AMMONIA
U.S. Gulf/Tampa: Sources say it is too early to talk about new business for Tampa; however, sellers appear to be gearing up for another increase in prices. They cite good demand in the U.S. and Europe, as well as production outages elsewhere. FertiNitro in Venezuela is reportedly down for technical reasons for three weeks or so, while outages are also reported in Algeria.
As of Sept. 10, Direct Hedge (DH) had the October paper trade market at $310-$330/mt DEL.
In the meantime, across the Gulf, barge quantity business was reportedly done in a producer-to-producer sale for $325/st FOB.
July ammonia imports were off 42 percent, according to the U.S. Department of Commerce, to 448,513 st from the year-ago 775,535 st.
Eastern Cornbelt: Spot quotes for anhydrous ammonia remained in the $350-$370/st FOB range to the dealer, depending on location and time of delivery. Forward contract tons for October through December were being offered at $360-$365/st FOB in Indiana and $365-$370/st FOB in Illinois.
Western Cornbelt: Anhydrous ammonia remained at $315-$350/st FOB regional terminals for cash market tons. One Missouri dealer quoted delivered ammonia in the $350-$360/st range from southern production points.
California: Anhydrous ammonia was up from last report. Effective Sept. 1, Calamco’s postings moved up $90/st to $390/st truck-DEL in California, with rail-delivered ammonia referenced at the $425/st level. Aqua ammonia was posted at $110/st FOB in California, up from the previous $90/st FOB level.
Fertilizer movement was limited to soil amendment applications in parts of the Central Valley, but activity was described as very quiet in early September. One source said his volumes are off 20-25 percent from last year, due primarily to ongoing water supply issues and a struggling dairy business.
Pacific Northwest: Sources pegged the anhydrous ammonia cash market at $325-$340/st DEL in the region. One supplier was referencing forward contract ammonia for October through December at $375/st FOB terminals in Washington.
Western Canada: Sources reported minimal changes to the spot fertilizer markets, and very little activity. “It seems as though everyone is concerned about the weather and harvest tine, so pricing and new sales have been slow lately,” said one.
The anhydrous ammonia market remained at $595-$640/mt DEL in the region.
Middle East: Qafco sold a cargo to the west coast of India at a formula price of $277.75/mt CFR. Sources put netback at close to the mid-$240s/mt FOB. The nearly $30/mt freight is reportedly about right for an Arab Gulf to west coast India run, said one Asian source.
This deal moved the low end of the market up from the $230s/mt FOB, and is consistent with the general tone of the global ammonia market.
A spot deal in late August moved the upper end to $270/mt FOB. Since the beginning of the month, the spot price has hovered at that level.
A tender by FACT/India will most likely show a stronger price for spot ammonia, said one source. That tender closes Sept. 15, just as the TFI World Conference winds down in Washington. One observer noted the tender would give the ammonia community at the TFI gathering something interesting to talk about.
With the previous spot business between PIC and Mitsui and the Qafco formula deal, sources now peg the market at $245-$270/mt FOB.
Black Sea: Asian sources say the current market remains steady, but hopeful.
No new deals from the area were reported last week.
Sources continue to say the low end of the market is clearly at $265/mt FOB, with lots of talk of $280/mt FOB at the top. The problem, say sources, is that nothing was confirmed above $265/mt FOB for a second week.
India: The Indian buying demand remains strong. A cargo done under a formula basis is going from Qafco to a west coast port for $277.75/mt CFR.
FACT called a tender for 7,500 mt late last week to close Sept. 15, with delivery by the end of the month.
Asian sources say FACT has long depended on tender purchases to satisfy its ammonia needs. One trader said in the past there have been some questions about the ability of FACT to pay cash at delivery, so offers in the tender will most likely reflect favorable credit terms and a little extra to cover other financial risk factors.
The tender will offer the industry a look at what producers see as the trend in the market.
Traders and producers say the obvious trend is up. For them, the tender will indicate how rapid the increase will be.
