The results of the Jan. 3 TCP urea tender for 50,000 mt confirmed reports the global urea market was softening.
The lowest of 10 offers in the tender came from Keytrade at $295.98/mt CFR. The Keytrade offer was backed by suppliers from the Arab Gulf, Russia and China. The netback to the Arab Gulf and China is expected to be lower than levels noted at the end of the year.
The netbacks to the Arab Gulf and China are pegged in the upper $270s/mt FOB against a December 2018 price range of $280-$285/mt FOB in the Arab Gulf and $285-$290/mt FOB for Chinese prills.
As of Jan. 7 no awards were issued.