BultiesBrothers schreef op 16 januari 2021 14:26:
Bericht van 14 januari
www.icis.com/explore/resources/news/2...LONDON (ICIS)--Prilled and granular urea prices in China have risen by 6%, or around $20/tonne, in less than a week, after the northern province of Hebei was locked down following a new cluster of coronavirus cases.
The rally in international levels is also supporting prices.
“There has been a lockdown of three cities in Hebei province, where a few urea factories are located. The concern is not production there but that transport may be hampered,” said a Chinese trader.
Hebei is home to two major urea factories: Dongguang, with 1.1m tonnes/year of capacity, and Zhengyuan (1.2m tonnes/year).
A local trader is understood to have purchased 12,000 tonnes of prilled urea at $305/tonne FOB (free on board) for February shipment.
China National Agricultural Means of Production Group Corp (CNAMPGC) is heard to have sold around 6,000 tonnes of granular urea to a trader for South Korea at $310/tonne FOB for February.
Domestic prices are firming because of limited supply and logistical problems. There has also been stock-building ahead of the Lunar New Year holidays (11-17 February).
Last prilled and granular levels were in the $285-290/tonne FOB range.
Chinese exports have been minimal since December 2020 because of production cuts. The lockdown in Hebei has added to the concern over logistics while the domestic season is still active.
Output rates are at 50% of capacity as cold weather has reduced coal and gas availability for the fertilizer sector.
"China is having a covid build-up. But the moment they can increase production, they will. Maybe things will ease after the Lunar New Year (12 februari) hard to say," said another trader in the region.
The lockdown in Wuhan did not impact urea business as there are no major urea plants in the province.