The World Nitrogen Index continues to fall as Urea levels plummet
- 25-Jan-2022 2:26 PM
- Journalist: S. Jayavikraman
Urea prices have been erratic in recent months due to dwindling supplies, but as we approached 2022, some price relaxations were noted. Fertilizer prices fell around the world as Nitrogen prices eased. Nitrogen fertiliser prices appear to have peaked and now have begun to fall in early 2022.
According to the ChemAnalyst database, the price of Urea in India was INR 42.3/kg, down 6% month over month. There has been limited Urea trading in the United States and the supply situation in Brazil has also improved. China’s Urea industry's operational rate grew by 3.21% to 69.42%, and daily Urea output increased to almost 150,000 tonnes, according to a Chinese Commodity Exchange report. The current level of Urea production is on a seasonal comeback, but the absolute value is at its greatest in recent years, and there is still supply pressure due to the anticipation that gas-head firms will begin production in the coming months. With Urea prices falling, consumers are taking a wait-and-see sentiment, buying only on a need on basis.
As per ChemAnalyst, “The Urea market is expected to retain a robust supply and demand trend next week. On the supply side, daily output is expected to rise even more due to the expectation of continued production by leading companies. As the Spring Festival approaches in China, logistical issues in some areas may result in a shortage of imports in production areas. Furthermore, the epidemic situation in some areas around the world, as well as heavy snowfall in the north, have hampered Urea transportation. The current Urea market sentiment is improving, but risk factors are gradually becoming more apparent. The prices will continue to fluctuate widely.”