U.S. Gulf:
A slow start to the week’s NOLA ammonium sulfate barge market ended with reports of material trading at $385/st FOB on Sept. 30. Players previously voiced expectations of a move to $360/st FOB or higher from the previously-reported $340/st FOB level.
Interoceanic (IOC) on Oct. 1 announced new prices for ammonium sulfate, and reported that barge availability is improving and the company is lifting its force majeure declaration. The company’s new NOLA barge posting firmed to $410/st FOB.
“Some shipments have been delayed beyond shipment periods, but IOC is working with customers to ensure all contracts will be fulfilled,” the company said.
Eastern Cornbelt:
The ammonium sulfate market was pegged at $390-$425/st FOB in the Eastern Cornbelt, up another $30/st or more from the previous week, with the Cincinnati market quoted solidly in the $415-$425/st FOB range for domestic tons at midweek.
New ammonium sulfate prices from IOC on Oct. 1 included $435/st FOB Delta terminals, $440/st FOB Illinois and Ohio River terminals, and $455/st FOB Tampa, Fla.
Western Cornbelt:
The ammonium sulfate market edged up to $390-$410/st FOB in the Western Cornbelt, with the low reported at St. Louis at midweek. New postings from IOC on Oct. 1 included $400/st FOB Houston, Texas, and $435/st FOB St. Louis. IOC’s rail-DEL postings moved to $460/st in the Southern Plains.
Northern Plains:
Granular ammonium sulfate prices were quoted at $440-$460/st FOB St. Paul late in the week, up from $400-$410/st FOB late the previous week. Delivered tons in North Dakota were pegged at the $425-$435/st level, with speculation that prices would move up by the end of the week.
A price increase did come from IOC on Oct. 1, with new postings firming to $460/st FOB Sioux City, Iowa, and $450/st rail-DEL in the Northern Plains.
Northeast:
The ammonium sulfate market had reportedly climbed to as high as $415-$425/st FOB East Liverpool, Ohio, up significantly from early September. AdvanSix on Sept. 20 raised its ammonium sulfate prices by $20/st, with granular firming to $335/st FOB Hopewell, Va.
Eastern Canada:
Ammonium sulfate prices in Eastern Canada had reportedly strengthened to C$535-$585/mt FOB in late September, up from C$485-$545/mt at last report.
China:
Caprolactam-grade amsul in China remained at $200-$205/mt FOB. The latest round of business included a sale to an Asian buyer at $202/mt FOB.
Reportedly, Asian buyers are pushing back against efforts to move up the price. Sellers are arguing that the cutbacks in China’s industrial output are also cutting back on the amount of amsul available for export.
The main issue for the buyers, said one trader, is not the price of the product, but the increased costs of shipping the product. Besides the usual ups and downs of freight rates, sources said the demurrage costs of waiting up to two weeks to get a vessel loaded should not be passed on to the buyer.
So far, said one trader, the two sides have reached a balance and the price has remained stable.
Brazil:
Granulated amsul remains at $320-$345/mt CFR at Paranagua. Some nervousness crept in among traders when the NDRC in China issued a ban on phosphate exports. Some in Brazil expected to see a similar ban on other fertilizers, including amsul. This concern led to talks that the price at Paranagua could go to $360/mt CFR soon.
Rondonopolis is also steady at $400/mt FOB ex-warehouse. The concerns of the traders in Paranagua are also being felt inland. However, no one was talking about specific prices.