China Urea Market Update: Holiday Order Pressure Meets Export Tender Support

China's domestic urea market moved slightly lower during September 18-24, 2026, as producers faced pre-holiday order pressure while plant restarts kept supply above 200,000 metric tons per day. Export orders and a new Indian tender improved sentiment late in the week, but overseas importers and distributors should continue to assess actual availability, loading schedules and current export quotations for Urea Granular from a supplier in China.

Key Takeaways for Buyers

On September 24, the Shandong Linyi urea market reference was RMB 1,750 per metric ton, down RMB 30 from the previous week. At the fixed working exchange rate of USD 1 = RMB 6.8, this is approximately USD 257 per metric ton. Shandong small and medium granular factory transactions were reported around RMB 1,690-1,740 per metric ton, approximately USD 249-256 per metric ton, while large granular transactions were firmer at RMB 1,910-2,000 per metric ton, approximately USD 281-294 per metric ton.

These values are domestic China market references, not export offers. A current RFQ must be reconfirmed according to granular size, nitrogen specification, biuret requirement, packing, quantity, destination port, Incoterm and shipment window.

China Urea Market Overview

The domestic market weakened early in the week as factories prepared for the Mid-Autumn and National Day holiday period and used more competitive offers to secure advance orders. Downstream industrial users and traders remained cautious, purchasing mainly at lower levels and for immediate requirements. After lower-priced transactions improved, the announcement of a new Indian import tender supported sentiment and encouraged some producers to stabilize or slightly raise offers.

Weekly urea production reached approximately 1.3876 million metric tons, up 1.21%, while sampled capacity utilization rose to 82.04%. Several previously idled units resumed operation, and further restarts could keep daily output at a comparatively high level. This supply recovery remains the main factor limiting a broad price increase.

Inventory, Orders and Export Signals

Producer inventory fell to approximately 1.4757 million metric tons on September 23, down 5.17% from the previous week. Sampled port inventory declined to about 536,800 metric tons on September 24, a weekly decrease of 30.89%, as export cargoes were loaded while new material continued to move toward ports.

Average producer advance orders increased to 7.47 days, partly because factories collected holiday orders and export bookings improved. However, lower factory inventory should not automatically be treated as a shortage. Buyers should confirm prompt saleable volume, port positioning and whether a manufacturer's cargo is already committed to earlier contracts.

The new Indian tender provides a potential outlet and may support market confidence, but its longer shipment schedule means immediate export movement may remain gradual. Overseas buyers should track tender results, export allocation execution, port loading activity and changes in China's domestic operating rate rather than relying on the tender announcement alone.

Short-Term Outlook

China's urea market is expected to remain range-bound in the near term. High production and limited agricultural demand may continue to pressure offers, while coal costs, export activity and seasonal replenishment could restrict the downside. The Shandong Linyi market was projected around RMB 1,730-1,760 per metric ton, approximately USD 254-259 per metric ton at USD 1 = RMB 6.8, but this is only a domestic reference range and current quotations require fresh confirmation.

For overseas procurement teams, price direction may differ by particle size and loading plan. Large granular material remained firmer than small granular product during the reported week, so buyers should state the required grade clearly instead of requesting a general “urea price.”

Specification, Packing and Shipment Considerations

A practical inquiry should specify agricultural or industrial use, granular size, minimum nitrogen content, maximum biuret and moisture, required inspection or documentation, and whether treated or untreated material is acceptable. Buyers should request the available COA for specification comparison and the current MSDS for handling and transport review.

Export packing commonly depends on destination requirements and loading economics. Importers should state the required bag size, pallet preference, total quantity, destination port, Incoterm and preferred shipment window. Container shipment planning should also consider port congestion and the Chinese holiday calendar.

RFQ Checklist

For an efficient quotation, provide: product grade and application; required specification; total quantity; packing and pallet requirements; destination port; Incoterm; shipment window; and documentation needs such as COA and MSDS. This allows the exporter to check suitable manufacturer supply and provide a quotation based on the actual order conditions.

Short FAQ

Did China urea prices fall this week?

Yes. Most domestic references moved lower during September 18-24, although improved low-price transactions and the new Indian tender helped the market stabilize late in the week.

Does lower port inventory mean export supply is tight?

Not necessarily. Port inventory fell partly because cargoes were loaded and departed. Buyers still need to confirm uncommitted volume, export schedules and current availability for their shipment window.

Can the Shandong domestic price be used as an export quotation?

No. Domestic references exclude the full effect of export-grade selection, packing, inland transport, port costs, freight, documentation and commercial terms.

Procurement Note

Overseas buyers can review the Urea Granular product page for product and packing information. Send Jinan ZZ International Trade Co., Ltd. your required specification, quantity, packing, destination port and shipment window to request current availability, COA/MSDS information and an RFQ-based quotation.