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Ammonium Nitrate

Ammonium Nitrate, Market Watch, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf:

NOLA ammonium nitrate barges were quoted in the $200-$235/st FOB range, although some remained skeptical of the higher numbers. Others said the higher prices were a reality, however, at least until new imports hit the shore.

U.S. Imports:

August ammonium nitrate imports were up 15 percent, to 25,560 st from the year-ago 22,244 st. July-August imports were up 209 percent, to 92,808 st from 30,042 st.

U.S. Exports:

August ammonium nitrate exports were up 35 percent, to 44,312 st from the year-ago 32,775 st. July-August exports were up 22 percent, to 82,225 st from 67,421 st.

Western Cornbelt:

The ammonium nitrate market was unchanged at $265-$275/st FOB in the Western Cornbelt.

Southern Plains:

Ammonium nitrate had reportedly firmed to $260-$265/st FOB in Oklahoma for first quarter 2019 tons, up some $15/st from last report.

South Central:

The last reported offers for ammonium nitrate were in the $240-
$250/st FOB range in the South Central region, but sources reported few tons available in early October.

Southeast:

The ammonium nitrate market remained at $225-$230/st FOB Tampa for the last business.

Ammonium Sulfate

Ammonium Sulfate, China, Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf:

The NOLA ammonium sulfate barge market spanned a broader range during the week. While imports continued to be called $200-$205/st FOB, domestic product was reported to have achieved numbers as high as 220/st FOB. AdvanSix is now posted at $235/st FOB.

U.S. Imports:

August ammonium sulfate imports were up 30 percent, to 24,259 st from the year-ago 18,729 st. July-August imports were up 61 percent, to 65,898 st from 40,964 st.

U.S. Exports:

August ammonium sulfate exports were down 25 percent, to 87,014 st from the year-ago 116,381 st. July-August exports were up 34 percent, however, to 186,961 st from 139,502 st.

Eastern Cornbelt:

New granular ammonium sulfate postings from AdvanSix on Oct. 8 included $270/st FOB Granite City, Ill; $275/st FOB East Dubuque, Ill., and Prairie du Chien, Wisc.; and $280/st FOB Danville, Ill., and Amherst Junction, Wisc. Those levels reflect a $15/st increase from AdvanSix’s Aug. 31 postings.

Mid-grade postings from AdvanSix also firmed $15/st on Oct. 8, moving to $240/st FOB Danville and Byron, Ill. The company’s rail-DEL postings in Illinois and Wisconsin moved up as well, to $285/st for granular and $250/st for mid-grade.

Western Cornbelt:

Granular ammonium sulfate was reported at $240-$260/st FOB in the region, up $5/st from last report, with the low confirmed at Caruthersville. Rail-DEL tons were pegged at the $265/st level in the Iowa market.

AdvanSix announced a new price increase for ammonium sulfate in the Midwest, effective Oct. 8. The company’s granular postings firmed $15/st, moving to $270/st FOB Roseport, Minn., $285/st FOB Sioux City, Iowa, and $285/st rail-DEL in Iowa and Minnesota east of Interstate-35. Mid-grade postings from AdvanSix also firmed $15/st on Oct. 8, moving to $245/st FOB Roseport and $250/st rail-DEL.

Southern Plains:

Granular ammonium sulfate pricing had firmed to $230-$240/st FOB in the Southern Plains, with the low at Houston and Freeport, Texas, and the upper end at Catoosa/Inola.

South Central:

Granular ammonium sulfate pricing was quoted at $235-$240/st FOB in the South Central region, with the low at Memphis and the upper end out of Arkansas River terminals.

Southeast:

New ammonium sulfate postings from AdvanSix FOB Hopewell, Va., reportedly include granular at $240/st, mid-grade at $220/st, and standard at $185/st. Sources quoted delivered granular in the $260-$270/st range in the Southeast, depending on location, with standard grade reported at $195-$205/st DEL in the Florida market.

