Urea International: the urea market is stronger in India
Source: Zhongyu information time: July 24, 2020
Urea market is stronger in India
Mmtc confirmed its bid in one bid and issued another bid on the same day, highlighting India’s concerns about urea supply. The traders’ meaningless positive bid meant that mmtc only obtained 120000 tons in the bidding on July 17, which led to it having to bid again on July 30 to try to buy 1.5 million to 2 million tons for the shipment in August. In Delhi, this unusually rapid move pushed up the price of urea. The Chinese manufacturer withdrew the offer and rejected the FOB price of 237 US dollars / ton. Abu QIR sold 40000 tons of granular urea FOB $250 / ton – about $15 / ton higher than the target 24 hours ago. In Brazil, the cost and freight paid by the buyer was close to USD 260 / T, and some suppliers withdrew their quotation because they were not sure what the price of urea should be. Supported by the huge demand in India – the sales volume will reach 4.2 million tons in July and the output will be about 2 million tons – the urea market will stabilize in August, especially in September.
In order to meet the demand in July and August, it is necessary to import about 2 megatons per month. Sales increased by nearly 40% from April to July
The manufacturer successfully resisted the attempt to short the market and maintained the price above US $230 / T FOB price
In August this year, Brazil will face supply competition from India
30 – 60 day outlook
Firm prices in all areas are strengthening, and traders are doing more. Supply will be limited by the reversal in August.