Industry News
Urea prices rebound in the later stage with pressure and appropriate downward space
The urea prices in various regions are maintaining a slight downward trend. Although there is a willingness to raise prices, there is a certain degree of looseness in transaction volume due to poor follow-up of new orders. It is understood that the mainstream ex factory price of urea in Shandong is around 2410-2460 yuan/ton. The delivery of urea by compound fertilizer plants in Linyi, Shandong has weakened, and the price has fluctuated. The current price is around 2460 yuan/ton, while the mainstream ex factory price of urea in Henan is around 2420-2430 yuan/ton. The mainstream ex factory price of urea in Shanxi is around 2350 yuan/ton. The current problem is poor transportation, but in the long run, it is a change in supply and demand.
The total daily production of urea this year has been around 170000 to 180000 tons for a long time, and the supply has significantly decreased recently. According to statistics from China Fertilizer Network, the total daily production of urea has dropped to about 166000 tons, a decrease of nearly 10000 tons compared to the beginning of the month. In addition, there are gas urea companies in the Sichuan Chongqing region near the end of the month that will park, and there is still an expectation of a decrease in supply, which supports the willingness of enterprises to raise prices; From a cost perspective, the cost support for coal head enterprises is relatively weak. In addition, starting from the policy of ensuring supply and stabilizing prices, the production load of enterprises should remain relatively high; Furthermore, the price of liquid ammonia fluctuates, but as the Double Festival approaches, the supply and demand of liquid ammonia in the later stage show a weak trend, so it cannot be ruled out that some enterprises may tilt their production focus slightly towards urea.
The demand for urea is also weakening, and the follow-up of new orders is not ideal. The agricultural market is in the off-season, and the grassroots market is mainly wait-and-see, with no inventory reserves. Before the Spring Festival, there is a local demand for useful fertilizers, but the overall demand is not high, and on-demand procurement is the main trend. The reserve in the aspect of off-season storage is advancing, but due to changes in the off-season storage rules in the early stage, it has to some extent affected the reserve progress and quantity of storage enterprises; On the industrial side, delivery is on demand, and the operation of compound fertilizer plants has decreased. Due to the unstable raw materials, the reserve sentiment is not high, and urea is purchased on demand. In addition, it is reported that the demand for plywood factories is average. According to market feedback, the parking time of plywood factories may be earlier this year, which will reduce the rigid demand for urea industry; Furthermore, the export of urea is restricted, which has not yet boosted the domestic market; Furthermore, under the guidance of domestic policies to ensure supply and stabilize prices, even if urea prices rebound in the later stage, the magnitude will be limited.
In addition, the price of small nitrogen fertilizers to some extent affects the sentiment of the urea market. The price of ammonium sulfate fluctuates, but the price is running at a low level, with weak demand and overall weakening; The local price of ammonium chloride has been appropriately lowered or loosened, and the supply-demand contradiction is gradually emerging, with room for slow price reduction. Compared with the price of urea, the low price advantage of small nitrogen fertilizer is more obvious, which has replaced urea and to some extent affects the bearish sentiment in the urea market.
Overall, the urea market is supported by concentrated supply reduction in the short term, as well as rigid industrial demand and willingness to maintain prices. However, the follow-up of new demand is not satisfactory, the proportion of supply reduction is limited, and policy regulation to ensure supply and stable prices is implemented. It is expected that there is still room for appropriate downward pressure on urea prices.
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.
