Analysis of the world market of mineral fertilizers 19.08
Prices for mineral fertilizers in the world market, USD / ton (mound and pouring in) are reflected in the graph to this news.
Carbamide ( Urea )
The increase in the quotes of carbamide will be observed until the middle of September. This is due to a halt in production in the CIS and North Africa, amid rising demand for fertilizers in the US.
The OPP is now stopped and it is not known when it will be launched. The plant’s products are export oriented. Therefore, there was an increase in the price of urea in the port “South”. Stop “Dneproazot” in September will also contribute to keeping the trend of rising prices.
Quotes of carbamide have grown. Rising prices in the Baltic region and small volumes in the Russian Federation contributed to the increase in the price of carbamide in the world market.
Due to problems with gas supplies, the plants for repairs in Egypt stopped. In Algeria, production at the Sorfert plant was stopped. In combination with a decrease in fertilizer supplies from the CIS countries, there was an increase in prices in the Mediterranean region and the world market.
In the United States, there is an increase in demand for granular carbamide. In turn, this affected the increase in quotations in the Persian Gulf. Producers from the Middle East took advantage of the situation and raised prices for products for supply to other markets. The only supplier of urea at the last Indian tender will be Iran (120 thousand tons).
Supporting the market trends, Chinese producers also raised prices for urea. Fertilizer is shipped to buyers from the countries of the Asia-Pacific region while there is no major tender in India. 700 thousand tons. Inventories of goods in ports. The capacity utilization is slightly more than 60%. The State Council of the People’s Republic of China plans to limit and control the production of urea, ammonia and phosphorus fertilizers in order not to allow the market to become saturated with these fertilizers. This step may lead to an increase in the cost of mineral fertilizers in the world market of mineral fertilizers.
The region of the Gulf of Mexico does not differ from the general picture. The quotes of granular urea grow due to the increase in demand in the US. In connection with the rise in price of fertilizers in the countries of the Middle East and the Baltic region, prices of prilled and granulated urea continue to grow. The demand for carbamide is evident in Guatemala, Mexico, Peru, Costa Rica, Chile and Nicaragua.
In the first half of September, the next tender for the purchase of urea in India is expected. In addition, the Philippines, Sri Lanka, Australia, Malaysia, Vietnam are engaged in its procurement.
The increase in prices for urea and ammonium nitrate mixture occurred after raising the price of carbamide.
In the Black Sea and Baltic regions, quotes for ammonium nitrate are stable. It should, however, expect a rise in price of ammonium nitrate as the price of carbamide has risen, and because producers from the CIS countries have aimed their views on the domestic market, volumes have decreased export opportunities.
Prices for ammonia dictate disappointing forecasts for the producers of this product. Manufacturers of high-cost products will be forced to stop production due to lower prices. And this despite the fact, that ammonia production has decreased in the CIS and North Africa.