AMMONIA
U.S. Gulf/Tampa: Serious negotiations for new monthly ammonia prices won’t begin for another week, but expectations were that it will take a slight dip in April from the March price of $635/mt. Buyers said that following April, prices should begin to drop rapidly from the current $635/mt Tampa price “by triple digit increments.” The reason for the anticipated decline was a lack of demand, which was normal for this time of year, and prices should continue to fall until June.
Gulf barge prices, which were at $610/st last week, were expected to follow a similar course. Sales at the Black Sea were said to have fallen off while potential buyers wait for a price drop.
Eastern Cornbelt: The anhydrous ammonia market was quoted at $665-$695/st FOB in Illinois last week, with the low for spot tons and the upper end for fall prepay. An Indiana source also reported booking some fall prepay ammonia at the $700/st FOB mark or slightly higher.
Western Cornbelt: Anhydrous ammonia continued to be quoted at $650-$670/st FOB for prompt tons. Sources said some fall prepay tons had been booked at levels ranging from $685-$690/st to numbers slightly north of the $700/st FOB mark. One source said fully 20-25 percent of his company’s projected fall ammonia needs had been locked in.
Southern Plains: Last week’s weather delays had some sources talking about the likely impact on preplant anhydrous ammonia movement. While some were predicting a switch to urea or UAN when growers are able to get back in the field, others said they “wouldn’t call it quits on ammonia just yet.”
The ammonia market last week was quoted at $570-$590/st FOB for spot tons, with the low out of regional production points and the upper end to dealers FOB pipeline terminals in Kansas. Sources talked of forward contract ammonia being offered in a wide range at $600-$625/st FOB, depending on location and shipping period.
South Central: The anhydrous ammonia cash market was tagged at $610-$640/st FOB regional terminals to the dealer, with the low FOB Memphis, Tenn., and the higher numbers out of more northerly locations.
California: Effective March 24, Agrium’s anhydrous ammonia postings are scheduled to firm to $750/st truck-DEL in Central California and $755/st truck-DEL in Northern California. Calamco’s reference prices in California moved on March 18 to $750/st truck-DEL and $765/st rail-DEL, with aqua ammonia moving to $200/st FOB from the previous $185/st FOB.
UREA
U.S. Gulf: Heavy rains pounded much of the Midwest last week and the water had a negative impact on the sale of almost every fertilizer, but urea was especially hard hit. Some areas received as much as 13 inches of rain. Barge traffic on the Arkansas River was complicated by a heavy flow and rapid current. Similar problems may occur in the northern areas of the Mississippi River due to rain and heavy snows this winter.
Early in the reporting period the price of granular urea barges began to rise, and at least one sale was made at $370/st FOB the Gulf. As demand fell sharply, however, the price settled to $360-$365/st FOB. Several players said they anticipate the price will continue to soften. Prilled urea was nearly the same as the previous week, moving to $350-$356/st FOB from the prior $350-$355/st FOB range.
Eastern Cornbelt: Granular urea was quoted at $420-$445/st FOB in the region, with the low reported out of spot river locations in Illinois and Ohio. The dealer market FOB E. Liverpool, Ohio, was reportedly referenced at the $445/st FOB level last week.
Western Cornbelt: Granular urea was quoted in a fairly broad range at $410-$430/st FOB, with the low on a spot basis in Missouri and the higher numbers reflecting dealer reference pricing in Iowa. The dealer market FOB St. Joseph, Mo., was pegged at the $420/st level last week. Another Iowa source quoted delivered urea at the $430/st level, which he said was up slightly from earlier pricing.
Southern Plains: The granular urea market was quoted at $400-$410/st FOB Inola and Enid, Okla. Several sources quoted a firm $405/st FOB level at the port at midweek. The previous week’s heavy demand would probably have resulted in spot pricing increases if last week’s weather delays hadn’t come into play. As it was, the barge traffic restrictions on the Arkansas and the brisk application pace at mid-month had some sources predicting tight urea supplies, but that was not the case last week.
Sources said Koch’s urea plant at Enid, Okla., was back up and running after a brief outage during the prior week due to a maintenance issue.
South Central: Granular urea was quoted at $410-$420/st FOB regional terminals, with most dealer quotes reported at the lower end of that range. A Mississippi source reported some aerial applications of urea underway on wheat last week. Some dealers were topping off bins after a period of brisk movement in late February and early March, which included urea and ammonium sulfate in topdress applications on winter wheat.
