Views:7 Author:Site Editor Publish Time: 2021-05-19 Origin:Site
India buys less urea and the market is booming
Somewhat illogically, the relatively small scale of India's bidding has made the urea market bullish. Traders believe that India will bid again in May and may have to pay higher prices, so they have stepped in until June and July.
High crop prices and strong demand in several major markets have supported this move, especially in the United States, where the CFR price in May is still near to US$400/ton, and buyers are bidding for the CIF price in early June currently.
This week, traders bought urea from Egypt and Algeria at an FOB price of US$370/ton. As reported, urea from the Middle East will sell at an FOB price of US$345/ton in July.
If China's domestic urea prices remain unchanged (currently rising), the urea market seems to have a firm foothold in June, which is contrary to the outlook before the MMTC tender.
United States: Demand has been active until the first half of May. Suppliers expect that imports will increase in the second half of 2021 to avoid a repeat of the shortage in spring.
India: MMTC purchased 550,000 tons, which is about 1 million tons lower than the estimated demand in the tender. India needs to buy more urea for June shipment.
Brazil: Before the starting of the main import season in July, prices have risen to US$390/ton. Crop prices support current levels comfortably.