The international urea price continues to decline

Manufacturers are still producing a large number of products this week, but importers purchase slowly,international urea prices fell again generally.

There were nearly 100000 tons of granular urea transactions in Egypt, when the manufacturer's price fell to 530 dollars/ton FOB, the traders stepped in to cover the European short position, and the goods transaction rebounded to 565 dollars/ton FOB in January.

However, in most other sales regions, especially Russia, Southeast Asia and the Middle East, the price dropped by about 20 dollars/ton.

Prices in the import market are also generally low. Brazil fell to 495 USD/t CFR, and the United States fell to 491 USD/t CFR.

The final result is that the buyer believes that the price of ammonium sulfate and ammonium nitrate has been depressed by the fall of urea price, which also fell this week, so the nitrogen compound continues to weaken.

market factors

Over supply

Although the production in Europe is still active, due to the capacity expansion at the beginning of the year, the urea supply in the market is excessive.

European gas prices

In Europe, the cost of producing ammonia in cash is much higher than the selling price of agricultural urea, nitrate and ammonia, which forces producers to continue to limit production.

The outlook for 30-60 days

Manufacturers in some regions are still striving for orders in December, while manufacturers in all regions are looking for buyers in January. As traders occasionally cover short positions, the market may continue to show a small amount of strength, but the overall trend is weak.