Views: 6 Author: Site Editor Publish Time: 2022-11-10 Origin: Site
Egypt cut prices sharply to find liquidity
Urea prices fell in most markets this week as the sell-off in Egypt triggered a broader decline.
Due to the high inventory level, the Egyptian producers did not sell well in November - they lowered the price by about 55 dollars/ton earlier this week, and then the price rose rapidly as the buying continued.
As a result, most of the remaining manufacturer's inventory has been cleared and will be shipped in November, although most of them are still unsold in December.
India announced a new procurement tender earlier than expected, as the government seemed to view imports as the next attractive option at current values.
Europe is still short of nitrogen fertilizer, but the spot purchase of urea is still at a low point, because some EU ammonium nitrate/ammonium cerium nitrate producers cut the price by as much as 80 euros/ton.
The increase in nitrate production and the European Commission's proposal to subsidize natural gas from fertilizer plants are the main negative factors.
India announced procurement bidding in advance, which boosted the rebound in the second half of this week. However, if the scheduled tonnage is lower than expected, it may weaken the market.
30-60 day outlook
As long as Europe continues to hold a wait-and-see attitude, the urea market will remain depressed. But Europe and the United States need more imports before the spring than normal - if purchases really resume, the weak trend should disappear.