Urea market sees big gains in the East and West
The urea market has seen significant price gains in nearly all markets with supply constraints continuing to push global urea prices up. Product in major export origins for first half September is heavily committed for both prilled and granular urea. In the East, there are some concerns that suppliers will not be able to meet earlier commitments destined for the West, while higher prices are being paid for FSU prilled urea.
Profercy’s price quotes for two key components of the Nitrogen Index, Egyptian granular urea and Yuzhnyy prilled urea, moved up by $10pt. Middle East prices remain firm. As a consequence, Profercy’s World Nitrogen Index has risen a massive 5.71 points to 173.07.
Ammonia surges $25pt in one week
Two weeks ago this blog noted that global ammonia markets were being hit by major supply problems, including those caused by by the ongoing political tensions and conflict in Ukraine. As expected, the market is very tight into September with key price barometers for ammonia moving up by nearly $25pt. This contributed significantly to this week’s jump in the Nitrogen Index.
Of note, news is expected imminently on the Tampa contract price for next month between a major Trinidadian export and a US buyer. The recent surge in FSU and Middle East ammonia prices will clearly have an impact.
Profercy’s World Nitrogen Index
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Profercy World Nitrogen Index: Methodology
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. A full methodology can be found here.
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