Views: 11 Author: Site Editor Publish Time: 2023-04-19 Origin: Site
US prices have further risen this week, driving traders to carry out a wave of short covering, and importers around the world have added a wave of smaller new demand.
The spot shipping price of the Nora barge has increased to $387/st FOB ($422/ton CFR), and even rose to $350-360/ton at the curve level from May to June.
In response, traders ordered nearly 400000 tons of spot granular urea at FOB prices, mostly to cover old short positions. Most of the liquidity is concentrated in Indonesia and Iran, at $318/ton and $250/ton respectively, but Egypt's liquidity of approximately 60000 tons is also as high as $345/ton.
Import demand is concentrated in the Central and South American markets. Several Mexican importers are seeking to purchase approximately 150000 tons of urea, while the price of urea in Brazil has increased from $305-330 per ton of CFR300, indicating stable trade.
United States: The strong upward trend in the United States, coupled with its clear willingness to purchase goods shipped in May at prices higher than in other markets, has stabilized the urea market by tightening nearby supply.
Short covering: Since most traders have already covered their urea short positions, will importers collectively enter the market to cover their short positions? This will drive market activity in the coming weeks.
Volatile: There is still a large amount of unsold inventory in May. As long as the United States continues to purchase goods, the market may continue to strengthen, but sellers who miss this point may face fierce liquidity competition.