*Supply tight*
Limited spot availability reported.
*Weather impact*
Rain delays in key regions.
*Inventory update*
Levels at 22% capacity.
*Weather impact*
Rain delays in key regions.
*Weather impact*
Rain delays in key regions.
*Prices up*
Spot market sees a $13/mt increase.
*Prices up*
Spot market sees a $6/mt increase.
*Supply tight*
Limited spot availability reported.
Prill Urea Tender ex PIM dd 26th Mar
OE : USD 385
H1 ?
Liven 389.11
Samsung low 380s
GB 370
Ameropa still not revert
Camelot regret
Oracle regret
Aditya regret
Rest still checking
Read pages 14 + 20
From Europe price levels are not workable due to high freight and EUR/USD exchange rate
For your reference indication for Polish product is:
USD 729 PMT CIF Barranquilla
USD 725 PMT CIF Valparaiso
April Shipment for 1MT Big Bags with pallets in 20-foot containers
Some of the world’s biggest energy traders are making waves in global metals markets by taking positions so large that they prompted questions from the London Metal Exchange.
Vitol Group and Gunvor Group have both taken long positions in the past few months in the LME aluminum contracts nearing expiry that were at times larger than the readily available stock in the exchange’s warehousing network, according to people familiar with the matter, who asked not to be identified as they weren’t authorized to speak publicly.
A push into metals by several giants of energy trading has been the talk of the industry in the past year, as the firms embarked on a hiring spree that drove up salaries and bonuses. But this is the first time they’re playing a major role in the markets, challenging the dominance of incumbents Glencore Plc and Trafigura Group.
The positions were in contracts that have since expired, and it’s not unusual for big traders to take large positions on the LME in an attempt to secure relatively cheap supplies of physical metal. Vitol and Gunvor’s recent entry into the market means they don’t have the longstanding contracts to buy direct from producers that more established traders do.
The LME’s contracts are physically deliverable, meaning that while the large majority of positions are closed out before expiry, traders can hold onto positions to receive physical metal in an LME warehouse somewhere in the world. Doing so, however, can cause strains in the market, squeezing other market participants with short positions.
The aggressive moves by Vitol and Gunvor caused consternation among rivals and helped push spot aluminum prices to a premium over futures for delivery in three months — a hallmark of a tight market.
The LME has asked both Gunvor and Vitol about their aluminum positions in recent months, the people said. The exchange asks traders with big positions in contracts nearing expiry how they intend to handle them without disrupting the market — a step that’s often used as a way to encourage them to reduce their positions
Morning. Active start to the week on paper as Urea values continued to slide; April AG/Egypt traded $360 (down $5 from Fri), May AG slipped sub-$350, while Brazil focused on deferred months.
AG
Mar $385//$395
Apr $350//$359 – traded $360
May $342//$350 – traded $350(1.5k) – $348
Jun $340//$350 – traded $352 (1.5k)
Cfr Brazil
Mar $385//$390
Apr $355//$364
Jun $348//$357 – traded $355 (3k)
Aug $357//$365 – traded $360, $358, $360
Sep $360//$370
Egypt
Mar $395//$405
Apr $355//$362 – traded $360
May $347//$360
Jun $340//$365
Nola
Phys: Mar traded $370. Apr $358
Mar $375//$383
Apr $355//$365
May $345//$355
Jun $330//$350
Option: Apr $370 Call traded $5
UAN Nola
Mar $294//$303
Apr $305//$320
May $292//$310
Q2 $285//$300
DAP Nola
Mar $610//$620
Apr $580//$610
May $582//$600
LONDON (ICIS)—Hearing granular urea business in Egypt at 365 FOB for 10,000 tonnes for April shipment. Like the previous few deals, we have no further details.
Matthew O’leary – Aquifert added +389 70 234 952