Views: 6 Author: Site Editor Publish Time: 2022-12-07 Origin: Site
As supply continues to exceed demand, urea prices in many markets fell sharply this week.
The price fell most obviously in the United States, and it even fell to about 490 USD/t CFR equivalent, because traders tried to sell goods in an otherwise quiet market.
The decline in other import markets was small. Brazil's quotation fell below 540 USD/t CFR this week, the price remained above 600 usd/t CFR even in the highest market in European.
For producers selling FOB, the inevitable result is a decline in the selling price. The FOB price in China fell by 20-30 US dollars/ton to 515 US dollars/ton, while the FOB price in Egypt fell by about 5 US dollars/ton to 560 US dollars/ton.
market factors
Long term producers
Many producers are still trying to find a place to settle their December shipments, which led to a significant decline in prices in Europe and the Middle East this week.
Weak freight market
The freight of main routes is at the lowest level in recent two years, which makes it possible to trade farther away and further encourages traders to take short positions.
Outlook for 30-60 days
In the short term, it looks weak. The demand of the main import markets has not kept up with the pace of supply. Although winter is coming, the European crisis has eased, and the producers still have several batches of goods to be shipped in December.
