Urea Daily Review: Prices Continuously Adjusted Upward, Factories Enter Suspension of Sales
Domestic Urea Price Index:
According to Feidoodoo data, on August 16th, the urea small granule price index was 2535.95, an increase of 11.14 from the previous day, up 0.44% month-on-month, and 4.51% year-on-year.
Urea Futures Market:
The urea UR2401 contract opened at 2137, with a high of 2157, a low of 2076, a settlement price of 2132, and a closing price of 2083. The closing price fell by 42 compared to the settlement price of the previous trading day, down 1.98%. The daily fluctuation range was 2076-2157, with a price difference of 81. The 01 contract reduced its holdings by 13,134 hands today, with a current position of 335,600 hands.
Spot Market Analysis:
Today, the domestic urea market price continues to rise. Some mainstream regions have seen significant price increases, and the phenomenon of continuous price adjustments has reappeared. Some factories have entered a suspension of sales, with many enterprises supported by pending orders and exports. Overall, enterprise quotations have been adjusted upwards, with a clear intention to maintain prices.
Specifically, prices in the Northeast region are stable at 2240-2460 yuan/ton. Prices in North Chi
na have risen to 2380-2610 yuan/ton. Prices in the Northwest region are stable at 2440-2450 yuan/ton. Prices in the Southwest region have risen to 2400-2700 yuan/ton. Prices in East China have risen to 2550-2610 yuan/ton. In Central China, small granule prices have risen to 2540-2670 yuan/ton, and large granule prices have risen to 2560-2600 yuan/ton. Prices in South China are stable at 2660-2700 yuan/ton.
Market Forecast:
In terms of demand, domestic urea is mostly exported. The recent news of a large number of markings for China is positive, boosting the enthusiasm of domestic enterprises for production and synchronously pulling up domestic urea prices. Internationally, influenced by the number of markings, the market's confidence in the future price trend has strengthened. The appearance of markings in the domestic market is seen as a positive situation, so the market's reaction will change with the news of the markings. In terms of futures, the UR401 showed a downward trend today, and it is expected that this decline will affect the future urea market price changes.
Overall, in the short term, the market will continue to be supported by the positive factors of the markings, and there is still room for prices to operate at high levels.
