Ammonia spot deals accelerate on improved supply, but Algerian issues persist
It has been a mixed week for global urea markets with the gulf between FSU prills and North African granular urea reaching $100pt. For the sake of comparison, the price difference between the average of Profercy’s Baltic prilled range and Egyptian granular range in the first week of this year was a much lower $55pt.
This reflects the global strength of granular markets, particularly with the US maintaining a bullish tone, as well as some supply constraints. The US barge market this week has provided enough confidence for new Middle East and Chinese spot cargoes to be booked. All eyes are now on the prospects for the granular urea market in the US from March onwards. In contrast, the prilled urea market is struggling and appears to be over-supplied, especially in the East.
Profercy’s price ranges for both Black Sea UAN and Yuzhnyy ammonia saw an increase this week, while AN remained stable. As a consequence of the mixed fortunes for urea, the Profercy World Nitrogen Index dropped back less than one point and now stands at 190.82.
Profercy World Nitrogen Index 14 February 2014
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