Views: 22 Author: Site Editor Publish Time: 2019-08-06 Origin: Site
As the Indian bidding is now over, urea prices are adjusted in most regions. The price of urea in the Middle East is $270/ton this week, while the FOB price in Egypt is $265/ton. Traders have sold China's granular urea at $270/ton FOB and bet that the price will fall below $270/ton FOB. Limited demand is the main factor, and buyers will dominate the market in the next month or so. Producers have available stock for sale in the second half of August, as traders will face competition in short selling.
Asian prices will remain weak until India announces the next round of tenders. In the West, the rebound in Brazilian buying this week and the level of activity in the European market will determine the duration of the callback.
Market driven
Limited demand: The South American market is active, but few other countries currently purchase urea. This situation may last until September.
India: The bid for the July tender has ended. Taking into account the large tonnage purchased in July, the next round of tenders is not expected to take place until September.
China: Producers are trying to maintain prices at a price of US$275/tonne of FOB, but face pressure from the domestic market to slow down and daily production to close to 160,000 tons.
30-60 days outlook
Prices have started to fall and traders are selling short. Buyers can see the opportunity to purchase in the coming month.
