SunSirs: Domestic Urea Market Trends: Weak and Declining (July 1-9)

Price trends

According to the commodity market analysis system of SunSirs, as of July 9, the reference average price of urea in the Shandong region was 1,803 RMB/ton; compared to the reference average price of 1,813 RMB/ton on July 1, the domestic market price of urea fell by 0.55%.

Market Analysis

Market Overview

As July began, the domestic urea market showed signs of weakness. A decline in urea futures prices has exerted downward pressure on the spot market, which is currently characterized by ample supply and sluggish demand. As of July 9, market quotes for urea stood at approximately 1,755-1,810 RMB/ton in Shandong, 1,760-1,850 RMB/ton in Hebei, 1,740-1,800 RMB/ton in Henan, 1,720-1,770 RMB/ton in Hubei, and 1,850-1,880 RMB/ton in Liaoning.

Supply and Demand Situation

On the supply side, urea producers are currently operating at over 90% capacity, with daily output and inventory levels remaining high. On the demand side, both industrial and agricultural demand for urea is currently sluggish. Downstream enterprises are purchasing on an as-needed basis, market trading activity is subdued, and demand has yet to be fully unleashed.

Market Outlook

Analysts at SunSirs observe that the domestic urea market has recently been trending downward. Currently, supply exceeds demand, and market trading remains cautious. It is anticipated that the domestic urea market will continue to operate with a weak tone in the short term.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.