AMMONIA
U.S. Gulf/Tampa: New ammonia pricing for Tampa was expected sometime this week, and the price could climb to the $620-$640/mt range. However, one player said he believed the price could begin to dip in April or May by increments of $100/mt or more, but conceded that would not happen in March. Seller price ideas are now firmly above $600/mt DEL, with reports that a vessel was sold for delivery to Tampa or other U.S. Gulf ports at $625/mt DEL.
A number of sources confirmed the sale of a NOLA barge at $655/mt DEL. One noted that it was unusual for the price of ammonia to be higher than for urea on a per-unit basis, which could spur activity in the sluggish urea market.
Eastern Cornbelt: Illinois sources said a significant amount of fall prepay ammonia has been booked, with business concluded at $685/st FOB and as high as $700/st FOB last week. Uncertainty about what the market will do prompted suppliers to limit the blocks of fall prepay they were willing to take, but the surge of interest was high. One source said some dealers are 30-50 percent bought for the fall, following forward programs earlier in the month that started as low as $590/st FOB and have worked their way up from there.
As for prompt ammonia, most sources tagged the regional market in the $675-$685/st FOB range in Illinois last week, with dealer reference prices as high as $700-$710/st FOB in the region. One supplier was still accepting spring prepay orders at midweek at the $680/st FOB level in Illinois.
Western Cornbelt:Sources reported some interest in fall prepay ammonia. One Nebraska source said he booked tons for fall at the $640/st level FOB Iowa shipping points during the prior week, with 25 percent down and the rest due Oct. 1. Higher numbers were quoted last week for fall prepay. The upper end of the range was pegged at the $665-$670/st FOB mark in the region based on postings for cash market tons.
Southern Plains: The anhydrous ammonia market was quoted at $595-$630/st FOB in the region, with the low out of production points and the upper end FOB pipeline terminals in Kansas. There were reports of cash market ammonia as low as $595/st FOB Clay Center, Kan., last week for prompt ship, but business at that level there was not confirmed.
Effective Feb. 13, Agrium’s anhydrous ammonia postings moved to $660/st FOB Clay Center, Kan.; $655/st FOB Conway, Kan.; $650/st FOB Mocane, Okla.; and $630/st FOB Borger, Texas. The company’s delivered postings in Texas and Oklahoma moved on that date to $655/st north of Interstate 40 and $660/st south.
South Central: The anhydrous ammonia market was tagged at $605-$635/st FOB regional terminals to the dealer, with the low FOB Memphis, Tenn.
Black Sea: Producers are now asking $600/mt FOB based on rumors that $590/mt FOB was done. Asian sources say reports of business done at $590/mt FOB are being widely circulated but none could name any buyers at that level. One trader opined that this level is being pushed by the producers to justify their new asking price.
Producers have the basic law of supply and demand on their side, said one player. The port-side tanks are reportedly low and material is not flowing to the loading facilities fast enough for demand. Buyers are now waiting for the spring in the hopes that the traditional downturn in prices will happen again.
One source noted that even if the price does come down in April or May, it will still be higher than last year. Even the most optimistic buyer says the price will not dip below $400/mt FOB. Others are convinced that getting below $450/mt FOB will be a major victory for buyers.
For now, the price range is being pegged a bit higher on the high end but stationary on the low end at $560-575/mt FOB.
Middle East: Contract prices are now edging upward. Reports are coming out of the area that Qafco sold a contract cargo of about 6,000 mt to an Indian buyer for $530/mt CFR. Industry sources say that price represents a netback of about $470/mt FOB.
Previous contract prices hovered around $430/mt FOB. The price achieved by Qafco indicates that the contracts are rushing to catch up with the spot market. Buyers were hoping obviously that the spot market would drop to meet the contract rate rather than the other way around.
