The price of urea was depressing last week because of the limited amount of purchases and the lack of activity in the market. In August, the price of urea rose too quickly, making buyers feel less comfortable. Many buyers choose to wait and wait for the next round of India bidding prices.
Predicting India's bid at the end of last week proved to be unfounded. Concerns about rising prices prompted DOF to delay the next round of urea bidding, which also cooled the market. For now, the tender in India will end in the first half of September.
Whether the strategy will put pressure on prices remains to be seen. Last week, China's large granule urea prices have risen by US $8~10 (ton price, the same below), FOB 230 U. S. dollars.
China's strict control of exports and its concentrated supply of domestic markets mean that prices can not fall below $220 offshore in the short term.
Brazil prices have fallen slightly, and the confrontation between big buyers and suppliers continues. Supplier for September shipment of the cargo CIF price has dropped to $225~235, while a buyer is required on CIF price of $217 to purchase 10 thousand tons of goods, at the beginning of the September shipment. The Brazil market still has a high demand for urea for shipment from September to November.
In other regions, urea prices steady. Egypt's big particle urea was sold at $223 off the board. For the first half of September, the Baltic small particle urea supplier quoted us $205 fob. The Middle East supplier of large particle urea spot price quoted at FOB 225~230 U. S. dollars. A small part of Yuzhnyy urea granules trading price of less than $200 (FOB).