Views: 6 Author: Site Editor Publish Time: 2020-11-04 Origin: Site
India's RCF made a new record, awarding 2.184 million tons, which is the first time that more than 2 million tons have been purchased in a bid. The bidding confirmed the current prices and put many suppliers in an advantageous position in the first half of November.
Driven by the upward spiral of the domestic market, prices in China have risen this week. The price in Egypt has been confirmed again, and the FOB price is more than US$250/ton.
However, Brazil is still a weak point. In the case of extremely low liquidity, the price of Brazilian crude oil fell below US$265 per ton. The European market is calm, buyers are waiting for lower prices.
The gap in liquidity in markets outside India means that the market's direction in the medium term will be determined by timing. India still needs to import large quantities of rabi. But if there is a long pause before bidding again, then based on current evidence, maybe nothing can maintain the price during this period.
Main market performance
China: The recovery in domestic demand has pushed ex-factory prices far above international levels, which may limit the attractiveness of India's post-exports.
India: Rabi’s prospects indicate that a further 2.5 million tons of urea needs to be imported, but India still has time after RCF’s record purchases.
Europe: The continuing sluggish demand will become better at the end of the quarter.
30-60 day outlook
Suppliers are currently at ease, but prices may be under pressure between Indian bids.
