SunSirs: After Continuous Rise in the Urea Market, the Market Fell (June 13-20)

Price trend

According to the Commodity Market Analysis System of SunSirs, as of June 20th, the reference average price of domestic urea market was 1,834 RMB/ton, which was 2.12% higher than the reference average price of 1,796 RMB/ton on June 13th.

Analysis review

Market conditions

The domestic urea market continued to rise last week, but prices fell on Friday. Last week, the urea futures market surged, boosting the urea spot market. As of June 20th, the urea market prices in Shandong were around 1,780-1,850 RMB/ton, Hebei was around 1,790-1,830 RMB/ton, Henan was around 1,770-1,840 RMB/ton, Hubei was around 1,830 RMB/ton, and Liaoning was around 1,910 RMB/ton.

Supply and demand situation

This week, the domestic urea market was experiencing oversupply. In terms of supply, some companies underwent equipment maintenance last week, but the urea market supply was still abundant and inventory remains high. In terms of demand, downstream essential procurement was the main focus. Last week, the operating rate of compound fertilizer enterprises had decreased, resulting in a decrease in demand for urea. The demand for agriculture in the north was gradually releasing and increasing.

Market outlook

The urea analyst from SunSirs believes that the domestic urea market was on the rise and then falling back recently. As of June 20th, the urea market was oversupplied, and market demand needed to be further released. After the continuous rise of urea, market sentiment had cooled down, and it is expected that the short-term domestic urea price will be mainly consolidated to be weaker.

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