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: Stable to firm | Week 27 – Nitrogen market sees prices wane following cooling of tensions in the Middle East, but Indian urea demand set to be strong
The PWNIndex has seen a drop of 10.12 points this week to 199.08. This was largely anticipated following the restart of nitrogen production in Egypt and Iran amid the cooling of tensions in the Middle East, however, it is still the second-highest value this year. Egypt’s return saw limited urea business take place, spurred by demand from Turkey, at $455-460pt fob with bids on the follow just above these levels. The prices are well above previous sales in Egypt at around $400pt fob which took place in late May, well before the conflict in the Middle East and production shutdowns. However, they are a notable drop on more recent North African values which climbed to above $530pt fob in Algeria. Other markets including Brazil also saw average prices erode as supply concerns eased while in Nigeria several cargoes were placed at around $420pt fob ex-Lekki. While some business took place, overall, the markets are awaiting the upcoming 7 July RCF Indian purchasing tender. With a target volume of 2m. tonnes, a figure expected to be challenging to achieve, the tender is likely to define global urea sentiment and the market direction in the coming weeks. For now, the Index is the highest it has been since 2023 except for last week. The index is currently 42.08 points higher than this time last year. The year-to-date average is 29.72 points higher than the same period in 2024, with the year average currently standing at 181.81 versus 152.09. |
The Index is updated each week. An overview of the methodology can be found here.