Urea international market: stable
Source: Zhongyu information time: May 29, 2020
Zhongyu information report:
Stable markets outside the United States
Prices hardly changed during the week affected by the holiday. The sales carried out have confirmed that the price is within the current range in June. The FOB price of Chinese and Indonesian sellers reaches US $230 / ton or higher. The FOB level in the Middle East and Egypt is between us $210-215 / T FOB, while the FOB price of barreled urea in Russia is as low as US $190 / T.
No one talks about the price rise, but the market has stabilized. Suppliers will wait for news from India. It is expected to buy shipping companies again in late June. China’s pricing supports the market in the short term.
July is the month when prices may be under pressure again. Low European gas prices, increased Ukrainian exports and high Chinese production will test the market’s ability to absorb all available urea.
A new tender is expected to end in early June, which will enable producers in the Middle East and North Africa to sell near the current price level.
The daily output exceeds 160000 tons. From July, producers will have to choose whether to reduce production or accelerate exports.
Natural gas cost
Low gas prices encourage maximum production in the spot gas market, especially in North America, Western and Eastern Europe.
30-60 DAY outlook
Prices should remain unchanged for the next 20-30 days, but will test a new July low.