Area producers are reportedly sold out. Only the rarest of cargoes are being offered in the spot market. Anything larger than 6,000 mt is nearly impossible to find for a spot deal. In one case, said an Asian trader, Mitsui assembled a series of small cargoes for a sale of 23,000 mt to the U.S.
Even as the contract market rises to $450-$470/mt FOB, sources say the spot market has tightened on the low end to $520-$530/mt FOB.
India: Buyers continue to pull contracted tons as fast as they can be loaded. At least two cargoes were loaded for India this past week. Another 9,000 mt was also reportedly sent from another producer as part of an older swap deal.
The delivered price has gone up under new contracts. Sources report that a 6,000 mt cargo from Qafco was purchased at $530/mt CFR. The math on the deal indicates an increase of $30-$40/mt.
Demand remains strong. Sources say Indian consumption will continue to draw a great deal of the ammonia produced in the Middle East on a steady basis.
Southeast Asia: PhilPhos bought a cargo of 6,000 mt from Kaltim at $550/mt CFR. Sources say this price is favorable, especially when calculated into an Arab Gulf equivalent price.
The sale from Kaltim to an offshore buyer is causing some dislocation for Indonesia-based firms. Reportedly Gresik was counting on some of the ammonia being sent to the Philippines. The joint-venture operations KPI and KPA were also looking to take some of the Kaltim ammonia to supplement their own contracts. Reportedly the two joint-venture companies are overbooked.
Japanese buyers are looking with trepidation to the coming spring. Sources report spring is the traditional period of routine maintenance shutdowns. Because of the tight and expensive international market, those companies that have the facilities to receive imports are bracing for a financial shock when they have to go off shore to replace the lost domestic product.
Many observers in Asia were looking at the shutdown of the CF Medicine Hat facility in Canada. The unscheduled shutdown of the #1 ammonia production line has some buyers concerned that if CF has to buy foreign ammonia to cover its contracts, the international market could tighten even more.
UREA
U.S. Gulf: Urea prices continued to erode last week, but took a bounce upward at midweek. Players said most bins were already full in anticipation of the beginning of the spring season, and barges were not selling. Weather has been the biggest problem, because wet and cold have kept farmers from starting work on their fields. Once that activity begins in earnest, the product was expected to start moving quickly and the price will probably move up again.
Early last week, the price of a NOLA urea barge fell into the $360-$365/st FOB range, but climbed to $372/st overnight on Wednesday morning. At the same time, the futures or swap price was running $370-$375/st FOB for March and April.
Eastern Cornbelt: Granular urea pricing continued to drop in the wake of softer barge pricing at the U.S. Gulf. The low end was quoted at $415/st FOB to dealers out of Illinois terminals on a spot basis, with the upper end of the range pegged at the $440/st FOB mark out of inland points.
Western Cornbelt: Granular urea pricing was down again from last report. Sources tagged the market at $415-$440/st FOB in the region, with the low FOB St. Louis, Mo., and also out of some Iowa shipping points. One Nebraska source quoted a delivered price last week of $450/st.
Southern Plains: Another downward pricing adjustment for urea was a topic of interest among regional dealers last week. Effective Feb. 25, Koch’s dealer reference levels slipped back to $390/st FOB Inola, Okla., and $395/st FOB Enid, Okla., down $20/st from the previous postings. It appeared other suppliers were conceding the point as the week advanced, and sources consistently called the Arkansas River terminal market in the $390-$395/st FOB range in Oklahoma last week.
South Central: Granular urea was quoted at $410-$420/st FOB regional terminals to the dealer. Arkansas and Tennessee sources reported some movement of urea and ammonium sulfate in aerial applications on wheat. Sources said growers were anxious to get started on wheat topdressing, but wet field conditions slowed the process.
Southeast: The granular urea market was reported at $450-$460/st FOB port terminals, down from last report. One source said delivered pricing would technically fall in the $425/st range from the U.S. Gulf for new tons, but others said suppliers were trying to hold the terminal price up until movement kicks in.
