Views: 25 Author: Site Editor Publish Time: 2022-08-23 Origin: Site
Urea prices decreased for the two weeks in most markets around the world due to weak demand and longer production times by producers in main regions.
The urea price in Middle east fell sharply as producers cut prices to clear remaining cargo in August and early Septembers - three of which were confirmed to trade between $550-556/t fob.
Similar FOB prices were appeared in Southeast Asia this week, with Brunei and Indonesia between $540-557/t FOB. However, economic activity in some regions bucked the weak trend. The price of granular urea deliveried to Myanmar rose by about $30/t, while the FOB price in Iran was up $20/t from the last trade in a series of transactions at $500 FOB.
But overall, the market remains weak due to subdued demand in Europe, Brazil, the US and Southeast Asia.
The market factors
gas crisis
Feedstock costs in Europe and LNG-dependent nitrogen fertilizer plants have a high record this week,more plants in Europe are planning to close.
EU regulations
Though premium nitrogen prices often attract products, some suppliers of ammonium sulfate and urea from non-traditional sources are hampering this trade flow as they struggle to comply with new EU quality and traceability regulations.
Outlook for 30-60 days
This period of weakness is driven by low demand, but the fundamentals on the supply side remain very favorable. Another rebound is likely within the window as importers in most markets are lagging behind in sourcing, waiting for the market to stabilize before making a firm commitment.
