Views: 13 Author: Site Editor Publish Time: 2019-06-21 Origin: Site
The market is very strong throughout July
The nitrogen market is strong compared to other fertilizers, and manufacturers are smiling at the IFA meeting in Montreal this week. The general consensus is that firm pricing will continue.
The price of urea rose slightly this week, with FOB price of 290 US dollars/ton in Egypt, US$285/ton FOB in China, and FOB price of US$295/ton in Brazil. It is expected that there will be a slight increase in the future. The FOB price in the Middle East in July is $290 /ton.
Buyers are waiting to see if the possiblility of weak market. The main risk are the increase in Chinese exports and any delays in Indian procurement. But China's exports in August are likely to increase from July, and India is expected to bid later this month.
Market driven
China: Urea exports are expected to be higher than last year due to attractive prices, less active domestic market and slightly higher output
India: The next tender is expected to be purchased at the end of June, and will be shipped in July and early August. India will need China's urea to help achieve its tonnage target
Supply shortages: The economic recovery in Egypt, Algeria, Malaysia and other countries will help the market stay tight in July. May ease in August
30-60 days outlook
The market is strong and may peak in July-August. China's export growth may limit the market in the third quarter, but prices will rise during this period.