Southeast: Granular urea pricing was down from last report, with the dealer market pegged at $425-$435/st FOB port terminals in the region.
India: MMTC awarded about 600,000 mt in its tender. The buyer was hoping to get commitments well into September, but at the end of the day only one company was awarded a contract for delivery past June.
Toepfer was the big winner, with awards totaling 150,000 mt for April-September shipments without having to take a price reduction. Each month the company will ship 25,000 mt into either Kandla or Vizag.
By and large, MMTC had to pay what was offered. In a couple of cases the final price was lower than the offered price.
Sources say the original Helm price was based on shipments extending into September. Now there is just one cargo of 50,000 mt, with an option for a second of the same amount set for April shipment. One trader commented this order was more like a prompt shipment than one aimed at the long term.
Because the Helm order is only for April, sources say the trading house was able to lower its price. Observers add Ameropa was in the same boat.
After MMTC announced the first round of purchases, it came back for more. Sources report that Swiss Singapore and IMR sold their offered tons at levels in the mid-$440s/mt CFR, which put their contracts in the same category as the other sellers.
A summary of the purchases follows:
| Offering Company | Quantity | US$/mt | Shipment Month | |
| FOB | CFR | |||
| Conagra | 50,000 | 441 | Mar-Apr | |
| Toepfer | 75,000 | 445 | Apr-Jun | |
| 75,000 | 455 | Jul-Sep | ||
| Helm | 50,000 | 440 | Apr-May | |
| 50,00 (S/O) | ||||
| Sabic | 75,000 | 404 | Apr-Jun | |
| Qafco | 50,000 | 405 | Apr-Jun | |
| Ameropa | 50,000 | 443 | Apr | |
| Swiss Singapore | 100,000 | Apr-Jun | ||
| IMR | 35,000 | April | ||
Sources say this order will not begin to cover the needs of Indian farmers. MMTC had hoped to book the bulk of its 2008 requirement with this tender. However, the uncertainty of the global market caused many offering companies to shy away from making offers for the third quarter.
Buying will have to recommence quickly, said one source. Besides MMTC, observers expect to see IPL stepping up real soon.
Middle East: The MMTC tender locked in urea prices above $400/mt FOB for prills and granular. The large SABIC and QAFCO second quarter sales, combined with the regrets sent by Fertil and PIC, indicate that producers from the area are comfortable and see no need to soften their pricing ideas.
Black Sea: The MMTC tender and interest in Latin America combined to push prices up. Sources report business concluded at $400/mt FOB. One observer noted that with India coming back in and Latin American demand remaining strong, producers see little reason to modify their pricing ideas.
Adding to the upward pressure is a government announcement that a duty of 8.5 percent will be tacked on Russian nitrogen exports. The official pronouncement was expected by the end of last week. One month after the posting in the government gazette, the new tariff will take effect. The announcement on the government web site said the export duty will remain in effect until April 30, 2009. A portion of the income earned from the tariff will be used to purchase fertilizer and other inputs for Russian farmers.
NITROGEN SOLUTIONS
U.S.Gulf: Prices for nitrogen solution barges were basically stagnant last week, although the top of the range increased by $5/st, putting the range at $300-$310/st FOB the Gulf. Players indicated that prices may begin to soften. As was the case with urea and other fertilizer products, the heavy rain in the Midwest made new sales few and far between.
Problems on the Arkansas River continued again last week, with barge traffic slowed due to a high flow and fast current. The rain was expected to take a break for a couple of days, but the river will probably continue to face navigational headaches in the near term.
Eastern Cornbelt: UAN remained at $11.25-$11.65/unit FOB most regional terminals to the dealer. Ohio sources tagged the Cincinnati UAN-28 price at $316-$320/st ($11.29-$11.43/unit) FOB, depending on time of delivery. Inland reference prices remained as high as $12.15-$12.45/unit FOB at some locations in the region, but no business was confirmed at those levels. At the other end of the pricing spectrum, some Indiana sources talked of retail UAN-28 pricing in northern areas of the state for slightly under the $300/st mark DEL for large quantities to a retail buying group.
Western Cornbelt: UAN-32 remained at $11.20-$11.71/unit FOB regional terminals to the dealer, with the upper end reflecting dealer reference pricing in Missouri. One source pegged the common dealer price for UAN-32 last week at the $360/st ($11.25/unit) level FOB river terminals.
