08 August 2008 15:51 [Source: ICIS news]
By Carl Roache
LONDON (ICIS news)--Global urea prices have stalled on the back of weaker international sentiment as traders wait for further buying indications from India, markets sources said on Friday.
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At the end of July, global urea surged to record highs on large-scale Indian buying but prices in several markets have since stabilised, and in some cases, fallen.
Traders are reluctant to go long at increasingly higher prices without indications from
Activity is very low in the key benchmark
“It has been a quietish week,” said a trader. “People are waiting for
A price correction was seen in
Local trading company Hagrpota took the award at $850/tonne EXW (ex-works), equivalent to around $863/tonne FOB (free on board) and around $37/tonne lower than the business reported by producer Egyptian Fertilizer Co (EFC) a few weeks ago.
The price was understood to be $860-870/tonne FOB – again, a large fall from the $900/tonne FOB secured by EFC in July.
As in the Black Sea, weaker international sentiment in the absence of
The weakened prices of crops including corn, soybeans and wheat contributed to the negative pricing trend, by denting the confidence of buyers, particularly in the
“The corn price has the biggest impact there,” said a trader. “People are waiting [to buy urea] as they see the price falling.”
The trader added that the
Despite the current price stall, the overall tone of the global urea market remains firm.
Moreover, it was looking increasingly likely that
This will be particularly significant for
“The Indians still have a lot of product to buy and when they come they will buy aggressively,” said a trader.
“Prices will certainly firm up again. I do not think the Indians will wait very long.”
($1 = €0.65)
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