# Ind-Ra: Higher LNG Prices to Impact Urea Production Beyond Reassessed Capacity

> Ind-Ra says higher term-LNG and spot LNG prices, driven by Chinese purchases, are raising natural gas costs for Indian urea producers. Global urea prices have fallen to $200-225/t from $320/t in October 2014 amid a projected global nitrogen surplus of 15 million tonnes in FY18.

- Date: 2018-03-09 · published 2018-03-09T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/66299-ind-ra-higher-lng-prices-to-impact-urea-production-beyond-reassessed-capacity
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Rising gas costs can squeeze production margins and curtail output, but a large global surplus and India's planned import cuts keep downward pressure on urea prices.

## Read by commodity

- UREA: neutral
- NATGAS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 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) | -0.7% | +2.7% |
| UREA | 2023-04-04 | [The Russia-Ukraine War’s Impact on Fertilizer Prices in 2022](https://feedsoft.ai/events/36330-the-russia-ukraine-war-s-impact-on-fertilizer-prices-in-2022.md) | +12.8% | +20.8% |
| UREA | 2020-06-25 | [Global gas prices teeter above record lows on virus optimism, weather – The Energy Bulletin Daily](https://feedsoft.ai/events/9803-global-gas-prices-teeter-above-record-lows-on-virus-optimism-weather-the-energy.md) | +3.4% | +7.3% |
| UREA | 2023-02-16 | [Softening fertilizer prices "a bit of a gift" - Brownfield Ag News](https://feedsoft.ai/events/37644-softening-fertilizer-prices-a-bit-of-a-gift-brownfield-ag-news.md) | +0.1% | -3.1% |
| UREA | 2023-06-20 | [Morocco's OCP plans $7 billion green ammonia plant to avert supply problems \| Reuters](https://feedsoft.ai/events/35822-morocco-s-ocp-plans-7-billion-green-ammonia-plant-to-avert-supply-problems.md) | +3.3% | +9.2% |
| NATGAS | 2020-12-28 | [Supply Crunch, Brexit Deal Push Global Gas Prices Higher -- LNG Recap](https://feedsoft.ai/events/49820-supply-crunch-brexit-deal-push-global-gas-prices-higher-lng-recap.md) | -0.3% | +3.7% |
| NATGAS | 2023-02-10 | [Fertiliser prices likely to remain at high level in coming months](https://feedsoft.ai/events/11746-fertiliser-prices-likely-to-remain-at-high-level-in-coming-months.md) | +0.8% | -0.0% |
| NATGAS | 2022-08-31 | [European Fertilizer Production Falls Due to High Gas Prices 31.08.2022 - UkrAgroConsult](https://feedsoft.ai/events/40340-european-fertilizer-production-falls-due-to-high-gas-prices-31-08-2022.md) | -12.0% | -25.8% |

## Sources

- business-standard.com: https://www.business-standard.com/article/news-cm/ind-ra-higher-lng-prices-to-impact-urea-production-beyond-reassessed-capacity-118030900291_1.html

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