Southern Plains: UAN pricing was down slightly from last report. Sources tagged the dealer market last week at $11.09-$11.56/unit FOB terminals, with the low end reported at $355/st FOB Verdigris, Okla., for UAN-32.
South Central: Nitrogen solutions pricing was down from last report. Sources tagged the UAN-32 market in a broad range at $325-$350/st ($10.16-$10.94/unit) FOB regional terminals to the dealer, with the upper end reflecting the common dealer reference price.
Southeast: UAN-30 pricing was down slightly from last report. Sources tagged the market at $315-$318/st ($10.50-$10.60/unit) FOB Norfolk, Va., and Wilmington, N.C. The vessel market was indicated in the high-$340s to the low$350s/mt C&F.
AMMONIUM NITRATE
U.S. Gulf: Most bins were already full of ammonium nitrate last week, and trading was extremely light. With the heavy rains in the Midwest keeping farmers out of their fields, that situation was not likely to change until the weather improves. With little to no movement, barge prices fluctuated only slightly, from $355-$360/st the previous week to $350-$365/st FOB last week.
Western Cornbelt: Ammonium nitrate remained at $385-$395/st FOB in the region.
Southern Plains: Ammonium nitrate remained at $375-$380/st FOB Catoosa, Okla.
South Central: Ammonium nitrate was pegged at $370-$390/st FOB regional warehouses to the dealer, with movement described as limited due to the wet weather. The reference price FOB Yazoo City, Miss., was reported at the $375/st mark. An Arkansas source quoted the CAN-27 market at the $300/st FOB level to the dealer.
Southeast: Ammonium nitrate pricing was steady at $395-$400/st rail-DEL in the Carolinas, $395/st FOB Wilmington, and $390-$400/st FOB Tampa, Fla.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was firm at $295-$300/st FOB in the region.
Western Cornbelt: Granular ammonium sulfate was steady at $295-$300/st FOB.
Southern Plains: Granular ammonium sulfate was up from last report at $260-$290/st FOB in Texas. Postings FOB Plainview, Texas, moved on March 17 to $290/st for granular, $285/st for coarse, and $265/st for standard.
Effective March 17, American Plant Food Corp. firmed its granular ammonium sulfate postings to $260/st FOB Freeport, $270/st FOB Galena Park, $280/st FOB Fort Worth, and $290/st FOB Littlefield. Coarse potash postings from the company moved to $245/st FOB Freeport, $255/st FOB Galena Park, $265/st FOB Fort Worth, and $275/st FOB Littlefield, while standard grade postings firmed on that date to $235/st FOB Freeport and $265/st FOB Littlefield. APF’s postings for N-Pac Compacted product moved on March 17 to $275/st FOB Galena Park.
South Central: Granular ammonium sulfate pricing had strengthened to $295-$305/st FOB in the region. Several sources reported good sulfate movement on wheat earlier in the season.
Southeast: The ammonium sulfate market was reported at $275-$300/st FOB, with the low FOB Hopewell, Va. Reference prices from DSM Chemicals included granular sulfate at $300/st FOB Augusta, Ga., and $320/st DEL in Florida, and standard grade at $250/st FOB Augusta and $260/st DEL in Florida.
PHOSPHATES
Central Florida: With recent export sales running as high as $1,100/mt FOB, domestic prices continued to skyrocket last week. Mosaic made nearby sales of DAP railcars at $900/st FOB. The price will continue to rise. A price of $950/st FOB would convert to $1,050/mt, or roughly $45 FOB below the current export price.
While Mosaic has maintained equality between DAP and MAP prices, CF last week began asking a premium of $40/st for MAP over the price of DAP. “They don’t want to sell it,” one source said. Mosaic has production units geared specifically for MAP, but CF Industries does not. In order for CF to manufacture MAP, it must shut down its DAP operation. Although MAP does not require the use of ammonia, an expensive product, it does need a higher quality of phosphate rock and additional sulfur, and sulfur is very expensive and expected to take another sharp upward move for the second quarter.
With news of the Mosaic sale, the Central Florida DAP price range finally moved up from the $745-$795/st FOB of recent weeks to a flat $900/st FOB. Mosaic increased its asking price from $900/st to $950/st FOB for prompt shipments of DAP and MAP, after dropping its $4/st FOB discount for MAP. PotashCorp’s Central Florida reference price rose from $900/st to $950/st FOB beginning March 24. CF Industries’ most recent posted prices were $900/st FOB for DAP and $940/st FOB for MAP. Discounts for national accounts were no longer available. MAP supplies continued to be scarce.
