Views: 12 Author: Site Editor Publish Time: 2020-10-20 Origin: Site
India’s RCF bid dominated the urea market, resulting in insufficient liquidity this week, and prices basically stagnated. The price in China later fell to a low FOB of $260/ton, but this was one of the few clear changes. Most buyers in Europe and Brazil did not buy, and the price was not tested.
The 3.6 million tons sold in India demonstrates the global desire of sellers east and west of Suez to sell in the highest bid markets possible. However, it is expected that in the first half of November, the spot supply of RCF will increase significantly, supporting global prices as the supply tightens.
However, the continued lack of liquidity in other regions highlights that India is the only active buyer in the world, so the future market trend will depend on RCF purchases. If RCF's offer is close to 2 million tons, this will provide short-term price support, but it may also mean another long pause before the next bid. Without India, demand from other regions seems insufficient to support prices in the medium term.
Main market performance
India: Large purchases will make up for the supply gap in India and may postpone the next bid. Rabi's sales have also started to slow.
China: Weak domestic supply has caused suppliers to focus on exports, while the average daily output has risen to more than 160,000 tons.
Egypt: India is gradually absorbing more goods, which may lead to tight supply as European purchases increase.
