Baltic 

Prices out of the Baltic moved higher in line with broader international strength. Granular urea was assessed at $375-395/t fob, supported largely by interest from Brazil and to a lesser extent from the US. But trading activity remained limited. 

Demand from Mexico's west coast was reported, but competition from Chinese offers around $440/t cfr continued to pressure netbacks, equating to below $360/t fob Baltic. 

Prilled urea was assessed at $360-380/t fob, higher on the week but still at a discount to granular values in the absence of an Indian tender. At least 30,000t of prilled urea traded at $360-375/t fob through the week in separate deals to Brazil, the US and Africa. Offers are now up to $385-390/t fob but no deal has emerged at this level by reporting time. 

Separately, the Gazpromneftekhim Salavat petrochemical complex in Bashkortostan likely suffered conflict-related damage this week, with fires reported at the site. The complex is a major producer of ammonia, urea and refined petroleum products. The extent of any damage has not been confirmed.

Black Sea 

Granular urea was assessed at $405-460/t fob, with the range framed by sales into Turkey at the low end and firmer prices in north Africa alongside strengthening market sentiment supporting the upper end. A supplier sold 6,500t at $405/t fob to Turkey late last week, while a trader sold three lots totalling 15,000t of granular urea into Romania at $440-445/t fob. Meanwhile, offers at $475/t fob Batumi midweek found no takers. 

Socar will close a tender on 17 July to sell a total of 50,000t of granular urea. The producer will sell 30,000ton a fob Batumi, Georgia basis and 20,000t on a fob Trabzon, Turkey basis. Bids are requested on a fob, cif or a cfr basis. 

Meanwhile, heightened hostilities between Russia and Ukraine in the Black Sea did not materially affect fertilizer trade flows, with disruptions so far largely confined to wheat exports. 

Vessels and infrastructure in Ukraine’s main Black Sea ports also suffered conflict-related damage during the night of 13-14 July, Russian defence ministry said in a Telegram post on 14 July. 

Netherlands 

Natural gas prices have risen by 25pc since the end of June, driving up nitrogen production costs. The front-month contract of the Dutch TTF settled at €54.35/MWh on 15 July, up by 12pc since the end of last week. 

Gas storage levels in Europe continue to lag previous years. Storage levels stood at 599TWh on 15 July at, about 53pc of capacity, based on data from the GIE transparency platform. The deficit to a year earlier widened to 122TWh from 121TWh on 8 July, while the gap to the five-year average stayed at 210TWh. 

Romania 

Local urea was priced at $570-580/t bagged fca Constanza, up by $17.5/t at the midpoint from last week. 

A trader's offer of Egyptian urea was indicated at around $530/t cfr, CBAM unpaid early in the week. Egyptian granular urea would notionally net to around $540-550/t cfr and above. But no business has emerged at those levels. by reporting time. 

Meanwhile, a freight enquiry has been issued for the shipment of 30,000t of urea from Ust Luga and St Petersburg to Constanza, Romania, 27-29 July loading. The urea is likely to be shipped to Serbia. 

France 

Granular urea prices rose up to €515-520/t fca La Pallice, up from €485/t fca for traded volumes last week. 

Demand picked up last week following the French government's subsidy announcement on 9 July, supporting firmer price levels. 

Interest also strengthened for sulphur-enriched granular urea (40N+14SO3), with business reported at €460-475/t fca in big bags.