Domestic urea market prices stabilized on the 30th

As of November 30, 2012, the domestic urea market showed signs of stabilization, with slight increases observed in Shandong and Henan regions. Industry insiders report that China’s export tariff policy for 2013 is expected to be announced soon, and there are rumors that the new policy may relax restrictions during the off-season for urea exports. This has led some urea producers to adjust their pricing strategies. In Shandong province, urea ex-factory prices have seen a moderate uptick, with several manufacturers raising their prices by approximately 10 to 20 yuan per ton. Currently, the prevailing factory prices for urea in Shandong hover between 1,900 to 1,940 yuan per ton. Similarly, in Henan, some factories have increased their prices by about 10 to 20 yuan per ton as well, bringing the current factory price range to 1,900 to 1,980 yuan per ton. Meanwhile, Hebei and Hubei have maintained relatively stable prices, with Hebei’s factory prices ranging from 1,900 to 1,920 yuan per ton, while Hubei remains at 1,950 to 1,980 yuan per ton. In Hunan, urea enterprises have quoted prices between 1,980 to 2,030 yuan per ton. The market in Shanxi has remained largely unchanged, with local urea enterprises quoting around 1,870 to 1,890 yuan per ton for truckloads and 1,900 to 1,920 yuan per ton for transportation hubs. Many local producers are outsourcing their products to major distributors. Overall, the domestic urea market is currently in a state of equilibrium. Analysts predict that in the near term, prices are likely to remain stable but subject to minor fluctuations depending on supply and demand dynamics. While the market seems poised for continuity, stakeholders are keeping an eye on upcoming developments related to export tariffs and global market trends.