For the week ending September 15, 2017, urea prices rose quickly. The prices at the four locations discussed below saw a positive change week-over-week. The strength in urea prices is certainly a positive for nitrogen fertilizers. It indicates favorable supply and demand dynamics for nitrogen players (MOO) like CF Industries (CF), Terra Nitrogen (TNH), PotashCorp (POT), and CVR Partners (UAN). Let’s look at how urea prices moved at the below four locations.
Last week, granular urea prices in the NOLA (New Orleans) region rose 6.2% week-over-week to $203 per metric ton from $191 per metric ton a week ago. Similarly, prices in the US Cornbelt region rose 3.3% week-over-week to $225 per metric ton from $218 per metric ton a week ago. In NOLA, granular urea prices have risen 22% YoY (year-over-year). In the Cornbelt region, prices have risen 18% YoY.
In the Middle East region, granular urea prices rose as much as 6% week-over-week to $230 per metric ton from $217 per metric ton a week ago. Granular urea prices in the Middle East location rose 24% YoY last week.
We also observed similar movements in prilled urea prices last week. Prilled urea prices rose as much as 5.1% week-over-week in the Yuzhny, Ukraine, location to $229 per metric ton from $218 per metric ton a week ago. Prilled urea prices at the Yuzhny location have risen 21% YoY.
In the next part, we’ll discuss natural gas prices. Natural gas is a key input material for nitrogen fertilizers.