Views: 13 Author: Site Editor Publish Time: 2022-08-11 Origin: Site
Urea prices were stable this week at the peak trading in last week, but overall liquidity was much lower.
Prices in different regions still very confusion, although the gap narrowed this week as participants took advantage of arbitrage.
Traders raised the prices to around $640/t fob in Black Sea,they are looking for cheaper alternatives than Egypt, where prices stabilized at around $765/t fob.
Even in the Middle East, there has been considerable price volatility, with Iranian urea price at $480/t fob, while the non-sanctioned neighbor is about $150/t higher.
Chinese prices were weaker, with domestic prices declined to around $365/t fob, which cuased the in Southeast Asia trading at around $470/t fob.
market factors
gas crisis
Europe is likely to continue to attract higher-than-normal imports as urea production at 300,000 tonnes per month could be shut down in the region and production at LNG plants in South Asia also appears to be under threat.
demand destruction
The demand of country-to-country appears to have fallen by 10%-30% this year. Buyers are again limiting purchases after the price rebound last week.
30-60 Day Outlook
Additional demand from Europe is likely to be offset by demand destruction elsewhere, keeping the market continuing to oscillate between frenzy over supply shortages and fears of a shortage of demand.
