Local urea prices stay high
Local granular urea prices continue to be high despite the ceasefire between Israel and Iran.
International free on board (FOB) prices have eased from highs, but India's tender to import two million tonnes of urea has kept FOB prices firm as the country approaches its peak consumption period.
Argus last assessed local urea prices at A$865-885/t free carrier (FCA) Geelong on 3 July, down from A$880-900/t the previous week. Prices are expected to continue to slide, but at a slower rate than they increased.
Western Australia's urea imports come early this year
Urea imports into Western Australia were 639,380t in the first five months of the year, according to statistics from the Australian Bureau of Statistics (ABS), up 67 per cent compared to the 383,062t imported in the same period of 2024. Imports into Western Australia came earlier this year, explaining the large jump over the January-May period. Kpler data shows urea imports to Western Australia were approximately 263,543t in June, while statistics from the ABS show imports were a massive 768,774t in June last year.
This has helped insulate the west coast market from spikes in international prices. CSBP increased its urea price by A$15/t to A$835/t ex-Kwinana last week, the first increase since mid-May, in sharp contrast to suppliers to the east coast.
Australia imported 1.8 million tonnes of urea in the first five months of the year, 7 per cent higher than the 1.7 million tonnes imported in the same period last year. However, excluding imports into Western Australia, imports fell by nearly 10 per cent during that period. Urea imports into states along the east coast were much lower, with the largest falls being recorded in SA and Victoria, where imports dropped by 21 per cent and 15 per cent, respectively.
Delivered potash prices to Australia over $50/t higher compared to a year ago
International potash prices are much slower to change compared to urea and phosphates, but they can rise and fall sharply. Delivered potash prices to Australia were last assessed by Argus at $415/t cost and freight paid (CFR), $53/t higher than July last year. This is much cheaper compared to July 2022, when Argus assessed delivered to Australia Potash prices as high as $1,150/t CFR after the conflict in Ukraine began.
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.