China:

The rising price of urea in the global market is beginning to have an impact on the ammonium sulfate market. Sources said more suppliers are looking to push the price to $125/mt FOB.

Besides the influence of the general nitrogen market, sources said more buyers are issuing inquiries for caprolactam-grade amsul instead of their usual steel-grade. Sources point to the continued downward projections of steel output in China as the main cause of fewer tons of steel-grade amsul being available on the open market.

DAP/MAP

Brazil, Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Market Watch, Saudi Arabia, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

Central Florida:

Central Florida DAP truck pricing continued to be noted at $425/st FOB, unchanged from the prior report. MAP trucks boasted a
$10/st premium at $435/st FOB.

U.S. Gulf:

Heavy rains in both the Gulf of Mexico and numerous upriver locations contributed to a slow NOLA barge market during the week, sources said.

Prompt and October DAP sales reportedly topped out at $422/st FOB for the week, slipping from the week-ago $425/st FOB high. Offers heard at $425/st FOB were said to garner no interest on Oct. 11. “You can’t get $425 today,” one trader commented.

DAP tons pegged for loading in November were said to fall as low as $418/st FOB. Many believed the softer market to be a product of the weather, however, and likely to firm when the skies clear. “I feel (the market) will come back when things start to roll,” said one trader.

Few, if any, MAP sales were completed for the week, leaving that market at its previous level.

The nearby DAP market was quoted in the $421-$422/st FOB range, falling from $424-$425/st FOB at last report. MAP barges remained at $430-$432/st FOB, steady from the previous report.

U.S. Imports:

August DAP imports were up 106 percent, to 135,825 st from the year-ago 65,825 st. July-August imports were up 42 percent, to 171,547 st from 121,167 st.

August imports of MAP/Other were up only 7 percent, to 90,322 st from the year-ago 84,502 st, but were off 25 percent for the July-August period, falling to 159,837 st from 214,277 st.

Eastern Cornbelt:

DAP was reported at $450-$460/st FOB in the Eastern Cornbelt. MAP was quoted in the $460-$470/st FOB range, depending on location, with the East Dubuque, Ill., market reported at the $465/st FOB level.

Western Cornbelt:

DAP pricing continued to be quoted at $450-$455/st FOB in the Western Cornbelt. MAP was pegged at $460-$465/st FOB in the region, with the upper end reported at Muscatine, Iowa.

The St. Paul market remained at $450-$455/st FOB for DAP, and a firm $465/st FOB for MAP.

Southern Plains:

The DAP market was quoted firmly at the $455-$460/st level FOB Catoosa/Inola, with MAP pegged in the $460-$465/st FOB range at the port.

South Central:

DAP pricing in the South Central region was quoted at a solid
$455/st FOB in early October, up $5-$10/st from last report.

Southeast:

Truck-loaded DAP sales were quoted at $425/st FOB Central Florida, while the last DAP price out of Aurora, N.C., remained at the $450-$460/st FOB level. MAP was $435/st FOB Central Florida for truck sales, with the dealer reference tagged at $440/st FOB Tampa for imported product.

U.S. Export:

No new business was reported on the Gulf export market for the week. Last-done included a 12,000 mt combined DAP and MAP shipment sold into the Latin American markets. Priced at $435-$437/mt FOB, the cargoes were set to ship in October.

With no new business reported, the Gulf DAP and MAP export markets stood at $435-$437/mt FOB, unchanged from the prior report.

Brazil:

Brazil spot MAP continued at $455-$460/mt CFR, sources said, steady from the previous week.

Saudi Arabia:

DAP produced in Saudi Arabia was quoted at $420-$425/mt FOB in recent trading, unmoved from the prior report.

India:

Sources said Indian buyers are taking a breather from purchasing DAP. The buyers booked large quantities in late September and earlier this month at $435-$437/mt CFR.

