SunSirs: The Domestic Urea Market Experienced Fluctuating Declines in August

Price trends

According to the commodity market analysis system of SunSirs, as of August 31, the reference average market price for small and medium-granule urea in the Shandong region was 1,715 RMB/ton; compared to the reference average price of 1,757 RMB/ton on August 1, the market price of urea fell by 2.42% over the month.

Market Analysis

Data from June 1, 2026, to August 24, 2026, indicates mixed price movements for domestic urea during the period. Domestic urea prices saw significant declines in August, with the steepest drop—1.73%—occurring during the week of August 10.

Market Conditions

As of August 31, urea market quotes were approximately 1,650-1,720 RMB/ton in the Shandong region, 1,690-1,720 RMB/ton in Hebei, 1,630-1,700 RMB/ton in Henan, and 1,750-1,790 RMB/ton in Liaoning.

Supply and Demand Situation

In August, domestic urea market prices generally fluctuated downward. During the first half of the month, prices trended lower; a generally weak urea futures market exerted downward pressure on spot prices, compounded by ample supply and sluggish demand. Prices rose in the second half of the month, driven by a strengthening futures market that lifted spot prices. Additionally, a larger-than-expected volume in India's latest tender provided support for exports.

Market Outlook:

Analysts at SunSirs observe that the urea market has recently been consolidating. Currently, market supply is ample while downstream demand remains sluggish; with no significant changes in supply and demand dynamics, trading volume is limited. Domestic urea prices are expected to undergo a period of consolidation and wait-and-see trading in the short term.

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