U.S. Gulf:
New NOLA ammonium sulfate barge trades were reported in the $390-$405/st FOB range, up from the week-ago $385-$400/st FOB.
Eastern Cornbelt:
The granular ammonium sulfate market was pegged at $460-$480/st FOB in the Eastern Cornbelt, depending on location.
Western Cornbelt:
Granular ammonium sulfate pricing remained at $445-$480/st FOB in the Western Cornbelt, with the low confirmed at St. Louis.
Northern Plains:
Ammonium sulfate remained at $465-$495/st FOB in the region, with the low in Minnesota and the high at Sioux City, Iowa. The latest delivered fill pricing slipped to $430-$445/st DEL in North Dakota, down from the previous $440-$445/st DEL level.
Northeast:
Delivered granular ammonium sulfate pricing in the Northeast remained at $490-$515/st in late August. Terminal prices were steady at $455-$485/st FOB in the region.
Eastern Canada:
Ammonium sulfate fill pricing was steady at C$685-$790/mt FOB in Eastern Canada, although sources said they expect fill offers to be pulled soon.
China:
The trend is up on pricing, but no new deals were reported to confirm a shift from the current $190-$195/mt FOB for caprolactam-grade ammonium sulfate.
Sources said the upward trend is coming from the closure of European plants due to high natural gas costs. Suddenly, buyers from Europe were contacting Chinese suppliers to discuss cargoes, which started what sources said will be a battle between European and Brazilian buyers for the product.
The amsul market had gone quiet as urea prices softened, leaving little incentive to use it as a substitute. With urea prices once again on the rise, sellers are looking to reconnect with their customers to see if any new deals are possible.
With a rebound in amsul prices likely because of increased demand from Europe and higher urea prices, sources said the supply from China remains tentative. The cutback in industrial output in China has also caused a reduction in amsul availability.
January-July 2022 exports of ammonium sulfate were reported at 5.7 million mt by Trade Data Monitor. Exports during the same period in 2021 were reported at roughly the same level, with only a 0.37% increase in 2022.
Brazil dominated the purchases of Chinese amsul, taking 1.2 million mt during the first seven months of the year. The next closest was Vietnam, taking 572,000 mt, followed by Turkey, which took 550,000 mt.
July 2022 exports were reported at 917,000 mt, down 16% from the 1.1 million mt exported in July 2021. Brazil took 381,000 mt, accounting for 41% of China’s exports. No other buyer exceeded 9% of ammonium sulfate exports.
Brazil:
Ammonium sulfate buyers may soon be facing more competition for Chinese tons. European buyers have reportedly made overtures to Chinese suppliers for tons as higher natural gas costs in Europe affect the ability to produce material at a viable level.
Pricing so far has come off only slightly, to $250-$270/mt CFR. International sources are not sure how prices in Brazil will shift. With European demand stepping up, Brazil could potentially get into a bidding war with them.
At the same time, however, demand for amsul as a substitute for urea is down due to the dip in urea prices in August. If urea prices recover – as indicated by rumors out of the Arab Gulf and by deals out of Egypt – then demand might pick up again, providing another incentive to move up prices.
Rondonopolis ammonium sulfate pricing was reported at $370-$385/mt FOB ex-warehouse. This represents a significant drop from the previous week, when the top of the range touched $415/mt FOB.