Views: 19 Author: Site Editor Publish Time: 2022-12-29 Origin: Site
Urea prices fell sharply this week, as suppliers with unsold loading inventory in late December pursued liquidity. Southeast Asian producers sold several batches of goods to the ocean market, with the price approaching 460-470 USD/ton FOB. There are signs that the prices of China and the Middle East has also declined, although no exact transaction has been obtained.
Only a few markets are active this week. Mexican importers intervened and purchased three batches of 30000 tons of granular urea for the West Coast. It is reported that the transaction price is 508-523 dollars/ton CFR. Due to the new sales, the price in Brazil fell to 480-500 USD/ton CFR.
Before the Christmas holiday, economic activity in Europe slowed down on the whole, but the EU suspended the imposition of import tariffs, which triggered discussions on the shipment of Asian and American goods to Europe. A trading company will complete the transaction of shipping Malaysian goods to Eastern Europe. Two batches of 30000 tons of goods have been ready and will be transported from the United States to Eastern and Northern Europe in January. Due to the intensified competition from non-traditional suppliers, the level of North Africa is under pressure, but there was no investigation this week.
The market factors
EU suspends import duties for six months
The EU has suspended import tariffs on ammonia and urea from all sources except Russia and Belarus until June 2023, which may attract more urea from non-traditional sources and reduce the premium of North African producers.
Demand in India
India is expected to issue a new tender in early January,they may look for more than 1 million tons of urea.
The outlook for 30-60 days
Due to oversupply, the market is weak in the short term, but it is expected that when the main destination market resumes buying, the market will tend to be stable.
