Hype around urea on the global market is dying down

Source:  Infoindustria
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The international urea market has calmed down after the de-escalation of tensions between Iran and Israel, and as a result, prices have fallen in most regions. In North-West Europe, prices for granular urea have fallen to EUR 480/t, CFR. But the biggest drop in the offer price occurred in the Black Sea – USD 392-420/t, FOB (the lower price is offers for the Russian product from controlled ports).

All last week, analysts described the market situation as unstable, with the cost of gas, oil and grain falling, which, in turn, makes urea more expensive.

Sentiment was mixed ahead of the Indian tender, but the market agreed that India will not be able to secure the purchase of 2 million tons in the import tender of state-owned Rashtriya Chemicals and Fertilizers Limited (RCF), which closes on July 7, with shipments by August 22.

So the market volatility will remain at least until mid-July, but for Ukraine this means that prices will not increase until August, and how much they will decrease is a question for importers and the exchange rate.

According to IA Infoindustria, imported urea was already offered last week at prices of about 26,000 UAH/t, FCA ports, but this is not all volumes, it is known that Ukrainian importers purchased large quantities of a more expensive product, so there is no question of price uniformity. It is clear that the market is growing in the future, but even on such waves you can make a good profit in purchasing fertilizers.

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