U.S. Gulf:
New ammonium sulfate barge trades dipped a bit, to $200-$215/st FOB from the week-ago $210-$220/st FOB, although most expected the next business to be higher. IOC has posted NOLA at $240/st FOB, up from $225/st FOB.
Eastern Cornbelt:
Sources pegged the granular ammonium sulfate market at $250-$260/st FOB in the Eastern Cornbelt at midweek, up another $10-$15/st, with the low confirmed at Cincinnati. New postings from Interoceanic (IOC) on Feb. 25 included $260/st FOB Delta terminals; $265/st FOB Upper Mississippi, Illinois, and Ohio River terminals; and $290/st rail-DEL in the Northern Plains.
“Scarcity of raw material supply due to the historic freeze in Texas this past week has significantly reduced availability of key raw materials,” IOC said. “To ensure we meet commitments to our customers leading into the forecasted robust spring season, we will only be selling current month production until raw material supply stabilizes.”
Western Cornbelt:
The ammonium sulfate market was reported at $235-$260/st FOB in the Western Cornbelt, depending on location and time of shipment, but higher postings took effect as the week progressed. New prices from IOC on Feb. 25 included $260/st FOB St. Louis, $270/st FOB Houston, Texas, $275/st FOB Sioux City, Iowa, and $280/st rail-DEL in the Southern Plains.
California:
Ammonium sulfate pricing was pegged at $265-$275/st FOB for standard and $275-$300/st FOB for granular in California, depending on location and supplier. New reference prices at Lathrop were reported at $290-$300/st FOB, up $20-$25/st from last report.
Pacific Northwest:
Sources quoted the granular ammonium sulfate market in the $270-$278/st FOB range in the Pacific Northwest, with reports of delivered offers up to $295/st in late February, depending on supplier. Standard grade continued to be referenced at $240/st FOB or DEL from IRM in Oregon, Washington, Idaho, Utah, and Montana.
Western Canada:
The granular ammonium sulfate market in Western Canada was pegged at C$425-$435/mt DEL in late February, depending on location and time of shipment, with the low end of the range up C$15/mt from last report.
China:
Ammonium sulfate demand is picking up as buyers are taking a pass on higher urea prices. Blenders are especially looking for cheaper ways to get the nitrogen they need, and ammonium sulfate has long been the go-to substitute. The problem for the international NPK producers is that Chinese NPK producers are also looking at making similar substitutions.
Sources said Chinese caprolactam-grade ammonium sulfate is now priced at $145/mt FOB, up about $5/mt from the previous week. Sources reported that sellers are now saying pricing discussions need to start at $150/mt FOB.
One trader noted that while demand is strong, limitations in output are also helping prop up the price. Some plants are still experiencing limitations because of restrictions either on production levels or on transportation due to COVID-19.
Brazil:
Granular ammonium sulfate prices in Brazil have started to move up in sync with the global situation. Sources reported a $10/mt jump at the ports, to $190-$195/mt CFR.
Rondonopolis has also seen a slight uptick in pricing, with sources now putting the local market price at $282-$315/mt FOB ex-warehouse. The driving force for the increase is coming from the hike in the landed price, rather than from competition in the local market. As the urea price moves up, however, sources said more blenders will look more closely at ammonium sulfate.
Indonesia:
Ammonium sulfate imports in 2020 were at 987,000 mt, down about 8 percent from 1.1 million in 2019. The main supplier to Indonesia was China at 948,000 mt.