International urea market

Supply tension supported the price of June

 

The urea market is very active this week, and producers in most countries are satisfied with the sales situation in June. Prices in Indonesia and the Black Sea/Baltic region have risen slightly, and suppliers in these regions have large quantities of urea available for sale. Kaltim received a quotation of $286/t FOB, purchased 30,000 tons of urea pellets and shipped it in June. Russian producers report that urea is sold at a high price of $250 /ton in Central America.

 

In Pakistan, the lowest price for TCP tenders on May 17th was more than $20/ton higher than the lowest price for tenders on the West Coast of India on May 1st, reflecting the limited supply of urea, which was shipped in June.

 

The outlook for July is less certain. Brazil's demand is expected to increase in July, but any price increase will require strong pull from the eastern market, Europe and the United States are in the off-season.

 

Market driver

 

China: As domestic prices fall, suppliers are turning their attention to the international market. Exports are quoted at FOB $285 /tonne, but traders are waiting for lower prices.

 

Brazil: Given the low price of Iranian products, there is a difference between the quotes of traders and the offer of buyers, but it is expected that prices will rise as demand increases.

 

 

30-60 days outlook

 

It is expected that activities will be limited in the coming weeks and most producers are satisfied with the activities in June. Any price increase in July will require further demand from Asia.