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Fly News Breaks for December 10, 2019
Dec 10, 2019 | 07:23 EDT
Bernstein analyst Jonas Oxgaard downgraded CF Industries to Underperform from Market Perform. In a research note to investors, Oxgaard cites his expectation of lower nitrogen prices, driven by falling Chinese coal prices, for the downgrade. While Oxgaard says he shares the consensus view that demand should be strong in 2020, he does not believe this additional demand will move the intercept on the cost curve enough to offset the declining coal price. The analyst says he expects the marginal producer of both urea and ammonia to remain a Chinese coal-based producer, albeit a slightly less efficient one.