November 24 , after negotiations between Iran and the six countries in Geneva to resolve the Iranian nuclear issue reached a stage agreement , European and American economic sanctions against Iran will be canceled. This message will be greatly beneficial to Iran fertilizer exports , but increasingly serious overcapacity contradictory international urea market, will no doubt be bad news .
Previously , according to the sanction agreement , Iranian petrochemical products , including ammonia and urea exports were suspended. Iran before August this year, the export volume of 1.3 million tons of urea decreased significantly compared to 1.9 million tons last year. Meanwhile, 80 percent of the country’s exports of urea flows between the two countries , India and Turkmenistan. Termination of the current sanctions against Iran have not yet determined the exact time , there is news that may be next year in January . Cancel the sanctions will make Iran urea has a broader international market, while the annual export volume of urea in the country is expected to recover to 300 million tons.
China came in 2014 , after the fertilizer export policy will further relax the news that Iran economic sanctions will be terminated , these messages will undoubtedly bad overcapacity increasingly serious international conflicts urea market , and the international urea prices rebounded form resistance. By the end of 2012, global production of ammonia and urea were able to reach 203 million tons and 192 million tons , production was 166 million tons and 168 million tons . In this year , in addition to China will have a total capacity of 18 800 tonnes of urea production project , the international market will have a total production capacity of 5.3 million tons of urea, four projects have been put into operation, these projects are located in Turkmenistan, Algeria and the United Arab Emirates .
Earlier , Europe ‘s economic sanctions against Iran to the Asian market price of urea has brought downward trend , India’s imports of Iran’s main choice of urea , thus crowding out other exporters share, resulting in lower prices in the Indian market , to bring China ‘s urea trade some influence . Therefore, the termination of next year will allow Iran sanctions broader urea export markets , which will benefit the urea market in Asia , but for the global market as a whole will continue to be unfavorable factors .
For international urea market next year , in addition to focus on new capacity into operation and, in the urea supply, should be concerned about the same subject to the operating rate of the natural gas supply trapped in Egypt urea , subject to import Ukrainian urea cost of gas prices around from Russia , due to stop loading Algeria blocked the export of urea loading limits and other problems caused .
Urea demand side, should be concerned about the global economic situation , the level of volatility in food , the weather and other factors caused abnormal demand for urea ….
