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Urea prices have fallen sharply over the past five years, largely because of lower energy costs. The global urea cost curve has now steepened since 2Q16 as Chinese coal prices rose and government subsidies fell.
Chinese producers' average urea operating rate dropped to about 50%.
China is the marginal urea producer, so its higher coal-based production costs lift the global price floor. Low-cost gas producers such as CF Industries may gain relative to coal-based rivals.
marketrealist.comAdam JonesMar 22, 2017Not enough comparable past events yet for a historical read.
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.
