Urea export good or difficult sharply boost domestic prices

Today, the overall domestic urea market almost have entered the off-season, coupled with more severe drought conditions in some areas, some crops have withered, even if rains do not need a dressing, so sales are very weak. Although there MILL, power plants and other industrial demand, but fertilizer factory operating rate is still low, the overall demand is still insufficient. However, sales in the domestic market shut the door when the export market but also for many manufacturers to open up a window.

  India's second tender CIF final at the lowest price of $ 274.77 / ton tender offer total size of 1.265 million tons of urea granules which our products around 100-110 million tons. This price is equivalent to the Hong Kong price is about 1480-1490 yuan / ton, some manufacturers Shangju prices remain at 1400 yuan / ton. Before the end of this tender, domestic urea prices continue to decline, Shandong Province at around 1470 yuan offer / ton, the actual sales price of less than 1450 yuan to / ton, two rivers mainstream offer 1450 yuan / ton, low transaction prices approaching 1400 yuan / ton; after the end of bidding, some manufacturers in Hong Kong deposit, inventory pressures have been alleviated to some extent, the price continued to decline being curb domestic urea market to gradually stable.

Early August, port access goods prices rose 1500 yuan / ton, increasing export orders, as of press date of ports for the average prices of goods have been about 1530 yuan / ton. Port situation increasingly improved, some manufacturers offer domestic sales also rising, continued slightly upward. Large particles export market is called hot, ports for shipment prices have climbed to 1800 yuan / ton high, most manufacturers offer factory domestic market rose to about 1650-1720 yuan / ton, individual manufacturers planned orders scheduled to September, temporarily unable to supply.

  Exports continued positive on the domestic market formed a strong pull, and that prices will continue to rise it? The author believes that the current surface urea market continued upward, to stabilize the main reality: most of the country are in the off-season, no short-term market demand; industrial fertilizer market is not ideal, the lower the overall level of capacity utilization, procurement efforts inadequate; climate, southern flood and northern drought initiative has a significant impact on farmers, dealers stocking natural enthusiasm will be greatly reduced; addition, temporary shortage of urea industry operating rates, but the new factory and capacity expansion can huge oversupply pressure not to go. So despite the good will of the domestic market to generate export given some support, but it should not cause actual price rebound is expected to "stabilize the main, partial consolidation" will continue to be the main theme of the recent urea market.