U.S. Gulf: Granular urea prices were under pressure last week, with most sources saying the influx of expected imports was starting to hit the market.
The week started with prices quoted in the $315-$318/st FOB range. By Thursday, however, many were citing business at $300-$303/st FOB.
Chinese imports were also in the mix of imports, with sources generally agreeing that recent cargoes were higher quality product. Traders were keeping close tabs on the material as it was loaded onto vessels.
Players were closely watching to see if any of the new Algerian tons would make it to NOLA. Exports are slated to begin by late August.
Prills continued to be called $335-$337/st FOB.
Eastern Cornbelt: Granular urea pricing was lower in the Eastern Cornbelt, with sources quoting the dealer market at $335/st FOB Cincinnati, Ohio, at the low end of the range. Most other regional terminals were pegged at $345-$355/st FOB last week.
Those prices were down some $20/st from last report, but sources reported little new buying activity to test the market.
Western Cornbelt: The granular urea market continued to be quoted in the $350-$360/st FOB range out of regional terminals in the Western Cornbelt.
Northern Plains: The granular urea market remained at $350/st FOB the Twin Cities, with the North Dakota market pegged in the $390-$405/st DEL or FOB range, depending on location.
Northeast: The combination of heat and moisture made for very good crop conditions in the Northeast, with one source reporting that his location is seeing some of the best crops in decades.
“Everything looks actually too good,” he said last week. “When it’s this good, it makes you think something bad is going to happen.”
Sources reported little new buying activity in the Northeast to test the fertilizer markets.
The granular urea market had reportedly slipped to $380/st FOB Philadelphia, Penn., and $345/st FOB East Liverpool, Ohio.
Eastern Canada: The granular urea market was pegged at $460-$481/mt FOB in Eastern Canada in early August, down some $40/mt from last report.
California: Effective Aug. 1, Agrium’s granular urea postings in California dropped to $440/st FOB West Sacramento; $450/st FOB Richvale and Hanford; $475/st truck-DEL in Central California; $485/st truck-DEL in Northern California; and $510/st truck-DEL in the Desert California counties of Imperial, Orange, Riverside, and San Diego.
Those levels are down $15-$20/st from Agrium’s July 1 urea postings in the state, depending on location.
India: The IPL tender closed with the buying house taking 1.4 million mt from 10 companies. The price paid ranged from $303.50-$306.68/mt CFR, depending on the port of discharge.
Sources said IPL worked hard to get suppliers to agree to Overseas’ price of $303.50/mt CFR, but to no avail. Eventually the buying house had to settle for different prices for different ports.
The varied price formula is not unusual for Indian buyers, but one that the importers have been trying to avoid as much as possible. In the end, sources said suppliers were unwilling to lower their prices further, even in a weak market.
A tally of the awards follows.
| IPL Tender Awards | |||
| Supplier | Quantity (‘000mt) | US$/mt | Port of Discharge |
| Overseas | |||