The Nitrogen Index jumped 4.87 points to 111.28 this week, a level not seen since March this year. Urea markets remain firm with Egyptian granular urea prices surging $20-25pt and with Arab Gulf producers achieving over $240pt fob for end-September/early October shipments. Major volumes have been sold by producers in the past week for both September and October shipment. FSU granular urea values have also gained. Producers generally remain confident while traders are under little pressure to liquidate longs.
The market rally came shortly after the announcement of the latest Indian urea tender. The tender closed 8 September and saw lowest offers $38-42pt above those in the 20 July tender. Well below 1m. tonnes was offered firm.
Buyers in Brazil have faced ever increasing offers throughout the week, although only a handful of sales have been reported. While demand in the US is seasonally slow, the US Gulf market responded to the international sentiment by rallying $20ps ton this week. Offers at the terminals have been adjusted to reflect the rally in the Gulf.