Views: 13 Author: Site Editor Publish Time: 2019-04-08 Origin: Site
India's bidding support is strong
Since last week, the price of urea has gradually strengthened, prompting traders to start purchasing urea for April before the tender for India on March 27.
In the Baltic and Egypt, prices have risen by about $5/ton. When the Indian MMTC closes on April 3rd, the price in the Middle East may rise to FOB 240/ton. It is estimated that India will purchase at least 600,000-700,000 tons of urea, and if the price is right, it may buy more.
The number of purchases will help determine if the market will continue in May or if India will complete the purchase again. European buyers support Egyptian prices, and the transfer of urea from the Middle East to India may affect Brazil, but many people doubt whether this will last until mid-May.
Market driven
India: MMTC's tender on April 3 should digest the spot in the Middle East in April and early May, and other sources may be difficult to compete.
China: Exports are almost stagnant, and domestic price increases make urea imports feasible.
Brazil: The purchasing power in April is expected to help the price rebound and compete with the US for urea in North Africa, but buyers are now looking for lower supplies in May.
30-60 days outlook
Short-term firm
Most of the supply will disappear quickly in April. Any buyer who needs urea from Egypt, the former Soviet Union or the Middle East needs to pay for the purchase within a short period of time. The outlook for May is not very optimistic.
