Profercy’s Nitrogen Index makes largest weekly increase and hits 2012 high as nitrogen shortage bites

With the surge in global urea values showing no sign of letting up, the Profercy World Nitrogen Index has made its biggest weekly increase on record, climbing by 23.39 points and hitting a new high of 253.04, levels that were last seen in May 2012. After remaining relatively stable during the past couple of weeks,…

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Urea values surge in the west, supply tightens further as producers shutter and cutback output

With urea values already firm in the west, the situation has escalated further this week owing to the rapid ascent in spot gas prices in Europe. Ukrainian producers are now being forced to consider cutting back, or shut down operations altogether. Nitrogen production in other European locations is also considered under threat. CF Industries in…

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Urea: Slow reaction to CF Industries’ Donaldsonville plant restart; logistics still an issue

CF Industries announced late last week that it has begun restarting its ammonia plants at the Donaldsonville Complex in Louisiana. Start-up of other units including urea and UAN were to follow. In a company statement, the producer noted it will communicate directly with customers regarding impacts caused by Hurricane Ida, with shipping proceeding on an…

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Urea market rallies in the west, while east continues to await Indian announcement

The widespread anticipation of an Indian urea purchasing tender announcement and a series of related and unrelated events has led to a sharp about turn in urea values. This week, the Profercy World Nitrogen Index reversed around half of the decline of the previous six weeks. The first sign of bullishness came in the paper…

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Optimism returns to the urea market as paper market surges pre-Indian tender; physical markets slow to react

The derivatives market based on the Profercy/ICIS fertilizer index is now at a notable premium to the physical with Arab Gulf, Nola and Egypt contract values rallying late yesterday. The past 1-2 days of trading of fertilizer futures through the CME Group futures exchange has seen optimism return to the urea market. September Arab Gulf…

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As September comes into view, supply pressure mounts on producers

Despite relative inactivity, global nitrogen values have declined by the sharpest amount since the latest downturn began in mid/late July. The ongoing downturn is being exacerbated by the delayed Indian urea tender announcement. This has been widely attributed to the tendering agency in India needing to free up credit lines and resources before holding the…

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Chinese urea offers sink on weak domestic demand, escalating freight rates and delayed Indian tender

The Profercy World Nitrogen Index (PWNI) has been pressured lower, with escalating freight rates once again a matter of concern and impacting fob urea values in a number of regions this week. With uncertainty surrounding when India will announce its next tender and the Chinese domestic market in the offseason, export offers from the world’s…

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