In Texas, Agrifos’ price was $925/st FOB for trucks and $920/st FOB for rail shipments, but company officials were planning another price hike, which had still not been determined late last week.
U.S. Gulf: Cold temperatures in the Midwest have given way to warmer conditions, and that has created a whole new set of problems. The warm weather brought extremely heavy rain from North Texas to Pennsylvania. In addition, the snow in the far northern states and Canada began to melt. That means fields in all of those areas were muddy last week and farmers were forced to stay away. In addition, the amount of water flowing into rivers dramatically increased. Serious flooding could soon occur on the Mississippi, Illinois, and Ohio rivers, and barges were already having trouble moving northward last week.
On the Arkansas River, high water levels were not as much of a problem as was the rapid flow of the current, which closed the river. As a result, stalled barge traffic at Rosedale was beginning to stack up. There were no predictions when the situation would change, and some terminals were beginning to run low of phosphates, potash and (soon) urea.
The only area where fieldwork had begun was in some parts of western Kansas, which escaped the worst of the heavy rains. Oklahoma, which is normally the first to get to work, was still waiting for a break. A source said he was concerned that wheat farmers, who have suffered major crop problems the past two years in Oklahoma, may not be able to get the phosphate they need when they need it because corn growers have been snapping up available supplies. It may be hard for the wheat people there to get their share because of the financial losses they suffered the previous two seasons.
The few NOLA DAP barges that sold last week moved at the beginning of the period, before the worst of the weather. Meanwhile, terminal prices for phosphates were moving to reflect the barge market. Terminal postings for DAP included $920/st FOB on the Arkansas River and $950/st FOB on the Mississippi, and CF had moved its warehouse price for DAP to $1,000/st FOB in the upriver areas.
The NOLA DAP barge price range for the Gulf’s river system moved from $840-$895/st FOB the previous week to $905-$920/st FOB last week. Mosaic increased its asking price from $920/st FOB for DAP and MAP to $970/st FOB for both, while CF Industries’ most recent price list was $910/st FOB for DAP and $950/st FOB for MAP barges.
Eastern Cornbelt: Terminal prices for phosphates continued to firm to reflect current replacement costs at the U.S. Gulf and Central Florida. Illinois sources reported warehouse reference levels at $935-$950/st FOB for DAP and $940- $960/st FOB for MAP, and Ohio sources confirmed $960/st FOB reference levels to the dealer as well. An Indiana dealer said he was quoted a $960/st rail-DEL price for a DAP car last week. CF has reportedly moved its warehouse price for DAP to $1,000/st FOB in the upriver areas.
Retail prices continued to trail wholesale replacement costs, with very wide discrepancies reported in some areas. When that situation changes, several sources said they expect growers to kick back. “At some point there’ll be a major rebellion from the farmers,” said one Ohio dealer. “There will be huge cutbacks.”
10-34-0 remained at a firm $725-$750/st FOB for very limited spot tons.
Western Cornbelt: An Iowa source said his location saw very little winter spreading of phosphates and potash, so growers will be playing catch-up once they’re able to get in the field. Sources said retail pricing continued to lag behind current replacement costs. “We can only move up as fast as our competition will allow us,” said one dealer.
While there continued to be some talk of phosphates available in the $870-$875/st FOB range on the low end out of spot warehouse locations, most sources last week reported higher numbers. Both Iowa and Missouri sources reported warehouse locations now firmly at $925-$950/st FOB for DAP, with MAP reported at $940-$960/st FOB to the dealer. Still higher prices are imminent based on current replacement costs. One Iowa source said he was quoted rail-DEL prices last week north of the $1,000/st for new phosphate tons.
10-34-0 continued to be reported at $725-$750/st FOB for very limited tons, provided material could be found on the spot market. Agrium’s phosphoric acid postings were slated to firm April 1 to $1,160/st rail-DEL for both super phosphoric acid and merchant grade acid in Iowa, Missouri, Nebraska, Minnesota, and the Dakotas.
Southern Plains: Phosphate pricing covered a wide range due to rapidly firming replacement costs, and several sources said they expect that variance in spot pricing to continue through the spring application season. The DAP market was quoted at $870-$925/st FOB in the region last week. MAP was roughly $10/st higher than DAP, with several suppliers now referenced as high as $935/st FOB Catoosa to the dealer.
