Profercy World Nitrogen Index
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.
For the latest detailed market analysis on global urea, ammonia, nitrates and ammonium sulphate, you can sign up for a no-obligation trial of the Profercy Nitrogen Service.
Week 44 – Global urea trade remains subdued
Another week of limited trading activity has increased unease across global urea markets, with high and volatile energy prices adding to uncertainty surrounding the potential impact of the US midterm elections on the US-Iran conflict.
In the East, India's anticipated return to the market following Diwali is being closely watched, with buyers adopting a cautious approach to a potential tender. Expectations of renewed Indian demand and winter stockbuilding have prevented Chinese prilled suppliers from reducing offers. However, the expectation that India will source much of its requirements from China is pushing other suppliers to seek alternative markets. Southeast Asian November offers have eased, with some local sales reportedly concluded around $15pt lower. Chinese granular offers have also edged lower, with traders positioning November volumes towards Latin America. Australian demand remains absent.
In the West, many producers are well sold for the first half of November, although availability remains among traders and producers in North Africa and Russia, with some volumes also available from Nigeria. High gas prices and elevated European nitrogen production costs suggest that European buyers will eventually need to return to the market. However, buyers remain reluctant to extend positions while earlier purchases are still being placed and seasonal end-user demand remains slow.
Brazil continues to present a difficult market to assess, with suppliers weighing weak year-to-date imports against expectations of slower domestic demand. For now, sellers are resisting the temptation to lower offers to generate activity, with non-Chinese values holding broadly steady.
In the US, buyers continue to compete for forward arrivals, potentially seeking to mitigate the risk of Middle Eastern contract supply disruptions in Q1. January Nola values remained broadly in line with Brazilian offers midweek.
The Profercy Nitrogen Index dropped 3.34 points to 222.74.
Sign Up For Your Free Trial Now!
Provides you with our daily news and analysis, detailed weekly reports and price quotes
Sign Up TodayYou May Also Be Interested In
