Daily Urea Review: As Labor Day Approaches, Manufacturers Continue to Lower Prices to Attract Orders

Domestic Urea Price Index:
According to data from Feidoodoo, on April 24, the small particle urea price index was 2229.68, down 10.00 from the previous day, a decrease of 0.45% month-on-month, and a 10.41% decrease year-on-year.

Urea Futures Market:
Today's urea UR409 contract opened at 2026, reached a high of 2064, a low of 2023, settled at 2050, and closed at 2058, which is an increase of 44 from the previous day's settlement, up 2.18%, with the day's fluctuation ranging from 2023 to 2064; the Shandong area basis for the September contract was 152; the September contract added 2322 positions today, bringing total holdings to 247,202.

Spot Market Analysis:
Today, the domestic urea market prices continued to adjust downwards weakly. Enterprises are shipping orders from earlier periods. As the Labor Day holiday approaches, many are lowering their quotes to attract orders.

Specifically, prices in the Northeast region fell to 2160-2230 yuan/ton. Prices in the East China region fell to 2200-2220 yuan/ton. Prices for small particles in Central China rose to 2200-2350 yuan/ton, while large particles fell to 2200-2220 yuan/ton. North China prices fell to 2080-2230 yuan/ton. South China prices fell to 2280-2320 yuan/ton. Northwest prices fell to 2100-2170 yuan/ton. Southwest prices fell to 2180-2550 yuan/ton.

Manufacturing Side:
Manufacturers continue to fulfill pre-paid orders. With the market prices dropping this week, most enterprises are following suit and adjusting their prices. As the Labor Day holiday approaches and the need for orders increases, manufacturers are lowering prices to attract more pre-orders, with short-term quotes expected to decrease. The market is weak in following up with new orders, and the current export news does not provide strong support, weakening the impact on domestic market price trends. On the supply side, some facilities that were down for maintenance have restarted, temporarily increasing daily production and the operational rate has recovered to above 80%, with the current supply and demand situation remaining loose. On the demand side, domestic demand shows strong resistance to high prices, with downstream purchasing slowing down, and only essential small orders following suit. As prices continue to decrease, follow-up might improve, but this will depend on the extent of price decreases.

Overall View:
The current urea market has returned to a relaxed supply and demand state. As the Labor Day holiday approaches and companies struggle to get enough orders, many are adjusting prices to attract orders, and there is still room for price reductions. It is expected that the urea market prices will continue to adjust downwards in the short term.