Views: 46 Author: Site Editor Publish Time: 2022-07-12 Origin: Site
Due to insufficient demand in major regions, urea prices fell overall this week.
Southeast Asian and South American buyers retreated, and other markets remained on the sidelines. There are few signs of urea tenders in India until the end of the month, leading suppliers to shift tonnage to other markets.
A key exception to price volatility is Europe, where nitrate prices have surged as producers try to keep up with soaring gas costs. Even the most efficient producers in the region are now facing urea production costs in excess of $1,000/t.
U.S. urea exports are still well above year-ago levels - in addition to Argentina's urea, with two new urea shipments confirmed to Europe - as Nora is at a significant discount relative to other regions.
market factors
European gas prices
At least six large nitrogen fertilizer plants in Europe have shut down as the cost of natural gas outstripped the ability to raise fertilizer prices; others are rapidly raising nitrate prices to try to make ends meet.
food prices fall
Grain prices have plunged 20-25% over the past three weeks, undermining a key pillar supporting fertilizer prices.
30-60 Day Outlook
Urea trade may be sluggish, but remains vulnerable to supply risks and sudden demand surges in Europe.
