Views: 11 Author: Site Editor Publish Time: 2023-09-14 Origin: Site
China's Market Transformation Seeks New Balance
The sudden shift in stance by Chinese exporters has reversed the trend in the international market. Last weekend, Zhongnong Group announced that it will no longer sign new urea export contracts, and other suppliers will also shift urea to the domestic market, limiting exports to lower domestic prices.
At the same time, India announced a new tender, which led to a surge in Egyptian prices and traders covering their positions. On September 4th, prices rose by $80 per ton.
Since then, the market has been accepting these developments and seeking a new level of trade that can be restored. At the same time, traders are facing potential problems in shipping Chinese urea to India on time.
market factors
China: 1.1 million tons of urea were sold in the previous bidding, but in the next bidding, there may not be any urea from China.
India: RCF will bid on September 15th with the goal of purchasing over one million tons of urea, and the supply will depend on the price and India's willingness to accept the price.
Egypt: Producers have pushed prices up to levels no one wants to buy, and September will show whether these levels are sustainable.
30-60 days: firm
The decrease in Chinese exports will keep the market tight in supply in the fourth quarter and help other producers raise prices in the coming weeks.
