U.S. Gulf:
The last done NOLA ammonium sulfate business was put at the $585/st FOB mark, with price ideas for the next round of business called $585-$595/st FOB.
Eastern Cornbelt:
Granular ammonium sulfate prices continued to firm in the Eastern Cornbelt. The regional market was pegged in the $610-$630/st FOB range, depending on location, with the low confirmed at Cincinnati.
Western Cornbelt:
Ammonium sulfate pricing was pegged at $605-$630/st FOB in the Western Cornbelt, depending on location, with the St. Louis market pegged at a solid $615/st FOB at midweek. Prices in North Dakota were confirmed at $625/st DEL for Q1 and up to $645/st DEL for Q2 tons, with the St. Paul market pegged at $625-$630/st FOB.
California:
The California ammonium sulfate market jumped to $610-$620/st FOB in early January, up $45-$50/st from December, with reports of rail-DEL offers climbing to as high as $690/st, depending on grade, location, and supplier.
Pacific Northwest:
Ammonium sulfate pricing remained at a low of $560/st FOB or DEL for standard grade in the Pacific Northwest. Granular tons ranged broadly at $575-$625/st FOB and $585-$630/st DEL for Q1 tons, depending on location and supplier.
Western Canada:
The ammonium sulfate market in Western Canada had reportedly strengthened to C$785-$805/mt DEL, up from C$760-$785/mt at last report.
China:
Sources said there was a lot of talk, but no action in the ammonium sulfate market this week. Reportedly, price discussions focused on $300-$330/mt FOB for caprolactam grade ammonium sulfate. At the same time, producers were offering at just under $330/mt FOB.
Without any concluded business in the lower price zone, prices remain in the $340s/mt FOB. One trader said the only material moving in that area are older deals just getting loaded onto vessels.
Some traders are pointing to a lack of buying interest by NPK buyers around the world for the softness in the market. They note that many of these blenders look for ammonium sulfate as a substitute for urea and an easy way to add sulfur to their product. With urea prices coming off, sources expect to see a similar softening in ammonium sulfate prices.
Exports of ammonium sulfate were unaffected by the ban imposed on other fertilizer product such as DAP and urea. The exports for 2021 were up 23 percent, to 10.6 million mt against 2020 exports of 8.7 million mt. Brazil was the largest single buyer with 3.57 million mt, representing 33.5 percent of the export sales. Vietnam and Indonesia each took an additional 1.1 million mt in 2021.
December 2021 exports were up about 46 percent at 1.5 million mt, against 1 million mt in December 2020. Brazil more than doubled its monthly take of product. The December 2021 shipments to Brazil were reported at 804,000 mt, against December 2020 shipments of 368,000 mt.
Brazil:
Traders saw the lower end of the granulated ammonium sulfate market drop about $50/mt, to $400/mt CFR. At the same time, however, the upper end held steady at $490/mt FOB. This spread is expected to tighten closer to the lower end as prices from China continue to show a decline.
A lack of demand for ammonium sulfate by NPK producers is putting the general market on hold. Sources said Rondonopolis is feeling this apathetic market feeling. The price remains steady at $670/mt FOB ex-warehouse, mostly because of a lack of activity.
South Korea:
Exports of ammonium sulfate in 2021 were up 54 percent, to 603,000 mt from 391,000 in 2020 according to Trade Data Monitor. The main buyers of South Korean tons were Mexico at 107,000 mt, representing about 18 percent of the South Korean sales, followed by the U.S. at 105,000 mt, and Turkey at 95,000 mt.
December 2021 exports were reported at 99,000 mt, a dramatic rise from the 19,000 mt exported in December 2020. Brazil was the big buyer in December with 44,000 mt, followed by Ukraine at 27,500 mt, and the U.S. at 26,000 mt.