Urea Market: Return back from high-level and slowdown in trading

Time: Feb 18, 2022

Huafu Melamine Factory will continue to share the latest chemical information with you. Today, let's take a look at the price trend of urea market this week.

From February 11 to February 17, 2022, the domestic urea market pulled back from a high level, and the trading atmosphere of new orders turned weak.

urea market price

According to statistics, the average price of urea in China this week was 2,646 yuan/ton ($418/ton), up 1.15% from the previous week and up 27.70% from the same period last year.

Market trend Analysis and Forecast

1.   Supply

  • The domestic urea plants will be restarted next week, and the daily output will not change much.
  • In terms of port inventory, some port sources of goods are loaded, and the inventory has decreased slightly.
  • In terms of corporate inventory, the recent downstream stocking enthusiasm is generally low, and inventory pressure has increased.

On the whole, the supply of urea market is sufficient next week.

2.   Demand

  • In terms of compound fertilizers, downstream distributors are actively distributing goods, the market trading atmosphere has improved, the phenomenon of inquiries has increased, and the risk of preparing fertilizers at high prices is high, and the follow-up of new orders is cautious;
  • In terms of plywood, plywood manufacturers have gradually resumed construction, and new orders are subject to need to follow up;
  • In terms of agricultural demand, the enthusiasm for stockpiling in agricultural activities is general, and the wait-and-see mood is mostly.

On the whole, industrial and agricultural stockpiling will be up on demand next week, and the volume will be limited.

3.   Raw materials

  • In terms of natural gas, the price of natural gas fluctuates in the range, and there are local gas restrictions in the southwest.
  • In terms of coal, the supply side of anthracite coal tends to be loose, and the overall price is mainly under pressure.

On the whole, the price of urea raw materials fluctuated, and the pressure on production costs was not large.

Huafu Melamine Factory

Huafu Chemicals believes that the domestic urea market will be sorted in a narrow range next week. With the gradual increase in temperature and the gradual increase in industrial load, real purchases will become the focus of attention. 

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