Urea International: market warming
Source: Zhongyu information time: June 11, 2021
The market is heating up, and the price jumps by 20-30 US dollars / ton
As traders chase the loading tonnage in the third quarter, manufacturers have raised urea prices by US $20-30 / ton in the past week. However, few manufacturers can buy, some manufacturers are uncertain about the selling price, and most tonnage in July has been promised. Chinese suppliers support India’s next round of bidding at US $450 per ton FOB. The Egyptian manufacturer rejected the FOB offer of US $440 / T. Urea sold in Latin America exceeded the cost and freight price of USD 500 / ton for the first time. More supply was needed to curb price increases, but not in July. Due to the turnover of factories, the output of the United States in summer will be reduced by about 500000 tons, while the output of other countries will also be reduced. The Chinese market is very tight. The supplier estimates that only 3-4 batches of goods can be transported to India in July.
Market driven
U.S.A:
So far, urea has ordered four spot, a total of 170000 tons, and is ready to be delivered to Nora from June to July. More people will follow suit
China:
We estimate that China’s production from January to May is 800000 tons lower than that in 2020. The supply is very tight, and domestic buyers have priority
India:
India’s next tender is coming, but in terms of Limited procurement, the same results may be seen as in May, increasing demand in August
30 – 60 day outlook
The best buyers can expect strong and stable:
Driven by tight supply and supported by high crop prices, the market is very hot. August is the first month that export supply may rise and provides more stability
