Urea
The domestic granular urea market is experiencing a reasonable level of demand destruction, with very little prompt supply available and consistently elevated prices.
Argus last assessed granular urea at A$1,420-1,430/t fca Geelong.
Suppliers and growers are struggling with the uncertainty of supply going forward, especially as ceasefire talks occur.
The market is also reacting to India’s latest buy tender for 2.5mn t. Domestic prices typically move in line with India’s buy tender indications and suppliers are expecting tighter global availability following the tender.
There are 319,000t of urea in transit to Australia, including a vessel each from Nigeria and Algeria, vessel tracking data from Kpler shows.
Phosphates
There is some demand in the domestic MAP/DAP market, but importing more tonnes will be hard with the current Middle East conflict causing delays and congestion. Australia’s typical MAP/DAP import origins are restricted, with Saudi Arabian exports obstructed by the war and Chinese exports curbed until at least August.
Australia streamlines urea import biosecurity process
Australia’s federal government has updated its biosecurity process to allow fertiliser to reach farmers quicker as growers enter seeding for the winter crop, Australia’s Department of Agriculture, Fisheries and Forestry said on 16 April.
Australia’s Incitec secures 250,000t Indonesian urea
Australian agribusiness Ridley's fertiliser distribution arm Incitec Pivot has secured 250,000t of urea from Indonesia's state-owned Pupuk Indonesia, Australian foreign minister Penny Wong said on 17 April.
Australia backs CSBP, Incitec with urea supply deals
Australian fertiliser companies CSBP and Incitec Pivot will receive support from Australia's federal government to secure urea shipments for the upcoming winter crop applications, while May imports are likely to be below year earlier levels.
Commentary and pricing supplied by Argus Media
Disclaimer: The information provided in this report is general in nature and is intended for informational purposes only.