Urea International: mixed
Source: Zhongyu information time: March 12, 2021
The price of urea in China is inconsistent with that in other places this week, about 20 US dollars / ton lower than the level in the Middle East. Traders and end users took advantage of this purchase opportunity to book several shipments to Latin America in March and April. Local traders took a stand on granular urea.
China’s FOB level has begun to pick up, and India is expected to issue its next bid next week, which should be further boosted at that time.
Elsewhere, the market remains strong despite the seemingly random freight generated by shipowners. Nora and
Egypt’s prices were US $400 / st and US $400 / T FOB respectively, hitting a seven-year high. The demand outlook in April was optimistic. Europe, Latin America, India and Australia all need a lot of transportation this month.
Domestic market activity has lowered prices, but prices are expected to pick up in the coming weeks
Interest rates on some routes have soared this week, deterring transactions. They should stabilize the situation nearby and allow normal business activities to resume
In the next 10 years, attention will increasingly turn to India, and China’s urea may be the most competitive
Most manufacturers were reassured about the situation in April. The CFR price should be increased to accommodate higher freight rates, but increasing the FOB level will be more difficult to achieve