Views:2 Author:Site Editor Publish Time: 2019-03-20 Origin:Site
The United States provided temporary help
The rise in US urea prices has boosted the Western urea market. Since last week, due to tight supply delays at the port of Nola, the price has been pushed up by more than $20/ton. Nola's CFR price $270/ton may attract more stock, so suppliers want to know how long the rally will last.
A chain reaction pushed up the price in Brazil and led to some sales in North Africa in April reaching a FOB price of $245-255/ton.
In order to extend the rally, the market needs an Indian tender, which is likely to take place before the April 11st election, but it cannot be guaranteed. Although the stock is sufficient, the government may decide to bid for election reasons.
Logistics factors are the reason for the price increase. Traders are now paying close attention to whether the price increase in March will continue until April, or whether the increase in imports will drive down prices.
The market has rebounded to a high of $250/ton due to events in the United States and potential supply shortages from April to May. Further purchases are needed to prevent prices from falling.
Unless the Indian bid, the demand in the east of Suez will remain depressed in April. If the bid is successful, prices in the Middle East may rise.
30-60 days outlook- uncertain
The current strong posture is not expected to continue until April, and the price in May may be weaker.