Black Sea: Sources report that the market has slipped some more. Observers report price levels at $315/mt FOB but without specific deals to back up the claim. As far as many in the industry are concerned, prices being tossed about now are more reflections of private talks and “what if” scenarios.
February loadings are reported at 300,000 mt, but all under old contracts. New business for March is still difficult to nail down. Sources report that as long as India remains out of the market, the prices in Yuzhnyy will continue to soften. Even calls for extra tons from Africa will not help hold up prices, said one observer.
Latin American buyers also seem more than willing to sit on the sidelines for a while. Sources say many of the major buyers picked up more tons than they needed last season because of the belief that deferring purchases would only mean significantly higher prices.
Reportedly, Indian buyers were talking to producers and traders looking for some long-term purchases. Sources say the buyers left empty-handed.
Even though finding an actual deal to confirm pricing ideas was difficult, the industry appeared to be ready to call the market $315-320/mt FOB, with more drops to come.
Middle East: No new sales in the area kept the urea market in the same general zone. Industry observers disagree on the low end, with some calling it $390/mt FOB and others $5/mt higher. There does seem to be general agreement on placing the upper end at $400/mt FOB, however.
Indian buyers were also seen in the area talking to producers for contracts. While nothing was settled by week’s end, sources say the talks are likely to continue. The major dispute – as always – is the price. The buyers are looking for a substantial cut in the current market price in exchange for regular shipments. The producers are looking for existing – or slightly lower – prices and regular shipments.
One Asian source noted that if the Indians don’t move up on their pricing ideas, they will have to walk away from the talks without a deal in hand. So far, according to sources, the strong hand is with the producers. Demand has been strong enough that they are fully booked for March.
Indonesia: Domestic demand is strong. Sources report just about all the output of the state-owned plants will be needed. No exports from Indonesia are expected until at least the third quarter, even if then.
China: The logistic logjams caused by one of the worst winters in recent years appear to be cleared up. Sources report rail cars – when they can be found – are once again moving material from the factories to regional distribution centers.
The strong domestic market currently has producers looking inward instead of to the offshore market. Once India announces its intention to buy, however, sources say some Chinese material could be included in the purchasing plans. The cargoes to India, however, will start moving in April. By that time the domestic market will still be running at a fever pitch, and the export duty will be increased from 30 percent to 35 percent.
Just how many tons will flow from China to foreign buyers will depend on how strong the international market becomes. A crash in the Black Sea or Middle East prices could be enough to make Chinese product only mildly competitive.
Bangladesh: Parts of the national government continue to reassure farmers that enough urea will be on hand for their application seasons. At the same time, other parts are expressing concern that a urea shortage is looming.
Asian sources say both parts of the government are right, depending on the time frame one looks at. For now, there is enough urea on hand, say sources. However, in the next 30-45 days, shortages will begin appearing and soon turn into major deficits nationwide.
Domestic production is not enough to keep up with demand. At the same time, sources say, some of the domestic plants are experiencing difficulties in reaching maximum output. One of the overriding issues is obtaining adequate supplies of natural gas.
Imports are becoming more difficult because many of the trading houses that once competed in BCIC tenders have given up on securing any business with the country. Long delays in making awards and then issuing letters of credit has led to widespread disillusionment with BCIC.
NITROGEN SOLUTIONS
U.S. Gulf: Nitrogen solutions continued to be weak last week, and prices reflected that situation. The price range was $300-$315/st FOB for a NOLA barge. As was the case with urea, bad weather was hampering movement and limiting fieldwork. Most players agreed sales should begin to pick up in early March, once farm activity begins. Bins in most areas were still full, and no replacement product was being sought.
Eastern Cornbelt: The UAN market was generally quoted at $11.41-$11.65/st FOB regional terminals, with dealer postings as high as $12.00/unit FOB some locations.
Western Cornbelt: UAN-32 remained at $11.34-$11.72/unit FOB regional terminals, with the upper end reported in Missouri last week.
