Urea International: steady growth
Source: Zhongyu information time: November 20, 2020
This week, India’s procurement bidding failed to be realized. It will eventually continue to promote, and its impact on the market is still bullish, thanks to the unlikely significant characteristics of urea in China. Strong domestic prices support Chinese producers. The FOB price of urea was US $285 per ton, which set the tone for the price increase of about US $15 last week.
Middle East producers will consider increasing the quotation of fine-grained materials and fine-grained materials by $10 / ton from the current benchmark of $260 / ton. The inquiry price in the Baltic region also increased. Before India’s bid, there was a large sales of urea in Egypt, and the FOB price increased by US $17-18 / T to US $273 / T.
In Southeast Asia, the price of granular urea in Malaysia and Indonesia rose to US $261-265 / ton FOB
India will buy another 1 million tons of urea in December and January, which will support the price of urea, especially in the case of insufficient interest from Chinese manufacturers.
Unscheduled downtime of kaltim 5 (1.15 T / a) and Petronas
(650000 T / a) may last for three weeks, but considering the delay of bidding, it is unlikely to have a real impact on India’s supply.
Sold out in Egypt
Only two manufacturers still have inventory for December shipment, and 130000 tons of granular materials shipped in January will be sold this week.
New Indian demand will tighten the market
December. China’s bull market cannot last forever. In the new year, the export pressure may be greater.