SunSirs: The Domestic Urea Market First Suppressed and Then Rebounded in January

Price trend

According to the Commodity Market Analysis System of SunSirs, as of January 24th, the reference average price of the domestic urea market was 1,735 RMB/ton, a decrease of 3.52% from the reference average price of 1,798 RMB/ton on January 1st.

Analysis review

This month, the domestic urea market price first fell and then rose. In the first half of this month, domestic urea prices fell weakly. The supply of urea in the market was relatively loose, and the market inventory has increased. Downstream demand was weak, and downstream consumers tended to be cautious and cautious. The market trading was light, with many low-priced transactions. In mid to late this month, the domestic urea market prices fluctuated and rose. The demand for pre holiday market replenishment has increased, market transaction volume has increased, and enterprise quotations have been raised.

Market conditions

As of January 24th, the ex factory price of urea in Shandong region was around 1,640-1,685 RMB/ton, in Hebei region it was around 1,750 RMB/ton, in Henan region it was around 1,670 RMB/ton, and in Liaoning region it was around 1,770 RMB/ton.

Supply and demand

On the supply side, the urea market has had loose supply this month. Partial regions have resumed production, resulting in an increase in daily urea production in China. On the demand side, in the first half of this month, due to the continuous decline in prices and cautious downstream procurement, there was not much market trading and a light trading atmosphere. In the second half of this month, downstream procurement enthusiasm increased and demand increased.

Market outlook

SunSirs’ urea analyst believes that the urea market trend has been rising recently. As the Spring Festival approached, downstream stocking demand remained high, coupled with the recent rise in urea futures prices. Under favorable factors, it is expected that the domestic urea market prices will remain stable with an upward trend in the short term.

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