Urea International: the international market is booming
Source: Zhongyu information time: 2020-08-07
Due to frequent bidding in India, urea prices in many regions have soared to the highest level in the year. After the mmtc bid, RCF announced the news, pushing up the price, leading to an unusual week.
The price in China climbed to 270 USD / T FOB, that in Egypt reached 280 USD / T FOB, that in Indonesia reached 266 USD / T FOB, and that in Brazil reached 280-290 USD CFR / T; In less than seven days, the price has increased by $20-35 per ton.
India’s demand is great. The arrival from August to September requires 1.5-2 million tons, and India will support higher prices. The question is, can Western markets accept the high prices after September?
This week, there were few sales of CFR, and the FOB price in some regions has been higher than the previous CFR value. When prices rise too fast, there is an expectation of decline.
A record 5.03 million tons were sold in July, highlighting the need for imports. In the third quarter, bidding will be more and more frequent.
In the traditional trough period, prices were bid up to a new high of $270 per ton this year
The buyer refused to quote us $290 / T CFR, but the supplier’s target is US $300 / T CFR for the goods in September
Outlook: producers are in a favorable position, the market is tight, and India’s purchase will allow prices to rise further