SunSirs: Urea: Increased Production Meets Off-Season Demand, Prices Fall

September marks the off-season for fertilizer consumption, with urea prices in North China's main production areas dropping below 1,600 RMB per ton. On October 10, the ex-factory price for small and medium-sized granules in Shandong ranged from 1,500 to 1,570 RMB.

In the first half of this year, China added 2.51 million tons of new urea production capacity, bringing total capacity to 76.4 million tons. An additional 3.41 million tons of capacity is expected in the second half, raising total capacity to 79 million tons. Supply is projected to exceed demand for the entire year, with this surplus expected to persist into 2026.

This oversupply and weak demand have led to declining operating rates. According to a survey by the China Nitrogen Fertilizer Industry Association on October 7, the operating rate of urea plants nationwide stood at approximately 82.39%, down 3.64 percentage points year-on-year. As of October 5, national urea inventories reached 1.4598 million tons, a 12.98% increase compared to the pre-holiday period.

As an integrated internet platform providing benchmark prices, on October 17, the benchmark price of urea from SunSirs was 1,577.50 RMB/ton, down 2.7% from the beginning of this month (1,621.25 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.