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Petrobras is set to permanently shut two of its three operating urea plants in Brazil, removing roughly 0.9 million tonnes per year of capacity. The company also will not proceed with a fourth plant under construction as it seeks to divest its fertilizer assets.
Brazil already imports over 80% of its urea, so losing about 1 million tonnes of domestic output will push more import demand onto exporters and likely support urea prices from late 2018.
profercy.comChris YearsleyMar 26, 2018After 176 past bullish trade events, Urea moved a median +0.1% over 5 sessions (51% higher; middle half -1.3% to +2.4%), and +1.6% 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.
