Significant cuts in new season prices

摘要

Faced with growing inventories and offtake at low ebb, major European producers elected to cut new season prices over the last 7-10 days in an attempt to stimulate demand for AN and CAN in key markets. The immediate reactions to the cuts indicate that the moves have been successful, as distributors switch from urea to nitrates where feasible. Volumes of AN traded in France for June are up significantly, and there is also evidence of good demand for forward positions at the ?2-5/mt/month premiums posted by the producers for CAN and AN, respectively.