US Gulf:
Prompt urea barges started the week as high as $465-$475/st FOB. By midweek, they were called $405-$420/st FOB. Second-half May became $350-$365/st FOB, while first-half June fell to $320/st FOB. There were reports of all-June below $300/st FOB.
Eastern Cornbelt:
Urea was down slightly in the Eastern Cornbelt, to $480-$500/st FOB from the prior $495-$520/st FOB range. The Cincinnati, Ohio, urea market was pegged in the $480-$490/st FOB range during the week.
Western Cornbelt:
Urea remained at $480-$520/st FOB in the Western Cornbelt, with the low confirmed at St. Louis, Mo., and the high reported in the Iowa market.
Southern Plains:
Urea was quoted at $480-$510/st FOB in the Southern Plains, with the high confirmed at Houston, Texas. The Catoosa/Inola, Okla., urea market reportedly dropped to $480-$490/st FOB after beginning the week at the $495/st FOB level or higher, with inventories continuing to be described as relatively short.
“The short product inventory isn’t because of overwhelming buying, but no one is wanting to bring up barges this far into the season,” reported one contact. “And prompt upriver barges are bringing such a premium that buyers see the price crash coming, so why take the risk of the hit?”
South Central:
Urea prices were higher in the South Central region, firming to a broad $440-$515/st FOB, up from the prior week’s $430-$500/st range, with the low at Convent, La., and the high in Arkansas. Memphis urea pricing ranged broadly at $500-$515/st FOB during the week, while Kentucky sources pegged the market at $485-$500/st FOB Ohio River terminals.
Southeast:
Urea pricing was pegged in the $460-$480/st FOB range out of port terminals in the Southeast, with the low confirmed at Charleston, S.C. The Wilmington, N.C., urea market was quoted at $475-$480/st FOB during the week.
India:
Sources are still expecting to hear of a new tender call at the end of the month. The Department of Fertilizers issued a letter to the three authorized urea importers – NFL, RCF and IPL – setting the time frame for the next tender. The memo did not specify a date to call the tender, however, some are now thinking its release could mean a tender call could come during the IFA conference in Prague.
Some traders are still scrounging for material to satisfy their awards from the March Indian Potash Ltd. (IPL) tender, sources said. Most of the material appears to be coming from the Arab Gulf.
The Indian government announced the approval of urea subsidies for the current season. All told, the government will set aside $8.46 million to cover subsidies for urea purchases. The subsidies are needed to cover the difference between the imported price of the urea, currently reported at $330-$335/mt CFR, and the maximum price charged to farmers, which is $74.13/mt.
Southeast Asia:
Traders are still waiting for Indonesia’s Pupuk to call its next selling tender, for June shipment of granular urea. One source noted that the call is late in coming.
The Petronas Sipitang plant in Malaysia is back up and running. Sources said the production will be used to cover contracts rather than spot demand. The plant closed in April for an undisclosed reason. During the shutdown, Petronas bought urea from Indonesia at a premium to cover its contractual commitments.
There were reports that Myanmar is looking for 25,000 mt of granular urea. The buyers are talking with Arab Gulf suppliers for the product.
The government of Sri Lanka authorized the purchase of 25,000 mt of urea for June shipment. The cargo will be split between two companies for distribution to local farmers. Ceylon Fertilizer Co. will take 60% of the purchase, and Colombo Commercial Fertilizers will take the remaining 40%.
South Korea:
South Korean urea imports were reported at 298,000 mt for January-April, according to Trade Data Monitor, off31% from 432,000 mt in the prior-year period. April imports were 31,000 mt, down from 105,000 mt in April 2022. China sent 18,000 mt for the month, while Qatar added 12,000 mt.
China:
China’s domestic urea market is ending. Sources noted that even as local demand is coming off, production remains steady at approximately 165,000 mt/d. The buildup of reserves is affecting the ex-plant prices, though this softening has not been reflected in the export price.
