Price trend

According to the Commodity Market Analysis System of SunSirs, as of January 6th, the reference average price of the domestic urea market was 1,711 RMB/ton, a decrease of 4.82% from the reference average price of 1,798 RMB/ton on January 1st.

Analysis review

Market conditions

This week, the domestic urea market prices have dropped significantly. As of January 6th, the factory price of urea in Shandong region was around 1,560-1,610 RMB/ton, in Hebei region it was around 1,620 RMB/ton, in Henan region it was around 1,600 RMB/ton, in Hubei region it was around 1,640 RMB/ton, and in Liaoning region it was around 1,760 RMB/ton.

Supply and demand situation

This week, the urea market had strong supply and weak demand. On the supply side, urea supply has been relatively loose this week, and market inventory has increased. In terms of demand, downstream demand was weak, and due to the recent decline in urea prices, downstream consumers were mainly adopting a wait-and-see approach. As of January 6th, the market trading was light, with transactions mainly at low prices.

Market outlook

SunSirs’ urea analyst believes that the domestic urea market has been weak and declining recently. As of January 6th, there was no positive news in the market, and manufacturers were continuously lowering prices in order to clear inventory. It is expected that the domestic urea market prices will continue to weaken and decline in the short term.

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