Profercy World Nitrogen Index
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.
For the latest detailed market analysis on global urea, ammonia, nitrates and ammonium sulphate, you can sign up for a no-obligation trial of the Profercy Nitrogen Service.
Week 30 – Nitrogen values firm ahead of Indian inquiry
Profercy's World Nitrogen Index firmed ahead of an Indian tender announcement with shipping disruption in the Strait of Hormuz ongoing, but business has cooled.
Rashtriya Chemicals and Fertilizers (RCF) will close a purchasing tender on 11 August for up to 1.7m. tonnes of urea for shipment by 24 September. Most are assessing Chinese appetite for offshore business, given that this would reduce the need for India to pull large volumes of granular product from Africa, SE Asia and Russia like it did in the prior April and June inquiries. Current local estimates largely indicate that 1m. tonnes or above could be committed from China, with several domestic and international players already holding positions.
Buyers elsewhere, particularly in Latin America, are watching to what extent Indian inquiry could raise the stakes for them. Prior to the tender announcement, quotes in Brazil had already advanced to the high-$400s pt cfr late last week with Chinese ammonium sulphate supply in question. However, into this week some buyer resistance was evident.
In Argentina, granular urea was sold over $515pt cfr while west coast Mexico has also been active. The offseason Nola market traded into the $430s ps ton fob, a moderate discount on Brazil.
The Nitrogen index stands at 224.55, a rise of 4.98 points on the week and the highest since mid-June.
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