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1. Report Industry Investment Rating - No information provided on the industry investment rating 2. Report's Core View - Domestic agricultural demand is in a seasonal off - season with only sporadic local demand. Industrial demand, mainly for compound fertilizer, is in a phase of supplementary stocking. The compound fertilizer capacity utilization rate is expected to decline slightly, reducing the rigid demand for urea. Although some urea enterprises have reduced inventory due to export orders and malfunctions, the overall enterprise inventory is still on an upward trend. The decline in urea enterprise inventory may be limited due to enterprise purchase restrictions and slow domestic demand growth. The UR2601 contract is expected to fluctuate in the range of 1720 - 1770 in the short term [2] 3. Summary by Relevant Catalogs 3.1 Futures Market - The closing price of the Zhengzhou urea main contract is 1745 yuan/ton, down 3 yuan; the 1 - 5 spread is - 44 yuan/ton, down 1 yuan. The main contract's open interest is 222,940 lots, an increase of 13,639 lots; the net position of the top 20 is - 37,480, a decrease of 2,983. The exchange warehouse receipts are 5,123, an increase of 1,050 [2] 3.2 Spot Market - In the domestic spot market, the prices in Hebei, Henan, Jiangsu, Shandong, and Anhui are 1770 yuan/ton (unchanged), 1750 yuan/ton (down 10 yuan), 1740 yuan/ton (down 20 yuan), 1700 yuan/ton (down 40 yuan), and 1760 yuan/ton (down 20 yuan) respectively. The main contract basis is 1 yuan, an increase of 5 yuan. FOB prices in the Baltic and Chinese main ports are both 450 US dollars/ton, unchanged [2] 3.3 Industry Situation - Port inventory is 50.1 tons, an increase of 3.7 tons; enterprise inventory is 102.39 tons, an increase of 6.65 tons. The urea enterprise operating rate is 83.99%, an increase of 0.77%. The daily urea output is 194,400 tons, an increase of 1700 tons. The urea export volume is 57 tons, an increase of 50 tons. The monthly urea output is 6,052,080 tons, an increase of 20,740 tons [2] 3.4 Downstream Situation - The compound fertilizer operating rate is 40.84%, a decrease of 2.64%. The melamine operating rate is 46.6%, a decrease of 3.22%. The weekly profit of compound fertilizer in China is 131 yuan/ton, an increase of 15 yuan. The weekly profit of melamine with externally - purchased urea is - 126 yuan/ton, a decrease of 48 yuan. The monthly output of compound fertilizer is 4.2212 million tons, an increase of 53,000 tons. The weekly output of melamine is 23,200 tons, a decrease of 1600 tons [2] 3.5 Industry News - As of August 20, the total inventory of Chinese urea enterprises was 102.39 tons, an increase of 6.65 tons or 6.95% week - on - week. As of August 21, the port sample inventory was 50.1 tons, an increase of 3.7 tons or 7.97% week - on - week. As of August 21, the output of Chinese urea production enterprises was 1.3611 million tons, an increase of 12,500 tons or 0.93% from the previous period, and the capacity utilization rate was 83.99%, an increase of 0.77% from the previous period [2] 3.6 Suggestion - Pay attention to Longzhong's enterprise inventory, port inventory, daily output, and operating rate on Thursday [2]