Views: 24 Author: Site Editor Publish Time: 2023-11-22 Origin: Site
Due to another week of low demand suppressing the market, most market prices have fallen by $15-25 per ton this week.
The prices in the United States and Brazil have decreased by $15-20 per ton to $350 per ton for CFR350, but bids from Ethiopia and Pakistan are relatively positive.
Even though the supply from China has significantly tightened, the Chinese government has intervened in the futures market, with some factories canceling export quotes and two factories in Europe shutting down, which has hardly affected the direction of the urea market.
The quotation in Europe is at CFR400 USD/ton generally, a decrease of 15-20 USD/ton compared to last week, but there have been few transactions. Importers are still avoiding risks, and progress at the grassroots level is slow.
The market factors
Source of goods in December: Most manufacturers have a large amount of goods that have not been promised on their December shipping schedule, and traders and importers are aware of this. However, when import demand returns to normal, there should be no problem.
Panama Canal: The bottleneck of the Panama has greatly increased the freight cost of goods passing through the canal, with the most common impact being a significant decrease in net profits for Russian producers shipping to the west coast of Central/South America.
The outlook for 30-60 days: stable
It seems that urea prices may adjust excessively during the decline process, but due to the cautious attitude of importers, the market seems to continue, so external market shocks may be needed to force prices to rise again.
