Views: 26 Author: Site Editor Publish Time: 2021-06-22 Origin: Site
Reports that the Chinese government will impose export taxes on chemical fertilizers were announced in India, and India also issued a new tender this week. If these two things happen at the same time, FOB prices may rise further.
China’s proposal has not been confirmed, but some suppliers are expected to impose a 30% tariff from July, which will undoubtedly reduce export supply: suppliers have withdrawn their export offers.
Global supply was tight in July, and sales this week have seen price increases. The fob price of urea in Algeria is US$475/ton, while the fob price of Black Sea is US$420/ton. Brazil's Cfr level reached 490 USD/ton.
India’s bidding will take place next week, but considering the uncertainty surrounding China’s exports since July, it is unlikely to obtain the required amount of more than 1 million tons.
international market
China: Due to the government's new policy, the supply of urea from other sources has tightened and prices have risen. Export volumes in July may decline.
India: RCF will bid for the purchase of urea on June 24 and will ship to August 11. The limited supply may once again prompt investors to return to the market as soon as possible.
Brazil: This week, prices have risen by about US$30/ton, but more than US$500/ton cfr is needed to adapt to higher freight and FOB levels.
The combination of declining Chinese exports and declining demand from India could cause prices to soar. In any case, tight supply is driving the market higher.
