Central Florida:
Posted prices on DAP trucks loading from Central Florida were announced at $840/st FOB during the week, a sharp decline from $945/st FOB in the prior report. Truck-loaded MAP, previously posted even with DAP at $945/st FOB, softened to $850/st FOB.
MAP trucks releasing from North Florida were quoted at $890/st FOB, unmoved from the prior report.
U.S. Gulf:
NOLA barge DAP values continued to trickle lower, with a brief early-week uptick in the market’s low side reversing course by midweek.
Players described multiple DAP barge trades at $795/st FOB on June 21, above the market’s week-ago $790/st FOB floor. The material was slated for loading in first-half July. Updated public offers were heard in the $785-$810/st FOB range on June 23, with little interest reported.
Few, if any, MAP barges were confirmed changing hands during the June 17-23 trading period, leaving that market steady at week-ago levels. New offers were most typically heard at $845-$850/st FOB, toward the upper end of the previous week’s range.
The nearby DAP market was noted softening to $785-$810/st FOB through the week, off slightly from $790-$810/st FOB in the prior report. With few sales reported, MAP barges loading from NOLA continued at the week-ago $825-$850/st FOB range.
U.S. Exports:
With softer values reported out of Brazil for the week, available Gulf export netback potential moved to the $980-$1,000/mt FOB range, falling from $980-$1,030/mt FOB reported one week earlier.
Eastern Cornbelt:
DAP was quoted at $830-$850/st FOB in the Eastern Cornbelt, below the prior week’s $835-$870/st range, with the Cincinnati market pegged at $830-$840/st FOB. The MAP market was reported at $870-$900/st FOB in the region, with the upper end confirmed at Cincinnati.
Western Cornbelt:
The DAP market remained at $810-$850/st FOB in the Western Cornbelt, with the St. Louis market pegged at $810-$830/st FOB. The regional MAP market was reported at $865-$900/st FOB, with St. Louis pricing quoted at $865-$880/st FOB, reflecting an increase of $10-$25/st from the previous week.
Northern Plains:
DAP pricing was quoted at $825-$850/st FOB St. Paul, with MAP reported at $870-$900/st FOB at that location. Delivered green MAP in western North Dakota was pegged at the $920/st level for recent fill offers from Western U.S. producers, down $65/st from the last reported prompt pricing.
Northeast:
The phosphate market FOB East Liverpool, Ohio, reportedly slipped to $860/st for DAP and $920/st for MAP, down $50/st or more from levels reported in early June. In the Southeast, reference prices remained at $840/st FOB Aurora, N.C., for DAP, with MAP posted at $890/st FOB Aurora and White Springs, Fla.
Eastern Canada:
MAP pricing in Eastern Canada was quoted in a broad range at C$1,325-$1,475/mt FOB, depending on supplier and location, down a full C$140/mt at the low end. The DAP market at Montreal was down C$70/mt, to C$1,385/mt FOB in late June.
Saudi Arabia:
Saudi Arabia phosphate values were reported at $730-$950/mt FOB, a shift from $700-$1,000/mt FOB in the prior report.
China:
Chinese DAP is expected to dominate the awards issued in the Bangladesh Ministry of Agriculture tender. Sources said YUC is claiming it will supply 400,000 mt, about half of the awards issued, to traders in the tender. Other Chinese companies are said to be backing others, with a smattering of support from Arab producers.
Sources said while calculating a netback based solely on the Bangladesh numbers, they were confident that the price back to China is around $950-$1,000/mt FOB.
One trader noted that the Chinese government is not anxious to allow large quantities of DAP to be exported. The restrictions on exports remain in place as the government looks to keep domestic reserves high and local prices low.
The potential shipments to Bangladesh could be the upper limit of what the customs bureaucrats might be willing to let go, said one trader. The three-month shipping period should give the producers and traders enough time to get the export exemptions cleared through the Chinese bureaucracy.
