[Global News]Malaysia’s urea exports rise on year in May

Malaysia's urea exports totalled 122,700t in May, up by 45pc from a year earlier, according to latest GTT data.

The rise in exports was largely owing to a decrease in urea supply in the southeast Asia region, with major producer Brunei Fertilizer Industries (BFI) undergoing maintenance at its urea plant and retreating from the spot market. Malaysian state-owned Petronas' 1.2mn t/yr Sipitang plant also resumed operations in the middle of May, increasing export availability for the producer to cater to its term commitments.

Australia and Thailand were the main destinations for term shipments from Malaysia in May. Australia was the top export destination for Malaysian urea in May, with exports rising by 10pc from a year earlier to 36,200t. Exports to Thailand were also up by 80pc on the year to 32,100t.

Malaysia's January-May urea exports totalled 849,000t, up by 12pc on the year. This was driven by large volumes delivered to Thailand, which rose by 65pc on the year to 226,200t. Deliveries to the Philippines also more than doubled to 112,600t. But shipments to Australia fell slightly by 5pc on the year to 173,300t during January-May.

Malaysia's urea exports are likely to fall on the year during the April-June quarter. Petronas' 700,000 t/yr Bintulu plant began an unexpected shutdown on 30 May, restarting only on 28 June. The producer's 700,000 t/yr Gurun plant also went off line on 23 June and is likely to resume stable production by 10 July. The shutdowns could exacerbate regional tightness and urea supply availability.

Source：Argus