A fertilizer expert says a large purchase of urea overseas shook up the market.
Josh Linville with Stone X tells Brownfield India followed a large purchase of urea with a tender offer for an additional one million metric tons. “We just thought that announcement would come in the middle or late December, but after that 1.5 million ton purchase, global values were under pressure, prices started to fall, and India was aware that, hey, once we get into Q1 (quarter one), there’s a lot of world demand that steps up, so why don’t we take advantage of this.”
Linville says India’s earlier-than-expected purchase shocked the system and caused urea prices to rally.
