SunSirs: Weakening Demand Led to a Decline in the Urea Market (April 14-21)

Price trend

According to the Commodity Market Analysis System of SunSirs, as of April 21st, the reference average price of domestic urea market was 1,913 RMB/ton, which was 2.88% lower than the reference average price of 1,970 RMB/ton on April 14th.

Analysis review

Market conditions

Last week, the domestic urea market was weak and declining. As of April 21st, the factory price of urea in Shandong region was around 1,830-1,860 RMB/ton, in Hebei region it was around 1,820-1,860 RMB/ton, in Henan region it was around 1,810-1,850 RMB/ton, in Hubei region it wwas around 1,810-1,850 RMB/ton, and in Liaoning region it was around 1,820-1,870 RMB/ton.

Supply and demand

On the supply side, some urea plants underwent maintenance last week, resulting in a decrease in market supply, but the urea market inventory remained sufficient. In terms of demand, the demand for spring plowing was gradually slowing down, and downstream procurement was cautious. The operating rate of compound fertilizer enterprises  declined, and the demand for urea procurement had weakened.

Market outlook

SunSirs’ urea analyst believes that domestic urea prices have been weak and declining recently. As of April 21st, the demand for urea in the market had decreased, and the demand for industry and agriculture had weakened, but inventory remained high. It is expected that the  domestic urea market will mainly be consolidate to be weaker in the short term.

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