Views:3 Author:Site Editor Publish Time: 2020-10-13 Origin:Site
The urea market strengthened later this week, driven by rising spot sales in the Middle East before India’s bid. The market has been volatile, trading within a narrow range until it is confirmed that the transaction price is $10/ton higher than the last reported transaction. This has prompted a series of other producing areas, including Indonesia and China, to raise their price targets because sellers are taking a higher view.
However, in other areas, people's reactions were more moderate. In Brazil, resistance to granular prices exceeding US$270/ton cfr has gradually weakened, but in Europe, many buyers are still willing to wait and see.
The fundamentals of the market have not changed. RCF is expected to target more than 1.5 million tons, and India needs to buy in large quantities in January to meet rabi demand. But on the eve of bidding, market sentiment has increased, and price expectations for India have also risen.
Main market performance
India: RCF is expected to purchase a large number of products. As India's imports this fiscal year are expected to exceed 10 million tons, the company will continue to increase its spot volume in the first quarter.
Brazil: The prospect of competing with India for spot tons has not yet stimulated buyers' interest. As of September, imports have increased by 38% year-on-year, and the market looks stable.
Europe: Slowing demand drags down prices. But buyers still have time before they need to sell.
30-60 day outlook
India’s bid will test the current location and is expected to validate higher FOB prices.