Views: 2 Author: Site Editor Publish Time: 2023-07-18 Origin: Site
Due to another round of short covering by traders and new import demand, urea prices have increased this week significantly.
The Brazilian market is active particularly, the price of all nitrogen fertilizers rising rapidly. The price of granule urea is CFR345-365 dollars/ton, the price of Ammonium nitrate is CFR175-215 dollars/ton, and the price of ammonium sulfate is CFR180-185 dollars/ton. Several other markets in Central and South America have also bought or sought urea at similar prices, which has fueled bullish sentiment.
The continuous demand in Northwestern Europe and the Mediterranean region makes the transaction price of granule urea exceed CFR400 dollars/ton for the first time in two months. The new goods purchased by traders from North Africa are priced at FOB375-380 US dollars per ton, and there is expected to be more demand.
The Southeast Asian market is relatively calm, with the local season ending and most transactions concentrated on FOB330 USD/ton again to cover past short positions.
The market factors
Non seasonal demand: Europe and the United States purchase urea out of season, while Australia and China's end of season demand surged in the later stages, greatly tightening the short-term market.
Uncertainty in China: The rapid rise in domestic prices has caught traders off guard and sparked some unease about the possible supply and price levels for August and September shipments, especially for shipments to India.
Outlook for 30-60 days: uncertainty
The current supply shortage is driven by seasonal demand and supply decline. Non seasonal demand may weaken and the lost supply may also recover. The next urea bidding in India, as well as the scale of China's participation, may affect the market in August.
