US granular urea rebounds after buying spree

28 February 2008 18:02  [Source: ICIS news]

LONDON (ICIS news)--US granular urea prices have jumped around $10-15/short ton (€7-10/short ton) following a spate of buying by one producer, traders said on Thursday.

Spot prices had fallen as low as $360short/ton FOB (free on board) Nola (New Orleans) by Wednesday 27 February morning, with some reports even suggesting a floor of $350/short ton FOB Nola.

However, on Wednesday afternoon a US producer entered the market and bought around 20 barges of granular urea, said trading sources.

Traders speculated that this buying might have been the result of production issues at one of the producer’s ammonia/urea plants, but this could not be confirmed at source.

"It has put a floor on the market and has picked up some of the barges that needed to be bought," said a trader.

On Thursday, the market was assessed at $370-375/short ton FOB Nola for prompt barges.

For the last few weeks, US demand had been sluggish with buying interest low and poor weather delaying the onset of the winter wheat season.

The US Gulf region had also suffered from an oversupply of urea barges.

($1 = €0.66)

By: Carl Roache
+44 20 8652 3214

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