Views:1 Author:Site Editor Publish Time: 2020-09-08 Origin:Site
India's MMTC purchased nearly 1.8 million tons of urea this week, which is close to the highest level in history. This will greatly increase the amount of urea from different sources, so that suppliers can still rest assured in October. As traders cover the current prices, FOB prices have basically remained stable.
Just like the last time India ordered so much urea, which has led to weakness expectations of price in the short term. India may pause in purchasing, while China has shown the feasibility and desire for export. Without the support of other major markets (especially western markets), prices may fluctuate. In the past few weeks, Brazilian buyers have seen cfr prices stagnant at low levels of around US$270/ton, while Abu Qir cancelled a tender for sales because of the level of the bids.
In the coming weeks, India will continue to coordinate the market, and the pace of its bidding may stimulate the market and prices.
Main market performance
India: The next tender is expected to be conducted in the second half of September. The average import demand from October to January may exceed 1 million tons per month.
China: Prices are stable for sales in India, but business to other markets may weaken between the two tenders.
Europe: Buyers will soon reappear and challenge Egyptian and Algerian suppliers' October target prices.
As prices are determined by the lower payment market, the expected purchase pause in India may be slightly eased.