As of Sept. 10, DH paper indications for Yuzhnyy are $265-$280/mt for September, $270-$280/mt October, $250-$270/mt November, and $245-$260/mt December.
UREA
U.S. Gulf: Price ideas again appeared to depend on whether the product was already sitting on a barge or awaiting loading from a vessel. Those with barges ready to sell put the market between $270-$275/st FOB. Those who were waiting a week or two called it $265-$270/st FOB.
As of Sept. 10, DH had September barges at $255-$260/st and October-December at $245-$252/st FOB.
July imports were off 15 percent, to 226,907 st from the year-ago 266,791 st, according to DOC.
Eastern Cornbelt: Granular urea was reported at $315-$325/st FOB in the region, with the Cincinnati market pegged at the $320/st FOB level to the dealer.
Western Cornbelt: Sources continued to quote granular urea at $315-$320/st FOB most regional terminals to the dealer, although there were no sales to test those numbers. One source said pricing was as low as $290-$295/st FOB spot Mississippi River terminals based on falling NOLA barge values, but that level was not confirmed.
California: Granular urea was steady at $330-$350/st rail-DEL and $360-$380/st FOB to the dealer.
Pacific Northwest: Granular urea was quoted at $325-$350/st DEL in the region, depending on location, reflecting a slight drop from last report. The low was reported in Montana, and the upper end in Washington. Reference levels ranged from $335-$360/st DEL in the region. Forward contract urea for October shipments was referenced by one regional supplier at $335-$340/st DEL in Montana, $360/st DEL in Washington, Oregon, and Idaho, and $360-$365/st DEL in Utah, with $5/st increases slated for November and again in December.
Western Canada: Granular urea was steady at $425-$450/mt DEL in Western Canada.
India: IPL closed its tender Sept. 10 with lots of participation from traders and producers. The buying house achieved the goal of bringing down prices. Sources said IPL was hoping for even lower prices in the initial offers. Follow-up negotiations taking place over the weekend may shave a few extra dollars off the offers.
Firm offers totaled 1.9 million mt. Seller options came to 720,000 mt.
Industry observers expressed doubt about the offers from Promptinvest Gas and Ultimate General Trader. Both companies have never participated in an Indian tender before and offered large quantities.
The tally sheet from the tender follows on page 6.
Sources say the first round of talks were expected to start late Friday.
The tender documents call for all shipments to finish by mid-October. One trader suggested that a few dollars might be shaved off an offer if IPL would accept an early November shipment.
A November loading could allow a trader to sell Chinese material. The export duty of Chinese urea drops back to 10 percent November 1.
Industry watchers expect to see the Middle East producers grab a lion’s share of the business if they agree to lower prices. IPL should be tough in negotiations. Sources say Middle East surpluses are growing and large buyers are rare.
Middle East: The big news out of the IPL/India tender is confirmation that prices have come off dramatically. The last done public business was more than a month ago at $270/mt FOB. Talk had been circulating that $250/mt FOB was on the table for spot cargoes – talk the producers denied. In the end, the producers offered cargoes in the upper $250s/mt FOB.
To add to the general malaise, sources point to the 250,000 mt offered in the tender by Arab Gulf producers, and another 25,000 mt from Egypt.
Asian sources say IPL will start talks with the producers over the weekend. One trader said the producers might have to accept a lower price to secure the business.
