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[China's urea supply side is supporting or weakening]

News: Supply-side support in the urea market is facing decline. According to the latest analysisredditvideopokerThe fundamental excess situation in the urea market has been alleviated recently, mainly due to new production capacity.redditvideopokerThe release of the equipment failed to meet expectations and the centralized maintenance of the equipment.

Production capacity: New equipment was put into production less than expected. In 2024, the 11 units originally planned to be put into operation by Chinese urea companies, with a total production capacity of 7.49 million tons, and the distribution is basically equal in the first and second half of the year. However, the four units planned to be put into production in the first quarter (with a production capacity of 2.8 million tons) were delayed.

Industry overhaul: Production fell after the first quarter. With the end of spring plowing to ensure supply, urea companies in Henan, Shandong and other regions accelerated maintenance, resulting in a rapid decline in daily output to 17.redditvideopoker.210,000 tons, which has a certain tightening effect on the spot market.

Future outlook: Supply-side support may weaken. Although there are still companies planning to carry out maintenance in the future, considering that the early maintenance equipment is expected to resume production, the supply side will have limited room for decline from June, and market support is expected to gradually weaken.