Views: 4 Author: Site Editor Publish Time: 2022-09-20 Origin: Site
Urea price gains have been limited this week, but India's tenders appear to have established near-term viable levels.
India received commitments of 874,000 tonnes of urea from suppliers at $668.25/t on the West Coast and $675.25/t on the East Coast.
Europe continues to trade in a wider range, with CFR prices rising from around $780/ton to over $900/ton, largely depending on the urgency and willingness to buy Russian urea.
Brazil remains a key weakness. Futures prices rose sharply this week to $780/ton cfr, but prices in the spot market fell by $100/ton on this basis.
But with steady buying in Europe and demand in the U.S., India and Australia expected to recover in the fourth quarter, market participants remained broadly bullish.
Production disruptions in Europe
Rising import demand in Europe between now and spring is driving producers and traders to believe that any weakness in the market is likely to be temporary and underpins bullish sentiment for fourth-quarter values.
Indian tender price
Prices in India once again established a short-term floor for the market - although its discounts to other markets only ensured limited participation from suppliers.
30-60 Day Outlook
Several undelivered shipments of granular urea from North Africa and Southeast Asia in September and October could weigh on the market in the short term. Beyond that, however, the market is likely to be nervous in the fourth quarter as unusual demand in Europe adds to the seasonal increase in imports.