Views: 16 Author: Site Editor Publish Time: 2023-02-02 Origin: Site
Due to the oversupply of urea, major global price indexes fell sharply.
Due to the limited demand in European and other American markets, suppliers continue to distribute goods to the United States, and the price of the United States fell the most (barge price fell by $40/ton).
The goods sold by several manufacturers will be priced according to the formula at a later time, rather than accepting the offer of traders, which are usually 30-60 dollars/ton lower than the transaction price a week ago.
The Asian market was generally calm during the Lunar New Year holiday, but after a round of trading in Australia, the short-term supply pressure seems to have eased.
The purchasing speed in Europe is still very low, the inventory is sufficient and the agricultural demand is low, but the traders chase the transaction, and the quotation falls below 420 US dollars/ton CFR.
market factors
European natural gas price
This week, the price of natural gas in Europe fell to US $16/million British thermal units, further reducing the production cost of global marginal supply and dampening the sentiment of major markets.
Seasonality
In most parts of the world, demand at the farm level is very low. As the inventory is stable and the expectation of price rise is very small, importers usually stay on the sidelines until these factors change.
30-60 day outlook
The market is weak (this is normal in January), the urea supply is obviously excessive, and the production profit of most factories is sufficient, which indicates that there is still a risk of further downward trend in the market at least before the demand rises and the confidence of buyers recovers in February.
