U.S. Gulf: Prompt granular barges moved up last week, trading within the $410-$430/st FOB range. The higher numbers were achieved later in the week.
Prills were called $380-$398/st FOB.
Urea imports were off 25 percent for July-December, to 3 million from the year-ago 4 million. Imports were off only 5 percent in December at 603,032 st from the year-ago 632,030.
Eastern Cornbelt: Granular urea was quoted at $440-$450/st FOB in the region, up slightly from the previous week, with the low reported at Cincinnati, Ohio.
Western Cornbelt: The granular urea market remained at $440-$450/st FOB in the Western Cornbelt, with most locations holding firmly to the upper end of that range.
California: Sources pegged the Stockton, Calif., urea market at $470-$475/st FOB last week, up another $5-$10/st from last report. Effective Feb. 10, Agrium’s granular urea postings in California firmed to $460/st FOB West Sacramento, $475/st FOB Hanford and Richvale, $505/st truck-DEL in Central California, and $515/st truck-DEL in northern California.
Pacific Northwest: The granular urea market remained at $480-$490/st FOB Rivergate, Ore. Delivered urea was quoted at $485-$515/st DEL in the region, depending on location. Several sources described urea supplies in the region as short.
Western Canada: The granular urea market had reportedly firmed to $660-$685/mt DEL in Western Canada, reflecting another $70/mt increase from last report, and up a full $140-$160/mt from December 2013 pricing levels.
Pakistan: Sources report that TCP and the Pakistan government are still in talks with the Islamic Development Bank to nail down the rules for an upcoming urea tender.
Sources say the differences lie in the different regulations that govern TCP and bank-sponsored tenders. For example, one trader noted that TCP would like to allow the urea to come from any source. The bank, however, wants to limit the source to countries that are part of the bank structure.
Another dispute is reportedly the time frame from when the tender is announced, when the tender closes, and when the letters of credit are issued.
Once the technical details are settled – and sources expect that to happen by the end of the month – TCP will call a tender for about 125,000 mt of urea.
Distribution of the urea, once imported, will be taken over by the domestic producers. Sources say the government has stripped National Fertilizer Marketing Ltd. (NFML) from its domestic distribution responsibilities.
Complaints of corruption and short-weight bags led to a massive investigation by the government against NFML and the suspension of its distribution authority.
Sources say once TCP imports the urea, the material will be allocated to various domestic producers, who will then ship the tons through their own distribution networks.
The producers are willing and eager to take on the task of distributing the imported urea, even as they continue to argue that if they were given enough natural gas for production, there would be no need for imports.
India: Sources say the fertilizer ministry people are carefully looking over the current budget, as well as the budget plans for the next fiscal year beginning April 1.
The review of how much cash is available and how much might be available is being applied to the decision as to when to call a urea tender.
Sources say that despite the assurances of the fertilizer ministry, the domestic supplies are not as large as publically stated, nor are they as low as some pessimists claim, said one trader.
The most likely time for a tender call, say sources, will be the first week of March, or maybe