Urea Methodology Consultation – Summary of responses
Following the recent announcement that ICIS would be launching a formal methodology consultation process, we have received a number of responses from key market players. To read the anonymised public responses please click on the links below.
Summary
This summary takes into account all responses, both confidential and public.
The clear majority responded that the current ICIS urea methodology provides a reliable measure of market value.
There were mixed responses to whether to introduce an Algerian FOB quote or combine Algerian and Egyptian prices into a North African FOB quote.
Some respondents suggested that the two prices should be combined, while others suggested that Algerian and Egyptian prices should be separate.
Some of the respondents also suggested that prices could be separated further, showing sales/netbacks to different regions.
Decisions
Following mixed feedback from the market, ICIS will look to introduce both an Algerian FOB quote and also a North African FOB quote to combine Algerian and Egyptian numbers. The proposed changes will be pending the start of exports from Algeria and clearer information on how product is being sold and priced. The introduction of these quotes will be communicated to subscribers using the usual channels and with the usual notice period.
Given the lack of responses to other questions in the consultation, ICIS will not be proposing any other changes to the urea methodology at this time.
To provide further comments or feedback on the ICIS market methodology for urea, please contact:
Barbara Ortner: Barbara.Ortner@icis.com
Rebecca Clarke: Rebecca.Clarke@icis.com
