Urea prices remain under pressure on latest sales

Price indications for urea in north Africa and from the Black Sea have fallen, while fresh sales for Nigerian urea have taken place at $255/t fob, as the market continues to shrug off tensions in the Middle East.

Nigerian producer Dangote has sold two 30,000t cargoes of granular urea, probably at around $255/t fob for loading in the second half of this month. Bids were heard in the low $250s/t fob and below last week.

Indications for Egyptian granular urea to European markets have slipped to $300-305/t fob with bids at $295/t fob and below. Argus assessed urea at $305-310/t fob Egypt for Europe yesterday.

Indications for Algerian urea to Europe broadly span $300-310/t fob.

A supplier has sold a small lot of Turkmen granular urea at around $260/t fob Poti for loading in the first half of next month, down from offers around $270/t fob at the end of last week.

US loaded barge prices have also slipped to $300-310/short ton fob Nola, framed by bids and offers, having traded at $311/st fob yesterday. Full-April barges traded at $304/st and $305/st fob earlier today.

The physical urea market has mostly brushed aside the intensifying tensions in the Middle East, after Iran fired drones and missiles at Israel on 13 April, with two cargoes probably concluding lower at $255/t fob Iran on 15 April.

Iran exported about 5mn t of urea last year, while the Middle East accounted for 19mn t out of 52mn t of global trade, Argus data show.

By Harry Minihan