
On December 5, 2012, the domestic urea market in China remained largely stable, with only minor fluctuations observed in certain regions. Despite some manufacturers having raised prices in advance, sales performance was not as strong as expected. In Shandong Province, a few producers reduced their high-end offers by 10 to 20 yuan per ton, while most other regions maintained stable factory prices.
The urea production centers in Hebei, Henan, and Shanxi also saw no major changes in pricing. Current factory prices in Shandong range from 1920 to 1960 yuan per ton, while in Hebei, they are between 1920 and 1950 yuan per ton. In Henan, the price range is 1920 to 2000 yuan per ton, and in Shanxi, it's 1890 to 1950 yuan per ton.
Meanwhile, natural gas supply in the northwest region was tight, leading to lower operating rates at local gas-based urea plants. Due to high outsourcing levels in previous periods, the local market faced supply shortages, especially in Xinjiang, where urea availability became limited. As a result, some factory prices in Xinjiang increased by 30 yuan per ton, bringing the current mainstream factory price to around 1750 to 1800 yuan per ton. In Gansu, the main factory price ranges from 1880 to 1920 yuan per ton, with local wholesale offers reaching up to 1900 to 2000 yuan per ton.
Despite these regional variations, the overall demand for urea has been gradually improving. Most manufacturers across the country reported low inventory pressure, which suggests that the market is stabilizing. However, experts anticipate that prices may continue to rise slowly in the short term, though occasional market volatility cannot be ruled out. This reflects the ongoing balance between supply constraints and growing demand in the sector.
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