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What Do Nitrogen Investors Want to See?

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Urea prices

For the week ending October 21, the overall movement in urea prices was positive at the four locations discussed below. Nitrogen investors want to see more positive movement. Remember, urea is upgraded from ammonia. As a result, it’s important to watch any movement in ammonia prices.

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Granular urea

Average weekly granular urea prices at the three locations rose for the week ending October 21. In the Middle East, average weekly urea prices rose 1.2% to $202 per metric ton. Similarly, in China, average weekly prices for granular urea rose 1.5% to $198 per metric ton. China remains the largest urea exporter globally.

Following the above trend, average granular urea prices in the Corn Belt region of the US rose by 43 basis points to $231 per metric ton. These upward movements are positive for nitrogen companies such as CF Industries (CF), CVR Partners (UAN), Terra Nitrogen (TNH), and Agrium (AGU).

While these positive movements are welcomed by investors (IYM), the average weekly prices at the above three locations remained 17% below the levels in the same week last year.

Prilled urea

Prilled urea prices remained flat at $190 per metric ton week-over-week in the Black Sea region for the week ending October 21. However, similar to granular urea prices, prilled urea prices in the Black Sea fell 25% compared to the levels in the same week last year.

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