Urea International: lower international price
Source: Zhongyu information time: December 24, 2021
Urea prices generally fell this week, and only a few markets were active.
Prices fell again in the Americas, and both Nora and Brazil fell despite limited trade.
Egypt’s trade scope is very wide, and the price of most tonnage is low. Later, some traders established a position on the FOB price of 960 US dollars / ton.
Africa’s West Coast market continues to seek solutions to the bidding problem, but there are still a few months before the application begins. At present, buyers have hardly taken urgent action.
After today’s bidding, India may again obtain a considerable amount. The participation in this bidding is very high, and the price is nearly 90 dollars / ton lower than that in November.
Market influencing factors
Epidemic situation in the Baltic Sea
Due to concerns about the epidemic, freight rates at some Baltic ports rose sharply this week, which posed a threat to the seller’s FOB. At the same time, buyers stimulated trade in order to be guaranteed.
India’s import demand
This week’s bidding may be the last before March. Other markets are more sensitive to the price performance above US $800 / T CFR, but if India’s procurement volume is much higher than the expected 1.2-1.3 million tons, it may tighten the front end of the curve again.
European gas prices
This week, natural gas prices in the TTF center and other parts of Europe hit an all-time high of about $60 / million BTU, squeezing manufacturers’ profits.
30-60 DAY outlook
In the context of the European energy crisis, India’s tonnage commitment is still unclear, but the market has no power. The goal of global importers is to reduce prices, and traders show limited short will.
