Views: 14 Author: Site Editor Publish Time: 2022-03-23 Origin: Site
Prices rose again as severe supply disruptions caused by Western financial sanctions against Russia continued to dominate the market.
But the price increasing were milder than last week.
Markets in South and Central America recorded their highest prices again this week - around $1,100/t cfr in Mexico, Argentina and Chile. But other markets, such as Europe, were quieter - buyers were mostly on the sidelines after last week's boom.
Further major stimulus measures would be needed to boost urea prices further, but there was no apparent weakness as several of the world's largest urea producers were hit by sanctions.
market driven
Western sanctions against Russia
Numerous corporate reforms at Russian fertilizer producers hit by EU and U.S. sanctions have failed to offset the impact until now. In some markets, Russian urea trading price is at 25% lower than the general market standards now, while other markets previously reliant on Russian urea are required to pay a premium to secure new supplies.
high price
Buyers in many markets have retreated and are reluctant to extend their positions at these urea prices, with others reducing purchases only where they have to cover.
The outlook for 30-60 days
Urea prices remain vulnerable to extreme volatility driven by political decisions.
