Urea Price Stopped Rising and Fell

Time: Jun 17, 2022

As the main raw material of melamine powder, the market of urea has attracted attention. Today Huafu Chemicals will share the latest information for you.

In the first five months of 2022, the average price of China's urea market showed a ladder-type upward trend, and continued the previous upward trend in early June.

Average market price of urea in China

Data compiled by Huafu Chemicals showed that the average price of small granular urea in China on June 10 was 3,210 yuan/ton (478 US dollars/ton), a year-on-year increase of 21% and a new high in the past 10 years.

Subsequently, the domestic urea price entered a downward channel. On June 15, the average price of small granular urea in China was 3187 yuan/ton, and the high point dropped by 23 yuan/ton.

Supply side: maintenance equipment resumes successively, and the start-up load rises to a high point in the year

 China's compound fertilizer plant start-up load

In June, the operating load of the urea plant first decreased and then increased. As shown in the figure, the operating load reached a new high during the year, and the high urea price fell under pressure. Urea prices fell under pressure in mid-June.

 China's urea plant start-up load

Future market outlook:

In late June, the domestic urea market continued the pattern of supply exceeding demand.

1.   On the supply side, no new urea unit maintenance plan has been announced yet, the short-term daily output has been adjusted at a high level, and the market trading confidence has weakened;

2.   On the demand side, the increase in domestic consumption is limited, and there are many overhauls and production cuts.

Affected by the supply and demand pattern, the domestic urea market is still in a downward channel, but this week, the downstream industrial and agricultural stocks are relatively small, and some just need to buy or enter the market in the later period to ease the downward pressure. It is expected that the domestic urea market price will fluctuate weakly in late June.

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