Southern Plains: The UAN market generally fell into the $11.25-$11.61/unit FOB range in the region last week, with the lower numbers out of production points. There were reports of reference prices for UAN-32 as high as $400/st ($12.50/unit) FOB in western Texas, but new business at that level was not confirmed.
South Central: The UAN-32 market was steady at $350-$365/st ($10.94-$11.41/unit) FOB regional terminals to the dealer.
Southeast: UAN-30 was quoted at $325-$330/st ($10.83-$11.00/unit) FOB Norfolk, Va., and Wilmington, N.C. Sources tagged the current vessel market in the mid- to high-$350s/mt C&F.
AMMONIUM NITRATE
U.S. Gulf: Sources said some movement of ammonium nitrate out of warehouses had begun, but sales were still slow. Prices essentially stagnated at $355-$365/st FOB for NOLA barges, but most players put the price closer to $355-$360/st FOB. Applications for pastures could be reduced this season due to lower margins for cattle.
Western Cornbelt: Ammonium nitrate was pegged at $390-$395/st FOB, with the upper end in Iowa. Nebraska sources quoted delivered nitrate at the $405/st mark from Oklahoma shipping points.
Southern Plains: Ammonium nitrate was pegged at $375-$380/st FOB Catoosa, Okla.
South Central: Ammonium nitrate was quoted at $385-$395/st FOB in the region. One Arkansas source placed the CAN-27 market firmly at the $300/st FOB mark last week.
Southeast: Ammonium nitrate pricing was up from last report. The market was quoted at $395-$400/st rail-DEL in the Carolinas, and $390-$400/st FOB Tampa, Fla.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $290-$300/st FOB in the region.
Western Cornbelt: Granular ammonium sulfate remained at $290-$300/st FOB in the region. Effective March 1, Agrium’s ammonium sulfate postings firmed to $307/st DEL in North Dakota, Minnesota and Wisconsin.
Southern Plains: Granular ammonium sulfate remained at $240-$270/st FOB Texas shipping points, with the low FOB Freeport.
South Central: Granular ammonium sulfate was tagged at $275-$285/st FOB in the region.
Southeast: Ammonium sulfate pricing was on the rise in the region. DSM Chemicals’ ammonium sulfate reference prices, effective March 1, include granular at $300/st FOB Augusta, Ga., from the previous $275/st level, with standard grade sulfate firming to $250/st FOB Augusta. Delivered ammonium sulfate postings in Florida are firming to $320/st for granular and $260/st for standard grade.
Western U.S.: Agrium is raising its ammonium sulfate postings on March 1. Reference levels will move on that date to $317/st DEL in Montana, Wyoming, Idaho, Washington, Oregon, Utah and Nevada. Agrium’s ammonium sulfate postings FOB the warehouse will firm to $312/st in Washington, Idaho, Oregon, Utah and Nevada.
PHOSPHATES
Central Florida: In the phosphate world, it’s become a buy-early-sell-late market, which works out to the old buy-low-sell-high philosophy. The best deals, albeit hard to find, were from traders last week. In one case, a purchase was made as low as $50/st FOB below a producer’s highest price of the week. Of course, the lower price came early in the week and the higher price near the end, but it was an indication the market was still moving up, and fast.
The export market continued to push up the domestic price. Export sales were made at $900/mt FOB last week, which will have an impact on the Central Florida and river markets this week, if not sooner. The biggest problem continues to be low inventories, which are the result of a lack of sulfur and the resulting curtailments in production. Sources said Mosaic has been very aggressive in seeking and obtaining sulfur, virtually regardless of the price.
Mosaic was moving forward on its summer fill program and taking a lot of orders for Central Florida. For the period June through August, the Central Florida DAP price was set at $810/st FOB, with no discount for MAP. Soon, that price will seem very attractive. One trader pointed out that Mosaic requires deals to be shipped at its discretion, rather than the customers’. That means some buyers might receive the phosphate earlier than actually needed and would have to store it. CF Industries and PotashCorp were also posting higher asking prices last week, and more increases were in the works.