IPL Urea Tender |
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| Offering Company | Origin | Quantity (mt) Firm | Quantity (mt) S/O | US$/mt FOB | US$/mt CFR | Discharge Port | Comments |
| PIC | Kuwait | 100,000 | 257.00 | 3-4 lots | |||
| 258.00 | |||||||
| SABIC | Saudi Arabia | 50,000 | 257.50 | ||||
| QAFCO | Qatar | 100,000 | 258.00 | ||||
| Fedcominvest | Open | 100,000 | 200,000 | 270.00 | Mundra | Lots of 30-50,000 mt each | |
| 272.00 | Kandla | ||||||
| 276.00 | Gangavaram, K’pattinam, Vizag | ||||||
| CIFC | Open | 25,000 | 50,000 | 279.50 | Gangavaram, K’pattinam | ||
| EURO 203.00 | Vizag | ||||||
| EFC | Egypt | 25,000 | 5,000 | 270.00 | |||
| Transammonia | Open | 50-60,000 | 268.00 | Mundra | |||
| 270.00 | Kandla | ||||||
| 50-60,000 | 270.00 | Mundra | |||||
| 272.00 | Kandla | ||||||
| 50-60,000 | 272.00 | Mundra | |||||
| 274.00 | Mundra | ||||||
| Helm | Open | 40-60,000 | 281.50 | Mundra | 1-3 lots | ||
| 100-150,000 | 281.50 | Mundra | 1-3 lots | ||||
| Toepfer | Open | 42-50,000 | 274.50 | Mundra, Kandla | 1 or 2 lots | ||
| 278.50 | Gangavaram, K’pattinam | ||||||
| 25-55,000 | 274.50 | Mundra, Kandla | |||||
| 278.50 | Gangavaram, K’pattinam | ||||||
| Dreymore | Open | 30-35,000 | 30-35,000 | 289.50 | Open | ||
| Swiss Singapore | Open | 20-25,000 | 282.40 | 289.90 | Open (s/o) | ||
| 40-50,000 | 285.40 | 292.90 | Open (s/o) | ||||
| Ameropa | Open | 50-60,000 | 273.00 | Mundra, Kandla | |||
| 50-60,000 | 273.00 | Mundra, Kandla | |||||
| -or- | 50-60,000 | 277.00 | Gangavaram, K’pattinam | ||||
| -or- | 25-30,000 | 280.50 | Gangavaram, K’pattinam, Vizag | ||||
| Gavilon | Open | 25-55,000 | 286.00 | Mundra | 1 or 2 lots | ||
| 25-55,000 | 286.00 | Mundra | |||||
| UZ Agro Ltd. | CIS | 20,000 | 290.00 | Open | |||
| Keytrade | Open | 40-60,000 | 275.00 | Mundra | |||
| 281.50 | Kandla | ||||||
| Amber | China | 60,000 | 277.50 | Gangavaram, K’pattinam | 1 or 2 lots | ||
| ETA | Open | 50,000 | 245.50 | 293.50 | Open | 1 or 2 lots | |
| Vaibhav | Russia | 200,000 | 270.00 | Mundra, Kandla | |||
| 272.00 | Pipavav | ||||||
| 275.00 | New Mangalore, Tuticorin | ||||||
| Promptinvest Gas | Open | 550,000 | 267.00 | Open | |||
| Ultimate General Trader | CIS | 100,000 | 268.00 | Mundra, Kandla | |||
| 270.00 | New Mangalore | ||||||
| 272.00 | Tuticorin | ||||||
| 276.00 | Vizag | ||||||
Material from the Black Sea is plentiful. And if IPL accepts a November shipment for some cargoes, Chinese tons could be a factor.
In the past, producers accepted lower prices to ensure full order books. With India as the main game, sources say IPL is in a good position to demand – and get – lower prices.
Based on the initial listing of the IPL tender, the area market is pegged at $255-$258/mt FOB.
Black Sea: The IPL tender showed a number of traders offering tons with “open” origins. Sources say the most likely source of that material would be Yuzhnyy.
Until a deal is done, however, Asian sources continue to peg the market at $230-$235/mt FOB.
The Yuzhnyy offers into India face a double threat of Arab Gulf producers possibly accepting lower prices in post-tender talks and IPL accepting November shipment, which could put Chinese tons into play.
As of Sept. 10, the DH paper trade market indicated September Yuzhnyy at $230-$235/mt, October-November at $230-$237/mt, and December at $235-$240/mt.
