IFA 2011: Arabian Gulf urea rises on strong demand, tight supply

24 May 2011 20:08  [Source: ICIS news]

MONTREAL (ICIS)--Arabian Gulf urea prices are rising because of strong demand and tight supply, market sources said on Tuesday.

A cargo of Arabian Gulf granular urea has been bought by a trading company at $427-428/tonne (€303-304/tonne) FOB (free on board), sources said on the sidelines of the International Fertilizer Industry Association (IFA) Annual Conference in Montreal, Canada.

The cargo will ship during June to Australia.

Last week, Arabian Gulf prices were assessed at $414-420/tonne FOB.

Arabian Gulf urea is almost sold out for June shipment and this, alongside strong demand in markets such as Australia and Latin America, has supported the price increase, sources added.

In addition, there is uncertainty regarding Chinese supply because of the government's export tax regime. This is also pressuring international urea prices.

The IFA conference runs from Sunday through Wednesday.

($1 = €0.71)

For more on urea visit ICIS fertilizers

By: Carl Roache
+44 20 8652 3214

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