Central Florida:
No changes were reported in the Central Florida phosphate markets. DAP trucks were posted at $840/st FOB, unmoved from the prior week, while truck-loaded MAP was pegged at $850/st FOB, also steady from one week earlier.
MAP trucks loading from North Florida were posted at $890/st FOB, steady from week-ago levels.
U.S. Gulf:
The NOLA DAP and MAP barge markets softened for a second consecutive week, sources said.
Prompt DAP barges slipped to a low of $760/st FOB, down $20/st from the week-ago $780/st FOB floor, while most said the market topped out in the $770-$780/st FOB range, below the prior $800/st FOB high. Domestically produced tons continued to be offered at $810/st FOB, although no trades were reported at that level. Most of the week’s trading reportedly focused in the $760-$770/st FOB range.
With interest from exporters flagging for the week, players described the NOLA MAP barge market at an $807/st FOB floor, reflecting a renewed emphasis toward domestic-facing buyers. Most noted the weekly high in the $820-$825/st FOB range. Offers to exporters were heard at $840-$845/st FOB, on par with week-ago levels, with no trades reported. MAP tons produced domestically continued to be offered at $850/st FOB.
The NOLA DAP barge market softened to $760-$780/st FOB, falling from $780-$800/st FOB in the prior report. MAP barges were called $807-$825/st FOB, below the $840-$845/st FOB range noted one week earlier.
U.S. Exports:
Sources reported a 30,000 mt DAP sale into India during the week, priced at $960/mt CFR. The tons, scheduled for loading in first-half September, were slated for inclusion on a 50,000 mt transport. With freight costs pegged at $50/mt, the sale netted back approximately $910/mt FOB to the seller, in line with the market’s week-ago low.
A recent trade into a northern Latin American market garnered $925/mt FOB, sources said. Some players believed Gulf trades could be achievable up to $945/st FOB into certain markets, although nothing was reported changing hands at that level.
Based on recent reported sales, the U.S. Gulf phosphate export market was pegged in the $910-$925/mt FOB range, steady from the prior report.
Eastern Cornbelt:
DAP slipped to $810-$840/st FOB in the Eastern Cornbelt, with the low confirmed at Ottawa and the high in Ohio. MAP was reported at $860-$880/st FOB, down $10/st from the prior week, with the low again reported at Ottawa. The Cincinnati market was pegged at $820-$830/st FOB for DAP and $860-$875/st FOB for MAP in mid-July.
Western Cornbelt:
DAP was pegged at $810-$845/st FOB in the Western Cornbelt, with the high confirmed at Caruthersville, Mo., and the low at St. Louis. MAP pricing fell in the $845-$870/st FOB range in the region, with the low again confirmed at St. Louis.
In the Northern Plains, the St. Paul, Minn., phosphate market was quoted at $810-$825/st FOB for DAP and $850-$870/st FOB for MAP.
Southern Plains:
DAP pricing was pegged at $805-$825/st FOB in the Southern Plains, with the high confirmed at Houston and the Catoosa/Inola market quoted at $805-$815/st FOB. MAP pricing in the region fell in the $850-$880/st FOB range, with the high once again reported at Houston. The Catoosa/Inola MAP market was quoted at $850-$860/st FOB at mid-month.
South Central:
DAP prices remained 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 Memphis.
Southeast:
Nutrien’s DAP posting remained at $840/st FOB Aurora, N.C., with MAP at $890/st FOB Aurora and White Springs, Fla.
Saudi Arabia:
The Saudi Arabia export phosphate market continued to be reported at a wide $840-$950/mt FOB, unchanged from one week earlier.
China:
Prices shifted up to $930-$945/mt FOB as demand from India strengthens. Sources said more producers are working directly with buyers, bypassing traders and tender processes. Some sales to small regional buyers were offering producers higher netbacks. Efforts to transfer these higher prices to larger buyers were rejected.
For some buyers, deals with large-scale producers provide a slight break in pricing because of lower freight rates related to the larger vessels these producers can fill. Sources said producers are finding less pushback from customs officials. Reportedly, domestic reserves are sufficient to ensure that when demand picks up in the latter part of the third quarter, supplies will not run out.
Exports of DAP during the first half of the year were reported at 1.3 million mt by Trade Data Monitor, down 60% from the 3.2 million mt exported during the first semester of 2021.
Second-quarter DAP exports were reported at 555,000 mt, down 75% from the 2.3 million mt exported in April-June 2021. India took about 43% of the exports with 238,000 mt, followed by Indonesia with 72,000 mt.
June DAP exports were reported at 197,000 mt, down from the 409,000 mt exported in June 2021. India took about one-third of the June shipments with 68,000 mt.
Exports of MAP for the first semester of 2022 were reported at 876,000 mt by Trade Data Monitor, down 54% from the 1.9 million mt exported during the same period in 2021. Brazil dominated the purchases with 376,000 mt, followed by Argentina with 158,000 mt and Australia with 143,000 mt.
Second-quarter 2022 exports of MAP were reported at 673,000 mt, down from the 1.3 million mt sold in April-June 2021. June 2022 exports of 277,000 mt were just a bit less than half of the June 2021 exports of 573,000 mt. Brazil took 60% of the June 2022 MAP exports with 165,000 mt.
India:
The price of DAP was reported steady in the $950s/mt CFR. Sources said more business is being done directly between producers and buyers, leaving little room for traders to participate.
Brazil:
Buyers of MAP continue to push for more discounts in pricing. Despite the pressure, sources reported no shift in the landed price of $950-$1,000/mt CFR. Buyers cite the large reserves of MAP in portside and inland warehouses as a reason for lower prices.
Rondonópolis prices shifted slightly downward to $1,075-$1,090/mt FOB ex-warehouse. Sources said part of the argument for lower prices is based on large reserves and a desire by some sellers to free space for future products.