Profercy’s Nitrogen Index has remained over 153 for the past three weeks, contrasting the first four weeks of May which saw a 17 point drop. The earlier fall was motivated primarily by depreciating urea prices, particularly those in the Middle East.
A more optimistic mood was evident at the end of last week’s IFA Conference in Sydney and this was supported by sales of granular product at slightly improved prices, primarily in the East and North Africa. This mood is reflected in the movement of the Nitrogen Index this week, which has held given the small changes to Profercy’s quoted price ranges for Yuzhnyy prilled urea and Egyptian granular urea. In addition, the top end of our quoted range for Arab Gulf granular urea continues to be supported by returns for contract cargoes in the US.
The main downward pressure on the Index this week has been the UAN market, which has seen a low price sale in Latin America. However, this product only has a limited influence on the Index given its relative significance in nitrogen trade when compared to more widely traded products, such as urea.
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