US urea hits record high $800 for Q1 2009

10 July 2008 18:56  [Source: ICIS news]

LONDON (ICIS news)--US granular urea traded on the forward market at a record high $800/short ton (€512/short ton) on the back of an expected supply shortfall, traders said on Thursday.

With Chinese exports all but excluded, granular urea supply for the US risks falling below requirements.

As a result, the forward urea market is strong.

US producer CF Industries sold granular urea to a trader at $800/short ton FOB (free on board) Donaldsonville for Q1 2009. Trading company Ameropa is reported to be the buyer.

Following this, CF Industries increased its list prices, quoting $800/short ton FOB for August, $810/short ton for September, $820/short ton for Q4 and $840/short ton for Q1 2009.

By Thursday, August barges had traded at $750-755/short ton FOB Nola (New Orleans), up around $10-15/short ton from 3 July.

US producer Agrium reportedly purchased about 20 barges of granular urea, which also contributed to this firming, as did rising international prices.

($1 = €0.64)

For more on urea visit ICIS chemical intelligence
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By: Carl Roache
+44 20 8652 3214

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