During the first half of December xxxx, urea prices moved slightly higher and then stayed mostly stable. Supply was ample, and downstream buyers continued to purchase only what they needed. Daily production levels remained high, and demand stayed steady but cautious.
Market sentiment improved in mid-December. News of India’s urea tender supported the market sentiments and led to small increases in several regions. Futures prices rose first, and the spot market followed, bringing more new orders to producers.
Producer margins showed some improvement. By December xx, plants using new coal gasification technology earned around CNY xxx per ton, up from the previous month. However, producers using fixed-bed and natural gas processes continued to operate at a loss due to higher costs.
At the end of Month, Operating Rates eased slightly as a result of Environmental Inspections and Lower...
