Views: 4 Author: Site Editor Publish Time: 2024-08-28 Origin: Site
The urea market is showing some sluggishness ahead of next week's bidding in India, which is in line with previous expectations. Except for Latin America, where demand is relatively strong.
Nigeria and Iran have once again become the two main sources of liquidity. Dangote has completed two shipments of 30000 tons of large granular urea in the first half of September, with an offshore price of $327-328 per ton, slightly higher than last week's spot selling price. At the same time, Iran's MIS sold 50000 tons of large particle urea at an offshore price of $297 per ton in a tender earlier this week.
The offshore price of Egyptian large particle urea has dropped to $345-350 per ton. As of press time, Mopco has sold 10000 tons of large particle urea at an offshore price of $345 per ton. Inquiries from Europe are limited to price information, but nitrate prices, especially in northwest Europe, have already increased. The price of 27% ammonium calcium nitrate has risen to a landed price of 270-280 euros, with a German inland landed price. The spot urea prices in the Baltic Sea and the Middle East remain stable, and producers seem to have postponed sales before next week's bidding. To the west of Suez, the demand for urea in Brazil has rebounded, with a landed price of $350 per ton for September transactions. The purchasing power and interest in Central America are also increasing, with a CIF price of $360 per ton for large particle urea in Argentina. In the United States, the offshore price of Nora barges has dropped to $303-315 per ton.
market factors
India's sales in August were steady: Due to abundant seasonal rainfall, urea sales have been strong so far this month, with an expected sales volume of 4.8 million tons and a production of 2.5 million tons. Last year's sales and production were 4.68 million tons and 2.76 million tons, respectively.
30-60 day outlook: Still need to recover to low levels
After the bidding in India, prices are bound to fall, and most buyers have postponed their purchase plans as a result. Demand in Latin America is increasing, but purchases in most regions have weakened. However, with the clear intervention of importers in September, prices are expected to stabilize and rise, while crop affordability remains a concern.
