Views: 12 Author: Site Editor Publish Time: 2022-02-25 Origin: Site
Global supply liquidity remains low, with most of the trading activity in North and Southeast Asia this week. Indonesia sold urea pellets to a trader at $581/t fob, and small batches from Vietnam and Taiwan were trading at around $600/t cfr.
The American market has little trading volume, but Brazilian and Mexican pellet and urea prices remain around $550/ton cfr, while US prices fall below $600/ton cfr.
Most of the price fell again this week as global markets downgraded to levels between $550-600/t cfr set by India and Brazil.
It is clear, however, that the market has not yet met the conditions to encourage traders to make another wave of buying.
market driven
Freight soaring
Freight rates rose again this week, squeezing traders' profits and forcing lower net returns from producers.
European gas prices
Urea prices are well below Ukrainian production costs and supplies have tightened, an encouraging reversal of the typical trade deficit as Ukraine imports more and more urea, but also posing a challenge to factory economies across much of the EU.
30-60 Day Outlook
Demand pressure is building and, depending on its timing, could boost prices as traders rush to cover short positions. But the market remained weak as there was not much demand to show.
