Newsletter summary
Urea production capacity expansion, Nissan innovation in May 2024, high two, but scarce inventory, prices are not ideal, a variety of factors to promote demand.
Text of news flash
[urea market demand growth pushed up production capacity, prices fell hard to find inventory] Urea production capacity in a new round of expansion ushered in growth, Nissan exceeded 180000 tons, the second highest in history. Despite the increase in production, urea stocks are rare on the market, and corporate profits remain the same. Last year's analysisFreesignupbonuscasinoAmong the several reasons why urea consumption remains high, in addition to the high grain price, other factors such as returning forest to farmland, government subsidy and the increase of compound fertilizer content still exist. The demand for urea will be further increased in 2024, the state has put forward a plan to increase grain production of 100 billion jin, and the government requires power plants and other denitrification units to complete the replacement of urea for liquid ammonia by 2025. Coupled with the commissioning of the new melamine plant, the demand for urea increases. The decline in urea prices has contributed to an increase in consumption and has had a dampening effect on the prices of substitutes such as ammonium sulfate and ammonium chloride. Urea prices fluctuated sharply a year ago, and many dealers chose not to cover the goods in order to avoid losses and chose the opportunity to release the hold-up. Despite the high urea production, social stocks are not empty. There is a steady flow of old goods from large companies in large reserves, reflecting the continued demand for urea in the market. The phenomenon of high output and low inventory in the urea market has aroused concern, and the reasons behind it may include the real growth of market demand and the strategic reserves of dealers. The mystery of the urea market remains to be unveiled, and market participants are full of curiosity about it.