Views: 2 Author: Site Editor Publish Time: 2023-07-11 Origin: Site
Although demand from traders and importers has decreased, urea prices have risen again in most regions this week due to supply constraints.
Importers from Western Europe and Brazil paid higher prices this week to obtain large pellets of urea: France/UK CFR ranges from $370 to $390 per ton, while Brazil's CFR can reach up to $325 per ton, which has boosted traders' interest in offshore prices in turn.
The trading price in North Africa has increased by 10-15 US dollars per ton, reaching FOB360-370 US dollars per ton, and similar increases have also occurred in the trading prices of China and Vietnam.
The supply situation of urea is mixed: factories in Russia have closed due to planned maintenance, factories in Brunei are still in a shutdown state, and urea factories in Malaysia have all resumed operation.
The prices of ammonium sulfate and Ammonium nitrate increase this week, which benefited from the demand that pushed the urea price to continue to rise. However, due to the end of the season, the urea price in the United States fell, and the market remained pessimistic.
The market factors
China's urea supply: The supply of large particles from China is becoming increasingly normal, which to some extent alleviates the serious shortage in Southeast Asia.
Non seasonal strong demand in Europe (Baltic, Western Europe, and Black Sea) continues to support urea prices in North Africa and Russia.
Outlook for 30-60 days: instability
With the increase in supply from China and Southeast Asia, the timing of India's next procurement bidding may seem to play a crucial role in the market direction.