One source also reported a spot offer for DAP early in the week at the $910/st FOB level at the port. Still others reported reference levels as high as $940-$950/st FOB last week, but no actual sales were confirmed at those levels. “It’s confusing,” said one source. “You can easily get a $50/st discrepancy from call to call.” That source also said he encountered spot prices last week that were a full $125/st higher than the previous week.
With retail phosphate prices continuing to run well behind replacement values, one source said the big question going forward is “if the farmer is willing to buy $1,000/st plus retail phosphate?”
Most sources said 10-34-0 was simply not available due to extremely tight acid supplies. One source said he heard a “theoretical” $640/st FOB price last week, but it came from a supplier with no tons to sell. Another source said some spot tons might be available at the $750/st FOB mark or higher, but product was basically unavailable.
Agrium’s phosphoric acid postings were slated to firm April 1 to $1,160/st rail-DEL for both super phosphoric acid and merchant grade acid in Colorado, Wyoming, Kansas, Oklahoma, New Mexico, and Texas. That level was up dramatically from the company’s Feb. 1 list price of $940/st rail-DEL in those locations.
South Central: DAP and MAP were quoted at $825-$860/st FOB most regional warehouses last week, and sources said prices will climb quickly when movement begins in earnest. The current price quotes were well under replacement costs, but as one source noted, the market has firmed so quickly that “it’s hard to get your number in line with current replacement costs.” At least some suppliers had moved warehouse postings for DAP and MAP to as high as $925/st FOB in the region last week.
TSP was quoted in the $740-$770/st range FOB regional warehouses to the dealer.
Western U.S.: Agrium followed its March 17 price schedule for MAP with another increase slated for March 20. The company’s MAP postings firmed on that date to $1,025/st DEL in Montana and Wyoming; $1,030/st DEL in southern Idaho, Utah, Nevada, and Oregon’s Malheur County; $1,030/st FOB and $1,035/st DEL in Washington, northern Idaho, and Oregon excluding Malheur County; and $1,040/st FOB or rail-DEL in California and Arizona. Those levels reflect a $30/st increase from the March 17 reference prices in those locations.
Agrium also announced new postings for phosphoric acid. Effective April 1, both super phosphoric acid (SPA) and merchant grade acid (MGA) will firm to $1,170/st rail-DEL in Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Wyoming. That level is up dramatically from the company’s March 1 reference price of $960/st rail-DEL in those locations.
Simplot reported that it was also raising phosphoric acid prices on April 1, by $2.10/unit from March postings in its Western and Midwest locations. As a result, SPA and MGA postings from the company will move on that date to $11.70/unit DEL in California and the Pacific Northwest. In addition, Simplot’s MGA postings FOB local warehouses in California will firm on April 1 to $11.90/unit.
U.S. Export: After the export price of DAP/MAP hit the magical $1,000/mt FOB level, it just kept going. Last week, PhosChem made a sale of 6,000 mt into Central America at $1,050/mt FOB, then another small sale into the same area at $1,100/mt FOB, which also became its new asking price.
Other phosphate producing nations were taking steps to halt the flow of the product out of their countries to protect their own agricultural industries. Most recently, Russia imposed an 8.5 percent export tariff on phosphate exports, and China’s was 35 percent. Last week India and Brazil were still searching for additional supplies, which were hard to find. In Argentina, however, the government has sharply increased its export tariffs for grain and oil seed, and farmers there went on strike, blocking roads to prevent crops from moving to ports. The Argentine farmers complain that the recent high prices for their crops were being taken away by the government, while their own cost of production has continued to rise.
As a result of the Easter Holidays, much of Central and South America was closed for business last week.
According to the February export report issued by The Fertilizer Institute, Australia received the largest quantity of DAP, 84,454 mt, while India was second with 52,783 mt, and Japan third at 49,772 mt. Total DAP exports for the month were 281,900 mt, an increase of 6.6 percent over a year earlier. For the calendar-year-to-date, India has taken the most, 181,123 mt, Australia was second at 84,454 mt, and Mexico third at 76,360 mt. Exports so far this year amounted to 635,845 mt, an increase of 3.7 percent compared to the same period in 2007.
Australia was also the biggest buyer of MAP in February, taking 54,800 mt; Canada was second with 32,277 mt, with Japan the third biggest importer at 18,572 mt. For the calendar-year-to-date, Canada was on top with 66,584 mt, followed by Australia at 54,800 mt, and Colombia at 23,687 mt.
Based on the most recent sales, the DAP export price range last week was $1,050-$1,100/mt FOB, which was $100/mt FOB higher than the previous week’s $950-$1,000/mt FOB range. Expect prices to increase at $50/mt FOB increments with each successive sale.
