Urea Daily Review: Agricultural Demand Picks Up, Industry Trading Atmosphere Improves

Domestic Urea Price Index:

According to Feidoodoo data calculations, on February 18th, the urea small granule price index was 2308.45, an increase of 51.18 from the previous working day, up 2.27% sequentially, and down 16.57% year-over-year.

Spot Market Analysis:

Today, the overall domestic urea market prices adjusted upwards. With the post-holiday logistics recovery and the activation of the agricultural demand market, current industry quotations have seen a slight exploratory rise.

Specifically, prices in the Northeast region rose to 2200-2350 RMB/ton. In the North China region, prices increased to 2140-2340 RMB/ton. Prices in the East China region rose to 2250-2300 RMB/ton. In the South China region, prices increased to 2380-2430 RMB/ton. Prices for medium and small granules in the Central China region rose to 2250-2380 RMB/ton, while large granules increased to 2300-2400 RMB/ton. Prices in the Northwest region remained stable at 2220-2230 RMB/ton. In the Southwest region, prices held steady at 2230-2600 RMB/ton.

Market Forecast:

From the factory perspective, most manufacturers have completed their Spring Festival orders, and current quotations remain stable, with some factories running firm quotations supported by pending orders. On the market side, there are signs of improvement in post-holiday market transactions, with active trading enthusiasm in the market and the overall transaction center of gravity continuously moving upwards. In terms of supply, enterprises are operating normally, and due to the slow transportation of goods during the festival, enterprise inventory has increased, mainly accumulating stock. On the demand side, the agricultural market demand has started, with moderate purchases for agricultural needs; the downstream factories in the industrial market are slow to resume operations, and current purchasing enthusiasm is not high, with weak industrial demand. However, as downstream factories gradually resume operations, industrial demand may provide some support to urea prices.

In summary, the post-holiday market trading atmosphere is positive, helping prices to explore slightly upward, and it is expected that urea market prices will remain firm in the short term.