PRILLED UREA
FSU prices have remained under pressure this week but there are now clear signs the fall is almost over. Turkish buyers have entered the market to book product at $275pt fob after battling to obtain lower levels. A price recovery is expected in March.
Despite the recent negativity, at presstime there were clear signs that the prilled market had bottomed out. a sale to Mexico was finally agreed at around $320pt cfr. Further, Ukrainian producers have rejected bids at $275pt fob for March while at least two Russian producers have indicated that they will hold material in March rather than sell at low prices forced by the ice conditions in the Baltic.
The above factors, and particularly the acceptance of prices over $270pt fob in Turkey are expected to result in further firm inquiries emerging for March tonnage over the next few days. Prices could/should recover as buyers recognize no further price downside is possible.
GRANULAR UREA
Middle East granular urea producers have achieved high returns for product for second half March/April shipment over the past week. Around 60,000t have been sold at $330-345pt fob bulk, $30pt above returns in the USA. Indonesian product for April also achieved a stunning price,, selling at $331pt fob. The lack of additional product from this source over the next 3-4 months coupled with the high price of Chinese urea, $320-325pt fob bulk for prills and $335- 340pt fob bulk for granular, prompted traders to book the Pusri product.
In contrast, Western markets were slow again early this week and prices came under pressure.
UAN
The French market is full with movement from tanks blocked by cold weather. Thus, attention is more concentrated on the US. A sale into the east coast at $245pt cfr has been reported, reflecting $210pt fob Baltic. Suppliers are now attempting to move prices on to $250pt cfr.
Source: Argaam, Profercy repott & Fertilizer - index.
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