[blockquote author=”Profercy Nitrogen Report 17 April 2014″ link=”” link_title=””] “…there has been some comfort for producers in the West this week with modest price rebounds witnessed. Last minute purchasing by end users coincided with traders looking to cover in short sales” [/blockquote]
Profercy’s Nitrogen Index gained 2 points last week – the first increase since the end of January. The gain was supported by modest price rebounds for urea in the West and for ammonium nitrate. Black Sea and Baltic producers have been able to hold prices with traders needing to cover short positions and with small levels of spot demand evident. With supply cutbacks in Egypt, North African prices also gained with product required for Europe.
The price increases of the last week have provided some respite for a urea market that has seen falling prices for over 2 months. During this period Profercy’s quoted Black Sea price has fallen over $75pt. The notable exception to this rule has been the US, where prices have fared better over the last two months.
However, the latest developments do not point to a longer term change in market direction. While producers have been able to hold up prices in the short term, there is nothing to suggest that the market will not be oversupplied as we approach May and June.
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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.
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The methodology behind the Profercy World Nitrogen Index can be found here.