The lack of buying, said one trader, may indicate that buyers are reacting against the potential for higher prices, mostly related to transportation costs. The thinking may be, said one trader, that the government may want to complete their DAP purchases with domestic product.

Even with the high global prices for ammonia, phos acid and sulfur sources speculated that buying the ingredients for DAP and making it themselves might be cheaper in the long run.

China:

Producers are holding on to their pricing ideas of $415/mt FOB. Traders, however, said informal talks showed that $413/mt FOB could be achieved without too much negotiating.

Producers have little incentive to lower their prices dramatically, said one trader. The domestic demand is expected to be strong next month, even if the international market wanes.

Phosphate Rock

India, Market Watch, Phosphate Rock

India:

RCF received three offers under its tender for 2×35,000 mt lots of phosphate rock of minimum 29 percent P2O5, according to a company source, but he did not disclose any further details.

The buyer’s rock tenders typically attract offers from trading companies offering Egyptian and Algerian-sourced material. The tender closed on Oct. 5 after being pushed back from the original closing date of Sept. 25. Offers are requested to remain valid for 30 days from the date of tender opening.

RCF last bought rock (35,000 mt) under tender in early June, paying $71.77/mt CFR for minimum 29 percent P2O5 Egyptian material (GM June 8, p. 11).

Phosphoric Acid

Eastern Cornbelt, India, Market Watch, Phosphoric Acid, Southern Plains, Western Cornbelt

Eastern Cornbelt:

Phos acid was steady at $8.60-$8.70/unit rail-DEL in the Eastern Cornbelt, with the upper end of the range quoted in the Ohio market.

Western Cornbelt:

Phos acid pricing was steady at $8.50/unit rail-DEL in Iowa, Nebraska, and Missouri.

Southern Plains:

Phos acid pricing in the Southern Plains moved up $0.15/unit on Oct. 1, firming to $8.50/unit rail-DEL in Colorado, Kansas and New Mexico, and $8.60/unit rail-DEL in Oklahoma, Texas, and Louisiana.

India:

Phosphoric acid sold to India was contract-priced at $758/mt CFR for third-quarter loading. Phos acid contracts were valued at $730/mt CFR in Q2, a $28/mt difference.

Madras Fertilizers Ltd. has extended the closing date of its tender for 2×10,000 mt lots of 52-54 percent P2O5 phosphoric acid to Oct. 15. The first parcel is required for shipment within 20 days of the date of issue of the LOI/PO, and the second between the 45th and 60th day, both for delivery to Chennai port.

Only online bids will be considered and offers are requested to remain valid for 15 days from offer opening.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Southern Plains, Western Cornbelt

Eastern Cornbelt:

10-34-0 pricing was reported at $380-$390/st FOB in the Eastern Cornbelt for limited new offers, with the low in Illinois and the upper end reported in Ohio. “The next pricing will be out in late November or early December for the following quarter, and it will probably be up,” said one regional source.

Western Cornbelt:

10-34-0 was quoted at $375-$385/st FOB in the Western Cornbelt for limited offers.

Southern Plains:

10-34-0 was pegged at $375-$385/st FOB in the Southern Plains for limited tons, reflecting a $10/st increase from last report.

Muriate of Potash

China, Eastern Cornbelt, India, Market Watch, Northwestern Europe, Potash, Potash Muriate, South Central, Southeast, Southern Plains, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf:

NOLA prompt potash barge prices spanned a broad range during the week. Sources quoted a range of $263-$285/st FOB, reflecting a quick run up after producers announced increases in postings.

While some called the market a firm $285/st FOB as of late Thursday, others were skeptical that those numbers would be the floor for the next round of trading.

U.S. Imports:

August potash imports were up 7 percent, to 1.22 million st from the year-ago 1.14 million st. July-August imports were up 14 percent, to 2.44 million st from 2.15 million st.

