Views: 15 Author: Site Editor Publish Time: 2023-04-11 Origin: Site
Short covering to support urea prices
The nitrogen fertilizer market is generally weak, but the import demand and short covering by traders in many markets this week have supported urea prices.
The price of urea in the United States experienced the largest increase, with the FOB price of Nora immediately shipped rising to $355 per ton (CFR $385 per ton in the US Gulf), but the increase in May and June was relatively small. Other major import markets are less active, with only a small amount of demand from Europe, Central and South America, and Southeast Asia, leading to price declines in these regions.
On the supply side, several urea FOB trades occurred due to traders covering short positions and responding to rapid demand. The price range is wide, with an FOB price of 308-310 US dollars per ton for Algeria, 330-335 US dollars per ton for Egypt, and 318 US dollars per ton for Indonesia.
market factors
Immediate demand: Importers and traders continue to wait as long as possible to meet their needs and support immediate prices, but ultimately weaken the market.
European natural gas prices: This remains a key factor in nitrogen fertilizer supply. The prices of urea and nitrate are approaching the level of production in Europe, which is difficult to prove, which in turn will significantly tighten supply.
Despite the excitement in the US market, there are still approximately 400000 tons of large granular urea unsold, with shipments still in the hands of manufacturers in April and almost no orders in May. Demand in most parts of the northern hemisphere is weakening, and market sentiment is still pessimistic, which leads to the minimization of demand and may accelerate the decline of prices.
