Fertilizer Prices Report

7. February. 2010

Prilled Urea; FSU prices have consolidated in the 290-300$ pt fob range. Good demand is expected over the next 30 days in Latin America, Turkey and Europe (if granular prices appreciate further). There is also the chance of an Indian tender which would be an added bonus for suppliers.
 
Chinese prilled urea is being offered from bonded store at 315-320$ pt fob, too high to meet buyers’ price ideas in nearby markets.
 
Granular Urea; Another 50-60,000t of Egyptian granular has sold this week at 335$ pt fob, mostly for shipment to Europe. High nitrate prices in the EU, up Euros 10pt this week, are supportive of this price but the weakening Euro is a concern. In the Middle East granular prices have moved on to 320-325$ pt fob for limited spot availability for February lifting.
 
The main price advance witnessed in the urea market over the past week has been in the Middle East with granular urea sold for February shipment at 321- 324$ pt fob. In addition a cargo of prills has been sold at 330$ pt fob, albeit to a nearby market. FSU and Egyptian prices have consolidated:
 
 In Yuzhnyy product has been sold in the high-$290s pt fob for February and again at 300$ pt fob for first half March.
 Egypt has placed a further 55,000t of granular urea for February shipment at 335$ pt fob and one small cargo at 340$ pt fob.
 
On the demand side in Asia, India has yet to announce any new tender. The usual uncertainty over India’s intentions is limiting the propensity for risk taking by most traders.
 
In the West, cfr prices are moving up with Brazil having paid 330$ pt cfr for FSU prills en route and 365$ pt cfr equivalent for granular.
 
Higher nitrate prices have added to the attraction of urea even though the weakening dollar has offset some of the gain.
 
UAN; French prices have moved on to Euros 165pt FCA for 30%N but are still Euros 10-15pt below replacement cost. Romanian product has sold at 220- 225$ pt fob this week while a Bulgarian cargo has been booked at 220$ pt fob, possibly for the US/Canada.
 

Source: Argaam, Profercy report, Fertilizer-Index.