China Urea Granular Market Update: Oversupply Keeps Prices Under Pressure

During August 6-12, 2026, China's urea market remained weak. Domestic supply was still sufficient, agricultural demand continued to decline, and producer inventory moved higher. Export shipments provided some support, but they were not enough to reverse the overall oversupply pressure. This update is written for overseas fertilizer importers, agricultural distributors and buyers monitoring China supplier price signals for upcoming RFQ planning.

Key Takeaways for Buyers

China urea spot prices moved to a new low level for the year in several mainstream regions. By Thursday of the reporting week, Shandong factory offers were around RMB 1,650-1,680/mt, approximately USD 243-247/mt using the working exchange rate of USD 1 = RMB 6.8. These are market references only and should be reconfirmed before contract or shipment decisions.

Weekly urea output fell to about 1.4392 million mt, down 47,100 mt from the previous week, mainly because of more temporary plant issues and maintenance. However, the market was still not tight because domestic consumption weakened faster than supply, and both producer inventory and port inventory increased.

Market Overview

The domestic market was still caught between weak spot fundamentals and export expectations. Producer inventory rose to around 1.6886 million mt, while port inventory increased sharply to about 714,300 mt. Export volume was estimated near 200,000 mt for the week, higher than the previous period, but agricultural consumption dropped and compound fertilizer demand remained slow.

Operating rates also moved lower. China's urea capacity utilization was around 86.17%, down 2.82 percentage points week on week. Coal-based urea operation fell more clearly, while gas-based urea output was relatively stable. Even with lower production, the overall supply-demand balance remained loose.

Internationally, traders continued to watch India tender news, Middle East logistics, and Hormuz Strait navigation. Brazil granular urea indications were around USD 430-450/mt CFR, while North Africa FOB levels weakened into the USD 470s/mt. A reported large granular urea deal near USD 410/mt FOB Yanbu was not fully confirmed by all parties, so it should be treated only as market talk.

Packing and Shipment Considerations

For container-based fertilizer importers, the practical procurement focus is specification, packing and shipment window rather than only the weekly spot price. Buyers can review our Urea Granular product page for 46% nitrogen fertilizer inquiries. If a buyer needs smaller particle material for a different application, the prilled urea option can also be checked separately.

Common export packing includes 25 kg bags, 50 kg bags, 1,000 kg jumbo bags and palletized container shipment depending on destination market requirements. Buyers should confirm whether they need standard COA, MSDS, marking requirements, anti-caking preference, bag language, palletization, or special document support before asking for a final offer.

RFQ Checklist

When sending an RFQ to a China manufacturer, supplier, distributor or exporter, buyers should provide: product form, nitrogen content, packing type, target quantity, destination port, shipment window, required documents, inspection requirement and payment preference. Complete RFQ details reduce quotation errors and make container shipment planning more realistic.

Because China's urea market is still moving downward, buyers should reconfirm factory offers, inland logistics and ocean freight close to booking time. A low factory price does not automatically mean a lower delivered cost if freight, availability or document timing changes.

Short-Term Outlook

In the next few weeks, some urea plants are expected to restart while a smaller number remain under maintenance. Supply may stay relatively sufficient, and daily output could recover toward around 210,000 mt by early to mid-September. Demand from autumn fertilizer use is limited, and compound fertilizer operating recovery may be delayed until early September.

Export shipments may continue because of India-related demand, but compared with domestic supply, the market still looks loose. The price center may therefore continue to move lower in the short term. After September begins, combined domestic demand and export execution may provide some temporary support, but buyers should avoid assuming a firm reversal until actual demand improves.

Short FAQ

Why are China urea prices still falling?

Domestic demand is weak, producer inventory is rising, and supply remains sufficient even though weekly production fell. Export shipment support has not fully absorbed the domestic pressure.

What was the recent Shandong urea price level?

By the end of the reporting week, Shandong factory offers were around RMB 1,650-1,680/mt, approximately USD 243-247/mt at USD 1 = RMB 6.8. Current offers must be reconfirmed before ordering.

Is export demand supporting the market?

Export shipments are providing partial support, especially with India-related expectations, but the domestic market remains loose because agricultural and compound fertilizer demand is limited.

What documents should buyers request?

Buyers commonly request COA, MSDS, packing list, commercial invoice and bill of lading. Destination-specific documents should be confirmed before shipment.

What should buyers include in a urea RFQ?

Include product form, nitrogen content, packing, quantity, destination port, shipment window, COA/MSDS requirements, inspection needs and any bag marking requirements.

Procurement Note

For overseas fertilizer buyers, the current weak market may create quotation opportunities, but execution details remain important. Confirm specification, packing, container shipment schedule, destination port and document requirements before placing an order, and reconfirm current market prices close to the final RFQ date.