India makes market speculation

RCF's attitude toward bidding is more calm, which makes the urea market always unstable. Unlike the MMTC, the RCF only announced the quantity on November 14th, and the price was partially postponed to 15th.

 

The huge tonnage provided – 3.2 million tons – means that India will be able to get more than 1 million tons of goods from the tender. This is a reaction to the lack of market demand.

 

The question is, especially if Chinese manufacturers will find the price to be acceptable. In fact, suppliers in some countries are waiting for cfr levels to be established in India before deciding whether to support the offer there.

 

Urea prices in other countries (especially Europe and Brazil) continue to decline, while the US urea market is still not optimistic.

 

Market driven

 

India

 

Huge demand is balanced with a huge supply. In the November bid, the price may be lower, but may be lower in subsequent enquiries.

 

Export supply

 

Prices are approaching the level at which high-cost producers in Ukraine and China may cut production.

 

Request for extension

 

Importers pushed demand in several markets to the first quarter due to fears of buying in a falling market.