Central Florida:
Central Florida DAP trucks remained posted at $840/st FOB for the week, unmoved from the prior report. Truck-loaded MAP was quoted at $850/st FOB, also steady from last week. MAP trucks loading from North Florida were priced at $890/st FOB, sources said.
U.S. Gulf:
Players described a quiet week of trading in the NOLA DAP and MAP barge markets.
Pricing for DAP barges loading from NOLA tracked in a mostly sideways direction through the period. Indications from domestic producers were quoted at $810/st FOB, unmoved from the week-ago high, while offers were reported at a floor of $780/st FOB, below the prior $785/st FOB low. Firm bidding reported at $765/st FOB attracted no takers, players said.
MAP barge trading was similarly slow, sources said, with domestic offers holding at the prior week’s high of $850/st FOB, contrasting against recent lows at $825/st FOB. Limited trading was reported concluding within the prior-week range.
With few actual trades confirmed for the week, the NOLA DAP barge market was called $780-$810/st FOB, softening from the week-ago $785-$810/st FOB. MAP barge values remained in the $825-$850/st FOB range, rolling over from the prior report.
U.S. Exports:
No new data points were reported in the U.S. Gulf export phosphate markets, leaving price indications steady at the week-ago $980-$1,000/mt FOB level.
Eastern Cornbelt:
DAP was quoted at $820-$850/st FOB in the Eastern Cornbelt, down slightly at the low end of the range. Terminal prices at midweek included $825/st FOB Ottawa, Ill., and $840-$845/st FOB Cincinnati.
The MAP market was reported at $875-$905/st FOB in the Eastern Cornbelt, with the upper end confirmed at Cincinnati and the low in Illinois on a spot basis.
Western Cornbelt:
The DAP market was quoted at $805-$850/st FOB in the Western Cornbelt, with the St. Louis market pegged at $805-$815/st FOB, down from the prior week’s $810-$830/st FOB range. The regional MAP market was reported at $855-$880/st FOB, with St. Louis pricing quoted at $855-$860/st FOB.
Southern Plains:
DAP pricing slipped to $810-$815/st FOB Catoosa/Inola and $825/st FOB Houston, down from the prior week’s $815-$840/st range. MAP pricing was quoted at $860-$870/st FOB Catoosa/Inola and $880/st FOB Houston. “MAP supply is not excessive, leading to the premium” commented one source.
South Central:
DAP prices were reported at $850-$875/st FOB terminals in the South Central region, with the low quoted at Little Rock and out of spot river terminals in Kentucky, and the high at Shreveport and Memphis.
Southeast:
Nutrien’s DAP posting remained at $840/st FOB Aurora, N.C., with MAP referenced at $890/st FOB Aurora and White Springs, Fla.
Western U.S.:
MAP pricing was reportedly up $30/st from the mid-June fill programs offered in California and the Pacific Northwest. New levels included $890/st FOB or DEL in the Pacific Northwest and $900/st FOB or DEL in California.
Morocco:
Moroccan DAP was reported to be on offer to Europe at up to $1,100/mt FOB. The last confirmed business was reported at $900-$950/mt FOB.
India:
Local media reported that India is expected to have received 350,000 mt of Russian DAP at prices below levels acceptable by Arab and Chinese producers. Reportedly, Indian buyers paid $920-$925/mt CFR for the tonnage. The Indian government has also reportedly announced this will be the most it will pay for DAP.
Purchases from Arab producers have been reported at $1,030/mt CFR. Likewise, neighboring Pakistan and Bangladesh have also been forced to pay prices well above $1,000/mt CFR for the product.
Sources said the Russians have been offering various fertilizers below market prices to entice buyers to ignore the sanctions imposed by the U.S. and the E.U. Even with exemptions for fertilizer and food products, many banks and insurance companies remain nervous about handling deals involving Russian products.
The move to cap the DAP price in the $920s/mt CFR is being seen as pressuring the Arab and Chinese suppliers to lower their prices.
January-April 2022 imports of DAP were reported at 1.9 million mt, dramatically higher than the 466,000 mt imported during the same period in 2021. Trade Data Monitor reported that Morocco, Saudi Arabia, and China were the top suppliers for the first four months of the year at 540,000 mt, 438,000 mt, and 392,000 mt, respectively.
April 2022 imports were reported at 462,000 mt, up 88% from the 246,000 mt imported during April 2021. OCP in Morocco supplied 207,000 mt, or about 45%, of the imports for that month.
China:
Unconfirmed reports are circulating that the Chinese government may impose new export quotas on DAP and other phosphates. There are several possible plans floating around. One has phosphate exports limited to 10% of total production. Another would limit exports to 25% of rated capacity.
Sources said the new rules could be released for immediate effect as early as July 1. However, sources said the most likely time would be in October after the annual meeting of the ruling Communist Party.
Brazil:
MAP was reported at $1,000-$1,050/mt, down from the week-ago $1,030-$1,080/mt. For now, demand for phosphates remains concentrated only in some regions. With high stock levels in ports, slight decreases in MAP prices are not ruled out in the coming weeks.