Traders eye East to West opportunities amid North African supply squeeze
It has been a positive week for nitrogen prices with 6 of the 7 price ranges informing Profercy’s Nitrogen Index registering increases. This supported a 3.29 point gain for the Index, reflecting the bullish mood that is underpinning markets for major nitrogen products, such as urea, in the West. At 168.28, the Index has regained some of the ground lost through November and into December.
Urea prices have driven the increase, with major sales of granular urea destined for the West supporting notable price gains in the Arab Gulf. Prilled urea has also benefitted, with tight December supply in the West bolstering levels. As noted in our last Nitrogen Forecast, published on Monday, our global supply and demand analysis points to price improvements into Q1. How high prices can go and how long these can be sustained is ultimately dependent on the US.
While urea and nitrate markets have moved from stable to firm in the last week, ammonia markets remain weak. The market remains oversupplied and latest sales have led to Profercy’s price quote for Black Sea ammonia falling by $18pt over the week.
For the latest global prices and market analysis, please register for a free trial of the Profercy Nitrogen Service. Our December forecast, assessing the prospects for global urea markets into Q1, is available through the service.
Also available through this blog: A difficult year for producers – two factors that shaped global urea markets in 2014
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PWNI gains over 3 points with 6 of the 7 price ranges influencing the Index increasing
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PWNI gains over 3 points with 6 of the 7 price ranges influencing the Index increasing
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