The export policy is implemented and the urea market is now deadlocked

This week, the domestic urea market rose mainly at high levels. At the beginning of the week, the domestic urea price rose obviously. In the context of rising coal prices and the substantial increase in the cost of urea companies, upstream urea plants actively raised their quotations. In addition, international prices are higher than domestic prices, which also provides support for the rise of domestic urea. But then the customs announced the relevant policies for legal inspection of urea export, and later urea export will be under the influence of the policy to ensure domestic supply, and the export volume is expected to decrease.

Since Wednesday, futures have shown a sharp decline for two consecutive days. The sentiment of the spot market has been affected. Among them, the return of goods from some ports in Hebei has impacted the local market. On Thursday, the quotations of northern urea companies temporarily stabilized and wait and see, waiting for the market trend to become clear, while Yunnan and Sichuan continue to make up the main increase. The current domestic policy is suppressed, and the rising prices of raw coal and natural gas continue to support the cost of urea.

    On the whole, the domestic urea market will be in a stalemate in the near future, and there will be phased price declines in reissuance.