Urea ex-factory price is expected to fall below 2400 yuan
Domestic urea prices fell slightly this week. After the reduction in industrial fertilizer purchases this week, it seems that exports and agricultural demand can hardly assume the responsibility of supporting high-priced urea. The urea market has shown a weak trend.
The domestic urea market lacks rigid demand. Both late export and agricultural demand can not convince the industry, especially in the context of high urea prices, the dealer's fear of heightened psychology is particularly serious.
On the export side, the international urea price raised by the United States in advance of procurement is slightly high, which is very unfavorable for Chinese traders. Apart from the difficulty of judging the July export prices, the NDRC’s final attitude toward exports cannot be determined. Therefore, the previously hot-spotted Jigang fever also stopped at this time.
In addition, the demand for agriculture has also become the focus of the industry's memory problems. From late May to the end of June in the past, it should be the peak season for domestic application of urea. However, this year farmers used fertilizers to change their structure, and the proportion of urea directly used as agricultural fertilizers has been reduced year by year, and it has been used to produce high-nitrogen compound fertilizers. As a result, there will be a large amount of high-nitrogen fertilizers as an alternative to urea flowing to the fertilizer market.
At the beginning of this week, the factory intends to give large companies an ex-factory price of 2,400 yuan/ton. Only agricultural companies are relatively cautious. Even purchasing is a small amount of temptation.
Affected by the above factors, it is expected that the ex-factory price of urea will fall below 2,400 yuan.
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