Saudi Arabia's Sabic sells granular urea at $330/t fob

Saudi Arabian producer Sabic has sold 30,000-35,000t of granular urea at $330/t fob for loading this month to an Asia-Pacific market, marking a $15/t jump from previous sales.

The deal follows the news on 4 June that Egyptian producers have shut down their plants because of gas supply issues. Prices jumped by $10-15/t across most international markets.

The timing of the price rally will acutely affect destination markets east of Suez, particularly Australia and southeast Asia, as they enter their peak domestic consumption periods. This will further complicate purchases for the tail-end of the rainy season should domestic demand remain strong.

By Harry Minihan