The recent trend in urea prices has seen a slight increase. The operation rate of urea enterprises has slightly declined, supported by factory orders, leading to a modest rise in urea prices this week. According to the commodity analysis system of the Business Sheets, the price of urea in Shandong has risen from the initial 2382 RMB/ton on Monday to the weekend's 2394 RMB/ton, with an increase of 0.47%, while the price on the weekend fell by 10.83% compared to the previous period. Details on domestic urea prices for the week are as follows:

• April 8 - April 12, changes at various manufacturers in Shandong:
• Sinochem Heavy Chemical Co., Ltd. 2020 RMB/ton 2070 RMB/ton 50 RMB/ton
• Hualu Hengsheng Co., Ltd. 2030 RMB/ton 2080 RMB/ton 50 RMB/ton
• Henan Xinlianxin 2075 RMB/ton 2115 RMB/ton 40 RMB/ton
  From the supply side, currently, the operation rate of urea enterprises is around 80%, and the daily domestic production of urea is less than 180,000 tons, indicating a slight decrease in supply compared to earlier periods. The mainstream manufacturers in Shandong have seen a minor increase in their factory prices for urea. Sinochem Heavy Chemical Co., Ltd. has raised its urea price by 50 RMB/ton, and Hualu Hengsheng Co., Ltd. has also increased it by 50 RMB/ton. From the perspective of upstream market conditions:
• As of April 11, the average price of liquefied natural gas (LNG) in China was 3916 RMB/ton, up from the average price of 3820 RMB/ton on April 5, marking a 2.51% increase. The smooth flow of transportation and improved market transactions have contributed to the price increase. Some liquid plant units in Inner Mongolia have been out of service for maintenance, resulting in a decrease in LNG supply. With tight supply, low-priced liquids have pushed up prices upwards. Additionally, some liquid ammonia units have stopped operations for maintenance, reducing supply and benefiting the market, leading to a 0.52% increase in price and stabilization on weekends. Meanwhile, coal prices remain stable, with thermal coal slightly declining overall, amidst the off-season for coal use. Selling conditions at local mines are generally average, with most pithead coal prices remaining stable. Traders are cautious about purchasing, resulting in average market transactions. Overall, the support for urea prices is moderate due to strong support from gas-fueled enterprises.
  From downstream demand perspective:
• Agricultural demand has weakened, while industrial demand remains average. With spring plowing coming to an end, supplementary fertilizer purchases are limited. Companies involved in compound fertilizers, plate materials, and melamine are operating at low levels, with industry trading confidence being weak, with basic needs purchases being the main focus. This week, the price of melamine downstream has remained at a low point, with no improvement in prices. Looking ahead:
• In late April, the market for urea in Shandong is expected to maintain a stable trend. Business Sheets analysts believe that both upstream and downstream markets have fluctuated, with general support for urea costs. Downstream agricultural demand is boosted by the rice preparation period, providing support to prices, while industrial demand is primarily driven by basic needs, especially affected by India's lack of procurement, which may lead to potential price adjustments.