Views:2 Author:Site Editor Publish Time: 2020-06-29 Origin:Site
Why traders were willing to sell for glory rather than profit in India's bid remains a mystery. Indian institutions are purchasing on behalf of the government, regardless of whether the price is $300/ton or $200/ton cfr, they will buy the same amount of urea. Someone has to be L1, but why lower it?
However, the latest bid is no exception. The fob China price set by Samsung is up to US$224-225/ton, which puts Chinese suppliers in a dilemma: selling below of the asking prices; or accumulating urea for the next bid.
However the result have not benefit India: according to a bid that required up to 150,000 tons, the price would limit the supply to no more than half.
Overall, the price is a bit bearish, but it depends largely on how many tons RCF plan to buy.
India’s procurement will support prices in the eastern region in 30-60 days, but calmer markets in the European and North American markets may put pressure on Urea in North African.