U.S. Gulf:
NOLA granular urea barge prices were reported to have retreated a bit early in the week, falling to as low as $505/st FOB from the week-ago high of $515/st FOB. Prices rebounded to $530/st FOB by the end of the week, however. The week-ago range was $465-$515/st FOB.
Eastern Cornbelt:
Urea pricing was reported at $545-$570/st FOB in the Eastern Cornbelt, up slightly from the previous week, with the high confirmed in Illinois. Sources quoted the Cincinnati, Ohio, market at $555-$565/st FOB, up from $545-$560/st FOB the week before.
Western Cornbelt:
Urea prices continued to firm in the Western Cornbelt. The regional market was quoted at $550-$570/st FOB, up from the prior week’s $535-$550/st range, with the high confirmed at Caruthersville, Mo. The St. Louis urea market was pegged at $550-$560/st FOB, while pricing at St. Paul, Minn., had reportedly firmed to $560-$580/st FOB, up $10/st.
Southern Plains:
Urea pricing was quoted at $550/st FOB Houston, Texas, and $545-$565/st FOB Catoosa/Inola, Okla., down from last week’s broad $550-$590/st FOB range. One source reported hearing a low of $530/st FOB Catoosa/Inola for Russian urea early in the week, but that level was not confirmed.
“Farmers really aren’t going to need anything significant for urea volume for 90-120 days, and since urea wears the volatility label proudly, I expect it to drop down again,” said one regional contact. “How low is anybody’s guess. There’s been Russian urea finding its way to various places all along.”
South Central:
Urea prices were quoted at $550-$595/st FOB in the South Central region, up from the prior week’s $540-$580/st FOB range, with the low confirmed at Memphis, Tenn., and out of river terminals in Kentucky, and the high reported at Shreveport, La. Most Arkansas terminals fell in the $560-$565/st FOB range during the week.
Southeast:
Urea prices dropped to $595-$600/st FOB port terminals in the Southeast, down from the last reported $600-$650/st range, with the low confirmed at Wilmington, N.C., and the high at Charleston, S.C.
China:
Exports remain limited to contracted tons. Pricing out of the country points to $460-$465/mt FOB ex-factory for a portside export price closer to $500/mt FOB. However, the lack of any spot deals out of China is keeping the “official” price at $685-$690/mt FOB, which is based on estimates from the last Indian tender.
There are rumors circulating that some new export quotas or restrictions might be announced soon. At this point, however, sources said it is only whispers.
India:
The global urea market is still anxiously waiting for the next urea tender to be called. Sources said the most likely time is still during the first two weeks of July.
Even as India works to cut deals with Russia for fertilizers, sources said India will have to buy at least 1.5 million mt in this next tender to meet basic urea demands by farmers. Reportedly, two more similar purchases will need to be completed quickly after the latest tender closes.
Efforts to buy Russian product are seen as a win-win for India. They might get more urea than usual from Russia, and thereby reduce the amount they will have to buy in a tender. The price most likely will also be well below market levels.
Already there are reports that Russian urea is being shopped around at levels even below what Iranian suppliers are willing to accept. The reason for such low-priced offers, said sources, is to encourage buyers to ignore the economic sanctions against Russia. While the sanctions do allow for the purchase of Russian fertilizers and food products, making sure the financing for the products and insurance for the vessels does not conflict with the sanctions has many nervous.
Urea imports for January-April were reported at 3.6 million mt by Trade Data Monitor. This is a major jump from the 1.4 million mt imported during the same period in 2021. Arab Gulf producers accounted for about half of the imports, while Russia sent 296,000 mt during the first four months of the year.
April 2022 imports were reported at 353,000 mt, up from the 177,000 mt imported during April 2021. Interestingly, Finland was reported as the top supplier with 53,000 mt. Chances are, said sources, this was really Russian urea shipped through a Finnish port.
Indonesia:
January-April exports were reported at 471,000 mt by Trade Data Monitor. This was a drop of 18% from the 572,000 mt exported during the same period in 2021. The top two buyers in the first four months of the year were India at 137,000 mt and Australia at 106,000 mt.
April 2022 exports were reported at 268,000 mt, up 28% from the 219,000 mt exported during April 2021. Australia accounted for about one-third of the exports, taking 99,000 mt.
Brazil:
Urea prices continue their rebound in Brazil. Sources put the landed price at $650-$680/mt CFR, with people still talking about exceeding $700/mt CFR.The price in Rondonópolis has also moved up to $780-$815/mt FOB ex-warehouse as buyers begin anticipating needs for the next application season.
Turkey:
January through May 2022 imports of urea were reported at 825,000 mt by Trade Data Monitor. This was down from the 1.2 million mt imported during the same period of 2021. Product from Oman accounted for more than half of the imports at 458,000 mt. The next closest supplier was Egypt with 133,000 mt.
May 2022 imports were reported at 86,500 mt, down from the 179,000 mt imported during May 2021. New supplier Qatar topped the supplier list with 44,000 mt, followed by Oman with 21,000 mt and Turkmenistan at 10,000 mt.