U.S. Gulf: The granular urea market continued to be under pressure early last week, with September product trading as low as $287/st FOB. However, sources said August product that was ready to go was gaining a premium as it was in tight supply. It was called as high as $305/st FOB, and $310/st FOB if it was already moving up the river.
By late in the week, sources were calling September product in the low $300s/st FOB.
Sources said prills remain firm at $330-$335/st FOB, as there is not that much product available.
Eastern Cornbelt: Granular urea pricing remained at $335-$355/st FOB in the Eastern Cornbelt, with the low FOB Cincinnati, Ohio.
Western Cornbelt: The granular urea market continued to be quoted in the $345-$355/st FOB range in the Western Cornbelt.
California: The low end of the granular urea market was quoted at $420/st FOB Stockton, Calif., and $425/st FOB Woodland, Calif., down some $20/st from last report.
Agrium’s granular urea postings in California dropped on Aug. 1 to $440/st FOB West Sacramento; $450/st FOB Richvale and Hanford; $475/st truck-DEL in Central California; $485/st truck-DEL in Northern California; and $510/st truck-DEL in the Desert California counties of Imperial, Orange, Riverside, and San Diego. Those levels are down $15-$20/st from Agrium’s July 1 urea postings in the state, depending on location.
Pacific Northwest: The granular urea market had reportedly slipped to $400-$420/st FOB in the Pacific Northwest, down $10/st from last report. Delivered urea pricing was pegged in the $425-$445/st range in the region, depending on location.
Western Canada: Granular urea pricing in Western Canada had reportedly inched up from earlier summer fill levels, moving in mid-August to $505-$510/mt DEL in Manitoba, $510-$515/mt DEL in Saskatchewan, and $515-$530/mt DEL in Alberta and British Columbia. Those ranges were up some $20-$25/mt from last report.
China: Sources say traders looking to fulfill awards from India are facing aggressive producers. Many traders are reportedly short on tons and are looking to China to fulfill their awards.
Prices for granular remain in the low $300s/mt FOB, with prills in the $290s/mt FOB.
Industry watchers say, however, once the current load of Indian awards is sold and gone, the price out of China is expected to drop like a rock.
Even the anticipated next Indian tender in early September is not expected to stop the price slide.
One trader noted that with some tough bargaining, deals were closed at or near $290/mt FOB for prills. Just a couple of weeks ago, $295/mt FOB was the best price that could be achieved.
The portside warehouses remain full, even as vessels line up.
Indonesia: Pusri is reportedly sitting on about 15,000 mt of prilled urea for export.
Sources say the central selling house held on to prills and granular for the past 4-6 weeks to make sure domestic demand was filled. Now reports are that tons for export are available. The only problem is that the soft global market is discouraging to the seller.
Middle East: The material flowing out is all under contract, except for the Indian awards issued to traders for Iranian product.
The steady sales leave the Arab producers in a comfortable position as the quarter ends.
Material is already booked to head to the U.S. and Australia for the third-quarter applications. Sources say these contact tons have already been taken into consideration by the market. Only aggressive demand from the U.S. or Australia will help move the pricing considerations from this region.
India: The global market