Supply Reduction, Urea Fatigue Has not Retreated

Recently, the price of urea has continued to fall. Now the mainstream price of urea in Shandong is 1770-1780 yuan (ton price, the same below). The low-end transaction reference price is about 1740 yuan. The compound fertilizer company in Linyi area has the urea receiving price at 1790- 1800 yuan, the mainstream price of urea in Hebei Province is 1750-1830 yuan; the mainstream price of urea in Henan is 1770-1780 yuan; the mainstream price of urea in Shanxi is between 1690-1700 yuan, and the Xinjiang area is 50-week per week. The decline rate of 100 yuan has refreshed the current low of the domestic market. At present, the local urea mainstream factory price is between 1350 and 1500 yuan, and the high price is basically no transaction. It is reported that the domestic urea production in the near future fell below 150,000 tons. In addition, the gas head enterprises will carry out off-season reserves in order to avoid the impact of the later gas restrictions. However, from the recent price trend and the sales strategy of the gas-head enterprises, the overall price of urea Still dominated by a small decline. buy propylene glycol from Evergreen

The cause of the recent reduction of urea: on the one hand, because the overall trend of the market is relatively poor, the market price competition is relatively fierce, and the cost pressure of some enterprises with relatively high production costs is too large, and they are unwilling to carry out a lower price war. The operating costs, some enterprises can only temporarily enter the shutdown phase to ease; on the other hand, individual enterprises have not systematically overhauled the equipment from the beginning of the year, in order to ensure the normal operation of the equipment and prepare for the later winter storage market, The stage temporarily enters the inspection. Considering the activities of the National Day military parade in October, it is expected that the overall supply of urea around mid-September will be further reduced.

However, the supply reduction of urea has not injected significant vitality into the downturn market of urea. The price competition among enterprises is still relatively fierce. The main reason is that market demand is relatively weak. After the implementation of international export orders, there is no The new singles follow-up, and the international market prices are lower, and the enthusiasm of enterprises for export is relatively poor. However, the demand for the grassroots market in the domestic market is over, and the raw materials to be consumed by the compound fertilizer enterprises are relatively abundant, while the board manufacturers are also exporting. Bad news such as the overall shutdown of the region, the urea market demand is relatively low, even if the current supply is slightly reduced, but the pressure remains.

In summary, the demand for urea in the near future is relatively poor, while the market demand in Xinjiang is relatively small. The time for the externally issued factory price to fall below 1,300 yuan should not be too far away. At that time, the urea prices in the southwest and northwest regions will still be further affected. Impact, affected by this, the price of low-priced urea in Inner Mongolia and Shanxi should not be too optimistic, it is expected that the urea market should not have a substantial increase before mid-September.