Regarding the recent urea market, news of ensuring supply and stable prices has been released, initiatives to reduce exports have been launched, and legal inspections have also been tightened. After a series of operations, the original intention to promote the rational development of the urea market seems to have not been achieved. Originally, it was thought that urea prices would go down all the way, but the expected results did not occur. Instead, it was an unexpected small rebound, and some parts were forced to suspend quotations and negotiate prices at a low level; The reason for the anti inflation is that the recent replenishment of urea in the port has not significantly increased the supply of urea, and the inventory in the upstream and downstream markets is currently not high; However, in contrast to the demand in the domestic market, exports can only provide short-term support, and long-term prices are still mainly bearish, and the price increase in this round will be limited.

The urea market has rebounded rapidly, and as of today, sporadic companies have suspended quotes or reported gains, especially in Hebei and Shandong regions. The current mainstream factory quotation for urea in Hebei region is 2520-2620 yuan/ton, with some factories suspending the latest quotation. The mainstream factory quotation for urea in Anhui region is around 2620-2660 yuan/ton, while the mainstream factory quotation for urea in Inner Mongolia region is around 2270-2550 yuan/ton; The downstream market is both open and wait-and-see, although the acceptance is not high, prices are inevitably rising. For example, the delivery price of urea by the compound fertilizer plant in Linyi, Shandong has risen to 2630 yuan/ton.

Whether the upward trend of urea can continue in the future depends on shifting our focus from exports to domestic supply and demand. Firstly, from a supply perspective, the current supply of urea is limited. Firstly, some urea companies have not yet completed maintenance, with a total daily output of approximately 159900 tons. Secondly, there is not much reserve in the downstream market, resulting in low social inventory. Thirdly, the recent fluctuations in liquid ammonia prices have provided some support for urea production due to the overall high level of operation; In the long run, urea companies in the Jincheng area of Shanxi Province have expectations of limited production and limited natural gas production, but their costs are at a low level. The supply of natural gas has been relatively abundant in the past two years, and companies are motivated to expand their production capacity with considerable profits. In addition, new urea production capacity in Henan and Hubei regions is expected to be put into production in the later stage. It is expected that the supply volume can also maintain a daily production level of over 160000 tons after October.

Secondly, the domestic demand for urea is relatively weak. On the one hand, the demand in the agricultural market has not yet started, and there may be a certain demand by the end of the month or October. Currently, the grassroots market needs to supplement orders as needed, coupled with the resistance to the high price of urea, there is currently no willingness to reserve; The high consolidation of urea prices has exacerbated the wait-and-see sentiment of major traders, who have to reserve back to back as needed to reduce their risk coefficient; On the other hand, the construction of composite fertilizer plants has slightly increased by 40%. It is reported that the progress of some finished composite fertilizer shipments has also slowed down recently, and the demand for raw material urea has weakened. The construction of plywood plants is average, and the demand for urea is flat. Furthermore, due to the tightening of export laws and regulations for urea, the participation of Chinese urea suppliers in this marking is relatively low. In addition, after the recent replenishment of port consolidation, the support for the domestic urea market from the export side will weaken.

Low cost operation of urea enterprises again, lacking cost support; The market has a strong resistance towards high priced urea, with many holding bearish expectations for its long-term trend; In addition, it is the guidance of the domestic policy of ensuring supply and stabilizing prices. After executing this export order, major traders should shift their focus back to the domestic market, as they lack export support in the long run.

Overall, in the short term, the urea market is supported by the replenishment of export orders at the port, and prices have slightly increased. However, from the perspective of policies to ensure supply and stable prices, and the later shift of focus to the domestic market, it is expected that the recent rise and increase in urea will be limited.

JIN DUN CHEMICAL has built a special (meth) acrylic monomer manufacturing base in ZHEJIANG province. This makes sure the stable supply of HEMA, HPMA, HEA, HPA, GMA  with high level quality. Our special acrylate monomers are widely used for thermosetting acrylic resins, crosslinkable emulsion polymers, acrylate anaerobic adhesive, two-component acrylate adhesive, solvent acrylate adhesive, emulsion acrylate adhesive, paper finishing agent and painting acrylic resins in adhesive.We have also developed the new and special (meth) acrylic monomers and derivatives. Such as the fluorinated acrylate monomers, It can be widely used in coating leveling agent, paints, inks, photosensitive resins, optical materials, fiber treatment, modifier for plastic or rubber field. We are aiming to be the top supplier in the field of special acrylate monomers, to share our rich experience with better quality products and professional service.