Views: 15 Author: Site Editor Publish Time: 2019-05-16 Origin: Site
Traders have joined the trend in India
Traders have joined the MMTC bid for the best opportunity to sell urea in the next six weeks, and sold more than 600,000 tons of urea to India this week. Adnoc and PIC have sold 120,000 tons.
The net price isf 267-271 US dollars / ton FOB Middle East and 262-265 US dollars / ton FOB Egyptian . The Arabian Gulf supply commitment will continue until the second half of June, while Egyptian producers have sold 250,000 tons to India, and the basic business volume in June is also considerable.
They may need to do this because the signs from the Western market are not so encouraging. Low-priced Iranian urea is quickly becoming the main reference price for Brazil. US prices have fallen. This week, sales competition in Mexico has become increasingly fierce.
However, supply in Asia is very tight. In May, spot buyers there will have to pay higher prices. Prices elsewhere seem to be peaking.
Market driven
Demand in Asia: Buying in smaller markets in Pakistan and Asia will determine whether prices in the Middle East will rise.
China: Export prices remain at FOB $290 or more. Traders are watching the market and wait for more competitive offers. From the end of July, China’s exports should begin to increase.
Brazil: Iran's urea is being shipped to Brazil in large quantities. There are rumors that this year plans to as much as 1 million tons. The price is equivalent to a cost of 250-260 US dollars/ ton, which is very destructive.
30-60 days outlook
From firm to steady: Producers are satisfied with the sales situation in May, but some producers' sales prices in June were flat or slightly lower.
