Urea International: the international urea market was mixed
Source: Zhongyu information time: October 23, 2020
The Indian market is stagnant
India remains the focus of the global urea market, and RCF received a record 223 million tons of initial acceptance in its bid. But the painfully slow pace of progress this week has curbed liquidity elsewhere.
Market sentiment fluctuated due to the report from India, but prices in key markets such as Egypt and Brazil were sideways or fell slightly this week. Chinese prices rebounded later this week after they began to fall, but the highest bid has not been tested.
Ethiopia’s eabc finally won the bid, which provides a useful way out for the next few months.
India’s huge number on the table means that global suppliers and traders are investing heavily in the results, and the net income is still the best quotation. After the dust on the Indian stock market has settled, what factors will support prices later in the quarter remains a key issue.
The export volume is expected to exceed 5 million tons this year. The increase will mainly depend on domestic demand and prices, both of which have increased this week.
If the purchase quantity of RCF is close to the acceptable quantity, this will alleviate the shortage of supply and may have a long pause before the next bid.
Buyers have begun to retreat, which may put North African suppliers under renewed pressure after shipping in India.
Outlook: RCF buying will support prices in the coming weeks, but easing may occur if demand in other regions does not improve.