Views: 26 Author: Site Editor Publish Time: 2022-03-04 Origin: Site
There were two main phases to the week - the early stage of stagnant prices and subdued buyer interest, and the latter stage of the frenzied reaction of traders to Russia's military action against Ukraine.
There is the biggest gains of Egypt and Nora, traders covering short positions and building long positions – pushing prices up $140/t to $730/t FOB in Egypt and nearly $200/t to $770/t CFR in the US.
East of Suez markets were active, but price increases were less pronounced. The transaction price of urea in the Middle East was US$554/ton FOB, and Indonesia Kaltim sold about 90,000 tons of granular urea at US$553/ton FOB.
The market driven
The situation in Ukraine
The loss of Ukraine's remaining urea production won't have much of an impact on the global balance, but the reaction of Western governments could influence them to narrow the pool of buyers and force a correction in trade flows.
Buyers are more cautious
As usual, a lot of demand remains not be released, but there is no sign to show that importers have committed to buying urea in bulk, the market would feel oversupplied without it.
Outlook for 30-60 Days
The Western response to Russian military action against Ukraine will be the main driver in the coming weeks, maybe it will disrupt trade flows potentially and causing corresponding price swings across regions. However, if the Russian supply is not affected, the global urea market still has a large supply of new products, and the main import market has not shown much enthusiasm.
