Price trend

According to the commodity market analysis system of SunSirs, as of August 8, the average reference price of domestic urea market was 1,792 RMB/ton, compared with the average reference price of 1,812 RMB/ton on August 4, the domestic urea market price fell by 1.10% last week.

Analysis review

Market Situation

Last week, domestic urea market prices weakened. Urea futures prices declined, and the spot market followed suit. Urea supply was ample, but demand was relatively weak, downstream compound fertilizer companies replenished stocks on demand. As of August 8, urea market prices in Shandong were around 1,740-1,810 RMB/ton, in Hebei 1,750-1,780 RMB/ton, in Henan 1,750-1,790 RMB/ton, in Hubei 1,790 RMB/ton, and in Liaoning 1,780 RMB/ton.

Supply and Demand

Last week, the domestic urea market experienced an oversupply. On the supply side, urea inventories remained high, and the market remained ample. On the demand side, urea demand in the agricultural sector entered its off-season in autumn. Compound fertilizer manufacturers were purchasing on an urgent basis. Industrial urea demand had not seen any significant improvement.

Market outlook

SunSirs’ urea analysts believe the domestic urea market has been trending downward recently. The futures market was temporarily underperforming, with ample supply and weak demand. It is expected that domestic urea prices will be consolidated to be weaker in the short term.

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