The international urea market is strong

Tight supply in June led to a slight increase in urea prices this week, and July also attracted more buyers to enter into the market. The price of granular urea in the Middle East in July was US$211-212/ton FOB, Egypt's trading price was US$218-219/ton FOB Egypt, and Brazil trading price was US$215-220/ton CFR Brazil, both higher than last week.

Chinese producer’s offer have been maintained above 230 US dollars / ton FOB, and it will avoid the next Indian tender unless CFR prices are firm. Now Russian producers set prices above FOB US$200/ton once again..

By June, the market looks very strong, but many people doubt that prices will continue to rise in July with more Chinese urea exports. However, the current price of urea is lower, and buyers are fully motivated to lock in July prices.

China: Production remains at approximately 160,000 tons per day. domestic sales have been sufficient so far, but from July, export demand to maintain this level of production will increase.

Brazil: The price of granular urea has returned to CFR US$220/ton, the prospects for corn are good, and demand is expected to remain strong by the third quarter.

India: Strong sales growth in April and May. Measures to promote agriculture are in place. The monsoon arrived on time. All factors indicate strong demand for imported urea in the first half of 2020.