Urea price in Sichuan is lower than cost price

According to the data released by China Nitrogen Fertilizer Network, the mainstream factory price of urea in Sichuan is 1,700 yuan/ton. The normal production of the manufacturer and the increase in the price of natural gas led to a substantial increase in the production costs of local gas head manufacturers. The manufacturers stated that the current production cost is around 1800 yuan/ton. As the downstream market continues to be dull, the local price has been slowly falling and is now below the cost line. Some low-end prices are around 1,650 yuan/ton.

From the industry's overall perspective, according to business social data, in July the domestic urea market fluctuated sharply and rose first and then fell. The average domestic factory price at the beginning of the month was 1,700 yuan/ton, and it fell to 1667.5 yuan/ton at the end of the month, and the latest price fell further to 1632.5 yuan/year. Ton. Business community analyst Zhang Ming believes that the domestic urea market is unlikely to rebound too much in the short term. Manufacturers generally do not hold too high expectations. The next round of rebound may be due to the autumn fertiliser pull in late August.

It is understood that at present, the domestic agricultural fertilizer market is in an off-season demand, dealers are more cautious in procurement, and the operating rate of the industry is relatively low. Some manufacturers arrange inspections and maintenance, and the inventory pressure is high. The most important factor that drags down urea prices is the continuous decline in coal prices. However, the current price of coal urea is close to the cost line.