Urea Daily Review: Market Transactions Improve at Lower Prices, Manufacturers See an Increase in New Orders

Domestic Urea Price Index:

According to data calculated by Feidoodoo, on March 27, the urea small particle price index was 2188.64, a decrease of 8.32 from the previous day, down by 0.38% compared to the day before, and a year-on-year decrease of 21.18%.

Urea Futures Market:

Today, the opening price of the urea UR405 contract was 2020, the highest price was 2026, the lowest price was 1964, the settlement price was 1992, and the closing price was 1966. The closing price decreased by 56 compared to the settlement price of the previous trading day, down by 2.77%, with the day's fluctuation range between 1964 and 2026. The Shandong region's basis for the 05 contract was 174. The 05 contracts decreased by 8721 positions today, with a current position count of 157901.

Spot Market Analysis:

Today, domestic urea market prices continue to adjust downwards, with companies adjusting their prices both up and down. Companies that received sufficient orders adjusted their prices slightly upwards; companies with insufficient orders continued to lower their prices.

Specifically, prices in the Northeast region fell to 2150-2210 yuan/ton. Prices in the North China region rose to 2000-2180 yuan/ton. Prices in the East China region rose to 2130-2180 yuan/ton. Prices in the South China region rose to 2240-2340 yuan/ton. In the Central China region, the price for small and medium particles rose to 2130-2320 yuan/ton, and large particles rose to 2190-2250 yuan/ton. Prices in the Northwest region remained stable at 2140-2150 yuan/ton. Prices in the Southwest region remained stable at 2100-2450 yuan/ton.

Factory Perspective:

Recently, manufacturers have seen an improvement in new orders following price reductions, with many adjusting to control the acceptance of orders. Some factories with sufficient pre-orders still have room to raise their prices. In the short term, the pressure to ship out goods has decreased, and the mindset has improved. From the market perspective, recent low-end transactions have increased, with mainstream regional enterprises seeing a significant increase in new orders. The atmosphere in the market has warmed up, boosting the confidence of traders and improving sentiment compared to earlier periods. The market negotiation focus has begun to adjust slightly upwards. In terms of supply, the industry's capacity utilization rate continues to be maintained at a high level above 80%, with no short-term changes in operation, and the market supply is ample. Regarding demand, there is periodic follow-up, with downstream purchasing often restocking at low prices, and the overall sentiment continues to be watchful. On the export side, today's tender opening in India has affected the market trading atmosphere, with traders' sentiment being disturbed by export news, leading to fluctuations in the market.

Overall View:

Currently, the urea market is seeing improvements in transactions at lower prices, and manufacturers are experiencing an increase in new orders, which, in turn, is driving the market trading atmosphere. It is expected that in the short term, the urea market prices will remain stable with minor adjustments, undergoing a period of consolidation.