Indonesia: Asian sources expect to see a selling tender from Indonesia soon – maybe even by the end of this month.
Reportedly, PIM already has an export permit in hand. Sources say the company will be allowed to sell up to 100,000 mt.
The delay in calling the tender, said one trader, is the falling market.
Sources also report that PIM has been working the corridors of power in the government to ensure the other state-owned producers do not get export permits until PIM has sold its material.
Reportedly, PIM is concerned that if the other producers are given permits the Indonesian firms will fight amongst themselves to secure a buyer. This battle, said one trader, could lead to a race for the lowest price instead of an effort to push prices up.
China: The export duty for urea goes up to 110 percent Sept. 15.
The duty will return to 10 percent Nov. 1.
Sources report that some traders are already taking bets on the market for the end of the year. Tons heading for the bonded warehouses and port facilities are reportedly already booked for loadings after Nov. 1.
One trader noted that some of the November tons might find their way to India under the umbrella of the just-closed IPL tender.
One observer opined that if the price was right, the Indian buyer might be willing to allow an early November shipment instead of the current September-October shipment dates.
Prices are reportedly softening for prills. Sources now peg the market in the low $250s/mt FOB, with more room to drop. Granular urea remains at a $5-$10/mt premium.
Bangladesh: BCIC closed another tender last week. The prices offered in this tender show a marked decline in pricing ideas from the trading houses.
12,500 MT bagged prilled urea for Chittagong |
|||||
| Offering Company | Origin | Quantity (mt) | US$/mt FOB | Freight US$/mt | US$/mt CFR |
| BD Commodities Trading | Russia, Indonesia, China, Qatar, Egypt, Ukraine | 12,500 | 240.17 | 35.00 | 275.17 |
| Yunna Dehong International | Ukraine, CIS, Indonesia Russia, China, Malaysia, Lithuania | 12,500 | 242.90 | 35.00 | 278.90 |
| Pentagon Group | Ukraine, Russia, Turkey, China, Indonesia, Egypt | 12,500 | 239.50 | 35.00 | 285.00 |
| Helm | Qatar, Egypt, China, Middle East, Iran | 12,500 | 260.19 | 32.00 | 292.19 |
| Bulk Trade International | China, UAE, Russia, CIS, Saudi Arabia, Egypt, Indonesia, Qatar, Uzbekistan | 12,500 | 263.30 | 30.00 | 293.30 |
| Blue Deebaj Chemical LLC | Uzbekistan, Russia, China, Malaysia, CIS, Middle East | 12,500 | 273.00 | 35.00 | 308.00 |
| International Fertilizer Trading | Russia, China, Indonesia, | 12,500 | 285.76 | 30.00 | 316.06 |
| Toepfer | Qatar, Egypt, China, UAE, Indonesia | 12,500 | 283.15 | 36.00 | 319.45 |
12,500 MT bagged prilled urea for Mongla |
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| Offering Company | Origin | Quantity (mt) | US$/mt FOB | Freight US$/mt | US$/mt CFR |
| BD Commodities Trading | Russian Federation | 12,500 | 241.17 | 38.00 | 279.17 |
| Pentagon Group Holding | Russia, Romania, China, Turkey, Indonesia, Qatar | 12,500 | 241.30 | 45.00 | 286.80 |
| Helm Fertilizer | Qatar, Egypt, China, Iran, Indonesia | 12,500 | 263.19 | 32.00 | 295.19 |
| Desh Trading Corporation | China, Egypt, Saudi Arabia, Qatar, UAE, Indonesia, Oman | 12,500 | 264.30 | 33.00 | 297.30 |
12,500 MT bagged granular urea for Chittagong |
Offering Company | Origin | Quantity (mt) | US$/mt FOB | Freight US$/mt | US$/mt CFR | ||||
