Views: 2 Author: Site Editor Publish Time: 2024-07-18 Origin: Site
India becomes the focus
The bidding for urea in India has become the focus of the market this week. IPL will end bidding on Monday, the minimum landed price is $350.5 per ton on the West Coast and $365 per ton on the East Coast. However, after two rounds of bargaining with suppliers on the West Coast, the importer only received an additional 30000 tons, the confirmed total amount is only 180000 tons until now. IPL is expected to release the quantity tonnage of the East Coast on Friday.
Middle Eastern producers have largely rejected the lower net price of $330 per ton offshore on the West Coast, and expect offshore prices to be higher in other markets. To prove this point, in the bidding for the sale of 30000 tons of small particle urea conducted on the 11th, the offshore price for Qatar's August shipping schedule was $350 per ton. At the beginning of this week, Kaltim Company in Indonesia sold 30000 tons of large particle urea at an offshore price of 366 US dollars per ton in a sales tender on July 5th, with a shipping schedule for August.
At the same time, Nigeria's Dangote unexpectedly returned to the market and sold 30000 tons of large particle urea to a trader, with a shipping schedule in mid July and an offshore price of up to $330 per ton, possibly to Brazil. The price of granular urea in Brazil has slightly dropped to $355-365 per ton CIF price. The price of American barges has fallen to $288-298 per ton of Nora offshore price.
The market factors
The bidding process in India is still ongoing: India's bidding has disrupted most of the CIF trading activities in major markets. IPL has been struggling to obtain trading volume on the West Coast, but the premium of $15 per ton for trading with the East Coast may attract more interest from traders.
Ethiopia/Pakistan returns to the market: New tenders have been released, with Ethiopia's EABC seeking 156000 tons of urea with a shipping date of July 15-20, and Pakistan's TCP seeking 150000 tons of urea with a shipping date of August.
Outlook for 30-60 days: short-term support, medium-term weakness
Considering the commitments of manufacturers and the possibility of India providing more grants to the East Coast, prices in the August market have been supported. But with the recovery of more supply and pressure on crop prices, the future market seems to be trending towards a weak trend.
