International urea market-stable in the east, weak in the west

According to the tender on May 7, Indian MMTC purchased about 630,000 tons of urea. This is about 400,000 tons less than the original plan, because the low price quotation for West Coast ports has dispelled the idea of some potential suppliers. Chinese producers refused to sell, and Baltic suppliers also considered net income is unacceptable.

But after India tender, urea prices in Egypt, the Middle East and the Black Sea have been in the bottom,and are currently stabilizing in these areas.

Traders buy Egyptian urea for India and other destinations at FOB 204-211 per tonne. The fob price of black sea urea is US $ 200 / ton, and the fob price of Middle East sold to India is US $ 213-218 / ton.

In Brazil, cfr price is US $ 208-213 / ton, it decrease with US $ 7 / ton than last week. The price in Baltic sea are also in pressure. The offshore price of granulated urea is US $ 190 per ton, and the offshore price of granular urea is close to US $ 200 per ton.

China: After participating in India ’s latest tender, before the domestic market enters the off-season in July, China is not compete on prices.

India: there is not much MMTC purchases this week, so the new tender in June may buy urea shipped from June to July.

Supply: Producers in North Africa, the Middle East and Ukraine have promised to produce until June. But the Baltic Sea, Indonesia, and perhaps slao China, will face selling pressure in June.