| BD Commodities Trading | Russian Federation | 12,500 | 253.17 | 35.00 | 288.17 | |||||
| Pentagon Group Holding | Russia, Uzbekistan, Turkey, China, Indonesia, Egypt | 12,500 | 247.70 | 47.00 | 295.20 | |||||
| Helm Fertilizer | Qatar, Egypt, China, Indonesia, Iran | 12,500 | 267.99 | 32.00 | 299.99 | |||||
| Bulk Trade International | China, Egypt, Saudi Arabia, Qatar, UAE, Malaysia, Indonesia, Iran, Oman | 12,500 | 282.65 | 30.00 | 312.65 | |||||
| Agora Int’l | Open | 12,500 | 283.42 | 30.00 | 313.92 | |||||
| Blue Deebaj | UAE, Russia, China, Malaysia, CIS | 12,500 | 280.00 | 35.00 | 315.00 | |||||
| International Fertilizer Trading Co. | Russia, China, Indonesia | 12,500 | 299.91 | 30.00 | 330.21 | |||||
12,500 MT bagged granular urea for Mongla |
|||||
| Offering Company | Origin | Quantity (mt) | US$/mt FOB | Freight US$/mt | US$/mt CFR |
| BD Commodities | Russian Federation | 12,500 | 249.17 | 38.00 | 287.17 |
| Pentagon Group Holding, Singapore | Russia, Uzbekistan, Turkey, China, Egypt, Indonesia | 12,500 | 249.50 | 47.00 | 297.00 |
| Helm Fertilizer | Saudi Arabia, Qatar, Egypt, China, Middle East, Iran | 12,500 | 270.99 | 32.00 | 302.99 |
| Agora | Open | 12,500 | 283.42 | 30.00 | 313.92 |
| Desh Trading Corporation | China, Egypt, Saudi Arabia, Qatar, UAE, Malaysia, Indonesia, Iran, Oman | 12,500 | 285.65 | 33.00 | 318.65 |
The usual validity period for offers made to BCIC is about 30 days. Sources don’t expect to see awards any time soon.
NITROGEN SOLUTIONS
U.S. Gulf: While sellers have been working hard in recent weeks to pull the barge price above the $140/st FOB mark, last week prices appeared to be going in the other direction. Sources are now putting the market at $132-$135/st FOB ($4.13-$4.22/unit), with reports of product being offered in the low $130s/st FOB.
As of Sept. 10, DH had September NOLA barges at $140-$143/st FOB, and October-December at $142-$148/st FOB.
July imports were off 52 percent, according to the DOC, to 73,358 st from the year-ago 151,768 st.
Eastern Cornbelt: UAN was pegged at $5.47-$5.93/unit FOB regional terminals, with the low out of spot river locations. Forward contract UAN-32 tons for October through December were being offered in the $184-$201.60/st ($5.75-$6.30/unit) FOB range in the region, depending on location.
Western Cornbelt: The UAN-32 cash market was quoted at $165-$185/st ($5.16-$5.78/unit) FOB regional terminals, depending on location. One Iowa source put the dealer market at $5.50/unit FOB in his trade area, while Missouri sources tagged the common dealer range at $175-$185/st ($5.46-$5.78/unit) FOB in early September.
California: UAN-32 remained at $200-$210/st ($6.25-$6.56/unit) FOB and $190-$200/st ($6.09-$6.25/unit) railDEL in the state.
Pacific Northwest: Delivered UAN-32 was pegged at $195-$220/st ($6.09-$6.88/unit) in the region, with the low for railed tons. One Washington source said the lowest truck price out of local terminals was $200/st ($6.25/unit) FOB last week.
Western Canada: UAN-28 was unchanged at $271-$287/mt ($9.68-$10.25/unit) DEL in Western Canada.
AMMONIUM NITRATE
U.S. Gulf: AN barges continued to linger at $200-$210/st FOB. July imports were off 23 percent, to 28,300 st from the year-ago 36,581 st, according to DOC.
Western Cornbelt: Ammonium nitrate was tagged at $255-$265/st FOB in the region, with some suppliers referencing an untested $275/st FOB price to the dealer.
