International urea prices rose sharply

International freight rates continue to rise, especially in the Middle East. There is only few ships carry Russian cargo now, and the premium on the Baltic/Black Sea route remains high.

Urea prices have seen unprecedented gains this week ,the price increased $340/t in Southeast Asia, $250/t in the Middle East and $180/t in Egypt, buyers rush to acquire urea in this case of Russia's export curbs.

Urea prices in the Middle East, Egypt and Nora all reach a high record at $1,000/t fob, $1,100/t fob and $900/t fob, respectively.

Western financial sanctions are eroding — though not preventing the Russian fertilizer producers’ ability to trade,which lead to buyers to scramble for urea or alternatives, pushing up prices.

market driven

Russian Fertilizer Policy

The short-term future of most commodity markets depends on policy decisions in a few countries, which greatly increases the potential for price risk and volatility.

buyer

Importers in Oceania, the Americas and Europe are all paying replacement costs for urea – a marked departure from the price spike in late 2021, when factories paid far more than end users paid – and for more supply chains. The upper layer provides support.

The outlookf for 30 - 60 days

With markets heavily dependent on government action, risks to both the upside and downside are considerable.