Views:6 Author:Site Editor Publish Time: 2019-11-14 Origin:Site
India once again becomes the focus
India issued a bidding document for the purchase of urea, which was opened in mid-November, and also sent a clear signal that another tender may take place in December. Since India's import demand exceeds 2 million tons, and most other markets are calm, India has once again become the focus of the urea market.
Due to the weak urea market, traders will be encouraged to sell short, which may push prices down to FOB $230/ton, resulting in lower levels in other regions.
If Asian producers want to ship in early November/December, they have no choice.
Light business: Brazil's CFR price fell below $250/ton this week, Egypt's price fell to FOB$230/ton, and the Nora market remained sluggish.
RCF held the government's urea tender for the first time. It is expected to purchase more than 1 million tons of urea and ship it before December 19.
At the peak of imports, demand is still continuing, but flows from sources in Africa, Russia and the Middle East have caused prices to continue to fall.
Buyers are unlikely to buy urea in large quantities in December, which will force North African producers to find alternative markets.
30-60 days outlook
Delayed purchases may see some prices stabilize in the first quarter, but the outlook for November and December is not good for producers and prices are still under pressure.