Profercy World Nitrogen Index

Week 29 – Nitrogen values firm on continued supply disruptions

Profercy's World Nitrogen Index continued to make gains this week, with values in the West firming further while values in the East also advanced amid continued supply disruption in the Middle East.

North African values gained another $25pt, with business slower this week following considerable sales earlier this month. Producers in the region are well committed having now placed in total more than 185,000t of granular urea on a spot basis for August shipment so far.

Prices in the East have stepped up this week with material from Qatar, Saudi Arabia and the UAE effectively frozen out of international trade. Iranian shipments have also slowed significantly with regular buyers also reluctant to commit to new spot purchases.

Chinese granular urea prices were up as much as $20pt on last week as traders have been willing to take positions for August with prior cargoes already placed in Latin America. With India absent, Chinese prilled business has been comparatively light, yet some position taking has been noted with modest volume business also concluded in the low-$400s pt fob.  

Latin American demand has been evident this week. In Brazil, sales for granular urea were noted up to $465pt cfr with bid interest evident at marginally higher levels. An absence of offers of amsul due to latest policy developments in China has caused some unease in that market. In Argentina, up to $480pt cfr has been paid, while Chinese, and potentially Malaysian, product is bound for west coast Mexico.

The Nitrogen index stands at a five-week high of 219.57, up 10.04 points on the week.