Urea Prices in China to Remain Stable Amid the Muted Demand During the Lunar New Year
The domestic Urea market remained stable after Lunar New Year's Day. In comparison to the beginning of the year, the average market price of domestic Urea appeared to be flat as of February 4th. Urea FOB Qingdao prices for the 4th of February 2022 have settled at USD 475 per metric tonne, up 9% month over month. During the holidays, partial lockdowns in select areas will have a negative impact on economic activity. Urea has stopped rising and stabilised since late January, and the market has thus remained constant. The demand for fertilizer has shifted to the off-season, and Urea factories aren't confident enough to support the price. Furthermore, the upstream price's support effect is limited. Urea supply difficulties in China have persisted, pushing offers above USD419/MT during last few months. Natural gas, a key heating fuel for northern China, remained in ample supply as domestic fields pumped at top rates and importers maintained high inventories. Demand from residen...