CF Industries sees Q2 urea prices above 2017 levels

|About: CF Industries Holdings, Inc. (CF)|By:, SA News Editor

CF Industries (CF +0.9%) says it expects Q2 global urea prices to remain above levels from a year ago amid strong global demand, higher feedstock costs and freight.

Globally, CF sees increased urea demand in India and Brazil supporting global prices during the next few months, and international urea prices should gain support from higher energy prices in eastern Europe and China.

CF says Q1 granular urea sales volumes totaled 982K tons, up 3% Y/Y due to increased production from its Port Neal, Iowa, plant, while average urea selling prices rose by $21/ton from a year ago to $269/ton on tighter international urea supply.

UAN sales volumes fell 10% to 1.67M tons as unfavorable weather delayed spring applications primarily in the Southern Plains, while average UAN sales prices fell by only $1/ton from the prior-year quarter to $170/ton.

Ammonia sales volumes fell 28% Y/Y to 664K tons because of delayed pre-plant demand and applications in the Midwest and Southern Plains, but tighter global nitrogen supplies raised average selling prices by $12/ton from the prior year to $319/ton, offsetting lower sales volumes.

Earlier: CF Industries beats by $0.01, misses on revenue (May 2)

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