Views: 5 Author: Site Editor Publish Time: 2023-08-04 Origin: Site
This week, urea prices have risen by another 10% -15%, which is still an unexpected supply shortage and abnormally high demand support, which is a characteristic of the past five weeks of increase.
The demand of the Atlantic region, especially the United States, Brazil, Argentina and Northwestern Europe, continues to grow at a higher than normal rate.
This week, prices in the United States increased by $66/ton, and Nora's recent barge trading price is equivalent to $463/ton of CFR463, which has a certain premium on Brazil's non seasonal demand, with a peak of $420/ton of CFR420 in Brazil's early stage.
In addition to the upcoming urea import bidding in India, the demand in the east of Suez is flat, but the supply is still tight. The supply of urea in China seems precarious, and some provinces have slowed down the pace of license issuance. The price of small and medium-sized particles has increased by about 45 US dollars/ton this week, reaching FOB380-400 US dollars/ton. There is almost no spot in Southeast Asia in the short term, so traders are turning their attention to the Middle East and booking the source of goods at FOB400 USD/ton.
The prices of ammonium sulfate and Ammonium nitrate also rose again, but the increase was generally lower than that of urea, although these markets were also tightening.
market factors
Supply Shortage: Unexpected supply restrictions in Nigeria, Southeast Asia, and China have made the market fragile.
Non seasonal US demand: As of September, the rise in US prices marked a disruption in imports and forced other importers to bid higher.
30-60 day outlook: unstable
As prices rise, demand in non seasonal markets such as Europe and the United States may slow down, and urea bidding in India should be the main direction for the market in August.
