US granular urea barge stalls after $50/st jump

15 April 2008 16:42  [Source: ICIS news]

LONDON (ICIS news)--US granular urea prices have stalled after jumping around $50/short ton in a few days, traders said on Tuesday.

Prices shot up dramatically last week on news of the imminent Chinese export tax hike.

Prices climbed around $40/short ton (€25/short ton), hitting $400-410/short ton (FOB (free on board) Nola (New Orleans) by 10 April.

Prices continued to rise at the end of last week, with barges reportedly trading at $460/short ton FOB Nola.

However, prices have now slowed, with current indications still around $450-460/short ton FOB Nola.

“It seems they quickly jumped up and have now stabilised,” said a trader.

The Chinese tax news alone drove the recent price movement, as ongoing bad weather continues to hamper domestic demand and cause problems on the river systems.

“The levels are still high. The Arkansas river is still unnavigable,” explained a trader.

As a result, there are still barges fleeted in the US Gulf waiting to travel upriver.

($1 = €0.63)

By: Carl Roache
+44 20 8652 3214

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