Views: 7 Author: Site Editor Publish Time: 2022-11-16 Origin: Site
Limited demand is the pressure of FOB
The price trend of urea market was uneven this week, with some transactions higher than last week, but most transactions lower than last week. After the procurement bidding in India next week, there may be more consistent development.
Most producers still hold large December inventories, which is reflected in traders' short positions this week and the general bearish sentiment of market participants.
However, liquidity accelerated this week, mainly focusing on the CIF price. The transactions in Brazil, South Korea, Mexico, Europe and Myanmar were confirmed.
However, few traders are willing to seriously bid for the FOB quotation - most of the FOB prices are between 560-590 US dollars/ton.
No matter how you think about the basic supply and demand balance, it is clear that the demand of the United States and the European Union is lower than expected in the short term, which limits the choice of sellers.
China G2G supply
From China to Pakistan, Ethiopia and the Philippines, the intergovernmental transaction of about 700000 tons of urea is under discussion, which has weakened the market supply.
30-60 day outlook
The supply of the consumer market (especially the United States and the European Union) is tight, and it is possible to quickly reverse the trend of the urea market as the spring approaches. However, in the short term, the market is still weak due to weak demand.