Market Status: Soft

Week 38 2020 – Soft sentiment in the urea market weighs on Nitrogen Index With sentiment soft in the urea market, the Profercy World Nitrogen Index lost 2.07 points this week, easing to 115.59 points. Indeed, fob values came off with September shipments still on the market and neither traders nor importers prepared to take positions for October. With no business taking place for several weeks, North African producers were forced to cut offer levels or commit cargoes on formula. Brazilian buyers remained on the sidelines confident that Q3 arrivals were significant. Only moderate demand was evident in Latin America, primarily in Argentina, Uruguay and Ecuador. While demand from India is expected very soon, the absence of the world’s biggest importer has led to a sense of malaise in the market. One notable positive for producers has been the reluctance of China to cut prices with offers holding this week. Meanwhile, nitrate and amsul values bucked the softness of the urea market and remained stable to firm. On the nitrate side, European market activity is slow with producers under no immediate pressure having sold ahead into October. For Russian producers, the domestic market is offering better netbacks than the international market. While export business is still required for a balance in the domestic S&D, it does give producers time to delay exports. In the amsul market, supply has not yet recovered from the recent surge in demand for capro amsul in July and August. Though market activity is more muted, a 60,000t inquiry from Gresik on top of other pieces of demand from others will likely leave supply tight near term. For a detailed overview of the latest developments in global nitrogen markets, as well as the latest regional market analysis and price assessments, you can receive a free trial of the Profercy Nitrogen Service.