California: No market for ammonium nitrate was reported in the state. CAN-17 pricing, however, was unchanged at $235-$245/st FOB in California.
Pacific Northwest: Ammonium nitrate was unchanged at $335-$350/st DEL in the region for the last done business. CAN-17 was steady as well at $245-$250/st FOB and $260/st DEL in the region.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at the $160/st FOB level to the dealer.
Western Cornbelt: Granular ammonium sulfate remained at $160/st FOB or rail-DEL in the region.
California: Ammonium sulfate was pegged at $235-$272/st FOB, with the low end for standard grade and the upper end for granular product in desert locations.
Pacific Northwest: Granular ammonium sulfate remained at $225-$245/st DEL in the region.
WesternCanada: Granular ammonium sulfate in Western Canada was quoted at $300-$305/mt DEL to the dealer.
PHOSPHATES
Central Florida: The TFI World Conference commences Sept. 13 in Washington, D.C., and some were hopeful it would spur some activity in the market. Producers and traders both continued to talk about the late harvest and the lack of sales until the fields are cleared. The only difference was the outlook. Some think dealers will sell out quickly and reorder to complete this season ahead and be ready for spring. Others tend to believe phosphate will move more by the truckload than by rail.
PotashCorp will begin a turnaround at Aurora in North Carolina in November, which will cut its production in half during that period. The company’s White Springs facility was producing at a rate to meet demand.
The only good thing in the market last week was there was plenty of time for players to take a vacation, play golf, or go visit customers on goodwill tours.
The good news was that no major or minor storms struck Central Florida last week, and the hurricane season continued to be virtually nonexistent.
The Central Florida DAP price range last week continued to be a flat $275/st FOB, based on the most recent sales. Small buyers can expect to pay a little more once traders unload what they have on hand. Both Mosaic and PCS Sales had a $10/st FOB additional charge for MAP. Agrifos had no posted railcar price, but its price for truckloads was $300/st FOB for DAP and $305/st FOB for MAP.
U.S. Gulf: Wet weather after Labor Day slowed sales in some areas, but that situation was expected to change very late in the week. Most all of the phosphate business done last week was out of terminals and warehouses on the river systems, where prices will still need to rise to keep pace with the somewhat higher NOLA phosphate barges. In some areas, terminals were complaining that they were losing money on every ton being sold, which is not sustainable for a prolonged period.
DAP sales from warehouses in Oklahoma continued to be strong last week, and bins were beginning to run low. With Locks 17 and 18 still down until Sept. 13 for maintenance work by the Army Corps of Engineers, barges could not reach Inola and Catoosa. The Corps has not said whether another extension of the closing will occur. Terminal operators were hoping it would not.
Oklahoma and portions of Texas are normally the first to begin the season, and the rest of the Midwest should begin to see more activity within the next few weeks as the corn harvest gets underway. Although not robust, corn prices have remained above $3/bushel. Because costs for fuel and fertilizer were lower this year, the corn price was still profitable.
Farmers cannot continue to mine phosphate and other fertilizers much more or yields will begin to fall, say sources. As long as prices remain reasonable, buying should re-ignite.
The NOLA DAP barge price range was unchanged last week – $280-$283/st FOB. Asking prices late last week were around $281-$285/st FOB. Both Mosaic and CF were charging a $10/st FOB premium for MAP.
As of Sept. 10, DH had September-October barges at $275-$280/st FOB and November-December at $270-$280/st FOB.
Eastern Cornbelt: DAP was quoted at $310-$325/st FOB regional warehouses to the dealer, with MAP at a $10/st premium. One supplier was referencing forward contract DAP tons for October through December at $325-$335/st FOB regional warehouses.
10-34-0 was quoted at $315-$320/st FOB in the region.
Western Cornbelt: Sources said growers were starting to kick tires on phosphates and potash for the fall application season. DAP was quoted at $310-$315/st FOB warehouses to the dealer, with MAP $10/st higher. 10-34-0 was steady at $310-$320/st FOB in the region.
