For the Quarter Ending December 2022
North America
The price of Urea Resin in the US market kept going down during Q4 because of the steep drop in the price of raw materials during the fourth quarter. The Urea Resin price continued to drop because of poor trade fundamentals and lackluster demand. In November 2022, feedstock natural gas prices decreased by around 15%, and this pattern persisted into December, according to the figures. Moreover, the market is witnessed a steep drop in consumption from the downstream preservative industry. Weak benchmark futures and low purchasing activity prevailed in the market sentiments. The Urea-Formaldehyde Resin market continued to transact at a slower pace, and low market fundamentals further supported the downtrend of the market.
APAC
The pricing trend for Urea Resin in the Asia-Pacific region remained low in Q4 due to a lack of demand from downstream fertilizer markets. There were high expectations for the demand for Urea Resin fertilizer during India's rabi season in October, but demand remained low. The demand for Urea – formaldehyde resin was sluggish, and the supply was loose, which declined the Urea-Formaldehyde prices in the Chinese market. The downstream enterprises had sufficient inventories to fulfill the market requirement. Affected by bearish market trends, such as high inventories, sluggish domestic demand, and limited demand, regional Urea Resin prices declined with weak market fundamentals. Because of the decline in demand from industrial and agricultural clients in the APAC region, Q4 has historically been one of the weakest seasons for Urea Resin pricing.
Europe
There have been differing views on the pricing trend for Urea Resin in Europe until the fourth quarter of 2022 due to the continued volatility of natural gas prices and the feedstock ammonia. The urea-Formaldehyde Resin market moved lower as oversupply, and low interest from the preservative sector suppressed any sparkles of movement. Additionally, the supply chain was in chaos as a result of conflicting opinions regarding freight prices and the limited number of available containers. Russia increased the import quotas for all nitrogen fertilizers in November, which helped to boost the domestic supply. The fourth quarter's shifting demand was consistent with how the downstream fertilizer market reacted.
For the Quarter Ending September 2022
U.S.A
As upstream nitrogen values in the nation have fallen, Urea Resin prices in the United States have decreased in Q3. Sources claim that nitrogen values have decreased by 30% in the global market. Due to declining demand and a reduction in offtakes, prices have also decreased in the domestic market. Domestic demand from consumers in the United States is still modest, as would be expected during the offseason. As a result, a lot of the producers and traders there continue to focus on re-exporting opportunities. The global fertilizer market will continue to be impacted by the vacuum in the global supply chain, and the conflict between Russia and Ukraine is far from settled. However, it is unlikely that exports will increase considerably under the current inspection process. Urea Resin costs decreased and came to USD 1065/M.T.
APAC
Prices for Urea Resin fell in Q3 due to weak downstream demand. In addition, poor Formaldehyde futures and cautious market sentiment contributed to the fall in Formaldehyde prices in July. During the mid-quarter, the cost of Urea resin in China and the perception of Urea Resin in the local market declined. The local market's lax buying behavior meant that the upstream Ammonia's cost impact was only minimally felt. Lackluster market demand for the feedstock Urea further reduced the price. Urea Resin was listed at USD 958 per M.T. on a F.O.B. Qingdao basis.
Europe
The price of Urea Resin in the domestic market increased in the third quarter due to higher natural gas prices. Because the War's consequences in the European market still impacted the home market, manufacturing remained limited. Due to the Ukraine crisis and shipping delays, natural gas, a crucial ingredient in the production of urea resin and its derivative, has increased in price. Due to quick product availability and higher production costs, Formaldehyde trading in the European region is still restricted. Prices increased in September as a result of continued inventory use and a strengthening upstream methanol and natural gas market. Due to rising feedstock Urea and feedstock costs, energy prices increased by 3% monthly.
