Sources report urea prices in China are now being quoted at $335-$340/mt FOB, down from $360-$370/mt FOB just last week. The drop comes as production steps up in China, currently at 160,000 mt/day and as reserves of nearly 10 million mt are being released for sale. Sources said, however, strong demand in the United States, Australia, Thailand and Brazil and reduced output in Southeast Asia could lead to a price rebound. The price fluctuation also takes place as India is preparing to call its first urea tender of the year, which could also lead to further changes in pricing ideas. One trader said the market could face a price bloodbath if the tender is called this week.
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