Central Florida:
Central Florida DAP trucks were posted at $650/st FOB for the week, sources said, unchanged from the prior report. MAP trucks were offered at $650/st FOB, steady from the week-ago level.
No changes were reported out of the North Florida MAP truck market, leaving posted prices flat at $650/st FOB.
US Gulf:
NOLA phosphate players described a market in search of direction, noting rising DAP values while MAP retreated from its prior-week high.
DAP barges loading in January and February saw trades and offers at $635-$640/st FOB, sources said, above the prior $628/st FOB floor, while the market’s high was generally described at $645-$650/st FOB, on par with the week-ago $650/st FOB top. Domestic producer offers were quoted at $645/st FOB, unchanged from the previous report.
NOLA MAP moved in the opposite direction, however. Prices held flat at the week-ago $595/st FOB floor, while players pegged the high closer to $615/st FOB, slipping from $618/st FOB at last check. Offers from domestic producers rang in at $620/st FOB, with no trades confirmed at that level.
The NOLA DAP barge market was reported in a $635-$650/st FOB range for the trading week, lifting from $628-$650/st FOB at last check. NOLA MAP barges tracked in a $595-$615/st FOB range, off from the week-ago $595-$618/st FOB.
US Exports:
With nothing new reported, last-done pricing on the US Gulf export phosphate markets continued at $650/mt FOB. Market players reported new offers at $670/mt FOB.
Eastern Cornbelt:
DAP prices were quoted at $685-$700/st FOB in the Eastern Cornbelt, with the Cincinnati market pegged at the $690-$700/st FOB level. MAP remained at $675-$685/st FOB in the region, with the low at Cincinnati.
MAP offers in the Great Lakes region were reported at $695-$710/st FOB in late January, depending on location.
Western Cornbelt:
DAP remained at $685-$695/st FOB in the Western Cornbelt, while MAP pricing broadened to $665-$690/st FOB in the region, with the high confirmed in Iowa. The lower end of both ranges was reported at St. Louis during the week.
Northern Plains:
The latest DAP offers at St. Paul were reported in the $705-$715/st FOB range, with MAP pegged at $690-$700/st FOB. Delivered green MAP in western North Dakota slipped to $765/st for 1Q tons, down roughly $27/st from last report.
Northeast:
Phosphate pricing FOB East Liverpool firmed to $720/st for DAP, up $15/st from last report, while MAP pricing slipped to $695/st FOB at that location, down $5/st.
Eastern Canada:
MAP in Eastern Canada slipped to a broad C$1,100-$1,280/mt FOB for recent offers, down C$60/mt at the low end of the range. The latest DAP pricing at Montreal was quoted at the C$1,090/mt FOB level, down C$30/mt from earlier in January.
Morocco:
OCP Group SA has signed Memoranda of Understanding (MOUs) with four Indian fertilizer producers, paving the way for the Moroccan phosphates group to supply India with up to 1.7 million mt of phosphate fertilizers for the agricultural season over the next 12 months, according to an OCP statement on Jan. 21.
The MOUs will provide for the delivery of up to 700,000 mt of TSP and 1 million mt of DAP to Indian farmers, OCP said. The phosphates group did not comment on the pricing framework.
The MOUs were inked with Rashtriya Chemicals and Fertilisers Ltd. (RCF), National Fertilisers Ltd. (NFL), Chambal Fertilisers and Chemicals Ltd., and Paradeep Phosphates Ltd., according to India’s Financial Express.
OCP will also reportedly supply 50,000 mt of potash to the four
companies. However, this could not be confirmed with OCP by press time.
The agreements are the latest in India’s plans to increase its long-term
arrangements for fertilizer imports in an attempt to reduce import prices and
“get fertilizer at our price,” according to a Jan. 21 tweet by
India’s Fertilizer Minister Mansukh Mandaviya, as cited by the report.
China:
Sources said that the lack of available DAP is expected to continue through the first quarter. Price discussions were reported in the $650s/mt FOB, although a dearth of public spot deals made nailing down pricing difficult.
DAP exports for 2022 totaled 3.6 million mt, according to Trade Data Monitor, a43% decrease from 6.3 million mt in 2021. The main buyers were India with 1.2 million mt, followed by Bangladesh with 605,000 mt. The remaining buyers took orders of 300,000 mt or less.
December DAP exports were 253,000 mt, a marked increase from 35,000 mt recorded in December 2021, reflecting easing government restrictions on DAP exports in the second half of 2022. First-half 2022 DAP exports totaled 1.3 million mt, compared to 2.3 million mt in July-December.
Exports of MAP for 2022 were reported at 1.9 million mt, off 50% from the year-ago 3.8 million mt. The two top buyers were Brazil with 652,000 mt and Australia with 353,000 mt.
December MAP exports were counted at 136,000 mt, up dramatically from 28,000 mt shipped in December 2021. Australia took 49% of the exports with 66,000 mt, followed by Brazil with 11,000 mt.
India:
Sources said buyers are becoming more aggressive in trying to move DAP prices down. Bids were reported coming in at $660/mt CFR, but with no confirmed deals on hand.
Paradeep Phosphate, Chambal, RCF, and NFL, signed an agreement with OCP of Morocco to receive a total of 1 million mt of DAP, with pricing to be negotiated for each cargo. The deal will also reportedly include 700,000 mt of TSP and 50,000 of potash.
The action is in line with previous efforts to bypass public tenders and traders. During the last half of 2022, many of the large Indian companies engaged directly with producers in China for their product. The efforts, said one trader at the time, reduced the cost of the DAP, and because they were dealing with Chinese state enterprises, ensured the fertilizer would quickly clear Chinese customs.
Trade Data Monitor pegged January-November imports at 6.2 million mt, a 46% year-over-year increase from 4.2 million mt. Morocco sent 1.9 million mt, followed by Saudi Arabia with 1.5 million mt. Only China, with 1.2 million mt sent, showed a decline in shipments to India during the period.
November imports were reported at 574,000 mt, down 32% from the 849,000 mt imported in November 2021. Saudi Arabia accounted for 38% of the market with 216,000 mt, while China sent 151,000 mt. The US shipped 113,000 mt. According to Trade Data Monitor, the US did not send any MAP to India in either December 2021 or December 2020.
Brazil:
The price for imported MAP narrowed to $655-$660/mt CFR on limited interest from buyers. Rondonopolis moved up to $790-$825/mt FOB ex-warehouse under aggressive buying.