Urea market become active in china

Agriculture: After entering July, the use of fertilizer for one season of the year will be completely finished around the middle of the year. The agricultural demand is mainly concentrated in the two-season of the year. According to the crop cycle, weather, fertilizer use habits, etc., there will be phased existence in mainstream areas. If you need to prepare fertilizer and use fertilizer, then there will be a moderate amount of agricultural goods this week, but the atmosphere is general.

Industry: The operating rate of compound fertilizer was 18.80%, an increase of 3.7% than last week; the operating rate of melamine was 67.55%, an increase of 3.39% than last week; although there is no operating rate data for the board industry, it is relatively stable in the short term and changes little, maybe there will be limited production in some area. On the whole, industrial demand has a slight increase trend, and the raw material inventory in downstream factories is not mcuh, so the right amount of replenishment is required, and there will be continuous rigid demand.

Frequent failures of equipment cause to the low start-ups

Looking at the domestic urea supply situation, the urea industry had a daily output of 157,400 tons until July 9. During the week, some companies in Inner Mongolia, Anhui, Ningxia and other companies have the equipment faliures in short time, so the daliy output dropped to 153,000 tons, and then gradually recovered to the current level. Judging from this level of daliy output, comparing with the daliy output in the whole year,the supply is relatively sufficient.

 There was news in this week that India will issue a new urea bidding as soon as next week. Although domestic exports are currently restricted, tariffs have always been undetermined. Therefore, there is still a possibility of a small amount of exports. It is said that there are some  goods is deliveryed to the port recently, so the pressure on the flow of some manufacturers is relieved. Under the current situation of supply and demand, it is natural for the market to appear.

After a relatively significant drop in domestic prices , most manufacturers have accumulated pending orders for 5-10 days. They will be able to hold up prices in a short time or push to the price increase , and the market may be unstable due to demand. In the following days, there will be summer agricultural demand in mainstream regions, and there are maintenance of some companies in Inner Mongolia, Hebei, and Shandong in the middle and late of this month, as well as the upcoming boost from the coming Indian tender, the high market price will probably continue to later of this month until the Indian tender is confirmed.