Views: 44 Author: Site Editor Publish Time: 2022-07-06 Origin: Site
Trade slows, prices consolidate
Urea trading has slowed this week due to a surge in energy prices earlier this month, with most parties looking for further catalysts before returning to the market.
Brazil's trade continues to remain stable, and another 200,000 tons of granular urea may change hands this week at $640-660/ton CFR.
Elsewhere, however, activity is more sporadic, with fewer opportunities.
The Southeast Asian market remains largely quiet, forcing regional producers to look further afield for sales - Australia and India, as well as Latin America.
The U.S. continues to offer re-export opportunities, with barge deals equivalent to export costs of around $575-580/t fob in the U.S. Gulf, as the local market seeks to clear inventories after a slow spring.
Short-term needs coverage
Importers and traders ordered large quantities of urea in mid-June. Both producers and importers are now covered in July and August and are happy to trade at a slower pace.
Russia Sanctions
The flow of Russian exports remains disrupted, resulting in a concentration in certain markets (such as the US), which dampens value there.
30-60 Day Outlook
The risk of production shutdowns in Europe due to gas shortages persists, but the urea market remains well-supplied for now.
