Downslope Urea Price

By CnAgri2012-11-09 11:00:34 Print

    Urea producers’ quotation is generally RMB1,900 ~ 2,000/MT in China currently. Farmers’ demand is weak because of the off-season of consumption. Winter reserve-undertaking companies are waiting for lower prices. The demand for urea from plywood and compound fertilizer plants appears soft, too. Urea producers have to cut price to promote sales.

    Coal-based urea producers’ capacity utilization is stable, but gas-based urea producers’ capacity utilization is on the fall because of tight natural gas supply. As some new urea complexes have been put into operation this year, urea supply is abundant.

    As urea export tariff is brought up to 110% from November on, urea exports have basically stopped, except execution of past orders.

    Urea demand is presumed to pick up moderately after late November, for winter reserve program is expected to get under way and farmers may use some urea for winter wheat irrigation. But due to market surplus, there is not much room for urea price to move up in the near future.
 

From “China Fertilizer Market Weekly Report”