U.S. Gulf:
NOLA ammonium sulfate barges were put in the $410-$415/st FOB range, up from the week-ago $400-$410/st FOB.
Eastern Cornbelt:
The ammonium sulfate market edged up to $430-$455/st FOB in the Eastern Cornbelt, up $15/st at the low end of the range, with the latest reference price from IOC reported at $440/st FOB Ohio and Illinois River terminals.
AdvanSix reported that it is increasing the price of granular ammonium sulfate to $420/st FOB Hopewell, Va., effective Oct. 16. The new price reflects an $85/st increase from the company’s last posting on Sept. 20.
Western Cornbelt:
The ammonium sulfate market remained at $435-$445/st FOB in the Western Cornbelt, with the St. Paul market pegged in the $450-$460/st FOB range at midweek.
California:
The California ammonium sulfate market was quoted at $430-$450/st FOB and $470-$490/st DEL, up $50/st or more from last report, depending on grade and location.
Pacific Northwest:
Ammonium sulfate pricing in the Pacific Northwest had reportedly firmed to $440-$460/st FOB or DEL for standard grade and up to $470-$490/st FOB or DEL for granular, up some $60-$90/st from last report.
Western Canada:
The ammonium sulfate market in Western Canada was quoted in a broad range at C$615-$670/mt DEL, depending on location, grade, and availability, with most new quotes for granular tons falling in the C$650-$670/mt DEL range for limited inventories.
China:
Supply has been dwindling in China against steady demand from Southeast Asia and Brazil. While ammonium sulfate was not on the list of fertilizers facing export restrictions, sources said exports of the product could still be hampered by the new rules. Sources said they expect Brazil to be hit harder.
Sources said most amsul exports from China to Brazil have been in vessels of 25,000 mt or greater to keep shipping costs down. In most cases, the amsul is part of shipments of other products such as phosphates, urea, or NPKs. With the new limitations on exports of 29 different fertilizers from China, however, the amsul cargoes may not be able to find vessels to be included in the hold. Traders said organizing enough sources of only amsul to fill a 25,000 mt vessel is nearly impossible. One trader said sales to distant locations, such as Brazil, may end up using containers instead of bulk loadings.
Southeast Asian buyers, however, prefer smaller shipments of 5,000-10,000 mt, which can be more easily arranged. Sources reported a deal of 10,000 mt of caprolactam-grade ammonium sulfate to a Southeast Asian buyer in the mid-$310s/mt CFR. With an estimated freight rate of $50/mt, sources said that pushed the netback to China in the mid-$260s/mt FOB.
Sources said all week that offers in the $250s/mt FOB were circulating, but were being rejected. The reported deal with a netback in the $260s/mt FOB, said one trader, sounds plausible, but may be a bit higher than where the market should be. He pegged the market in the $250s/mt FOB.
Brazil:
Buyers are still reeling from the dramatic increase in ammonium sulfate prices last week, to $395-$400/mt CFR into Paranagua. With possible limitations on how many tons can economically be shipped out of China, sources expect to see higher prices.
At first, Brazilian buyers seemed relieved that amsul was not on the Chinese government list of fertilizers facing export limitations. However, the realization that the cargoes from China that usually accompany amsul loads may no longer occur has once again raised concerns.
The price jump into the $250s/mt FOB in China for caprolactam grade amsul could raise more pricing concerns in Brazil.Rondonopolis remains at $500/mt FOB ex-warehouse as buyers and sellers take a break from the market.
Turkey:
January-August 2021 imports of ammonium sulfate in Turkey were up 124 percent, to 608,000 mt from 271,000 mt during the same period last year, according to Trade Data Monitor. The main supplier this year was China with 328,000 mt.August 2021 imports were reported at 29,000 mt. There was no data for August 2020.