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Global urea markets continued to show strong demand at the start of May, and prices continued to be high in almost all major markets. Pakistan tendered and awarded in early May for 190,000 tonnes of both prilled and granular urea, and returned later in the month looking for another 35,000 tonnes. Together with a 90,000 tonne tender from Iran, these helped to keep Arabian Gulf prices buoyant, and Middle Eastern f.o.b. prices continued to maintain the $270-280/t band for the entire month, dipping just very slightly towards the end.
Limited supply from China also helped to keep Asian markets moving upwards, and Chinese f.o.b. rates moved up slightly from the low $260s/t f.o.b to the high $260s or even $270/t. And with gas constraints impacting on some Indonesian producers, Indonesia f.o.b. prices soared from $219/t to $275/t.
For most of the month Russian prices kept pace, and hovered above $265/t f.o.b. However, towards the end of May Yuzhnyy rates began to slip, and this seemed to mark a sudden turning in market sentiment as traders ...
Source: HighBeam Research, Excess supply causes downward correction.(UREA)