Urea International: stable market
Source: Zhongyu information time: December 3, 2021
The international urea market is stable this week
The weakness or stagnation of markets outside India and South Korea with limited supply will not cause manufacturers’ concern in the short term, as this demand will continue until January.
However, the international market is still divided: the main markets of the United States and Brazil still lag behind India by at least $100 / T in price – the price of Nola fell by about $35 / T this week, and the price of Brazil stagnated at $880 / T.
European gas prices
The recovery of natural gas prices in European hubs has hindered some producers from returning to normal operating rates.
As India still has a lot of demand to meet, manufacturers hardly need to consider adjusting prices to connect with cheaper markets than India.
Russian export quota
Due to the new quota, the global supply of ammonium nitrate will be tightened, but in the short term, it is difficult for Russian producers to obtain nitrogen fertilizer export license in December.
30-60 DAY outlook
India will attract most of the spare tonnage shipped in January – in addition, there is still a lot of demand in the northern hemisphere as spring approaches. However, even among manufacturers, further sharp price increases are not optimistic.