Urea prices soften, ammonia remains firm - Nitrogen Index down 3 points

[blockquote author="Profercy Nitrogen Report, 3rd April 2014"] The downward price trend continues.....while the level of inquiry has built slightly, it is insufficient to turn the price tide for suppliers. [/blockquote]

The low end of Profercy's price ranges fell by $5-9pt for all major urea export origins used in Profercy's World Nitrogen Index. This includes Yuzhnyy prills, Egyptian granular and Middle East granular. While the US still offers the healthiest prices, returns are eroding.

News from Russia that Ukrainian gas prices would rise to $485/'000 cbm did little to impact prices despite the implications for some producers in Ukraine. The production under threat from increased feedstock costs does not enjoy as great an influence on global urea prices as it has done in past. This is in many respects due to the high volumes of Chinese product now available in the first half of the year.

Ammonia continues to buck the trend, with prices remaining firm. The massive gulf between Yuzhnyy ammonia and prilled urea prices was explored in a blog post earlier in the week.

With further price falls for urea, as well as softening UAN, AN and ammonium sulphate, the PWNI concluded the week at 171.76, down over 3 points. The Index is based on prices quoted by Profercy through the Profercy Nitrogen Service. Further information regarding the service is available here.

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.

Profercy's Nitrogen Service includes daily news, weekly analysis and monthly forecast reports. For more detailed information on specific products and individual markets, please sign up for a free trial or for more information on the Profercy Nitrogen Service, please click here.

The methodology behind the Profercy World Nitrogen Index can be found here.