Warehouse prices were on their way up, but were still lagging behind current replacement costs. In Lancaster, Pa., for example, the terminal price was $828/st FOB, which equated to about $5/st FOB less per ton than DAP from Central Florida, after transportation and throughput costs.
The Central Florida DAP price range continued an upward spiral last week, moving to $745-$795/st FOB from the prior week’s $720-$760/st. Mosaic was asking somewhere between $795-$810/st FOB for prompt shipments of DAP and MAP, after dropping its $4/st FOB discount for MAP. PotashCorp announced it would raise its Central Florida reference price from $740/st to $790/st FOB, and CF’s asking price increased to $770/st FOB for DAP and MAP. Discounts for national accounts were no longer available. MAP supplies continued to be scarce.
In Texas, Agrifos’ truck price for DAP rose from $780/st to $825-$830/st FOB, with rail moving from $775/st FOB the previous week to $820-$825/st FOB last week. The company was less than eager to make new sales, however. Agrifos will begin a turnaround on April 2, which will last about three weeks.
U.S. Gulf: Last week, the price of wheat climbed to the range of $20-$24/bushel, depending on the type. In part, that was a response to many farmers having switched to producing corn to meet the increased demand for ethanol. At that rate, the other big money crop in several states, marijuana, may be converted to conventional grains to increase grower profits.
The price of phosphates has continued to climb. Still, several sources pointed out that warehouse prices for phosphates were still lagging behind current NOLA barges. The farther north the dealer or terminal was, the lower the price to the farmer. One said some farmers were paying prices in the $700/st FOB range to dealers who bought the product at prices around $600/st FOB.
Warehouse prices on the Arkansas were at about $800/st FOB or higher last week, with additional increases on the way. One terminal operator said their price might go up $20/st FOB to slow buying from large traders and preserve product at a lower price for its dealer customers. On the Illinois River, the warehouse price was running between $800/st FOB and $830/st FOB.
The river north of St. Louis was getting close to becoming navigable last week, and the locks should be open by mid-March. NOLA phosphate barges were already being positioned at St. Louis in order to be at the front of the line. Traffic will be very heavy once that starts. With the heavy snows in the northern Midwest this winter, the water flow on the Mississippi will be high and fast.
Mosaic’s summer fill program was in effect last week with barge prices at $830/st FOB for June through August. The amount of phosphate that has been sold and will be sold this year will be lower than in the past. This is due to lower inventories, and because pastureland for cattle grazing will likely see some cutbacks due to the high cost of phosphates and nitrogen and the lower profits for beef. Regardless, profits for those in the fertilizer industry will be up considerably.
Early last week, a NOLA DAP barge buy was made at $798/st FOB, which set the low for the week’s NOLA DAP barge price range. The top of the range was $815/st FOB for prompt delivery.
Eastern Cornbelt: The warehouse market for phosphates continued to ratchet up, but was still lagging behind current replacement costs at the Gulf. Sources tagged the DAP and MAP markets at $800-$830/st FOB in the region, with the lower numbers reported early in the week. One supplier was reportedly publishing summer fill tons in the $860s/st FOB, and several sources said the spot warehouse market could firm quickly to that level based on new replacement costs.
No current prices were quoted for 10-34-0 due to very limited supply.
Western Cornbelt: DAP and MAP pricing continued to firm dramatically. Sources quoted the warehouse market last week at $810-$840/st FOB in the region, and the low end was lagging behind the rapidly firming replacement costs. The upper end of the range was reported in Iowa at midweek.
10-34-0 remained hard to come by in the region. An Iowa source reported limited tons, and actual spot sales, at the $625/st FOB level, but some suppliers were referencing a firm $650/st FOB as the week advanced.
