Views: 11 Author: Site Editor Publish Time: 2022-05-07 Origin: Site
India tenders, fast reset of national prices
Urea prices fell sharply in most markets after the India's bid to buy urea this week.
The lowest price of OQ trading is 716.50 US dollars / ton CFR (East Coast), 750 US dollars / ton CFR (West Coast).
Over the next 24 hours, price levels in Southeast Asia fell by around $100/t, with a similar revaluation in the U.S. market.
India is bidding again now, looking for around 1.5 million tonnes of urea on May 9, and some stability should be found at that time.
Trade still illiquid – usually there is only a small number of goods are traded, and on and off - but sporadic demand has emerged, and as the reset has taken place, more demand will be emerge in the coming weeks.
India's tender offers a rare opportunity to put a large tonnage of urea into the slow-growing global market.The market participants around the world take it as the key to their trading decisions.
Despite the sharp drop in demand, few would hold large short positions due to fragile supplies in Europe and ongoing geopolitical tensions.
Outlook for 30-60 days
Most of the demand is still waiting, and when the demand rises, supply is still sufficient to meet demand.