Views:6 Author:Site Editor Publish Time: 2018-09-21 Origin:Site
The market east of Suez is changing
Demand of Urea in east of Suez is becoming a major price driver. Western countries are relatively stable, but the government has tendered for a large quantity of urea, covering the risks.
Asia's demand in the fourth quarter totaled about 3 million tons, most of which are sourced from stock and CIS.
In China, prices have risen, mainly bought by Bangladesh, and the offer has reached $315-320/t fob in bulk. Iran's urea supply will continue until October, buyers will have to expand the scope of procurement to meet their own needs. The price will continue to raise up in the next few weeks.
Western buyers are currently waiting to reject higher prices. Turkey is still absent. Based on the situation in Brazil and Europe, traders can't do much.
India expects 2 million tons of urea in the fourth quarter, 250,000 tons in Pakistan, and more than 200,000 tons in Bangladesh. Ethiopia has just completed a bid of 500,000 tons
China’s production has not increased. Iran’s demand will last to October, and Arab supplement is limited. The producers sold urea to North Africa in October. However, the urea plant in North Africa also has sales in October, and Baltic small grain urea is still cheaper than large particles.
30-60 days outlook
The rise in Asian prices will have an impact on the global market in October. Western buyers are advised to book their needs in October-November before the tenders in India and Pakistan.