POTASH
Eastern Cornbelt: Potash out of regional warehouses remained firm at $525-$560/st FOB, depending on grade and location, with most spot dealer quotes at the $545-$550/st FOB level last week.
Western Cornbelt: Potash remained at $525-$555/st FOB in the region for limited tons from resellers or brokers. The upper end was reported for white granular potash in Missouri. An Iowa source quoted red granular potash at the $540/st FOB mark at midweek in his location.
Southern Plains: Potash was tagged at $520-$550/st FOB regional warehouses. Mine pricing FOB Carlsbad, N.M., was referenced at $417-$425/st, depending on grade, but tons at that level have been allocated out for some time. “You can’t get any so it could be any number you want,” said one dealer.
Effective April 1, Intrepid Potash’s postings FOB Carlsbad will firm to $503/st for 60 percent granular, $514/st for 62 percent standard, $517/st for 62 percent fine standard, and $520/st for 62 percent granular muriate of potash. The company’s postings in Utah will include 60 percent granular at $503/st FOB Moab and $517/st FOB Wendover, with 60 percent standard moving to $497/st FOB Moab and $511/st FOB Wendover.
South Central: Potash remained in a broad range at $510-$550/st FOB warehouse to the dealer, with some reports of spot tons available for as low as $500/st FOB. As with phosphates, the potash warehouse figure was trailing current replacement costs. Several sources reported a $550/st FOB market for Russian potash barges at the Gulf.
Effective for the March 10 forward shipping period, Agrium’s red premium potash postings firmed to $545/st rail-DEL in Kentucky and Tennessee.
Southeast: On the potash front, sources reported a list price at $500/st or more FOB Wilmington for some brokered tons. Effective for the March 10 forward shipping period, Agrium’s red premium potash postings firmed to $545/st rail-DEL in Virginia and West Virginia, and $555/s rail-DEL is the new posted level in Alabama, Georgia, Florida, and the Carolinas.
The high costs for phosphates and potash had many dealers approaching the spring season with caution. “I hope we run out of everything before the season is out this year,” said one. “The rule has been to ‘get all you can,’ but I sure don’t want to be left with any at the end of the season.”
SULFUR
Tampa: Last week was the lull before the storm for the sulfur industry. Soon – very soon – negotiations for second-quarter contract prices will begin, and it will be interesting to see what opening numbers the sulfur industry tosses on the table for discussion. As of last week, it appeared the increase the sulfur people will be seeking will be somewhere between $100/lt and $250/lt, but regardless it will be a tough pill for the phosphate industry to swallow. Sulfur interests will be seeking to bring the Tampa price somewhere close to the world price, which was as high as $640/mt FOB.
A large hike could make it very difficult for companies like Mississippi Phosphates, which must import rock from North Africa, to remain profitable. The only thing that may help would be a sharper-than-anticipated drop in the price of ammonia for April, but that was not expected. The price of ammonia will take a bigger drop in May and June, but that may not be enough to help.
Otherwise, sulfur supplies remain critically short, and no change in that situation was likely in the near future. One possible solution would be if Mosaic was to reopen its mine, which would put more into the system and help hold down prices. However, that would take somewhere between six months to a year and cost millions of dollars. It would be a risky move, especially if the sulfur market were to begin moving downward.
MARKET NOTES
India: RCF has drawn up a very ambitious plan for setting up an ammonia-urea and phosphatic plant in Mozambique at an investment of US$1.90 billion. Present gas availability in Mozambique is 3.5 TCF, and there are prospects for further exploration. Suitable land and infrastructure such as a gas pipeline, water, and a railway corridor are available, and the gas is likely to be priced at US$2/mmbtu.
Phosphate rock is to be sourced from FOSKOR, and sulfur can be imported and transported from the Matola Port by conveyor. An investment of US$1.90 billion will be required for mining purposes and for the setting up of ammonia (2,500MTPD), urea (3,500MTPD), P205 (330,000MTPA), and granulation (650,000 MTPA) plants.
Rock mining could be undertaken by NMDC, RCF, and FOSKOR, and the ammonia-urea and Complex Fertilizer Plants could be jointly set up by RCF, NFL, the Industrial Development Corporation of South Africa, and the government of Mozambique.
RCF has now been instructed by the board to immediately issue an Expression of Interest to IDC, FOSKOR, and the Mozambique Government for setting up the project.