Eastern Cornbelt:

The low end of the Eastern Cornbelt potash market had reportedly inched up to $300-$305/st FOB spot river terminals, while inland warehouses were reported firmly in the $310-$320/st FOB range for new sales. Although producer postings are now in the $320-$330/st FOB range in the Midwest, sources said the producer price increases “haven’t fully hit” yet.

Western Cornbelt:

Potash was quoted in a broad range at $295-$320/st FOB in the Western Cornbelt, with the low reported out at Muscatine and Caruthersville and the upper end at inland warehouses. Sources pegged the St. Louis market at $300-$310/st FOB at midweek, while pricing at St. Joseph and Kansas City, Mo., was reportedly firm at the $315/st FOB level.

Southern Plains:

Potash pricing was quoted at a firm $300-$315/st FOB Catoosa/Inola, pushed up by higher producer postings in early October. Intrepid on Oct. 4 announced a $25/st potash pricing increase, with postings for new orders at Carlsbad, N.M., firming to $337/st FOB for 62 percent standard grade and $330/st FOB for 60 percent granular.

South Central:

Potash pricing in the South Central region was tagged at $295-
$300/st FOB warehouses, with the lower end in Arkansas and the high at Memphis for new sales. “We haven’t achieved the $320/st posted number on potash yet, as there is no liquidity in the markets due to weather and the slow harvest,” said one regional contact.

Southeast:

Potash pricing was up significantly in Southeast, with sources quoting new offers at $350-$355/st rail-DEL for Canadian tons, and $325-$335/st FOB port warehouses at Wilmington and Charleston, S.C.

China:

Arab Potash Co. (APC) and Israel Chemicals Ltd. (ICL) this week settled new potash supply contracts with China. APC on Oct. 7 said it had concluded a new supply deal with Sinochem Macao for the delivery of about 600,000 mt, including optional quantities, which will be shipped “during 2018 and part of 2019.” The volumes agreed to are down from last year when about 700,000 mt of various grades were concluded, although last year’s contract settlement came earlier, in late July.

The Jordanian producer said the terms and conditions are in line with current market prices and terms. Belarus Potash Co. (BPC) was the first supplier to settle a new seaborne contract price with China on Sept. 17, agreeing to a new price of $290/mt CFR with China’s buying consortium, comprising Sinochem, CNAMPGC, and CNOOC, for deliveries through June 2019. It has been past practice for other suppliers to subsequently settle their seaborne supply contracts at the same price with China as the first supplier to reach a deal.

APC said the expected financial impact of the new China supply deal on the company before income tax, royalties, and production costs is around JD125 million (approximately $176.3 million) spread over the years 2018 and 2019 based on the shipping schedule.

While there has been no official confirmation from the company, ICL late this week was reported to have signed several contracts with its customers in China to supply an aggregate 905,000 mt of potash, with mutual options for an additional 375,000 mt, to be shipped in larger quantities per shipment, by the end of June 2019, according to a Bloomberg report. The selling prices stipulated in the contracts are reported to be at a $60/mt increase on last year’s contracts and in line with the recent contract price settlements in China at $290/mt CFR.

ICL’s new contracts are part of the three-year framework agreements between the Israeli company and its Chinese customers, according to Bloomberg, citing the Israeli supplier.

There is still no official word from either Canpotex or Uralkali on whether they have settled new seaborne supply contracts here. BPC has not disclosed the delivery volumes agreed under its new contract.

India:

No official word has come from Canpotex or Uralkali on whether they have finalized contract negotiations with Indian Potash Ltd. (IPL) and their other Indian customers. They, in addition to K+S, are the remaining suppliers to confirm new supply contracts with India.

Similarly, turning to recent tender business, RCF has yet to make an award under its tender for 275,000 mt of standard potash, according to a source at the company. The tender, which closed on Sept. 24, calls for 105,000 mt firm and 170,000 optional tons. The business attracted three offers from BPC, IPL, and MMTC. No details of offer prices have been heard, but sources say the Indian buyer is unlikely to entertain prices above the new contract settlement price of $290/mt CF. Offers are required to remain valid for 30 days from opening.

