Views:23 Author:Site Editor Publish Time: 2019-09-18 Origin:Site
Focus on India
This week, the attention of the urea market has been concentrated in India, and MMTC will complete the tender in India on September 13. If the price is acceptable, it is expected to purchase up to 1 million tons of urea by October 16.
The tender is expected to support prices and provide an export channel for Chinese and Middle Eastern suppliers. However, due to lower port stocks and better domestic sales returns, supply from China is expected to be limited to around 300,000 tons. In view of the low demand for urea granules in other markets, traders are also discussing shipments from suppliers in the Black Sea and Baltic. Due to the narrow shipping window, purchases under the tender may be limited to around 600,000 tons.
Before the Indian tender, the price of urea in some areas has risen. The price of Indonesian granules has risen slightly from $257 per tonne to $260.40. As the market enters the peak season, prices in Brazil have also begun to stabilize. Earlier this week, the FOB price of large Egyptian pellets shipped to Europe was $270/ton. However, Abu Zil’s bid to sell large and small granular urea on Wednesday failed to attract bids at this level.
India: India's buying is expected to support the price of US$255-260/ton in China and the Middle East in October. Demand in other large markets also needs to increase.
Brazil: Brazil's price has stabilized to 275-280 US dollars / ton cfr this week, but compared with demand, the supply situation in October is not bad.
30-60 days outlook
Supported by demand in Europe and the Americas, prices should be steady in the coming month.