U.S. Gulf: While barges were moving last week, prices barely budged compared to the prior week run-up. Sources suggested that prices finally met resistance, but others forewarned that there is much demand still to be met – and once it hits, prices may again move up.
Most said the market spanned a broad range last week. It started off toward the higher end of the prior week at $720-$730/st FOB, then retreated to as low as $700-$705/st FOB before regaining some steam within the $710-$715/st FOB range as the week wound down.
May granular urea barges were called anywhere from $575-$625/st FOB, with the higher number for first half May.
Prills were called $670-$680/st FOB.
February urea imports were up 9 percent, to 536,864 st from the year-ago 493,798 st. However, July-February imports were off 11 percent, to 4.18 million st from 4.67 million st.
Eastern Cornbelt: Granular urea pricing was pegged in the $700-$720/st FOB range in the Eastern Cornbelt.
Western Cornbelt: Granular urea was quoted at $730-$740/st FOB Western Cornbelt terminals, with most sources reporting the upper end of that range as the common dealer market at midweek. Out of the Catoosa, Okla., market, sources quoted granular urea pricing in the $725-$730/st FOB range.
California: Some suppliers were out of urea in California last week. Where tons were for sale, sources quoted the dealer market at $645-$655/st FOB. Agrium reposted its granular urea prices in California on March 30 at $650/st FOB West Sacramento; $660/st FOB Hanford and Richvale; $685/st truck-DEL in Central California; $695/st truck-DEL in the Northern California counties of Del Norte, Humboldt, Lassen, Modoc, Shasta, Siskiyou, and Trinity; and $705/st truck-DEL in Imperial, Orange, Riverside, and San Diego counties.
Pacific Northwest: Granular urea pricing firmed on April 12 from $615/st to $650/st FOB Rivergate, Ore. Regional sources quoted delivered urea in a very broad range at $645-$785/st last week, but acknowledged that the low end of the range was disappearing quickly as the market ratchets up.
Western Canada: Sources quoted the granular urea market at $750-$775/mt DEL in Western Canada last week, up nearly $100/mt from last report, with the lower end of the range reported in Manitoba and Saskatchewan and the upper end in Alberta and British Columbia.
Black Sea: The hot urea market has moved up prices in Yuzhnyy to beyond $500/mt FOB.
Sources report firm deals have been done at $500-$505/mt FOB, with offers now starting at $510/mt FOB. April material is long gone, as is first half of May, say sources. Most of the deals were done by traders looking to secure tons in a rapidly moving market.
Industry watchers say at this time of year the Yuzhnyy tons usually end up in Europe in competition with material from Egypt and the Arab Gulf. This time, said one trader, Iranian tons are being included in the mix.
Reportedly at least one French buyer is looking to import Iranian granular in early May. The discount on the urea makes the cargo competitive against the Black Sea and Baltic material.
Middle East: Prices have moved up in the region so fast that people’s heads are spinning.
Early last week a deal reportedly took place from Oman at $600/mt FOB. The cargo, sources say, was bound for the red-hot U.S. NOLA market.
Offers are now coming in at $610/mt FOB for granular, and a bit lower for prills. The rapid rise in price from the area is playing havoc with a number of markets.
Sources now report that Emmsons is having a hard time securing the 500,000 mt it is committed to supply to India. It seems that the award-win