U.S. Gulf: Granular barge prices were fairly stable last week, with sources calling the range $570-$610/st FOB for the week. The lower number started the week, with most calling the market $595-$610/st by the end of the week. New prill business was reported at $505/st FOB.
Eastern Cornbelt: Urea pricing in the Eastern Cornbelt was working its way up to higher numbers. Illinois sources said spot tons could be had for as low as $595-$600/st FOB early in the week, but others were calling the regional urea market as high as $620/st FOB by midweek for new spot sales.
Western Cornbelt: Sources in the Western Cornbelt quoted the granular urea market at $615-$640/st FOB regional terminals, up roughly $20/st from the previous week, with the upper end of the range reported in western Iowa. A Missouri source described urea availability out of regional terminals as “nip and tuck” last week.
Effective March 24, Koch’s urea postings in Oklahoma firmed to $615/st FOB Enid and Inola/Catoosa, up $20/st from the company’s March 22 reference price. One source pegged the urea market FOB Memphis, Tenn., at the $610/st level at midweek.
Northern Plains: The granular urea market was reported at $615-$625/st FOB the Twin Cities, with the upper end of the regional range pegged at the $645/st FOB level out of North Dakota terminals at midweek. No delivered pricing quotes were reported last week. “Tons have been really tight,” said one North Dakota source.
Great Lakes: Michigan sources quoted the granular urea market firmly in the $630-$645/st FOB range, depending on the terminal, which was up some $180/st from pricing levels for replacement tons just six weeks earlier. Wisconsin sources quoted the dealer market for granular urea solidly at the $620/st level FOB terminals at midweek.
Northeast: Granular urea pricing was firming rapidly in the Northeast region. Early in the week, sources said spot tons could be had for $605-$610/st FOB Pennsylvania terminals. By midweek, however, dealer postings out of several East Coast terminals had reportedly firmed to the $645/st FOB level, and some locations were out of product.
India: The IPL tender closed Friday, March 23, with only 1.5 million mt made available in firm offers. Industry expected the tender – the first of the new Indian application season – to be dominated by Iranian tons. And they were not disappointed.
About 775,000 mt of Iranian material was offered openly in the tender. In the end, Emmsons walked away with a 500,000 mt award at $385-$390/mt CFR, depending on the discharge port.
The tally of the tender:
Sources say this purchase was a good start for the season. Indian buyers were able to hold off until the end of March because of the large stockpiles built up at the tail end of the previous application season.
One trader noted that if IPL could have gotten any of the other suppliers to match the Emmsons price, it most likely would have taken more material.
The general view now is that another tender will be called in mid or late April. Whenever the next tender is called, however, the buyer will have to ready to pay more than what IPL just did.
The Iranian material was exceptionally cheap in this tender because of poor sales and strong production since December, when IPL closed the tender before this one. Stockpiles were building up in Iran during the first quarter.
At the same time that IPL is taking 500,000 mt, TCP/Pakistan is negotiating with Iran to set up barter deals for Iranian urea. The removal of those