Urea Prices Saw Good Start to 2018
In the week ending January 5, the prices for granular as well as prilled urea were broadly higher week-over-week.
Jan. 8 2018, Updated 9:06 a.m. ET
Urea
Urea is the most common nitrogen fertilizer used around the globe. Last week, urea prices were broadly higher than our last price update, which was about two weeks ago in December 2017. Let’s discuss prices at each of the locations below.
Weekly movements
In the week ending January 5, the prices for granular as well as prilled urea were broadly higher week-over-week. For granular urea, prices in the Middle East rose by as much as 7% to $243 per metric ton from $227 per metric ton two weeks ago. The granular urea prices in Egypt also rose by as much as 6.5% to $263 per metric ton from $247 per metric ton. Similarly, NOLA (New Orleans) granular urea prices rose ~3.9% to $220 per metric ton from $212 per metric ton two weeks ago.
Prilled urea prices also followed the same trend with prices in Yuzhny, Ukraine, rising 2.8% to $222 per metric ton from $216 per metric ton. The positive momentum in the urea movements was a positive start to 2018 for nitrogen producers (MOO) (XLB) such as CF Industries (CF), Terra Nitrogen (TNH), CVR Partners (UAN), and Nutrien (NTR).
Yearly movements
Year-over-year, however, urea prices continued to be subdued at the above locations with the exception of NOLA. The granular urea prices in the Middle East were down by 2% last week from $248 per metric ton and by 1% in Egypt from $263 per metric ton. In NOLA, the granular urea prices rose by 3% year-over-year from $215 per metric ton. In Yuzhny, prilled urea prices fell by 2% year-over-year from $222 per metric ton.