Urea prices continue to decline due to sluggish international demand
Publish Time: 2022-04-21 Origin: Site
The international urea market has fallen for two weeks, and there is still no support point in the next week.
Import demand in all major markets is low, same as the past 3-4 weeks. Europe and North America have already met most of the demand in spring, Brazil is in the off-season, and the demand in South Asia not start.
Supply liquidity was low this week. Nora has limited volumes at $750/t fob, while Brazil has lower volumes at $880/t cfr. The price from Black Sea has fallen to around $710/t fob due to sales to Turkey.
Russian urea continues to be traded in markets around the world with reduced tonnage. However, freight rates for Russian cargoes were higher this week, with Russian producers offering the FOB prices much lower than their competitor.
The low demand
The low demand can not keep prices at current levels.
Russia crisis
The market is vulnerable to further shocks as raw material, freight and grain prices remain well above normal due to the conflict in Ukraine.
30-60 Day Outlook
Supply is plentiful and demand is low. A tender expected to be held in India next week will not able to support the market - tepid buying appears set to continue, with the impact on prices generally muted.