Prospects of increased prilled urea availability via planned re- starts at Ukrainian urea plants have pushed end-user price ideas lower over the week. Following sales above $280/mt CFR in Brazil last week, a part cargo off a vessel planned from the FSU for August loading was booked July 28 with an importer at $274/mt CFR Paranagua. Offers for full cargoes at $275-276/mt CFR are reported “freely available” by importers. Somewhat surprisingly, the lower CFR quotes coincide with the overall firming of freight rates. A handymax cargo from the Baltic or the Black Sea to a fast Brazilian port can no longer be fixed at $26-28/mt. Owners are holding out for returns closer to $32/mt.The UralChem sale to Mosaic is therefore estimated to provide the producer with an even $240/mt FOB Baltic netback, at best.
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