Weekly review _ Week 47'25

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Indian urea purchase tender L1 turned out to be about $10 lower versus suppliers expectation and most of the offers in the tender. Now suppliers are in front of the tough choice – either to accept lower price which will lead to global price level reset, or to reject and put a stake at the next Indian tender, that likely will be announced very soon after finalization of this one. Decision of Chinese suppliers will be key that will show direction to the market until the end of the year at least.
Fertilizers trade flows will change as a result of the US tariffs lifting for all fertilizers (except ammonia). It is an important move that appeared right before main purchasing season start in about a month.
Ammonium sulfate price for standard and granular product became equal, as granular price was still under pressure amid slow demand from Brazil.
Nitrates producers in Europe continued increasing prices, but buyers will need to digest this increase before further purchases.
Ammonia price both East and West of Suez climbed more, but Gulf Coast Ammonia plant entering the start up phase gave market hope that pressure should be eased soon.
Phosphates price deteriorated more, and subdued global demand will push prices more down till the end of the year at least, as affordability hasn’t improved much.
Natural gas price in Europe slipped a bit due to warm weather, and price in the US firmed amid colder front arrival and steady export flows.
Future price for wheat increased amid shortage of product for immediate loading. Corn price dropped due to consumption expectation decrease depicted in the November USDA report. Soybeans price climbed on the back of China purchasing significant amount of US tons.
Container shipping rates dropped for China-US route and continued increasing at China-Europe route, but the trend is mostly bearish. Bulk shipping was active especially in Capesize and Panamax segments in most regions.