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

PWNI continues to slide as nitrogen markets enter turbulent waters

June 17, 2022Leave a commentGeneral, Nitrogen, Profercy World Nitrogen Index

The Profercy World Nitrogen Index has descended again this week. With demand for all nitrogen products remaining lacklustre, values across the nitrogen-based complex have eroded further.

In the urea market, buyers in almost all major buying regions remained absent from the market. With demand lacking for a number of weeks, producers have been left with few options beyond cutting prices sharply or pinning their hopes on a fresh Indian inquiry in early July. Some also continue to hope for a pick up in Latin American demand, but even this is a challenge with Russian producers prioritising filling order books over achieving the highest possible prices.

Where trading activity has been taking place, it has been for small volumes. In Indonesia, a sales tender failed to generate any major buying interest this week. Small volume sales took place to traders covering short positions, at a significant discount to last done business from the region nearly one month ago. The producer has been continuing discussions with other buyers for the remaining volumes it has for July shipments.

In North Africa, Egyptian producers had previously been attempting to hold a firm line. However, following weeks of minimal buying interest, and with all still holding on to June volumes, most have now lowered their price ideas.

While in Algeria, the have been reports of indications down to the mid to high-$500s pt fob for the next round of business, a $600pt fob decline from the highs that were seen from the region in late March.

In the US Gulf, the Nola barge market came under further pressure. Traders with June barges in hand once again had to cut offers in order to generate buying interest. This led to barges trading as low as $410ps ton fob Nola, a $528ps ton decline from the all-time high that was hit in late March, and level with values that were last seen from the region in August 2021.

The latest dip in values did see a moderate improvement in interior demand, and prices ticked higher later on in the week as distributors entered the market again for new barges. However, with Nola values lagging the international market, participants continue to discuss re-export opportunities from the region.

Meanwhile, in Europe, activity had been very slow until the latest change in the European gas complex, following a Russian decision to cut gas volumes. Dutch TTF prices surged by around €40/MWh to over €120/MWh following the news. This will once again increase production costs for European producers with the threat of production cutbacks once again a reality.

With a bearish sentiment prevailing across the nitrogen-based complex, the Profercy World Nitrogen Index fell 22.45 points to 257.63 this week.

By Neha Popat, Nitrogen Market Reporter

Share this content
LinkedInGoogle+TwitterFacebook
Related News
Ammonia market turbulence shows no sign of easing as supply/demand headwinds trigger fresh price falls
March 31, 2023
Ammonia titan CF Industries boosts Louisiana production portfolio with $1.7 billion Waggaman deal
March 20, 2023
Little spring cheer for ammonia suppliers as oversupply casts long shadow over market
March 10, 2023
Global nitrogen markets yet to find a floor as supply continues to surpass demand
February 3, 2023
Global nitrogen values have declined close to pre-gas crisis levels
January 27, 2023
Profercy World Nitrogen Index falls to 16-month lows as producers await buying interest
January 20, 2023
Leave Comment

Cancel reply

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

clear formSubmit

Recent Insights
  • Ammonia market turbulence shows no sign of easing as supply/demand headwinds trigger fresh price falls
  • Ammonia titan CF Industries boosts Louisiana production portfolio with $1.7 billion Waggaman deal
  • Little spring cheer for ammonia suppliers as oversupply casts long shadow over market
  • Global nitrogen markets yet to find a floor as supply continues to surpass demand
  • Global nitrogen values have declined close to pre-gas crisis levels
Archives
Topics
  • Ammonia (12)
  • General (253)
  • Nitrogen (291)
  • Phosphate & NPKs (11)
  • Potash (4)
  • Profercy World Nitrogen Index (156)
  • Uncategorized (3)
Contact Profercy

Sales / Subscriptions: +44 (0)208 1234 418
Market / Customer Helpline: +44 (0)1372 386205
Press / Media Enquiries: Contact Us

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

Send an email

Profercy Hub Login

Latest Profercy Updates
  • Ammonia market turbulence shows no sign of easing as supply/demand headwinds trigger fresh price falls
  • Ammonia titan CF Industries boosts Louisiana production portfolio with $1.7 billion Waggaman deal
  • Little spring cheer for ammonia suppliers as oversupply casts long shadow over market
Latest Global News
  • Total volumes confirmed in the IPL urea purchasing tender hit 1.5m. tonnes this morning – awards due to follow soon… https://t.co/XFFRjJPrKD
    21st Oct 2022 07:49 UTC
  • Nitrogen markets are responding to the latest developments in Ukraine. The prospect of sanctions on Russian materia… https://t.co/o1eflZDN02
    24th Feb 2022 14:30 UTC
  • Urea - India's anticipated return to the market has been confirmed today with IPL announcing a purchasing tender to… https://t.co/pPnaDGeAkO
    29th Jan 2022 09:04 UTC
Copyright © 2023 Profercy Ltd | Registered in England & Wales. Company No. 03220009.

Terms & Conditions - 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