Central Florida:
Central Florida phosphate prices were noted lower for the week, with both DAP and MAP trucks posted at $630/st FOB, off $10/st from $640/st FOB in the prior report.
MAP loaded to trucks from northern Florida was also reported at $630/st FOB, down $20/st from the week-ago $650/st FOB.
US Gulf:
NOLA DAP and MAP barges pressed higher from week-ago levels, sources said.
DAP barges were reported trading up to $625/st FOB, above the week-ago $610/st FOB high, while players noted lows firming to $600/st FOB from $590/st FOB in the previous report. Domestically produced DAP offers were quoted at $600/st FOB for March loading.
Sources described MAP barges changing hands “multiple” times at $565/st FOB for prompt shipment, even with the week-ago top, while prices rumored below the $565/st FOB level went unconfirmed on Feb. 23. Players put prices as high as $575/st FOB, while offers for domestic tons were reported at $570/st FOB on Feb. 23.
Sources attributed the firming market to a number of factors, including the start of barge releases from NOLA for destinations on the upper Mississippi River. With upper-river locks shut for the winter navigation season tentatively projected to fully reopen by April 1, barges were expected to begin releasing from NOLA in the second half of February. A reduction in the number of lower-price import offers in the market, previously said to weigh on price levels, also played a factor, sources indicated.
The NOLA barge DAP market was noted in a $600-$625/st FOB range, up from the week-ago $590-$610/st FOB. MAP barges were reported at $565-$575/st FOB, rising from $550-$565/st FOB at last check.
US Exports:
Nothing new was heard in the week’s Gulf phosphate export market, leaving last-done steady at $650/mt FOB. Players continued to quote new offer levels at $650/mt FOB.
Eastern Cornbelt:
DAP remained at $660-$680/st FOB and MAP at $650-$670/st FOB in the Eastern Cornbelt. The Cincinnati market was pegged at $660-$670/st FOB for DAP and $650-$660/st FOB for MAP in mid-February, while Seneca pricing was reported at $670/st FOB for DAP and $650/st FOB for MAP.
Western Cornbelt:
DAP dropped to $640-$670/st FOB in the Western Cornbelt, down from the previous $660-$680/st FOB range, with the St. Louis market reported at $640-$655/st FOB during the week. MAP fell to $620-$650/st FOB in the region, with the low again confirmed at St. Louis.
In the Northern Plains, phosphate pricing at St. Paul, Minn., was reported at $690/st FOB for DAP and $665/st FOB for MAP.
Southern Plains:
DAP was quoted at $680-$690/st FOB Catoosa/Inola, up slightly from last week on reports of tightening supply, while MAP pricing dropped to $630-$635/st FOB Catoosa/Inola and $635/st FOB Houston.
South Central:
DAP prices firmed slightly to $675-$700/st FOB in the South Central region, up from $670-$690/st FOB, with the low confirmed out of river terminals in Kentucky and the high at Little Rock. “DAP feels thin on the river,” commented one regional source. The Memphis DAP market was pegged at $690-$695/st FOB at midweek.
Southeast:
MAP pricing from Nutrien dropped to $630/st FOB Aurora, N.C., and White Springs, Fla., down from the previous $650/st FOB posting.
China:
Small lots of DAP were reportedly offered at $630-$635/mt FOB, leaving larger buyers to look elsewhere for product.
Producers continue to make direct deals with major buyers, such as large companies in India. The deals are opaque and bypass traders, leaving the industry looking for clues to calculate a realistic netback price.
Sources noted that many of the deals between DAP producers and large Indian buyers often include a rebate that lowers the actual paid price below what is leaked to the public. Traders said the price being offered in the low-$630s/mt FOB butts up hard against reports of purchases by Indian buyers at $640/mt CFR.
While India continues to show interest in DAP, other major buyers such as Australia appear to be waiting. Sources noted that Australian buyers seem to be taking tons in a hand-to-mouth manner. Purchases for the East Coast season were said to only be 50% done, while in previous years buyers would have secured about 70% of their needs by now. Likewise in Western Australia, purchases were said to be at about 70% of needs, instead of the usual 80-90% at this time.
India:
The RCF tender for 50,000 mt of DAP closes on Feb. 27. The tender will give the market a solid look at pricing expectations into India from both producers and buyers. For now, sources reported a deal involving Moroccan material at $640/mt CFR.
The latest deal lowers the DAP price and puts more pressure on Chinese producers. The effective netback to China from the Moroccan deal was estimated at $610-$615/mt FOB, a level that Chinese producers consider too low.
Brazil:
Most trading was curtailed while the country celebrated Carnival. Limited information placed the current MAP market steady at $650-$660/mt CFR, with talk of $665/mt CFR taking place.