Views: 20 Author: Site Editor Publish Time: 2022-02-21 Origin: Site
India buys, prices plummet
This week, other major import markets generally took a wait-and-see attitude. Prices plunged in Brazil, the US and Europe, reflecting sellers' attempts to secure liquidity.
In India's urea tender on February 7, when the lowest price was below $600/t cfr, but producers and traders mostly accepted this price level, India was likely to secure a large portion of the 1.5 million tons of urea it sought. part.
Buying prices in India were lower than most expectations, but for most producers (especially those with less sales in the first few weeks and an apparent accumulation of stockpiles), it provided better returns than other regions.
market driven
India
IPL's tender offers an opportunity for urea producers to cut production during a period of calm demand, which they have been receiving most of the time. This also prompted another step in the continued downward correction of global urea prices.
Buyers are cautious
Spot buyers everywhere are minimising and delaying purchases to avoid losses if prices fall further, putting pressure on urea producers as inventories build.
30-60 Day Outlook
India this week absorbed some of the quarter's surplus of urea, with demand looming in several parts of the world. The timing of demand from Australia, the Americas and Southeast Asia could support prices and, if delayed, weaken them.
