International urea prices climb on tight supply/demand outlook
12 November 2010 13:57 [Source: ICIS news]
LONDON (ICIS)--Urea prices have climbed in several regions this week including the Black Sea, the Arabian Gulf and the
Towards the end of last week, Arabian Gulf urea traded at $384/tonne FOB but hit the mid-$390s/tonne FOB this week on a sale by
An unconfirmed deal was subsequently heard at $397/tonne FOB
US granular urea barges climbed by up to $10/short ton from last week’s high, to $393/short ton FOB Nola (
The high 110% Chinese export tax window was widely expected to be brought forward from 1 February 2011 to 1 December 2010.
With Chinese urea excluded from the international market, global supply will tighten, market sources said.
The demand outlook was strong, with the
Indian demand also loomed large, with a new purchase tender thought to be imminent. The Indian urea requirement was estimated to be between 500,000 tonnes and 700,000 tonnes, for delivery by the end of January 2011.
The expectation of a tighter supply/demand balance was supporting international price rises, market sources said.
The Chinese government was yet to officially announce a decision on the export tax regime, but was expected to imminently.
($1 = €0.73)
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By: Carl Roache
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