As previously reported, sources believe National Fertilizers Ltd. (NFL) has scrapped its tender for 2×30,000 mt of white or dark pink standard potash, which closed on Sept. 18, although this could not be confirmed with the Indian buyer (GM Oct. 5, p. 16).

According to a company source, only one offer was received. Under the tender, shipment from load ports was required no later than Oct. 30.

Northwest Europe:

Tight availability and brisk demand are reportedly putting granular prices under upward pressure, but sources continued to peg the current range at €285-€290/mt CIF Northwest Europe.

Sulfur

ADNOC - Abu Dhabi, Aramco, Canada, China, Market Watch, Qatar, Sulfur, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Vancouver, West Coast

Tampa:

Major sulfur consumers completed negotiations with suppliers for an updated Tampa molten sulfur contract, agreeing to a price of $140/lt, up $19/lt from the previous $121/lt contract.

Sources attributed the increase to widespread sulfur tightness in both the U.S. and international markets, leading to timely price increases at China, Brazil, and the U.S. Gulf – all key indicators for Tampa.

Unsteady production at Canada and Mexico overwhelmed strong summer refinery run rates in the U.S., while a dip in domestic Chinese outputs helped drive price increases in the world’s largest import sulfur market.

U.S. market watchers originally signaled a likely $5-$10/lt increase at Tampa, but a late tender awarded in the U.S. Gulf at $153/mt drove the Tampa contract to its final level. Following Tampa higher, the Q4 Houston molten contract firmed to $125/lt from $106/lt, and NOLA contract values grew to $129/lt from $110/lt in the third quarter.

U.S. refining capacity dipped lower for the week, according to the Energy Information Administration (EIA). Refiners operated at 88.8 percent for the week ending Oct. 5, a decline of 1.6 percent from the prior week’s 90.4 percent. The rate also fell behind the year-ago 89.2 percent, but topped the 88.1 percent five-year average.

Daily crude inputs also pushed lower, notching an average 16.239 million barrels/d, 352,000 barrels/d below the 16.591 million barrels/d total posted one week earlier.

U.S. Gulf:

Chevron Corp. announced plans to build or buy a new refinery in the Houston Ship Channel, Reuters reported.

Chevron produced 270,000 barrels/d of oil from the Permian Basin, located in West Texas and eastern New Mexico. A Texas-based refinery would cut transport costs for the light, sweet crude produced in that region. The company currently operates a facility in Mississippi, and Chevron’s West Coast refineries are set up for processing heavier crude slates than those extracted from the Permian.

The recent Gulf prill market continued at $150-$153/mt FOB, steady from one week earlier.

U.S. Imports:

August sulfur imports were up 57 percent, to 187,394 st from the year-ago 119,572 st. July-August imports were up 44 percent, to 384,982 st from 267,493 st.

U.S. Exports:

August sulfur exports were down 22 percent, to 190,103 st from the year-ago 243,692 st. Morocco led the market with 95,845 st received, rising from 41,502 st last year. Mexico’s 44,976 st was down from the year-ago 98,735 st, while Brazil’s 34,472 st was also down from last year’s 42,845 st.

July-August exports were up 3 percent, to 414,821 st from 402,471 st.

Vancouver:

The Vancouver export market was heard at $155-$162/mt FOB in recent trading, unmoved from the previous report.

Sources described considerable supply tightness due to a number of planned and unplanned production outages in Western Canada. Supply was expected to begin normalizing toward the end of October.

Canada:

Alberta sulfur producers noted rising netbacks due to the updated Tampa molten sulfur contract, calling the market $15-$92/mt FOB. The floor of the range is typically set by molten tons contracted into the U.S. market, while the high is netted back on prilled material sold internationally on the Vancouver market. Alberta tons were last noted at (-)$4-$92/mt FOB.

