U.S. Gulf:
Ammonium sulfate barge prices moved closer to producer postings this week, with sources calling the market $210-$220/st FOB, up from the week-ago $185-$200/st FOB. Expectations were that the next trades would be in the $220-$225/st FOB range. IOC is posted at $225/st FOB.
U.S. Imports:
December 2020 ammonium sulfate imports were up 110.7 percent, to 68,287 st from 32,417 st in December 2019. July-December imports firmed 102.3 percent year-over-year, to 438,868 st from 216,967 st.
Imports originating from Canada topped the July-December list at 247,032 st, a 116.5 percent increase from the year-ago 114,105 st. Tons imported from Belgium totaled 62,723, a 10.5 percent increase from 56,751 st recorded one year earlier. Russia’s 61,788 st total was 65.6 percent above the 37,319 st logged in the prior fertilizer year.
Material sourced from the Netherlands totaled 31,248 for the period, a massive increase from 65 st recorded the previous year, while buyers received 30,314 st of South Korean ammonium sulfate in July-December after buying zero tons from that country one year earlier.
U.S. Exports:
Ammonium sulfate shipments slid 10.9 percent lower for the July-December period, to 324,478 st from the year-ago 364,315 st. December exports firmed 94.0 percent, however, to 57,872 st from 29,824 st.
Eastern Cornbelt:
The ammonium sulfate market was quoted at $235-$250/st FOB in the Eastern Cornbelt, up $10/st at the low end of the range, with the Cincinnati market pegged at $235-$240/st FOB. Michigan terminal pricing ranged from $235-$255/st FOB. IOC’s Feb. 3 ammonium sulfate postings included $250/st FOB Illinois and Ohio River terminals.
Western Cornbelt:
Ammonium sulfate pricing was quoted at $230-$250/st FOB in the Western Cornbelt, depending on location and time of shipment, with the bulk of new spot quotes reported at the upper end of that range. IOC’s Feb. 3 postings included $245/st FOB St. Louis and $255/st FOB Sioux City, Iowa.
Northern Plains:
Granular ammonium sulfate was pegged at $235-$245/st FOB St. Paul for river-open tons. The market in North Dakota was quoted at $245-$265/st DEL for prompt tons and up to $265-$275/st DEL for Q2.
IOC on Feb. 3 raised its ammonium sulfate postings to $250/st FOB Upper Mississippi River terminals and $260/st rail-DEL in the Northern Plains, up $15/st from the company’s Jan. 13 reference prices.
Northeast:
The granular ammonium sulfate market firmed to $265-$275/st FOB East Liverpool, Ohio, during the week, with delivered tons pegged at $270-$275/st in the Northeast.
AdvanSix on Feb. 10 announced that it was increasing the price of ammonium sulfate by $20/st at all distribution points, effective immediately. The new price for granular ammonium sulfate out of Hopewell, Va., firmed to $265/st FOB. AdvanSix on Feb. 3 announced a $30/st increase for new orders of bagged ammonium sulfate products FOB Chester, Va., attributing the price hike to strong demand and tightening supplies expected through mid-summer.
Eastern Canada:
The granular ammonium sulfate market was quoted at C$405-$450/mt FOB in Eastern Canada, up C$30-$50/mt from late December, with the upper end of the range confirmed on Feb. 10 following news of higher postings from at least one producer.
China:
Strong regional demand in China is combining with limited output to raise prices. Sources now put the price in the low-$130s/mt FOB for caprolactam grade and $165-$170/mt FOB for granular ammonium sulfate. Sources said the main focus of the buying from the region appears to be NPK producers looking for nitrogen content at a lower rate than what the urea market is offering.
The limited output is tied to reduced access to natural gas, which is being diverted to residential heating use. Output will also be limited until Feb. 22, as most Chinese business close for the Lunar New Year holiday.
Indonesia:
Tenders from ammonium sulfate buyers are expected by the end of the month. Sources said the NPK buyers are reportedly unwilling to pay the ever-rising prices for urea in the current market, and will instead use ammonium sulfate for their blending.
Brazil:
Sources reported shortages of ammonium sulfate at inland warehouses. Just as other NPK producers are looking for substitutes for expensive urea, the Brazilian blenders are sending out more inquiries for ammonium sulfate, causing a slight supply-demand imbalance.
The price has moved up to $180-$185/mt CFR for granular ammonium sulfate at Paranagua. Compacted product is said to be coming in at $185/mt CFR.
The inland price at Rondonopolis steadied at $280-$310/mt FOB ex-warehouse. Sources said this price will most likely move up as the higher-priced tonnage arriving at the ports begins to move inland. Sorriso moved up from $311/mt FOB ex-warehouse at the end of January to $319/mt FOB this week.
Imports of ammonium sulfate for January 2021 jumped 35 percent over last year. Brazilian importers brought in 384,000 mt in January 2021 against 284,000 mt in January 2020. The main supplier this year was China with 336,000 mt.