As more tons are being made available for export, sources also said the time to clear tons for sale offshore is coming down. The apparent increase in urea availability has caused the price of prilled urea to edge higher.
Deals into Southeast Asia have reportedly shown netbacks to China in the upper-$320s/mt FOB. There were also reports that $330/mt FOB was hit. A reported 6,000 mt sale of prilled urea into the Philippines showed a netback in the high-$320s/mt FOB, leaving the estimated price at $325-$330/mt FOB. There was talk that the price could easily move into the $330s/mt FOB, however. So far, most of the sales were reportedly for small lots, and primarily for container sales rather than large bulk orders.
Granular urea continued to be reported in the mid-$330s/mt FOB. Sources said Fudao is still hoping to find a buyer for 30,000 mt of granular product, for shipment by the end of May.
Middle East:
Sources reported that Swiss Singapore is looking for 45,000 mt from an Arab Gulf supplier to cover part of its award from the March IPL/India tender. The trading house was also said to be looking for another 25,000 mt for Myanmar from an earlier deal.
Sohar International Urea and Chemical Ind. (SIUCI) reportedly has some spot material available for early-June shipment.
Oman reportedly closed a deal a couple of weeks ago in the high-$320s/mt FOB, moving the regional price below $330/mt FOB, a line many producers hoped not to cross.
Egyptian producers continue to hold to pricing ideas in the mid-$360s/mt FOB, and an absence of new deals has left the price at $366-$367/mt FOB. The lack of business is leaving producers with growing reserves for export.
As prices soften in the Arab Gulf, sources reported the price of Iranian urea at $290/mt FOB, but with no takers. Recent offers of at least 30,000 mt at this price level have gone unanswered.
January-April urea exports from Iran fell 15%, Trade Data Monitor reported, to 1.1 million mt from the prior-year 1.3 million mt. April exports were noted at 422,000 mt, up a bit from 417,000 mt sent in April 2022. Turkey bought 254,000 mt for the month, while Vietnam took 63,000 mt. Sri Lanka purchased 62,000 mt.
Ethiopia:
Reports are circulating that Ethiopian Agricultural Business Corp. (EABC) is looking to purchase 50,000 mt of granular urea. The move is surprising, as EABC traditionally buys urea in a large tender that closes in the last quarter of the year, for delivery in the first and second quarters of the subsequent year.
January-April imports totaled 150,000 mt, Trade Data Monitor reported, compared to the year-ago 56,000 mt. First-half imports to Ethiopia typically dwarf imports in the second half of the year. January-June imports in the country averaged 406,000 mt in 2020-2022, compared to an average 116,000 mt in July-December during the same three-year period.
Brazil:
Reports of large inventories throughout Brazil continued to pressure the price of urea coming into the country. Sources said the market has tightened to $315-$325/mt CFR. Besides the large supply of material, low-priced offers of Iranian urea have created additional pressure, players noted.
While inland suppliers continue to offer material at $460/mt FOB ex-warehouse, the few deals reported to conclude were priced at $435-$445/mt FOB ex-warehouse.
Poland:
Grupa Azoty reported a 44% decline in nitrogen fertilizer production in April, to 176,000 mt from the year-ago 312,000 mt, as Azoty aimed to bring output in line with market demand.
The group’s production of “multi-component” fertilizers fell to 30,000 mt in April, down from 82,000 mt produced in the same month last year. However, its production of specialty fertilizers saw a small boost during the month, lifting to 26,000 mt from 25,000 mt.
Meanwhile, Azoty reported that its Puławy subsidiary has restarted its Melamine III unit. Production volumes at the unit will be adjusted according to market conditions on “an ongoing basis,” the group said. The unit, shut on March 10, boasts a nameplate capacity of 90 mt/d, and accounts for about one-third of Puławy’s melamine production capacity. Two other Puławy melamine units have remained halted since last summer
Puławy’s caprolactam production, suspended on March 10, also remains shut.
Black Sea:
Prices dipped for Black Sea prilled urea. Sources now put the price at $295-$300/mt FOB.