1、 Price trend
As of July 9th, the reference average price of urea market in Shandong Province, China is 1803 yuan/ton, which is 0.55% lower than the reference average price of 1813 yuan/ton on July 1st.
2、 Market analysis
market situation
Entering July, the domestic urea market is running weakly. The urea futures market is weakening, which is bearish for the spot market. At present, the urea market has sufficient supply but weak demand. As of July 9th, the urea market prices in Shandong are around 1755-1810 yuan/ton, Hebei is around 1760-1850 yuan/ton, Henan is around 1740-1800 yuan/ton, Hubei is around 1720-1770 yuan/ton, and Liaoning is around 1850-1880 yuan/ton.
Supply and demand situation
In terms of supply, the current operating rate of urea enterprises is over 90%, and daily production and inventory are at a high level. In terms of demand, the current demand for urea in agriculture and industry is flat. Downstream enterprises purchase on demand, the market trading atmosphere is light, and demand needs to be released.
3、 Future forecast
Business Society’s urea analyst believes that the recent downward trend in the domestic urea market is the main reason. At present, the urea market is oversupplied and transactions are cautious. It is expected that the domestic urea market will continue to consolidate and operate weakly in the short term.