Price trend

According to the Commodity Market Analysis System of SunSirs, as of August 7th, the reference average price of the domestic urea market was 2,287 RMB/ton, a decrease of 1.80% from the reference average price of 2,329 RMB/ton on August 1st.

Analysis review

The market conditions

This week, the domestic urea market prices had weakened and fallen. As of August 7th, the ex factory price of urea in Shandong region was around 2,100-2,140 RMB/ton, in Hebei region it was around 2,110 RMB/ton, and in Henan region it was around 2,120 RMB/ton.

Supply and demand situation

In terms of supply, the urea market temporarily had a relatively sufficient supply, with oversupply being the main factor. In terms of demand, agricultural demand maintained rigid procurement, while industrial demand remained weak. The operating rate and market of downstream compound fertilizers remained stable, with a focus on on-demand procurement of urea and mostly low-priced transactions.

Market outlook

The urea analyst from SunSirs believes that the urea market trend had been weak and downward recently, with poor market inquiries and a light trading atmosphere. The market supply was sufficient, and the mentality of buying up and not buying down had increased. It is expected that the domestic urea market prices will decline in the short term.

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