China Urea Granular Sourcing Update: Lower Output Meets Weak Demand and Rising Port Stocks

China's urea market remained weak and range-bound during August 21-27, 2026. Weekly production declined because of maintenance and equipment disruptions, but domestic agricultural demand stayed in a seasonal gap and industrial purchasing remained cautious. For overseas importers and fertilizer distributors, the key issue is whether export shipments can absorb available supply before more plants restart in September.

Key Takeaways for Buyers

Shandong Linyi urea was assessed at RMB 1,690/mt on August 27, down RMB 30/mt from the previous week. This is approximately USD 249/mt using the fixed working exchange rate of USD 1 = RMB 6.8. Shandong factory transactions for small and medium granules were reported around RMB 1,630-1,700/mt, approximately USD 240-250/mt, while granular urea transactions were around RMB 1,750-1,800/mt, approximately USD 257-265/mt.

These RMB values are domestic China market references rather than ready export quotations. A current RFQ must be reconfirmed according to product specification, packing, order volume, loading location, destination port, freight and shipment window.

Supply Declined but the Market Remained Well Supplied

Weekly Chinese urea output fell to approximately 1.3918 million mt, down 55,100 mt or 3.81% from the previous period. Surveyed industry capacity utilization declined by 3.30 percentage points to 83.33%. Granular urea output was about 306,600 mt, only slightly lower week on week, while the larger reduction occurred in small and medium granules.

The production decline offered some support, but it was not enough to reverse the weak market tone. Daily output remained above 190,000 mt, and several plants are expected to restart during the coming weeks. Supply may therefore move from a temporary low toward a more comfortable level as September progresses.

Inventory and Export Shipment Signals

Producer inventory stood at approximately 1.671 million mt on August 26, down only 7,300 mt or 0.43% week on week. The small decline reflected maintenance in some regions and the diversion of material toward export orders, but inventory pressure remained uneven across producing areas.

Port inventory increased to approximately 1.0766 million mt on August 27, up 113,900 mt or 11.83%. Previously contracted export cargoes continued moving toward ports, including granular material at several northern ports. Higher port inventory can indicate active shipment preparation, but it can also create congestion and timing risks when cargo arrivals, vessel schedules and port capacity do not align.

For importers, a supplier China comparison should therefore cover more than a nominal price. Buyers should confirm whether cargo is ready for the agreed shipment window, which port will be used, whether container shipment is available for the required volume and what documents must be prepared before loading.

Demand Outlook

Domestic agricultural consumption remained limited during the seasonal demand gap. Compound fertilizer operating rates improved as some plants restarted, but raw-material purchasing was still mainly based on immediate needs. Pre-sold order coverage at Chinese urea producers averaged about 5.12 days as of August 26, lower than the previous week, indicating that new domestic order intake remained cautious.

Industrial demand may improve in September, while agricultural use is expected to remain relatively light. The balance between export execution, industrial replenishment and plant restarts will influence whether inventory pressure eases. If new demand does not strengthen sufficiently, the market may continue to trade in a narrow and slightly weak range.

What Overseas Buyers Should Confirm

Buyers sourcing Urea Granular should confirm nitrogen content, particle-size distribution, moisture, biuret and intended application. A manufacturer, distributor or exporter comparison should also cover bag type, labeling, pallet requirements, container loading plan, COA, MSDS and inspection needs.

Granular and prilled urea should not be treated as interchangeable without reviewing the application and handling requirements. Granular urea is commonly selected where larger and more uniform particles support fertilizer blending, spreading or bulk handling, but the final choice should follow the buyer's specification.

RFQ Checklist

A practical urea RFQ should include the requested grade and particle size, target specification, agricultural or industrial use, packing, quantity, destination port, required shipment window and documentation requirements. Buyers should also state whether they require standard bags, customized marks, pallets or container-specific loading arrangements.

Short FAQ

Did lower Chinese production strengthen urea prices this week?

No clear recovery developed. Output declined, but domestic demand remained weak and available supply was still sufficient, so prices generally moved slightly lower.

What does rising port inventory mean for importers?

It shows that export cargoes are being assembled and shipped, but high port stocks can also affect logistics and vessel timing. Buyers should confirm the actual loading port and shipment schedule in each RFQ.

Are domestic RMB prices the same as export offers?

No. Domestic prices do not include all export packing, inland logistics, documentation, port handling and international freight costs. Current FOB, CFR or CIF quotations must be reconfirmed.

Which documents should buyers request?

Buyers should review the product specification, COA and MSDS and confirm packing, labeling, origin and shipment documents required by the destination market.

Procurement Note

Jinan ZZ International Trade Co., Ltd. supports overseas buyers reviewing granular urea specification, export packing, COA/MSDS and container shipment arrangements from China. Buyers can visit the linked product page and send an RFQ with quantity, destination port and shipment window for a current quotation.