Views: 20 Author: Site Editor Publish Time: 2022-09-27 Origin: Site
Insufficient liquidity, the international market is under pressure
Global urea market activity was muted this week, with buyers in most markets taking a wait-and-see attitude.
A shipment of Chinese granular urea cargoes destined for regional markets traded at US$630-640/ton FOB, but import demand from Southeast Asia remained sluggish due to high prices.
FOB levels in Southeast Asia have risen from last week, with granular urea trading at $675-690/t FOB. But the price level for tonnage that may be shipped to Europe is higher, which is attracting more and more urea from non-traditional sources.
Following a wave of buying in the past few weeks, European buyers pulled out, leading to urea offers in Turkmenistan and Azerbaijan falling to $700-720/t fob. Price assumptions for North African raw materials have also fallen, but no new sales have occurred.
Activity in Brazil remained light, with prices sliding to $680-720/t cfr. U.S. prices also fell as demand retreated.
market factors
India
India is expected to issue new urea procurement tenders in the second half of October.
European factories closed
Factory closures across Europe have pushed traders to buy large amounts of foreign supplies to make up the balance. But buying is largely on hold for now as market participants study demand in the coming months.
30-60 Day Outlook
Prices are under pressure in the short term due to limited liquidity. But the outlook for the fourth quarter remains positive, with demand from India, Europe and Brazil expected to support prices higher.
