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China urea market

Views:8     Author:Site Editor     Publish Time: 2021-08-24      Origin:Site

In August, with the restart of pre-maintenance companies, although there were frequent temporary failures, the overall daily production level of urea showed an increasing trend, gradually rising from 130,000 tons to 150,000 tons, but the increase on the supply side failed to match the demand side. . Agricultural demand in many places ended in August, and the wood-based panel industry was affected by limited electricity and rain to start poorly. Only the compound fertilizer industry provided certain demand support, which led to a weak demand side. The situation of supply increase and demand decrease gradually became obvious in the middle of the day. In addition to the expected marking, it was difficult to find good results in the market, which severely suppressed the mentality of downstream receiving goods. The pressure on the shipment of urea factories appeared and the inventory began to increase. The domestic urea market entered a downward pattern. The Guangdong and Guangxi markets, which rely on external sources of goods, are also unable to survive alone. As the prices of Shanxi, Northwest, and Southwest China have been lowered, the Guangdong and Guangxi markets have experienced significant declines.

The sources of goods in the Guangdong and Guangxi markets are all based on the periphery, especially the southwest factories in Sichuan, Shanxi Shaanxi factories, northwest factories and some central China factories. Therefore, the arrival, transit, and sales ideas in the Guangdong and Guangxi markets are also closely related to the periphery. The source of Sichuan is the mainstream of the Guangxi market, and the price of the fire source is limited especially by the source of automobile transportation; the Guangdong market is mainly based on the sources of Shanshan, Shaanxi, Southwest, and China. Due to the long distance of the automobile transportation, the fire transportation is mostly used. Lord, of course, there is also a source of shipping containers all year round. In addition, Xinjiang has a low-cost foreign shipping source recently, which has an advantage of nearly 100 yuan/ton compared to the current market price, but the transportation cycle is more than one month. Therefore, the inventory, availability, and prices of peripheral factories have a vital impact on the Guangdong and Guangxi markets.

Last week, Guangdong’s market inventory decreased due to restrictions on loading on some platforms. However, this week, as the platforms resumed and the sources of goods in transit arrived one after another, there was a certain increase in market inventory; the Guangxi market’s inventory increased significantly in the past two weeks, and Nanning and Guigang have seen significant increases in the past two weeks. When goods arrive frequently in the Guangxi market, 10,000 to 20,000 tons (overall) will be delivered every week. In addition, the supply of trucks has been replenished. Therefore, the pressure on the Guangxi market has surged. The low price of some spot transactions is 2680-2690 yuan/ton, so Guangxi has once again become a "price depression". On the whole, the impact of limited power in the man-made panel industry in Guangdong and Guangxi is obvious. In addition, there is a lack of "voice" in late rice fertilizer in some regions, and the demand side support is limited. Based on the supply pattern of goods, traders can only passively follow the adjustment according to external market adjustments.



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