SunSirs: Demand Was Weak, and Urea Market Price Fell (September 8-15)

Price trend

According to the commodity market analysis system of SunSirs, as of September 15, the average reference price of domestic urea market was 1,665 RMB/ton, compared with the average reference price of 1,703 RMB/ton on September 8. The domestic urea market price fell by 2.27% last week.

Analysis review

Market Situation

The domestic urea market was weak and downward last week. Urea futures prices continued to decline, with the spot market fluctuating in line with futures prices. As of September 15th, urea prices in Shandong were around 1,630-1,670 RMB/ton, in Hebei 1,650-1,670 RMB/ton, in Henan 1,640 RMB/ton, in Hubei 1,670 RMB/ton, and in Liaoning 1,690 RMB/ton.

Supply and Demand

Last week, the domestic urea market experienced an oversupply. On the supply side, some previously idled units resumed production, resulting in a slight increase in daily output, ensuring ample market supply. On the demand side, agricultural demand remained weak, with downstream purchases primarily driven by just-in-time needs, resulting in a subdued market environment.

Market outlook

Urea analysts of SunSirs believe that domestic urea prices have continued to decline recently. Urea inventories were temporarily high, downstream purchasing was cautious, demand has not yet improved, and market transactions were weak. Domestic urea prices are expected to remain weaker in the short term.

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