Urea International: FOB price exceeds the threshold of USD 1000 / ton
Source: Zhongyu information time: November 12, 2021
The FOB price of urea exceeds the threshold of USD 1000 / T
India IPL urea import procurement bidding was opened on November 11, and 16 suppliers were received, with a total of 2485200 tons. The lowest price: the price of fertiglobe on the east coast is 998.5cfr US dollars / ton, the price of keytrade on the west coast is 981.64cfr US dollars / ton, and the price of most merchants is more than cfr1000 US dollars / ton. This round of bidding is valid until November 16, and the latest shipping date is December 31.
Prices have also risen sharply in Western markets such as Brazil, the United States and Europe, but they are still far behind India and South Korea, so regional supply is tightening.
As the shortage of supply continues to push up the price of urea, Petronas became the first manufacturer to sell urea at an FOB price of US $1000 / ton this week.
As the shortage of granular urea threatens truck transportation, South Korea’s panic makes it more accepting of urea price than other markets.
China’s energy crisis
Domestic production has fallen sharply and record offshore prices have failed to attract exports – the export problem is unlikely to be solved until the country’s energy supply is balanced.
European natural gas
Due to the mismatch between raw material and nitrogen prices, natural gas prices in European hubs are still high, and some nitrogen plants are still shut down.
Urea demand in India
As the global price is based on the assumption that India will try to purchase millions of tons of urea this winter, India remains the main demand pillar.
30-60 DAY outlook
As India absorbed most of the available spot tonnage, but buyers in other markets remained opposed to these levels, it entered a calm period