UREA market wholesale price went down to RMB2200-2250/MT in early August

By CnAgri2012-08-10 09:48:21 Print

Subject to weak demand and falling cost of production, the producer’s urea price and the market wholesale price went down to RMB2,050 ~ 2,100/MT and RMB2,200 ~ 2,250/MT respectively in early August, lower than the month before and lower than the same period of last year.

Demand is weak currently because of the slack season of consumption. Compound fertilizer producers are inactive in purchasing urea since compound fertilizer price is on the fall, too. Due to the government’s control of the real estate industry, artificial board and melamine factories’ demand for urea appears soft.

China’s urea export contracts totaled 1.5 million MT by the end of July, of which 1 million MT were signed with India. As urea export contract price is below $400/MT, urea exports merely generate a modest profit for Chinese urea producers.

Thanks to the slump of coal price, urea production cost is RMB100 ~ 150/MT below the same period of last year, making it possible for urea producers to stand the current price decline.

From "China Fertilizer Market Weekly Report"