Profercy’s Nitrogen Index utilizes key global nitrogen fertilizer prices to derive a value for nitrogen as a crop nutrient. The Index provides a useful and straightforward tool to gauge the overall health of the World market for nitrogen fertilizers.
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| Market Status: Weak | 25 September – Week 39: Urea values wane as market awaits India tender
The market continues to expect another Indian tender to be announced soon. However, these expectations have done little to trigger any meaningful demand across most, if not all, other major import markets. In SE Asia, one cargo for October shipment was sold down $17.50pt below last done at $395pt fob. Inquiry for Latin America saw a Chinese granular cargo placed just above $400pt fob, around $5-15pt below earlier supplier targets. In the Middle East, business has been light given the lack of interest but suppliers have opted to sit on the sidelines. Offers in the region moved lower in tandem with the declines in SE Asia. In Iran, producers cut offers to below $370pt fob with ongoing tenders struggling to solicit demand. Values in Brazil edged lower throughout the week to $420-425pt cfr although limited sales around $10pt also took place. Overall, the market is largely in a wait-and-see mode ahead of India and with few regions required to step in and book tonnes. Much depends by the volumes sought by India in the next tender along with the extent of Chinese supply. The index declined by 1.81 week on week to 191.85 points. The year-to-date average is 36.5 points higher than the same time last year, standing 190.21 against 153.71. |
The Index is updated each week. An overview of the methodology can be found here.