Southeast Asian granular urea prices have surged to $700/t fob and above, supported by escalating hostilities in the ongoing US-Iran war.
Vietnamese producer Ca Mau has sold 30,000-40,000t of granular urea to a trading firm at $700/t fob for April loading, according to market participants. The cargo will likely head to Australia, which is entering its main fertilizer application season. Australia is heavily dependent on imports from the Middle East, taking around 64pc of its urea from the region.
Petronas is also in the market offering fresh granular urea cargoes in the $700-750/t fob for May loading, according to market participants, following its sale last week at $650/t fob. No confirmation was available from the producer.
Southeast Asian granular urea prices were last assessed at a midpoint of $491.50/t fob on 26 February, before the conflict begun.
Buyers in southeast Asia have been testing the market for additional urea volumes to top up inventories, but availability is limited. BFI is largely sold out of March and April availability and is offering only first-half May cargoes, whereas Pupuk Indonesia has yet to issue a new sales tender. The likelihood of new Chinese urea export quotas also remains unlikely in the near term as international urea prices continue to rise.
