In the week that ended on April 13, 2018, urea prices were broadly flat to negative at the NOLA (New Orleans) and Brazil locations. The weakness in urea prices was a continuation of the trend we’ve observed in the last six consecutive weeks.
However, when we compare urea prices to the levels they observed a year ago, we can see that they’ve held up quite well. Let’s take a closer look.
Last week, granular urea prices at the NOLA location in the United States fell as much as 3.5% week-over-week to $200 per metric ton from $207 per metric ton in the previous week. The granular urea price at this location, where CF Industries (CF), CVR Partners (UAN), Nutrien (NTR), and the Mosaic Company (MOS) are active, has fallen for six consecutive weeks, as we can see in the chart above.
Granular urea prices in Brazil were broadly unchanged week-over-week at $251 per metric ton.
While last week’s performance at the above two locations was lackluster, granular urea prices were broadly higher and remained supportive of nitrogen players (XLB). For example, prices in the NOLA region remained 19% higher YoY (year-over-year) compared to $173 per metric ton, and in the Brazil location, prices were 10% higher YoY.