Profercy’s Nitrogen Index utilizes key global nitrogen fertilizer prices to derive a value for nitrogen as a crop nutrient. The Index provides a useful and straightforward tool to gauge the overall health of the World market for nitrogen fertilizers.
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| Market Status: Weak | 12 September – Week 37: PWNI makes further declines in the aftermath of India’s 2m. tonnes urea purchase
India’s decision to only book a touch over 2m. tonnes left around 0.5m. tonnes of urea in the market that suppliers had also hoped to sell into the latest purchasing tender. In addition, at least 30% and possibly more of the volumes booked will come from China at the expense of producers in other markets such as the Baltics, Middle East and Nigeria. In the immediate aftermath of the above developments, values in Brazil, Europe and Egypt in particular readjusted lower. In the latter, producers cut prices to the mid-$420s pt fob which triggered a round of business that saw at least 150,000t of granular business take place. This lent support to the market and incrementally higher sales took place to just under $450pt fob. Of note, Egyptian values were over $480pt fob less than two weeks ago albeit against no interest. In Europe, buyers stepped into the market to build up stocks following the price declines in north Africa. Several other factors influenced the uptick in demand including the upcoming CBAM imposition from next year, lack of Russian volumes and the return of market players from the summer holiday period. Elsewhere, in Brazil, prices dropped to $430pt cfr, down around $60pt over the last three weeks. A moderate round of business took place at the newfound levels. The PWNI declined by 5.90 week on week to 198 points. The decline is among the most notable this year but is nonetheless less significant than the 9.12 drop from last week. The bulk of the price declines in urea markets occurred last week in the aftermath of India’s prices being revealed. |
The Index is updated each week. An overview of the methodology can be found here.