hebei, Henan, Shandong, and Shanxi will gradually be digested. Industrial demand will further recover in the future, and the demand for spring plowing and fertilizer preparation will continue to increase. The demand for urea is likely to continue to grow in the near future.

In addition, the daily production of urea has reached a historical high, and an excessive supply is likely to limit the upward space for urea prices. Urea strictly implements the policy of ensuring supply and stabilizing prices, and exports are strict. The domestic market still needs to consume such a large amount of urea production. The macroeconomic situation may only temporarily boost urea spot prices, and caution should be exercised about the short-term speculative risks of urea futures.

In the past year, the price of urea in China has been sluggish for a long time, which has led to a difference in price compared to ammonium sulfate in China. At present, ammonium sulfate is still mainly exported, usually referring to the international prices of urea and ammonium sulfate. The international urea price has increased significantly, with active procurement, boosting the international ammonium sulfate market. Since the beginning of the year, Chinese traders and pellet manufacturers have been processing and storing a large amount of ammonium sulfate, and some of it has been directly sent to ports after processing. The port receiving price has also continued to increase. This week, the price of ammonium sulfate at Tianjin Port was 1060 yuan/ton, and the high-end price has reached 1100 yuan/ton.

But the price of ammonium sulfate in our country is not just rising and favorable. Last week, the offshore price of granular ammonium sulfate in China's main ports was around 163 US dollars/ton, which increased by 10 US dollars/ton compared to the Spring Festival period. However, the high-end prices that were pushed up this time were basically not sold, and the push up effect was not good. Therefore, this week, the offshore price of granular ammonium sulfate in China's main ports was lowered by about 5 US dollars/ton.

Recently, the rise in urea prices in China has stimulated domestic customers to purchase ammonium sulfate. Some domestic trade customers have been affected by various factors such as the overall increase in ammonium sulfate prices and the rise in urea prices, resulting in a significant improvement in their inquiry and procurement sentiment compared to before. The mainstream ex factory quotation for ammonium sulfate in Jilin region is over 1000 yuan/ton, with an increase of about 100 yuan/ton, most likely for corn deep processing and lysine enterprise procurement. The low-end price in Heilongjiang region rose by 75 yuan/ton this week. With the improvement of compound fertilizer enterprises' production, multiple agricultural customers and fertilizer customers actively participated in the auction to purchase ammonium sulfate.

In summary, the current price increase of ammonium sulfate is significant, and the market has a positive buying sentiment, but the push up of international ammonium sulfate prices is limited. The price of ammonium sulfate is too high, and foreign investors have a slight resistance. The transaction price rose and then fell back. Currently, the main focus is on Southeast Asian customers, and it is understood that Brazil is mainly conducting inquiries for the second and third quarters. Domestic customers have been affected by multiple factors such as urea, resulting in an increase in purchase prices.