Urea prices rise due to traders' demand

Urea prices have increased  slightly this week, but due to the scarcity of import demand, trade volume is limited.

 

India has announced the next import bidding, which will end on October 20th and the latest shipping schedule is before December 10th. At present, production is normal, but sales have been consistently above normal levels, so IPL may purchase more urea.

 

Most spot trading is concentrated offshore this week, targeting large granular urea from Egypt, Nigeria, Oman, and Indonesia. Traders are more cautious about shipping schedules at the end of October and November.

 

However, the overall performance of the main import markets was average. Due to limited trading volume, prices in the United States and Brazil have risen, the situation in Europe has remained stable, and transactions in Southeast Asia have also been quiet.

 

The prices of ammonium sulfate, ammonium nitrate, and urea ammonium nitrate solutions have not changed much, and the trading volume of ammonium sulfate in Europe and Brazil has slightly rebounded, but the market for ammonium nitrate and urea ammonium nitrate solutions remains sluggish.

 

The market factors

 

Traders are cautious: Buyers in most regions continue to make conservative purchases, which has undermined the confidence of producers and traders.

 

The calm natural gas market: Unlike last year, natural gas prices have provided little fundamental or emotional support this year. On the contrary, as production resumes in Eastern Europe, Europe's supply is increasing.

 

Outlook for 30-60 days: stable to strong

 

The export restrictions imposed by China and Indonesia, coupled with the shortened purchase window period for major importers in India and Brazil, should support a strong price movement.