Profercy
Profercy
Global fertilizer prices and market analysis
  • Home
  • Nitrogen
  • Phosphate
  • Potash
  • About Us
  • News
  • Contact
  • Home
  • Nitrogen
  • Phosphate
  • Potash
  • About Us
  • News
  • Contact

MMTC announces India’s 9th urea purchasing inquiry of current campaign

November 23, 2020Leave a commentGeneral, Nitrogen

India’s state purchasing agency MMTC has today announced the widely anticipated urea tender for shipment by 6 January 2021. The tender closes on 1 December.

Demand for urea has been especially high this year in India, with a reverse migration of labour owing to the Covid-19 pandemic, together with a good monsoon, resulting in a surge in demand.

This is the ninth inquiry in the current campaign which has seen over 7.67m. tonnes booked since April, with the majority, 4.85m. tonnes, secured since the 10 August through three tenders.

Furthermore, with good rainfall in the north of the country last week, India’s agricultural ministry suggests that the acreage for winter crops has risen to 8.25 million hectares from 6.45 million hectares last year, further increasing demand for urea amongst the country’s farming community.

Urea prices have firmed globally during the past few weeks in anticipation of India’s return to the market, with many traders taking positions ahead of the announcement.

Egyptian granular urea values have increased by nearly $40pt fob in the space of a fortnight, with supply significantly tightening from the region for December shipments, and producers now extending their order books for January and February shipments.

In the US Gulf, barge values have also continued to ascend, with November barges climbing from around $220ps ton fob Nola two weeks ago, up to the low-$240s late last week.

In the east, supply is tight owing to recent production cutbacks in Southeast Asia, as well as China’s firm price stance.

With the Chinese domestic market firm and producers comfortable into December, most participants expect China to remain mostly inactive in the international market in the coming weeks. Buyers in Asia requiring small volumes have been forced to pay high levels in order to draw product away from the Chinese domestic market.

Higher prices in China have also benefited Middle East producers, with large volumes committed for December by one producer at improved levels last week.

India is expected to target close to 1.5m. tonnes of urea, although in order to achieve this Chinese participation would be crucial. If China does not participate in this tender then future purchasing inquiries are almost certain to take place if the world’s largest urea importer is to meet demand to the end of the fiscal year.

By Neha Popat, Nitrogen Market Reporter

Share this content
LinkedInGoogle+TwitterFacebook
Related News
Surging urea markets show little sign of slowing down
January 22, 2021
PWNI makes largest gain in over three years with urea prices in the US up 25% while Egyptian urea values advance 16%
January 15, 2021
Profercy World Nitrogen Index makes rapid ascent as US urea prices increase 14% in a week, while values elsewhere make similar gains
January 8, 2021
Profercy World Nitrogen Index makes first decline in a month as urea values ease in slim trade
December 11, 2020
Brazilian urea imports hit all-time record of 6.36m. tonnes in Jan-November 2020
December 7, 2020
Urea: MMTC receives offers for 2.4m. tonnes with lowest offers $5-7pt above previous tender
December 1, 2020
Leave Comment

Cancel reply

Your email address will not be published. Required fields are marked *

clear formSubmit

Recent Insights
  • Surging urea markets show little sign of slowing down
  • PWNI makes largest gain in over three years with urea prices in the US up 25% while Egyptian urea values advance 16%
  • Profercy World Nitrogen Index makes rapid ascent as US urea prices increase 14% in a week, while values elsewhere make similar gains
  • Profercy World Nitrogen Index makes first decline in a month as urea values ease in slim trade
  • Brazilian urea imports hit all-time record of 6.36m. tonnes in Jan-November 2020
Archives
Topics
  • General (142)
  • Nitrogen (175)
  • Phosphate & NPKs (10)
  • Potash (4)
  • Profercy World Nitrogen Index (93)
Contact Profercy

UK Telephone: 01372 386205
International: +44 1372 386205

Profercy Ltd,
Riverbridge House
Fetcham Grove
Guildford Road
Leatherhead
Surrey KT22 9AD
United Kingdom

Send an email

Profercy Hub Login

Latest Profercy Updates
  • Surging urea markets show little sign of slowing down
  • PWNI makes largest gain in over three years with urea prices in the US up 25% while Egyptian urea values advance 16%
  • Profercy World Nitrogen Index makes rapid ascent as US urea prices increase 14% in a week, while values elsewhere make similar gains
Latest Global News
  • Profercy's Nitrogen Index is up more than 11 points this week prices up sharply for all major N products. Egyptian… https://t.co/N89hOFe5my
    22nd Jan 2021 16:35 UTC
  • Urea values have continued to rapidly increase across the globe. The US Gulf remains the focus for market participa… https://t.co/zbdJAuo3JR
    15th Jan 2021 16:36 UTC
  • N markets remain firm. UAN prices are up in the USA with CF Industries raising terminal offers for the second time… https://t.co/27bUgVLQ8j
    12th Jan 2021 10:20 UTC
Copyright © 2021 Profercy Ltd | Registered in England & Wales. Company No. 03220009.

Data & Privacy - Website by Spinach

×
Before you leave...
Would you like to download a free copy of our reports? We have a free sample of each report for you. You can also take a 2 week free trial to see the value we deliver. 

You are giving us consent to send you Profercy reports and information about our services. Privacy Policy