# Softening gas prices credit positive for urea sector: Report - The Economic Times

> ICRA reports Asian spot LNG has fallen from $9-10/mmBtu in December 2018 to about $4/mmBtu on a supply glut and mild winter demand. Lower gas costs are expected to cut urea production costs by roughly Rs 1,600-1,700 per tonne for each $1/mmBtu decline.

- Date: 2019-07-02 · published 2019-07-02T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/58405-softening-gas-prices-credit-positive-for-urea-sector-report-the-economic-times
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Cheaper natural gas lowers the main feedstock cost for nitrogen fertiliser, which is mildly bearish for urea prices over time.

## Read by commodity

- UREA: bearish ▼
- NATGAS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2023-01-09 | [Looking to a turn in the commodity price cycle - CRU Group](https://feedsoft.ai/events/10450-looking-to-a-turn-in-the-commodity-price-cycle-cru-group.md) | -2.9% | -18.7% |
| UREA | 2023-03-20 | [Global Natural Gas Prices Keep Falling as Demand Weakens, Banking Crisis Weighs on Markets – LNG Recap](https://feedsoft.ai/events/37032-global-natural-gas-prices-keep-falling-as-demand-weakens-banking-crisis-weighs.md) | +0.3% | +13.2% |
| UREA | 2023-03-24 | [US natgas prices slump after mild winter leaves big surplus \| Reuters](https://feedsoft.ai/events/37027-us-natgas-prices-slump-after-mild-winter-leaves-big-surplus-reuters.md) | -0.8% | +13.0% |
| UREA | 2022-11-29 | [Europe: Nitrates prices decline following restarts; now nearing breakeven levels](https://feedsoft.ai/events/7856-europe-nitrates-prices-decline-following-restarts-now-nearing-breakeven-levels.md) | -4.0% | -7.5% |
| UREA | 2022-06-23 | [Recession worries trigger grains selloff – The Seam](https://feedsoft.ai/events/12700-recession-worries-trigger-grains-selloff-the-seam.md) | +0.2% | +3.7% |
| NATGAS | 2020-05-11 | [Natural Gas Exports Slow as Pandemic Reduces Global Demand - The New York Times](https://feedsoft.ai/events/10443-natural-gas-exports-slow-as-pandemic-reduces-global-demand-the-new-york-times.md) | -7.2% | -2.7% |
| NATGAS | 2019-01-07 | [Moderation in gas prices will improve margins for urea players: ICRA \| ECHEMI](https://feedsoft.ai/events/61401-moderation-in-gas-prices-will-improve-margins-for-urea-players-icra-echemi.md) | +3.6% | -10.4% |
| NATGAS | 2020-10-06 | [Lower gas prices to benefit urea producers, reduce subsidy needs: Icra, ETEnergyworld](https://feedsoft.ai/events/50947-lower-gas-prices-to-benefit-urea-producers-reduce-subsidy-needs-icra.md) | +15.1% | +39.9% |

## Sources

- m.economictimes.com: https://m.economictimes.com/industry/indl-goods/svs/chem-/-fertilisers/softening-gas-prices-credit-positive-for-urea-sector-report/articleshow/70043112.cms

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.