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Southeast Asian granular urea sold at around $710/t fob

  • Mercados: Fertilizers
  • 13/03/26

Bruneian fertilizer producer BFI is understood to have sold 6,000t of granular urea at around $710/t fob following its tender on 12 March.

The cargo is set to load from the end of May to the first half of April. BFI had offered two lots of 6,000t of granular urea under the tender. Traders had expected bids to emerge up to around $700/t fob before the tender's close.

There is a marked differential between smaller and larger cargoes in the region, with cargoes of around 25,000-30,000t or more commanding premium prices given the option to ship to Australia. Prices for larger lots have pushed up to around $750/t fob southeast Asia basis levels in Australia, a price with which buyers in local southeast Asian markets are not able to compete.

The ongoing war in the Middle East, and the effective closure of the strait of Hormuz, has left Australia particularly vulnerable, given that it is entering its peak import months for urea ahead of its winter season. Australia typically imports about two-thirds of its urea from the Middle East, with Oman now the only option to buy from in the region. A lack of availability of urea from Indonesia and China is compounding the tightness in Asia-Pacific, leaving buyers to source what they can from Malaysia, Brunei and Vietnam.

Australian local urea prices are up by at least 45pc on pre-war levels, with prices hitting A$1,200/t ($1,377/t) fca Geelong this week.


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