The urea market remains weak

The urea market continues to show weakness, with the lower end experiencing temporary softness that is now stabilizing. Meanwhile, the high-end segment is gradually returning to its usual demand levels. As the spring fertilizer season winds down, new orders from manufacturers have noticeably declined. Industrial demand remains flat, and export activity has remained stagnant, which naturally keeps prices low or pushes them even closer to their lowest levels. In the early part of the period, several plants have either shut down or reduced production, leading to a significant drop in industry operating rates. However, in a market where demand isn't clearly visible, the impact of supply cuts hasn't been substantial yet. It's expected that as overall operating rates continue to fall, and once either export volumes or domestic demand begin to pick up, the market could see some improvement. This month, more companies are likely to maintain operations, which may help ease the downward trend. Nonetheless, the market is expected to remain at low levels for the time being.