Views: 8 Author: Site Editor Publish Time: 2023-11-09 Origin: Site
Slow trading of nitrogen fertilizers, with prices falling in most regions
The demand in the US market is stable, but the number of sellers in most other markets exceeds that of buyers. The price in Brazil decreased to $CFR390 per ton slightly, while the price in the United States increased slightly. Incofe purchased urea from the West Coast of Central America withCFR $415-425 per ton, while Tepeyac purchased large granular urea from the West Coast of Mexico with CFR $410 per ton.
There are few trade activities in Europe, except for Türkiye, where the duty-free trade price is CFR400 dollars/ton. Traders and importers are still frustrated by the sluggish retail activity and resistance to risks in the supply chain.
To the east of Suez, except for Aditya Birla who purchased a total of 100000 tons of urea at CFR498-506 USD/ton, there are few other purchasing activities. But Pakistan will purchase 200000 tons of urea in the market, Ethiopia has issued a tender for 563000 tons, and India may bid again in December.
The FOB transactions are sporadic, mainly limited to Egypt and Algeria, and the price of small batches of goods shipped to Europe is approximately FOB400-410 USD/ton.
The market factors
Delayed import demand: Buyers in southern Europe and Brazil continue to delay purchases due to bearish sentiment towards nitrogen fertilizer and grain prices in the market.
War risk: Due to the ongoing conflict between Pakistan and Ukraine, there is a significant expected risk to urea supply. Traders remain cautious in establishing short positions, and producers are unwilling to sell at reduced prices.
30-60 days: Stable
The price of urea is close to the level that buyers were interested in previously, and with increasing seasonal demand and ongoing geopolitical risks, sellers are unlikely to make significant concessions.