An explosion and fire forced the shutdown of Canada’s largest oil refinery on Oct. 8, multiple news outlets reported. The 300,000 barrel/d Irving Oil refinery in St. John’s, New Brunswick, reportedly suffered a malfunction in a diesel refining unit, precipitating the blast and injuring several workers. The plant was reportedly on a turnaround at the time of the incident.

West Coast:

West Coast solid sulfur pricing continued at $150-$160/mt FOB for the week. Molten sulfur contracts were heard moving up to $95-$122/lt FOB for the fourth quarter, a rise from $85-$110/lt FOB in Q3.

China:

Last-done China prills were described at $190-$192/st FOB, steady from the prior report.

ADNOC:

United Arab Emirates-produced sulfur was offered at $173/mt FOB Ruwais for October, a $17/mt increase from $156/mt FOB in the previous month.

Aramco:

Saudi Aramco set October prill levels at $170/mt FOB Jubail. The market stood at $152/mt FOB in September, an $18/mt difference.

Qatar:

Muntajat set pricing at $170/mt FOB Hamad for October loading, a $25/mt increase from September’s $145/mt FOB.

Sulfuric Acid

Brazil, Canada, Market Watch, Sulfuric Acid, U.S. Exports, U.S. Gulf, U.S. Imports

U.S. Gulf:

Market watchers continued to quote the recent Gulf sulfuric acid import market in a $105-$115/mt CFR range, steady from the prior report. Firming sentiment described in the market has not yet translated to increased pricing, sources said.

In the U.S. rail-DEL markets, West Coast tons were quoted at $110-$130/st DEL for 2018 contracts, while material destined for U.S. Gulf Coast delivery fell in the $100-$120/st DEL range.

Midwest market contracts continued in a wide $95-$145/st DEL range for 2018. Deals completed in late 2017 were heard coming at $95-$105/st DEL, while a mix of planned and unplanned turnarounds pinched supply early in the year, driving later contracts higher to $125-$145/st DEL.

U.S. Imports:

August sulfuric acid imports were down 7 percent, to 259,775 st from the year-ago 280,327 st. July-August imports were up 3 percent, however, to 563,238 st from 545,847 st.

U.S. Exports:

August sulfuric acid exports were down 25 percent, to 27,304 st from the year-ago 36,541 st. Canada topped the market with 17,527 st received, rising from 12,281 st posted for the year-ago. Mexico’s 4,861 st represented a sharp fall from 23,372 st in the previous year, while Suriname purchased 3,307 st after buying zero U.S. tons in the previous August.

July-August exports were up 1 percent, to 63,156 st from 62,507 st.

Brazil:

Brazil aluminum refining giant Alunorte announced that it has obtained permission to restart operations. The move comes a week after the Norsk Hydro-owned plant shut down due to a long-running pollution dispute with the government (GM Oct. 5, p. 18).

The facility was granted permission to run at 50 percent capacity, the same level it operated at prior to the shutdown. Alunorte’s restart will prevent the closure of the nearby Albras aluminum smelter, a 460,000 mt/y facility jointly owned by Norsk and Nippon Amazon Aluminum Co. That facility is also expected to run at 50 percent capacity.

Last-done on the Brazil spot sulfur acid import market continued to be heard at $110-$120/mt CFR, unchanged from the prior report. Sources described firmer sentiment, but said no new business has been done to test the new price ideas.

Canada:

Union workers halted negotiations during the week with the Alcoa and Rio Tinto joint venture ABI aluminum smelter, located in Quebec, citing differences on a number of “key issues.”

Smelter management locked out about 1,000 employees in January after the previous labor contract expired (GM Jan. 19, p. 16). A judge halted attempts to operate the facility with nonunion labor in May, leaving the facility with only one of its three potlines in operation. The plant is capable of producing 430,000 mt/y when all three potlines are running.