Price trend

According to the commodity market analysis system of SunSirs, as of September 22, the average reference price of domestic urea market was 1,655 RMB/ton, compared with the average reference price of 1,665 RMB/ton on September 15. The domestic urea market price fell by 0.60% last week.

Analysis review

Market Situation

Domestic urea market prices continued to weaken and decline last week. Urea futures prices continued to decline, with the spot market fluctuating in line with futures market trends. As of September 22, urea market quotes in Shandong were around 1,610-1,670 RMB/ton; in Hebei, 1,630-1,660 RMB/ton; in Henan, 1,620-1,680 RMB/ton; in Hubei, 1,660 RMB/ton; and in Liaoning, 1,670 RMB/ton.

Supply and Demand

Last week, the domestic urea market experienced an oversupply. On the supply side, some previously idled plants had resumed production, increasing daily output and boosting market supply. On the demand side, industrial and agricultural demand was temporarily weak, with downstream companies cautiously purchasing and creating a subdued market trading atmosphere.

Market outlook

SunSirs' urea analysts believe the domestic urea market has continued to weaken and decline recently. As of September 22, urea supply was sufficient, but demand was weak. With the National Day holiday approaching, urea manufacturers were primarily lowering prices to attract orders. It is expected that domestic urea prices will continue to weaken in the short term.

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