Recently, the domestic urea market has continued to weaken, with prices falling to a nearly eight-year low. Taking the Shandong market as an example, prices have declined steadily from a high of 1,950 yuan/ton in late March 2025 to the current range of 1,450–1,470 yuan/ton, accumulating a drop of over 450 yuan/ton within the year. Although some traders have taken profits by closing short positions at low points, overall market sentiment remains rational, with cautious bottom-fishing behavior.
Oversupply as the Dominant Factor, Weak Demand Support
In recent years, domestic urea production capacity has continued to expand. In 2025, production capacity is expected to exceed 85 million tons, with effective capacity nearing 79 million tons. Daily production during peak seasons has approached 210,000 tons, indicating significant supply pressure. Although exports from June to September 2025 reached 2.8013 million tons, with September alone hitting 1.3712 million tons—a ten-year high—enterprise inventories have continued to rise, leaving price support weak.
Although the fourth quarter is traditionally a period for national and winter reserve stocking, abundant supply, bearish market sentiment, and losses from previous bottom-fishing have dampened purchasing enthusiasm among mid- and downstream players. Autumn fertilizer demand has been suppressed by weather conditions, and the launch of winter compound fertilizer reserves in Northeast China has been slow, resulting in limited overall rigid demand. It is expected that, with cost support, urea prices will continue to fluctuate within the range of 1,450–1,500 yuan/ton.
Pengnuo Technology: Deepening Fine Chemical Industry, Building Core Advantages with Urea Derivatives
Against the backdrop of overall market pressure, Shijiazhuang Pengnuo Technology Co., Ltd. has strengthened its competitiveness in the fine chemical industry through its keen insight into raw material markets and precise layout of product structure. As a high-tech enterprise specializing in the R&D, production, and sales of fine chemicals for five years, Pengnuo Technology has consistently monitored price trends of basic chemical raw materials like urea and applied them as key raw materials in multiple core products.
The company currently operates several production lines for fine chemicals using urea as a raw material, with products including Hydroxyethylurea（CAS：2078-71-9）,1,1-Dimethylurea(CAS：598-94-7),1-Phenylurea(CAS：64-10-8) , 1,1,3,3-Tetramethylurea (CAS:632-22-4), and other derivative series. These are widely used in pharmaceutical intermediates, electronic chemicals, functional materials, and other fields. These products not only feature mature processes and stable quality but also benefit from the cost advantages of urea raw materials, giving them significant competitiveness in cost control.
Pengnuo Technology adheres to the development strategy of “raw materials driving products, technology empowering the market.” By establishing a raw material price monitoring and strategic procurement mechanism, the company flexibly responds to market fluctuations, providing customers with reliable, cost-effective products and customized solutions. During periods of low urea prices, the company further optimizes its supply chain and inventory structure to enhance product market competitiveness.
In the future, Pengnuo Technology will continue to deepen R&D and production capacity construction for high-value-added downstream urea products, constantly expanding product application boundaries, and striving to become a trusted partner in the fine chemical industry.
We welcome customers from all sectors to inquire and negotiate for mutual success!
Post time: Oct-31-2025