Views: 28 Author: Site Editor Publish Time: 2021-12-14 Origin: Site
Falling prices in the Americas
The Southeast Asian market performed quietly, and most buyers were unable to achieve spot prices. Buyers from Central America seek urea, but they are unwilling to pay around US$950/ton (cost plus freight).
Demand in Europe was weak this week, but the Azomures factory in Romania is about to close, triggering a small-scale trade boom this week as importers try to fill the gap.
Prices in Brazil and the United States both fell this week, especially Brazil’s quotations fell sharply because of oversupply.
But in general, there is no new demand in India, which has not led to a sharp decline in global urea prices, because the outside world is generally expected to have a new tender next week. India is the only major market willing to buy urea at a price of more than US$900/ton FOB.
Except for the output stipulated in the long-term contract, most of the urea supply in January has not yet been sold. The producers hope that Indian demand can absorb this part of the output at the current high price.
Market driven
India urea demand
Strong sales and tight inventories should ensure that India’s January purchases are at least 1 million tons.
European natural gas prices
The TTF center is again close to 100 Euros/MWh-a regional plant has been closed, and more may follow.
30-60 day outlook
India’s high demand and willingness to pay in the next tender is unquestionable. But once Indian demand ends, bid levels in most other parts of the world will be much lower, and some downward corrections may occur.
