Consensus seems to be that recent news of IFFCO setting up oxygen plants at their urea facilities will have a limited impact on production and domestic urea supply. However, some expect we could see slight reduction to capacity rates if further resources get redirected to the covid-19 effort.
Meanwhile expectations are for India to tender for their next round of urea imports by the end of the month, with rumours we could see an announcement as early as this week. The international market is eager for the tender to arrive and see what kind of volume India will absorb, following missed expectations in their most recent purchasing round.
We expect an Indian tender to provide some much needed stability to the market, which has seen urea prices slide from multi-year highs across the globe this past 4-6 weeks, with support levels yet to be found.