The Profercy World Nitrogen Index saw the biggest increase in over a year this week. With US demand and escalating barge prices attracting supply from the Middle East, Malaysia and China, global granular urea prices saw a marked increase. The key granular urea elements in the Nitrogen Index, Middle East fob and Egyptian fob prices, saw the high end of their ranges increase by $33pt and $18pt respectively.
With US buying driving prices, the increase in the PWNI is similar to the run up at the beginning of 2013. The PWNI then increased by nearly 20 points through January and in the first week of February 2013 with urea markets firm.
Although not included in the index, a wider contributory factor is the higher prices required to meet Chinese producers expectations for prilled and granular urea. These now reflect the high export tax period in China leading many producers to understandably focus on the domestic market.
Profercy’s Weekly Nitrogen Report, published yesterday, included a full overview of the run up in US prices and prospective imports, as well as analysis of the implications for buyers in Europe, Latin America and those in the East. To sign up for a free trial of any of our services, click here.
The Profercy World Nitrogen Index is published every week and is based on price ranges provided by the Profercy Nitrogen Service. This includes prilled and granular urea, UAN, AN, ammonium sulphate and ammonia.
Profercy’s Nitrogen Service includes daily news, weekly analysis and monthly forecast reports. For more detailed information on specific products and individual markets, please sign up for a free trial or for more information on the Profercy Nitrogen Service, please click here.
The methodology behind the Profercy World Nitrogen Index can be found here.