Additional Indian demand crucial for price sustainability

摘要

Substantial Brazilian purchasing of granular urea has supported prices to a degree. Available tonnage from North Africa, Venezuela, and Russia was absorbed in addition to traditional Middle East supply, but additional buying is far from sufficient to soak up inventories and July production. The surge in demand was not accompanied by a similar surge in FOB values though, as Brazilian buyers are yet to accept calls for higher prices from suppliers. Egyptian producers cite significant demand from importers in support of a firmer stance following prior deterioration into the low $190s/mt FOB. Offers for residual tonnage are being circulated closer to the $198/mt FOB high end evidenced in recent sales.