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. To do so, please click here.

 

Market Status: Firm
Week 41 – 11-12 October 2018: Urea market remains firm amid eastern demand

The Profercy World Nitrogen Index continued to make gains albeit at a far more measured pace this week as global nitrogen markets waited to see the final outcome of the latest Indian urea tender. The Index gained by 0.58 points this week to 153.43 points.

Lowest offers in last week’s MMTC urea purchasing tender were above market expectations and underpinned recent fob price gains for eastern urea. Price levels were primarily supported by new tender rules that essentially blocked Iranian urea from the tender. Despite facing offers at multi-year highs, India booked around 750,000t with several shipments committed from the Middle East, and notably, China.

On the whole, buyers in the West have been reluctant to support the latest fob prices for urea. One noticeable exception has been the US Gulf where barge values had raced ahead of most other western import markets in recent weeks. At the start of the week prices continued to edge up, gaining as much as $5ps ton, but this soon changed as market participants looked to lock in profits amid thin trading activity. Traders with product reduced offers closer to buying interest which resulted in a $15ps ton spread in the US Nola range.

Despite prices coming off in the second half of the week, the mid-point of the US Gulf price range remained near unchanged on the week before and the decline looks like a temporary correction rather than a change in sentiment.

For a detailed overview of the latest developments in global nitrogen markets, as well as the latest regional market analysis and price assessments, you can receive a free trial of the Profercy Nitrogen Service.

The Index is updated each week. An overview of the methodology can be found here.

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Urea: A brief price history since 1970

To coincide with the publication of Profercy’s latest long term report, an article outlining urea price developments since the 1970s and the factors causing the decline in urea prices since 2011 can be found here.