Southern Plains: DAP and MAP continued to move up dramatically, and will be “amusing” for awhile, according to one source. The markets were tagged in a broad range last week at $750-$820/st FOB Catoosa, with the low numbers reportedly available early in the week but not for long. By midweek, most were calling the market a firm $800/st FOB or higher, and higher barge sales at the Gulf indicated additional terminal pricing increases are imminent. On Thursday, one source said he was quoted an $835/st FOB DAP price at the port, though sales at that level were not confirmed. One Kansas source said he expects another $30-$40/st increase prior to the start of spring movement.
10-34-0 was virtually nonexistent in the region. Several sources said a spot load or two could be had at mid-month for around $525/st FOB in northern Texas, but others said that was no longer available. Based on reaction costs, one source said the market today would be closer to the $600/st FOB mark, but he noted that no one was pricing anything until they have some certainties about acid supply.
South Central: DAP and MAP pricing continued to firm, with most sources pegging the regional warehouse market in the $750-$800/st FOB range to the dealer last week. There were reports from several sources of below-market pricing that “doesn’t make sense” out of a few spot locations, with numbers as low as $670-$680/st FOB being tossed around, but no confirmed business was reported at these levels.
TSP was generally quoted in the $730-$735/st range FOB regional warehouses to the dealer. Some talked of spot pricing as low as $700/st FOB last week, but others discounted the low numbers in the wake of the rapidly firming market.
Western U.S.: Agrium released two new price lists for ammonium phosphate last week. The first, which showed an effective date of March 1, pushed the company’s MAP postings to $785/st DEL in Montana and Wyoming; $790/st DEL in southern Idaho, Utah, Nevada and Oregon’s Malheur County; $790/st FOB and $795/st DEL in Washington, northern Idaho and Oregon excluding Malheur County; and $800/st FOB or rail-DEL in California and Arizona.
Agrium followed that price list, however, with another that tacked on an additional $25/st at each location. According to the newest postings, effective Feb. 26, Agrium’s MAP postings moved to $810/st DEL in Montana and Wyoming; $815/st DEL in southern Idaho, Utah, Nevada and Oregon’s Malheur County; $815/st FOB and $820/st DEL in Washington, northern Idaho and Oregon excluding Malheur County; and $825/st FOB or rail-DEL in California and Arizona.
U.S.Export: Another magic mark was hit on the phosphate export market last week, when sales to Brazil and Australia brought $900/mt FOB. PhosChem made a sale of DAP/MAP into Brazil at $890/mt FOB and a short time later at $900/mt FOB. The total was 13,000 mt. In addition, TransAmmonia sold a boatload into Australia at the $900/st FOB price, using DAP purchased in Tunisia.
The next and most startling mark is $1,000/mt FOB, and that will likely be struck before the end of March, at least at the current rate of increases.
Sulfur was the reason. Sulfur shortages and high prices worldwide have curtailed production everywhere, in some cases making it difficult for producers in some countries to earn a profit, even at the high numbers. For U.S. producers, at least most, the story is much rosier because they own their own rock mines or have long-term contracts with North Africa at lower rock prices. In addition, sulfur prices at Tampa were only about half as much as the world price.
China, which recently hiked its phosphate export tariff to 35 percent, was moving to prevent phosphate tons from moving out of the country entirely by not providing railcars from producers’ plants to its ports. That will result in an even greater shortage worldwide, and higher prices.
In Saudi Arabia, construction of the Al Jalamid benefication plant was expected to begin in April and should be complete by May 2010. The facility is part of what will be the largest fully integrated phosphate fertilizer complex in the world, and will be located at the phosphate mine site in Al Jalamid in the north. The US$350 million (SR 1,313 million) contract was won by Guizhou Hongfu Industry and Commerce Development Co. Ltd. (Hongfu) of China. The plant is required to remove calcium and magnesium carbonates from the phosphate deposit run-of-mine ore to produce 4.63 million mt/y of dry phosphate concentrate suitable for use in the manufacture of phosphoric acid.
