Central Florida:
Central Florida DAP truck postings were quoted at $650/st FOB, falling from $660/st FOB in the prior report. Truck-loaded MAP was posted even with DAP at $650/st FOB, also softening from $660/st FOB at last check.
MAP trucks loading from North Florida were noted at $700/st FOB, unchanged from late December.
US Gulf:
Despite minimal new business reported for the week, prices on the NOLA barge phosphate markets were seen lifting from prior levels.
DAP barges firmed from the last-reported $600/st FOB low to $615/st FOB, for tons believed to be of Russian origin. Most new offers were heard pressing toward the top of the prior high at $620-$625/st FOB, with players generally calling the current-week top unchanged from the last-reported $625/st FOB.
Similarly, minimal confirmed business left the MAP ceiling unmoved from the previous $620/st FOB, while players described a weekly trading floor at $605/st FOB, above the prior $595/st FOB. Offers for the week were generally heard in a $610-$620/st FOB range.
Sources noted NOLA DAP barges in a $615-$625/st FOB range for the trading period, above $600-$625/st FOB published previously. MAP barges firmed to $605-$620/st FOB from $595-$620/st FOB at last check.
US Exports:
Nothing new was reported on the US Gulf export market, leaving pricing unchanged in a $640-$670/mt FOB range. Sources described offers “around” the $670/mt FOB level for new volume.
Eastern Cornbelt:
DAP offers were quoted at $685-$705/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati, reflecting a $5-$15/st drop from last report. MAP pricing was pegged at $680-$700/st FOB, with the low once again reported at Cincinnati.
Western Cornbelt:
DAP pricing remained at $685-$705/st FOB in the Western Cornbelt, with the St. Louis market quoted at $685-$695/st FOB. MAP was reported at $680-$700/st FOB in the region, with the low again confirmed at St. Louis.
Northern Plains:
Sources pegged the DAP and MAP markets at the $690/st level FOB St. Paul for the latest business, down from $700-$720/st FOB in mid-December. Delivered green MAP in western North Dakota remained at $792/st for 1Q tons.
Northeast:
Phosphate pricing FOB East Liverpool slipped to $705/st for DAP and $700/st for MAP, well below the $815/st FOB levels reported in early December. Delivered MAP was pegged at the $750/st level for 1Q tons in central Pennsylvania.
Eastern Canada:
MAP pricing in Eastern Canada slipped to a broad C$1,160-$1,280/mt FOB for recent offers, down C$20/mt at the low end of the range. The latest DAP offers at Montreal were quoted at the C$1,120/mt FOB level, down C$50/mt from December.
China:
Sources noted softening DAP export prices, citing reports that YUC sold a cargo to India in the low-$700s/mt CFR for a netback of $685-$695/mt FOB. At the same time, some traders are reportedly offering Chinese DAP to Asian buyers at $540/mt COFR for a netback closer to $520/mt FOB, although no deals have been reported at this lower level.
It appears as if DAP and MAP will remain on the Chinese government’s restricted export list. This means exporters will have to persuade customs officials that cargoes proposed for export will not adversely impact domestic phosphate fertilizer reserves.
India:
A direct sale of DAP from Chinese producer YUC to NFL was reported in the low-$700s/mt CFR, showing a downward move in prices for Chinese phosphate to India. In the past few months, Indian buyers were able to secure deals in the $720s/mt CFR from DAP exporters other than China.
Even as prices for imports soften, India is working to reduce its dependency on spot DAP purchases and to expand its contract buying resources. The Indian fertilizer minister will be visiting Morocco on Jan. 13-14 to sign a deal to increase phos rock imports from the North African country. During the visit, media reports said the minister will also explore the possibility of setting up joint ventures between Indian and Moroccan firms to produce DAP for exclusive shipment to India.
India is hoping to replicate its phos rock deal with Egypt soon after the Moroccan visit. The long-term agreements for the product will make DAP production in India easier, and reduce the amount of DAP and NPKs needing to be imported.
The establishment of Indian DAP production in Morocco would also be a major win for India, as sources said production costs in Morocco are much lower. Part of the savings will come in the ready access to phos rock and phos acid. Ammonia purchases for the plants would also be easier because Morocco is better situated than India to receive ammonia from multiple sources, including the Caribbean and Southeast Asia.
At the same time, Morocco is moving to increase its capacity for solar and wind power generation. The massive reduction in energy costs in the sunny, windy country would benefit Indian DAP buyers.
RCF issued a tender on Dec. 29 for the purchase of phosphate rock and/or MAP/DAP. The tender closes Jan. 9. Offers are requested to remain valid for 15 days from date of tender closing.
RCF is looking to buy 35,000 mt of phosphate rock with a minimum 32% P2O5 for shipment to MBPT (Hay Bunder) within 30 days of the purchase order. Under the same tender, the buyer is looking to buy two 20,000 mt lots of MAP/DAP, with the first shipment required to arrive up to February and the second up to March.
Brazil:
Prices for MAP have firmed as demand for the soybean crop picks up. Sources put the landed price at $650-$670/mt CFR, with the bulk of the business reportedly being done at the higher end of the range. Traders also noted that the barter rate between crop and fertilizer has improved, leading more farmers to ask for MAP deliveries.
Rondonopolis prices have tightened to $790-$815/mt FOB ex-warehouse. Sources said they expect to see prices move up as more local buyers look for material.