U.S. Gulf:
New NOLA barge trades were put in the $500-$520/st FOB range, up from the week-ago $500/st FOB.
U.S. Imports:
Imports of ammonium sulfate slipped 33.5 percent in September, to 91,206 st from 137,153 st in September 2020. July-September totals were off 13.7 percent, to 229,154 st from the year-ago 265,524 st.
Canada stood atop the July-September import list with 117,787 st, up 5.7 percent from the prior-year 111,414 st. Tons originating from Belgium totaled 74,071 st, a 34.2 percent jump from 55,188 st last year. South Korea remained in third place with 22,046 st, falling 27.3 percent against 30,313 st recorded through the same period of 2020.
In addition to reduced tonnage from South Korea, sharp import reductions from Russia (zero tons in July-September versus 33,141 st in the year-ago) and the Netherlands (44 st from 31,180 st posted one year earlier) accounted for the market’s contraction.
U.S. Exports:
Ammonium sulfate exports firmed 16.9 percent in July-September, to 179,740 st from the year-ago 153,779 st. Exports totaled 58,794 st for September, however, off 22.9 percent from the year-ago 76,271 st.
Eastern Cornbelt:
The granular ammonium sulfate market remained at a firm $535-$545/st FOB in the Eastern Cornbelt, with the lower end of the range in Illinois and the high FOB Cincinnati. Most Michigan warehouses were reported firmly at the $550/st FOB level for limited tons.
Western Cornbelt:
The ammonium sulfate market was steady at $530-$550/st FOB in the Western Cornbelt, with the low reported at St. Louis.
Northern Plains:
Granular ammonium sulfate prices were quoted at $540-$550/st FOB St. Paul for the last offers. While the last delivered sales were confirmed at the $520/st level in North Dakota, sources said new offers had climbed to as high as $570/st.
Northeast:
Sources pegged the ammonium sulfate market at $545-$586/st FOB in the Northeast, depending on grade, location, and time of shipment, up significantly from the $420-$440/st offers reported in mid-October.
Eastern Canada:
Ammonium sulfate prices were quoted at C$685-$690/mt FOB in Eastern Canada, up from a low of C$620/mt FOB in October.
China:
A 120,000 mt tender by Gresik of Indonesia moved up the price. Sources now peg the market for caprolactam-grade amsul out of China at $380/mt FOB.
The Gresik tender initially showed prices in the upper-$460s/mt CFR. In the end, Gresik countered at $460/mt CFR and was able to secure four cargoes of 20,000 mt for November-December shipping. The Indonesian company is still in negotiations for the rest of the requested tonnage.
Traders dealing with Chinese amsul are focusing more on Southeast Asian sales because freight is less of an issue than sending product to larger buyers, such as Brazil. Sources said the minimum sized vessel to Brazil from China is about 30,000 mt. They noted that it would take too long to secure enough amsul to fill such a ship, so it must share passage with other commodities such as urea or NPKs. With fertilizer exports stopped out of China, the ammonium sulfate sellers cannot find partners to make the Trans-Pacific run.
Instead of shipping large quantities to the Americas, Chinese suppliers and traders are focusing on the nearby Asian buyers, which allows for smaller vessels.
Brazil:
The price of amsul at Paranagua has softened to $485/mt CFR. Sources indicated the softening price has little to do with hoped-for product, but rather realization that tonnage from China is limited and fewer tons are expected to be delivered in the near future.
International traders said it is difficult to fill a 30,000 mt vessel for Brazil. The amsul component of the cargo is not enough, so other fertilizers such as urea or NPKs have to be included in the manifest. With Chinese fertilizer exports shut down, the ammonium sulfate cannot be shipped to the Americas.
Rondonopolis showed a marked increase as local buyers stepped up to grab what tonnage they could before product becomes scarce. Sources put the market price at $660/mt FOB ex-warehouse.
Imports of ammonium sulfate remain dominated by China. January-October imports were up 43 percent from last year, to 2.9 million mt, with China supplying 2.3 million of that number, according to Trade Data Monitor. October imports were reported at 373,000 mt, up 30 percent from the October 2020 total of 288,000 mt.