California: DAP and MAP were quoted at $370-$375/st FOB or DEL in California, with the upper end reflecting dealer postings. 16-20-0 was pegged at $270-$277/st FOB and $270/st rail-DEL in California, up slightly from last report. 10-34-0 was up as well at $333-$354/st FOB, with the low in the Central Valley and the upper end at desert locations.
Super phosphoric acid (SPA) and merchant grade acid (MGA) were pegged at $7.40/unit DEL in California, with Simplot referenced at $7.60/unit FOB the warehouse for MGA. Effective Sept. 1, Agrium’s postings for both SPA and MGA increased to $740/st rail-DEL in California and Arizona.
Pacific Northwest: DAP and MAP were pegged at $360-$370/st DEL in the region, depending on location. 10-34-0 was tagged at $350-$375/st FOB, and 16-20-0 was up $10/st to $265-$270/st DEL in the region.
Phosphoric acid was tagged at $7.40/unit DEL in the region for SPA and MGA. Effective Sept. 1, Agrium’s postings for both SPA and MGA increased to $740/st rail-DEL in Idaho, Montana, Nevada, Oregon, Utah, and Washington.
Western Canada: MAP was quoted at $440-$485/mt DEL in the region, reflecting another slight increase from last report.
U.S. Export: Although India needed still more DAP last week, it had not acted, and Pakistan may still be in the market. Unfortunately, that was about as much excitement as the market could muster during the past seven days. However, the TFI conference may generate some action – or at least provide some insight into markets.
Miss Phos told analysts on Thursday that it was upbeat about a new tender in Ethiopia later in the month, as well as the prospects for Latin America to come into the market.
As a result of a lack of sales, the export DAP price range was unchanged last week at $315-$323/mt FOB.
As of Sept. 10, DH saw a declining market, with Tampa at $315-$325/mt for September, $300-$310/mt October, $295-$305/mt November, and $290-$300/mt December.
Pakistan: The country’s private sector has so far ordered the import of 921,699 mt of DAP fertilizer between the January and September 2009 period at prices ranging from US$330-$390/mt. Out of total imports, Amrican Fert. Trade supplied 65,00 mt of DAP from Mexico, Transammonia 155,000 mt from Mexico, OCP Morocco 68,600 mt from Morocco, Dreymoor 196,070 mt from Lithuania, Keytrade 31,870 mt from the U.S., Incitec Pivot 322,096 mt from Australia, PhosChem 71,990 mt from the U.S., and Maroc Phosphore SA 11,328 mt from Morocco. More than 75% has arrived, while the balance is on the way.
Meanwhile, according to Karachi Port Trust (KPT), the Hong Kong flag bulk carrier Id Nord has resumed the offloading of DAP after remaining disturbed for quite some time due to the murder of a stevedore employee during offloading at the Karachi port on Sept 7. The consignment is being supplied by Morocco to Engro Chemical at a price of US$353mt.
POTASH
U.S. Gulf: Barges are generally called $450-$455/st FOB. MOP imports were off 57 percent in July, according to the DOC, to 307,657 st from the year-ago 721,804 st.
Eastern Cornbelt: Potash continued to be quoted in the $475-$510/st FOB range, with the lower numbers for Russian tons out of spot river locations. “Most are hesitant to throw prices out there until people are ready to buy,” said one source. “Current potash prices have not created any appetite, just very limited hand-to-mouth business.”
Western Cornbelt: The regional potash market was quoted at $475-$510/st FOB, with the low for Russian product and the upper end from Canadian producers. Several sources said dealers and growers are waiting for lower prices before committing. “Nobody’s buying any potash, and none of the North American producers are interested in chasing anything until product starts moving,” said one industry source.
Southern Plains: Last week sources said that blends going into wheat country are seeing a big cutback in potash content due to stiff prices. Similar stories have been reported on NPKs in Europe. One source said prices will have to fall to see any significant change in movement.
