Views:4 Author:Site Editor Publish Time: 2021-09-23 Origin:Site
Driven by the high natural gas prices, some European factories closed, which caused Egypt's FOB prices rise sharply in the middle of the week. The FOB price has risen by $35/ton in 24 hours to $520/ton at the time of writing, and it still keep rising.
According to reports, the United Kingdom, Lithuania, Ukraine, Spain and other countries are reducing production. If natural gas prices keep at the current price (US$22-23 per million British thermal units), other countries maybe will also reduce the production. All European nitrogen fertilizer producers are evaluating their positions on a daily basis.
Due to government restrictions, urea suppliers are unwilling to deliver in October, and China’s low production may lead to supply shortage in India in the fourth quarter.
India has not released the next round of urea bidding yet, but maybe they will buy urea for the delivery in October, and the quantity will be large.
U.S. urea prices continue to be higher than US$500/ton FOB Nora, which is equivalent to US$550-560/ton CFR,which is leading the Brazilian market easily. Although there is very little demand,the quotation in the Brazilian market have risen to US$520-540/ton CFR this week.
Natural gas price
Tight supply in Europe and competitive demand for liquefied natural gas in Asia have pushed up natural gas prices to levels that fertilizer producers cannot afford.
Skipping September, India now needs to purchase 5 million tons within three months.
The production cuts and export restrictions means that China's urea exports may decrease in the fourth quarter