SunSirs: Domestic Urea Market Trends: Rising Then Falling

I. Price Trends

According to SunSirs Commodity Market Analysis System, as of September 8, the domestic urea market reference average price stood at 1,703 RMB/ton. Compared to the September 1 reference average of 1,707 RMB/ton, domestic urea prices declined by 0.22% last week.

II. Market Analysis

Market Conditions

Last week, domestic urea prices rose initially before declining. Urea futures prices followed a similar pattern, with spot market fluctuations mirroring futures movements. As of September 8, urea market quotes stood at approximately 1,680 RMB/ton in Shandong, 1,710 RMB/ton in Hebei, 1,690 RMB/ton in Henan, 1,710 RMB/ton in Hubei, and 1,710 RMB/ton in Liaoning.

Supply and Demand Situation

Last week, the domestic urea market faced oversupply. On the supply side, idled plants gradually resumed operations in the early part of the week, boosting daily output and maintaining ample market supply. On the demand side, industrial and agricultural urea demand showed no significant improvement. Downstream compound fertilizer enterprises purchased at lower prices, while new order transactions remained sluggish.

III. Market Outlook

SunSirs urea analysts believe: The domestic urea market has recently shown a weak downward trend. Current trading activity remains subdued with few new orders, and no positive news is expected in the short term. Domestic urea prices are anticipated to consolidate at weaker levels in the near term.

As an integrated internet platform providing benchmark prices, on September 11, the benchmark price of urea from SunSirs was 1,693.75 RMB/ton, down 1.09% from the beginning of this month (1,712.50 RMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.