According to the latest data from the China Nitrogen Fertilizer Network, the mainstream factory price of urea in Sichuan has dropped to 1,700 yuan per ton. However, local gas-based manufacturers are now facing a tough situation as their production costs have surged due to rising natural gas prices and stable output levels. According to industry sources, the current cost of production is approximately 1,800 yuan per ton, which means that the current market price is now below the break-even point. Some traders are even offering urea at as low as 1,650 yuan per ton, raising concerns about sustainability for some producers.
Looking at the broader domestic urea market, the sector experienced significant volatility in July. The average factory price started the month at around 1,700 yuan per ton but gradually declined to 1,667.5 yuan by the end of the month. As of now, the price has further dropped to 1,632.5 yuan per ton. Analyst Zhang Ming from the business community notes that a strong short-term rebound seems unlikely. Most manufacturers are not optimistic about a quick recovery and are waiting for potential demand support from the autumn fertilizer season, which may kick in later in August.
Currently, the agricultural fertilizer market in China is in an off-peak season, leading to cautious purchasing behavior among dealers. This has resulted in lower operational rates across the industry. Some manufacturers have scheduled maintenance periods, while others are struggling with high inventory levels. A major factor dragging down urea prices is the continuous decline in coal prices. However, even with this drop, the price of coal-based urea is now approaching the cost line, indicating limited room for further downward movement.
As the market continues to adjust, both producers and buyers are closely watching for signs of demand recovery, especially as the upcoming planting season could influence future price trends. For now, the urea market remains under pressure, with a clear gap between production costs and current selling prices.Industrial aluminum profiles are based on aluminum, adding an appropriate amount of silicon, copper, magnesium, zinc and other alloying elements, through a series of production processes such as high-temperature melting casting and extrusion. Aluminum itself is relatively light, the density is only about one-third of steel, so industrial aluminum profiles with its unique performance advantages and wide applicability, support the efficient operation of many industries, flourish, become a modern industrial manufacturing system in the weight of the basic material. It has the advantages of high strength, corrosion resistance, easy processing and forming, environmental protection and energy saving. Industrial aluminum profiles are widely used in the construction industry, machinery and equipment, automobile manufacturing, aerospace, and electronic products. In summary, I have reason to believe that industrial aluminum profiles will show greater potential and value in a wider range of fields!
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