Today is Saturday (February 3, 2024), and we talk about the international developments of urea**
Up nearly 200 yuan tons! This week, the international urea in and out of the country is easy to "rise across the board" again! Among them, the FOB price of small particle ports in the Middle East$10-20 increase from last week; All destinations in the Middle East - large particlesincrease by 6-20 US dollars ton; Baltic small particlesincrease by 5-20 US dollars ton; Brazilian small particlesincrease by $5-10 tonnes; Large particles in the Black Seaup $20 tonnes; Small particles in the Black Seaincrease by 5-20 US dollars ton; Egypt (Europe) large particlesan increase of $15-20 per ton; Large particles in Southeast Asiaan increase of $22-23 per ton; Algeria$25 per ton; Equivalent to RMB 25 US dollars = 17978 yuan ton (RMB) is close to 200 yuan ton!
As of Feb. 3: China Market: Small particlesFOB prices are $316-326 Ton(equivalent to RMB: 2272-2344 yuan tons).Large particles$355-360 FOB port(equivalent to RMB: 2552-2588 yuan tons).
International market: small particlesMainstream offshore** inUSD tons(equivalent to RMB: 2265-2660 yuan tons).Large particle offshore mainstream**at 340-400 US dollars ton (equivalent to RMB: 2444-2876 yuan ton).
This week, the international urea market continued to "soar across the board", with larger increases in the Middle East, Egypt, Brazil, Algeria and Southeast Asia, with FOB prices exceeding $400 tons (equivalent to about 2,800 yuan tons) in many places, and most markets in Europe have risen sharply to $420-425 tons.
On the supply and demand side: the eastern region is still tight, the Malaysian plant is under maintenance, a number of factories in Iran are shut down or run at a reduced capacity, Egypt - the world-class urea plant has been shut down for 10 days, China's urea exports are still stopping, the tension east of Suez will continue until the first half of March, and the demand from the United States, Europe, Australia and Southeast Asia, as well as another round of urea procurement tenders in India, will support the ** higher for the rest of the first quarter.
Other influencing factors: According to the Financial Associated Press on February 1, German shipping giant Hapag-Lloyd recently claimed that the Houthi attack on cargo ships in the Red Sea is unlikely to end soon, or it will take three or even five months, which forces shipping companies to continue to avoid the Red Sea route.
Brief analysis - the situation in the Red Sea continues to escalate, and soaring transportation costs and time delays "lead to a lack of exports from some shipping schedules and major suppliers, coupled with the lack of China's urea exports, resulting in continued tensions in the area east of the Suez Canal." In this context, shipping costs have increased significantly, and cargo delivery has been delayed, disrupting the market chain.
Market participants said: The soaring shipping costs and delays in shipping times caused by the continuous escalation of the Red Sea situation will continue to affect the ** in the coming period! With the increase in demand in more regions, urea producers are becoming more and more optimistic about the expectations in February, and higher prices mean that costs are increasing, and some grassroots traders are more worried, looking forward to China's urea exports returning sooner!!