U.S. Gulf: Compared to the volatile market so far this spring season, most called this week quiet. While many quoted the market at $700/st FOB or less, others said it had traded as high as $715-$720/st FOB.
Prills were called $650-$680/st FOB, though there was one report that they might be higher, bumping into granular.
Eastern Cornbelt: The granular urea market was quoted at $740-$760/st FOB most regional terminals for prompt tons, with the low reported in the Illinois market. An Ohio contact quoted the dealer market solidly at the $750/st FOB level last week.
Western Cornbelt: Sources pegged the granular urea market at $740-$750/st FOB regional terminals last week. Urea pricing out of the Catoosa, Okla., market was reported at $720-$730/st FOB.
California: Sources tagged the granular urea market in California at $655-$665/st FOB where available, with the upper end reflecting new reference prices that were just taking effect from some suppliers. Although there were reports of some deals still being done under that range, most said those were deals that were booked earlier. Delivered urea postings remained in the $685-$705/st range in the region, depending on location.
Pacific Northwest: The granular urea market was quoted at $750-$785/st DEL, with dealer reference prices reported in the $790-$805/st DEL range. Some sources maintained that tons could still be pulled at lower numbers, but others discounted those reports based on very tight inventories. No tons were available from Simplot on an FOB basis out of Rivergate, Ore.
Western Canada: Granular urea pricing had reportedly firmed to $870-$895/mt DEL in Western Canada, up a full $120/mt from early-April pricing levels. The lower end of the range was reported in Manitoba and Saskatchewan, with the higher numbers in Alberta and British Columbia.
Pakistan: Sources report a number of freight inquiries for urea loadings in Iran to be discharged in Pakistan.
The move was expected following reports that TCP – on government orders – was looking for ways to engage in barter swaps involving urea with Iran. The reported trade of goods includes sugar and wheat going to Iran, and urea being sent to Pakistan.
One trader noted that the use of a barter deal may allow Pakistan to avoid any criticism from the U.S. Because the deal is product for product, no banking arrangements are required.
Even as the barter deal appears to be going through, TCP continues to have the tender it called April 19 posted on its website. The announcement does not limit the origin of the material.
Industry sources thought the tender might be recalled after news that Sabic and the Japanese development assistance agency were combining to provide funds for close to 300,000 mt.
One trader speculated that the tender may be the vehicle to set the price for the urea purchased under the assistance programs.
The tender will close in the waning days of the upcoming IFA global conference in Doha. Industry players will be watching closely to see if TCP postpones the closing date to allow time for everyone to get back home and prepare their offers.
In the meantime, the domestic urea producers continue to oppose the importation of the 300,000 mt. The latest volley came from Engro, with the company calling the import plan “irrational.” It claims there are sufficient stockpiles in the country to handle the current application season.
Engro Vice President and CFO Ruhail Mohammad told analysts April 30 that the country is carrying its highest ever inventory level of 1 million mt of urea, and to import at this stage would create a glut in the market. Engro proposed to supply urea