Price trend

According to the commodity market analysis system of SunSirs, as of August 22, the average reference price of domestic urea market was 1,775 RMB/ton, compared with the average reference price of 1,766 RMB/ton on August 18. The domestic urea market price rose by 0.50% last week.

Analysis review

Market Situation

Last week, domestic urea market prices initially rose before falling. Urea futures prices rose before falling, with the spot market following futures market fluctuations. As of August 22, urea market quotes in Shandong were around 1,740-1,780 RMB/ton, in Hebei around 1,770 RMB/ton, in Henan around 1,750-1,780 RMB/ton, in Hubei around 1,770 RMB/ton, and in Liaoning around 1,760 RMB/ton.

Supply and Demand

Last week, the domestic urea market experienced an oversupply. On the supply side, some urea plants underwent maintenance, resulting in a slight increase in daily production, but market supply remained ample. On the demand side, urea demand was entering its off-season in autumn, and downstream compound fertilizer companies were not actively purchasing.

Future outlook:

Urea analysts of SunSirs believe that the domestic urea market has been trending downward in recent days. Trading sentiment has weakened, with downstream purchases limited and demand showing no significant improvement. Domestic urea prices are expected to consolidate and weaken in the short term.

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