Urea Market Sluggish

By CnAgri2012-11-23 10:58:45 Print

Urea price enjoyed a gentle upturn in November. The producer’s urea price is RMB1,900 ~ 2,000/MT and the retail price RMB2,100 ~ 2,150/MT currently.

Urea price recovery is curbed by uncertain prospect in the market. As fertilizer enterprises and traders are inactive in fertilizer winter reserve program, fertilizer stock under the nation’s winter reserve program is merely 1 ~ 2 million MT at present.

Urea export tariff has been brought up to 110%. But, taking advantage of the bonded zone system, some urea producers are building up a stock in the bonded zone to facilitate exports to Southeast Asia in November and December.

Urea producers are prone to boost sales by means of speculation, but traders and end users are waiting for lower prices. BOABC presumes that the sluggish urea market may sustain for some time.

From “China Fertilizer Market Weekly Report”