Swiss trading firm Ameropa is set to load 45,000t of Algerian granular urea for India under IPL's 8 April tender, marking the first urea shipment along that route since December 2023.
The firm has nominated the Spar Tarus to sail for the Indian east coast. The shipment highlights the fallout from US president Donald Trump's import tariff levy rollout, combined with dwindling demand in Europe and Brazil.
The US had placed an initial import tariff of 30pc on Algerian urea on 2 April, before granting a 90-day reprieve on 9 April. The US had been Algeria's second-largest destination market after Brazil, with Algeria's urea supplies accounting for 456,000t of US imports last year and shipping as much as 590,000t to the US in 2023.
The lack of clarity on the situation in the US likely forced the pivot towards India, with the Indian east coast price of $398.24/t cfr under IPL's enquiry offering higher netbacks and liquidity compared with Europe and Brazil at the time.
But the US market has since firmed further, increasing its attractiveness, despite the 10pc import tariffs in place. Domestic urea barge prices jumped to $435-470/short ton fob Nola on 23 April, while the European spring season is coming to an end and Brazil's appetite remains comparatively lacklustre. Algeria benefits from a sailing time of 20-24 days to the US, depending on the destination port, the shortest among major producers.
The Phatra Naree has been nominated to load around 35,000t of urea from Algeria's Arzew city to the US on 27 April, according to trade analytics firm Kpler data. Meanwhile, Egyptian producer Mopco sold 30,000t of granular urea at $395/t fob on 23 April, likely for the US.
