Egypt urea prices climb further on rising demand in Europe

14 January 2011 11:53  [Source: ICIS news]

LONDON (ICIS)--Urea prices in Egypt have climbed to a new two-year high of $425/tonne (€319/tonne), mainly due to healthy demand in Europe, traders said on Friday.

Egypt-based producer Mopco closed a sales tender on 12 January for 20,000-25,000 tonnes of urea for shipment in the second half of January.

Mopco subsequently sold 20,000 tonnes to trader Transammonia at $425/tonne FOB (free on board). The cargo was expected to be transported to Europe in one or several lots.

Urea demand in Europe has strengthened, notably in France and Italy, despite uncertainty caused by recent fluctuations in the euro and US dollar.

Sellers in Egypt, which is a major supply source to the region, have benefited from the stronger demand. As a result, urea prices have climbed to $425/tonne FOB.

Last week, urea prices in Egypt were at $412-415/tonne FOB.

In the US, another established market for Egyptian urea, prices also rose, up from $380/short ton FOB Nola (New Orleans) at the start of the week to $388/short ton towards the week's end.

The US Department of Agriculture's latest crop report, which revised down several ending stocks, supported the upward price movement.

($1 = €0.75)

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By: Carl Roache
+44 20 8652 3214

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