Views: 36 Author: Site Editor Publish Time: 2022-06-16 Origin: Site
There has been a glut of urea this week, with nitrogen prices plummeting in most regions and most products.
Urea is leading the market lower - ample supply from Russia, Africa and the Middle East means any firm demand will be chased by a flood of offers.
Brazilian urea buyers stepped in this week to secure substantial tonnage, but prices still plummeted to $570/t cfr from $610/t cfr at the start of the week.
Asian markets were also weak, with sluggish demand across the region. China's granular urea was traded with Pakistan at $600/ton FOB, and the forward offer fell to $525/ton FOB.
Ammonium sulfate prices also fell, with Chinese standard ammonium sulfate prices as low as $245/t fob, while nitrates were also under pressure from ample supplies and falling urea prices.
market reasons
oversupply
With disruptions in early 2022 now largely compensated, the market is now feeling the impact of the new production facility, which is expected to dampen prices earlier in the year.
energy price
Softer natural gas prices in Europe are lowering the natural floor for urea prices while reducing the urgency of imports.
30-60 Day Outlook
Traders are building short positions while buyers are wary of grabbing the falling knife on urea prices.
