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Pakistan's government has reportedly cut the variable contribution margin on urea by 20%, from Rs 294 to Rs 234 per bag. The decision follows projections that national urea stocks would fall below the 200,000 MT buffer level by December 2020.
Lowering the margin supports domestic urea supply and reduces the risk of shortages, which trims the need for imports and is mildly bearish for urea.
brecorder.comMushtaq GhummanJun 19, 2020After 34 past bearish policy events, Urea moved a median -0.8% over 5 sessions (38% higher; middle half -3.3% to +1.8%), and -4.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