January-May 2022 DAP exports were reported at 1.1 million mt by Trade Data Monitor. This is less than half of the 2.3 million mt exported during the same period in 2021. The main buyers so far this year were India with 359,000 mt, Bangladesh with 162,000 mt, and Thailand with 145,000 mt.
May 2022 exports of 163,000 mt were down 82% from May 2021 exports of 929,000 mt. India took 30% of the May exports at 49,000 mt, with Indonesia taking another 28% at 45,000 mt.
January-May 2022 MAP exports were reported at 599,000 mt, down from 1.3 million mt during the same period in 2021. Brazil led the buyers with 211,000 mt, followed by Australia with 141,000 mt.
May 2022 exports were reported by Trade Data Monitor at 218,000 mt, down 40% from the 363,000 mt exported in May 2021. Brazil took 63% of the May exports at 138,000 mt.
India:
The high cost of phos acid makes it difficult for DAP producers to make new product. As a result, the country remains in the market for finished DAP. So far, however, sources said demand and supply are just balanced enough that buyers do not have to go on major searches for product on the international market.
NFL will close a tender for cargoes of DAP to be delivered to ports along the East Coast and West Coast. Each coast shipment is for 50,000 mt. The tender closes on June 27, with shipment by July 31.
Some sources said the tender is more of a pricing exercise rather than a serious desire to buy product. If the price is right, however, NFL will not hesitate to snap up the tons.The tender also called for a total of 150,000 mt of three different varieties of NPK.
Bangladesh:
The Ministry of Agriculture closed a DAP tender on June 9. This week it issued letters of intent to buy 812,000 mt from 23 companies.More than half of the tonnage is expected to come from China. Sources said some Jordanian material is most likely included in the mix.
As usual, the offering companies are Bangladesh firms with international backing. Unlike neighboring India, Bangladesh tender buyers do not counterbid at the lowest price. Sources said the Ag Ministry just started issuing LOIs to the lowest offering firm and kept going until it achieved the tonnage it wanted.
| Offering Company | Quantity (mt) | US$/mt CFR Bagged |
| Najneen Enterprise | 40,000 | 1,019.74 |
| Fiaz Trade International | 40,000 | 1,121.00 |
| Mosharof & Bros | 40,000 | 1,023.00 |
| OF Enterprise | 40,000 | 1,023.50 |
| MN Enterprise | 40,000 | 1,023.50 |
| Appolo Trade | 40,000 | 1,024.40 |
| Afroz Trade Agency | 40,000 | 1,025.00 |
| Rupaili Trade | 12,000 | 1,025.00 |
| Ashfaq Enterprise | 40,000 | 1,025.00 |
| Rafi Enterprise | 40,000 | 1,025.00 |
| Haji Enterprise | 40,000 | 1,025.00 |
| Afli Trade | 40,000 | 1,025.00 |
| Deepa Enterprise | 40,000 | 1,026.00 |
| Direct Trading Co. | 40,000 | 1,027.00 |
| Daily Trading Company | 40,000 | 1,027.00 |
| Millennium Enterprise | 40,000 | 1,027.50 |
| Bongo Trading | 40,000 | 1,028.00 |
| Desh Trading | 40,000 | 1,028.00 |
| Euro Asia Trading | 40,000 | 1,029.00 |
| Rafiqui Islam | 20,000 | 1,030.00 |
| Araiging Trade | 20,000 | 1,030.00 |
| Sunsing Ltd | 20,000 | 1,030.00 |
| Mahir International | 20,000 | 1,030.00 |
Shipment is slated to take place during the next three months. Sources said the timing should allow the Chinese DAP producers backing some of these sales enough time to get permission from the customs officers to export their product.
Brazil:
The price for MAP tightened at a lower level of $1,030-$1,050/mt CFR. Sources said there is already talk of breaking below the $1,000/mt CFR level, with some saying $970/mt CFR is seriously being considered by sellers.
Rondonópolis also came in with softer prices at $1,180-$1,200/mt FOB ex-warehouse. Sources said reduced demand for the 2022/23 season seems to have pulled down the prices.