US granular urea prices rise $50/short ton

28 May 2008 17:24  [Source: ICIS news]

LONDON (ICIS news)--US granular urea prices have climbed around $50/short ton (€32/short ton) on the back of limited spot tonnage and firm international sentiment, traders said on Wednesday.

 

Prompt barges have traded up at $650-655/short ton FOB (free on board) Nola (New Orleans), around $50/short ton higher than in mid-May, just prior to the International Fertilizer Industry Association conference in Vienna, Austria, 19-21 May.

 

Tighter supply was reportedly a factor in the price rise.

 

“The demand is still high and there is nothing coming in,” said a trader.

 

Another trader echoed these sentiments.

 

“There is no spot available,” he said. “It is almost non-existent.”

 

One trading company, Keytrade, has been buying up urea for re-export to Latin America, which has impacted supply in the US Gulf.

 

Agrium has also been buying urea on the Mississippi river to rail to California.

 

“The anticipation of India coming to buy lots of tonnes on a short term basis and the Chinese [export tax] problem is also a factor,” added another trader.

  

The forward market was also firm, with urea sales above $680/short ton FOB Nola reported for July-August.

 

($1 = €0.64)

 

To discuss issues facing the chemicals industry visit ICIS connect

By: Carl Roache
+44 20 8652 3214

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