California: Potash was quoted at $550-$575/st FOB or DEL, depending on grade and supplier. Potassium nitrate remained at $1,080/st FOB for bulk tons and $1,150/st FOB for bags.
Sulfate of potash pricing had reportedly dropped to $720-$740/st FOB for bulk tons, depending on grade and supplier. The low was reported for standard grade from some suppliers, while the upper half of the range was quoted for choice, granular, and water soluble.
Pacific Northwest: The market remained very quiet, with little activity to test spot prices. Despite the summer’s lower potash postings from producers, several sources said growers and dealers are holding out for still lower numbers. “Everyone thinks it’ll come down some more,” said one source.
Rail-delivered potash was pegged at $535-$540/st in the region from Canadian producers, with reports of delivered tons from Intrepid Potash coming into the region for $500-$510/st. Mine postings from Intrepid include granular 60 percent at $482/st Moab, Utah, and $490/st Wendover, Utah, and standard 60 percent at $477/st FOB Moab and $485/st FOB Wendover.
Western Canada: Potash postings to Canadian customers FOB Saskatchewan mines remained at $560-$569/mt, depending on grade.
SULFUR
Tampa: Refineries were producing less fuels and less sulfur last week because demand was down and it seemed like a good time to do maintenance work. In addition, the use of sweet rather than sour crude continued to be the oil of choice for refiners. As evidence of the lower refining rates there was a drop off in the sulfur shipped to prillers on the Gulf Coast.
On the plus side, prill sales prices were beginning to edge upward, from $15-$18/mt FOB to $20-$22/mt FOB.
The higher prill price was reflective of the world market, which was up a few dollars due to reduced production. Although China was said to have more than 2 million mt on its docks, it had not stopped buying.
Phosphate producers were said to be buying more sulfur from Canada, which moves by rail, although the price was higher than for molten at Tampa.
Still, one in the industry complained, “Nothing is moving in this economy,” which continues to stymie production on all fronts.
West Coast: As was the case on the Gulf Coast, refinery production was down in California, which has also slowed shipments to prill operators. However, no new offshore sales were made recently.
Vancouver: Supply was said to be down at Vancouver as a result of reduced refinery production, and prices were stable.
U.S.Imports: July imports were off 41 percent, to 143,616 st from the year-ago 244,750 st, according to DOC.
MARKET NOTES
Poland: The country is worried about future gas purchases from Russia. It received some 67 percent of its gas from that country in 2008. Sources said when Russian leaders visited earlier this month, they avoided gas discussions. The Polish Gas and Oil Co. has indicated it will cut gas to fertilizer and chemical companies by 20 percent in October. Fertilizer plants fear cuts will lead to production halts.
Brazil: Anxious to spur more fertilizer development in the country, Brazil’s strategic affairs ministry is reportedly looking at creating a new state company to develop phosphate and potash reserves in conjunction with Russia.
India: Local media report the Indian government appears ready to revamp the subsidy system for urea. The finance minister is leading a study group of other ministers to change the subsidy program for urea in the country.
The 2009-2010 budget announcement said the government would be moving to a system of subsidizing nutrient count instead of individual fertilizer units.
The change was necessary, said government officials. During the 2008-2009 fiscal year, the government paid the equivalent of US$24 billion in subsidies. The budget for that year was US$22.5 billion. The previous year, subsidies were at US$9.4 billion.
Last year showed historic increases in all fertilizer prices. The government estimated that 88 percent of the subsidy increases last year were a direct result of higher international prices.
Sources reported that the government was in arrears of its payments because of the rapid climb in prices last year.
Indian urea importing companies paid more than $850/mt CFR for material last year at this time. The most recent tender had offers in the $270s/mt CFR.
The only issue that remains is the timing of the change.
Local media report that meetings are already taking place to make the private sector and local governments aware of the coming changes.