Views: 9 Author: Site Editor Publish Time: 2023-02-22 Origin: Site
Indian bidding boosts producer morale
The news that India is about to carry out urea bidding boosted the confidence of the seller, and the market trend in the previous week was disappointing. Due to low liquidity and scattered demand, prices in all regions fell by about US $30/ton on average.
In the latest transaction, the price of large granular urea in Egypt fell to FOB370-380 dollars/ton (as of the time of press release, the price of large granular urea in March rebounded to FOB382 dollars/ton), the price of large granular urea in the Middle East was at FOB335 dollars/ton, the price of small granular urea in the Baltic Sea fell due to the winning bid price in the Incofe bid, and the price of large granular urea in Brazil reached CFR330-335 dollars/ton.
In the latest Pupuk tender, the price of large granular urea in Southeast Asia dropped from FOB400 dollars/ton to FOB350 dollars/ton, and even the price of small granular urea in China fell due to the weakening of domestic market sentiment.
India's demand is welcome, but it may not be enough. There are indications that the bidding will stipulate a longer delivery date than normal, which will dilute the impact on the supply side. However, in view of the fear that the government will postpone the bidding to the second half of March, the subsidy funds will be in place after April 1, which the manufacturer believes is better than nothing.
market factors
The bidding of Incofe provided some clarity. The price of the Baltic small granule urea purchased by Incofe was pushed below FOB300 dollars/ton.
Pupuk bidding reduced the price of large granular urea in Southeast Asia
The bidding price for the sale of large particles awarded by Pupuk is lower than FOB350 dollars/ton, and has dropped by about 50 dollars/ton in a week.
China's supply is unlikely to decrease in the first quarter
It is reported that some manufacturers may have some preferential policies to export through customs inspection as soon as possible. Although negotiations have been conducted, this possibility is unlikely. It is expected that there will be more exports after May.
30-60 day outlook
For the seller, India's bidding demand is better than last week, providing some focus for the market, otherwise the price will continue to fall to March. Brazil will enter the carnival next week, which will curb its purchasing power.
