By Ben Seamer
Urea Comments
US Gulf Urea Nola up $100 this week
Focus of urea market continues to be the lack of Chinese exports and if they will come back on the scene and European Production
Without Chinese exports resuming the market remains tighter than normal
Russia now threatening to reduce Natural Gas Shipments to Europe by 40%
Only once facility has had a short term closure in Europe – Azomures
Fear of a bearish situation is if European Nat Gas values fall, Chinese exports resume and Nitrogen demand goes away for several weeks (we are currently in a dead demand period)
Phosphates Comments
As the spring season winds down ahead of a summer fill program, buyers aren’t rushing back to the table due to a poor spring demand in the US
Global balance sheet for phosphates remains tight as we wait to see if China comes back to the table
Their original ban was meant to end in June 22, after a 2 month COVID Lockdown for the worlds busiest port Shanghai, the worlds top phosphate exporter China has been kept quiet
Support for higher phosphate market continues from absence of limited Russian tonnes and Chinese supply into the market
Local SSP prices are lower this week.