The United Nations said last week that enough fertilizer will be produced in the next five years to meet the demand for both increased food needs and the growing biofuels market. Between 2007 and 2012, the supply of phosphates, nitrogen, and potash will increase at about 3 percent, or 34 million tons, enough to meet demand growth of 1.9 percent annually during that period. Higher prices for fertilizers would be responsible for the increased production.
The export DAP price range last week increased from a flat $850/mt FOB the previous week to $890-900/mt FOB. Prices this week, or at least for the next sale, will be higher.
POTASH
Eastern Cornbelt: Potash was steady at $525-$550/st FOB regional warehouses for limited brokered tons.
Western Cornbelt: Potash remained at a firm $525-$550/st FOB regional warehouses for very limited tons. A Nebraska source described warehouse supplies last week as “tight to nothing available,” adding that the last spot quote he’d heard was $530/st FOB.
Southern Plains: Potash was quoted at roughly $400/st FOB Carlsbad, N.M., give or take, based on postings for strictly allocated tons. One source, however, said that the “black market” tons coming through dealers who are not using their allocations are priced as high as $450/st FOB the mine.
The warehouse market in the region was pegged at $510-$530/st FOB and in very tight supply. Several sources said the tons will simply not be there for the expected spring demand in their trade areas.
February potash postings from Intrepid Potash FOB Carlsbad, N.M., are at $397/st for 60 percent granular and 62 percent standard, $400/st for 62 percent fine standard, and $405/st for 62 percent granular. Effective March 1, Carlsbad postings will firm another $20/st, bringing 60 percent granular and 62 percent standard to $417/st FOB, 62 percent fine standard to $420/st FOB, and 62 percent granular to $425/st FOB.
South Central: Potash was quoted at $510-$550/st FOB regional warehouses to the dealer, also up dramatically from last report and in very tight supply. As with phosphates, there were reports of one or two locations offering tons at much lower prices, with one source talking of a $465/st FOB dealer price out of one shipping point last week. New sales at those below-market levels were not confirmed, however.
Potash barges were reportedly traded for as high as $535/st FOB the Gulf last week.
Southeast: No firm quotes were available for potash in the region last week, as product remained in very tight supply. One source said he was waiting on some fill tons ordered earlier, and speculated that he had enough tonnage either in the bin or on the way to carry him through March. He noted as well that allocated March/April tons are $80/st higher than January/February pricing, but availability remains the big issue.
SULFUR
Tampa: Sulfur remained critically short last week, as buyers scrambled to find enough to continue operations for phosphates, other fertilizers and industrial customers. There were no indications the situation would change anytime soon.
China, however, was said to be pulling back from its heavy purchasing practices, but other customers in the world were quickly grabbing up any new supplies that became available. China, like North America and Europe, has a spring planting season and the country lacks a solid source of domestic sulfur supply, so it will soon have to return to the market. “We’ll see who blinks first,” a sulfur source said. “I don’t think the Chinese will shock their economy before the Olympics.”
The sulfur shortage has been a boon to phosphate producers in this country, who are still paying only about half as much as the rest of the world, at least for now. Negotiations for second-quarter sulfur contract prices will begin in about a month, and predictions were for another triple-digit increase.
Two vessels were loaded with prill sulfur out of Beaumont during the past couple of weeks and both were destined for Brazil. One of the vessels’ loads was said to be owned by ICEC, 26,200 mt, and the other by TransAmmonia, 20,500 mt. The prices were said to be between $450/mt FOB and $500/mt FOB. ConocoPhillips and Valero Energy were said to be both suffering from production problems and were falling behind on sulfur deliveries.
West Coast: A vessel of sulfur prill was loaded at Stockton last week, and was destined for Brazil. The price was believed to be around $500/mt FOB.