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Ammonium Sulfate

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

U.S. Gulf:
NOLA ammonium sulfate barges continued to be put at $190-$200/st FOB.

U.S. Imports:
Ammonium sulfate imports are down so far this fertilizer year, falling 3 percent in July-August to 63,894 st from 65,898 st, and 19 percent in August to 19,650 st from 24,259 st.

U.S. Exports:
July-August ammonium sulfate exports were off 46 percent, to 101,722 st from the year-ago 186,961 st. August exports were up 4 percent, however, to 90,239 st from the year-ago 87,014 st,

Eastern Cornbelt:
The granular ammonium sulfate market was steady at $225-$255/st FOB in the Eastern Cornbelt, depending on location and point of origin, with the low reported in Illinois on a spot basis. The Cincinnati market remained at the $230/st FOB level at midweek.

Western Cornbelt:
Granular ammonium sulfate was pegged at $235-$245/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and Caruthersville and the upper end out of Iowa terminals. The St. Paul market remained at $230-$235/st FOB for the week.

Southern Plains:
The granular ammonium sulfate market was quoted at $210-$220/st FOB on the Texas Gulf Coast, up slightly from last report. With supply now restored to the Catoosa/Inola market, sources pegged the ammonium sulfate price at the $225/st FOB level at that location.

South Central:
Granular ammonium sulfate pricing was unchanged at $225-$235/st FOB in the South Central region, with the low confirmed at Memphis and the upper end out of Arkansas River terminals.

Southeast:
Ammonium sulfate pricing FOB Hopewell, Va., was up $10/st from the last fill program offers, with new postings at $225/st for granular and $185/st for standard. Delivered granular tons were pegged at the $245/st level in the Southeast, with standard quoted at $205/st DEL in the Florida market.

Brazil:
Sources said ammonium sulfate prices remain stable in the $170s/mt CFR. There is some new demand reported as some inland buyers look for nitrogen sources other than urea.

DAP/MAP

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

Central Florida:
Central Florida DAP trucks were priced at $310/st FOB, unchanged from one week earlier. Truck-loaded MAP ran $5/st higher than DAP, at $315/st FOB.

U.S. Gulf:
Softening was reported in the nearby NOLA DAP and MAP markets, pushing some imports below $280/st FOB.

Sources described DAP barges changing hands at $279-$285/st FOB early in the week, but sales and offers of a dark-colored import product were tracked down to $275-$277/st FOB on Oct. 9-10. Domestically produced tons accounted for the top of the range, but concluded volumes were limited. DAP offers rumored at $272/st FOB against $266/st FOB bids remained unconfirmed on Oct. 10.

Nearby MAP barges fared somewhat better, slipping to a $279/st FOB floor for import tons, while most sources put the product’s top end even with DAP.

Upriver and moving barges continued to draw a premium compared to NOLA due to the impending seasonal shutdown of the upper Mississippi River. “NOLA seems to be drifting post-river close,” said one source.

Most attribute the most recent price declines to expectations of a fresh round of imports due for NOLA arrival.

The nearby NOLA barge DAP market was quoted in the $275-$285/st FOB range for the week, softening from the prior week’s $282-$290/st FOB. MAP barges moved to $279-$285/st FOB from the previous week’s $283-$288/st FOB range.

U.S. Imports:
DAP imports for August were noted at 125,896 st, falling 7 percent from the year-ago 135,825 st. Morocco was the largest provider to the U.S. with 100,494 st, followed by 24,284 st from Russia.

July-August DAP totals were up 14 percent, to 195,739 st from 171,547 st in the 2018-2019 period.

August MAP/Other imports increased by 42 percent, to 128,626 st from 90,322 st posted one year earlier. Morocco represented nearly all of the month’s imports, sending 126,992 st. July-August imports were up 94 percent, to 309,592 st from the prior year’s 159,837 st.

U.S. Exports:
August DAP exports were clocked at 80,490 st, a 34 percent slide from 121,648 st in August 2018. Peru was the largest buyer of U.S. product with 34,459 st received, followed by 17,068 st to Mexico and 13,336 st to Colombia.

DAP totals were also down for the July-August period at 162,388 st, 20 percent below the previous year’s 203,209 st.

MAP/Other exports firmed to 301,933 st for the month, rising 38 percent from the year-ago 218,493 st. Canada was the top
export destination at 140,928 st, topping 81,790 st to Brazil and 28,277 st to Mexico. The MAP market continued to excel in the July-August window with 515,417 st shipped, a 44 percent year-over-year increase from 356,751 st.

No new business was reported on the Gulf export market. Last done included DAP and MAP cargoes totaling 58,000 mt. The material was reportedly priced in the $303-$308/mt FOB range. As a result, the Gulf export market remained steady at $303-$308/mt FOB for both DAP and MAP.

Eastern Cornbelt:
DAP and MAP were quoted at $320-$330/st FOB in the Eastern Cornbelt, with the lower end of the range reported at Cincinnati and out of spot Illinois River terminals.

One Illinois source said fall movement “started in earnest” during the week. “We have a good run going,” he commented on Oct. 11.

Western Cornbelt:
DAP and MAP were quoted at $315-$320/st FOB St. Louis and $320-$325/st FOB Dubuque, Iowa, with the upper end of the regional range reported at $330-$335/st FOB Caruthersville and out of other spot warehouses in the Iowa market.

Southern Plains:
New DAP/MAP offers in the Catoosa/Inola market were reported in the $320-$330/st FOB range at midweek, down from a recent high of $355-$375/st when the Arkansas River was closed to navigation. Pricing FOB Houston remained at the $345/st FOB level at mid-month.

South Central:
DAP pricing had reportedly slipped to $315-$330/st FOB river warehouses in the South Central region, down $5-$10/st from last report, with the low confirmed at Van Buren, Ark., and the high at Little Rock. The Memphis DAP market was pegged at the $325/st FOB level at mid-month.

Southeast:
DAP and MAP postings at Aurora, N.C., were unchanged at $350/st FOB.

China:
Reports of DAP sales last week at $305/mt FOB proved to be more speculation than fact. Sources said the rumors at that level were believable, given the general slide in prices, but ended up being so much vapor.

Even without the price drop, sources said DAP and MAP sales are coming off. Traders put the DAP price at $310/mt FOB, with 11-52 MAP in the same area. One source said nailing down a cargo at sub-$310/mt FOB would not be difficult.

The Chinese producers are being buffeted by buyers with aggressive prices in Brazil, India, and Pakistan. Some Indian and Pakistani buyers have stepped up for more tons because the recent rains have extended the application season. Brazilian buyers are making opportunistic purchases, using aggressive sales tactics by the Russians and Moroccans to hammer lower prices from China.

The Brazilians have an additional advantage in that the country is oversupplied with MAP. They can walk away from a deal at any time and still have enough tons on hand to satisfy the upcoming seasonal demand.

Brazil:
Brazil spot MAP tons were heard lower for the week at $310-$320/mt CFR, falling from $315-$325/mt CFR in the previous report. Bidding was quoted at $305/mt CFR.

Sources reported that there is still a large overhang of MAP in the supply pipeline. Even as farmers and NPK producers are unwilling to buy large quantities, more vessels arrive each week with more tons.

The future for MAP in Brazil, however, looks much better. Sources reported the market for 2020 for MAP is showing signs of dramatic growth. One trader said he is hearing quotes of $360/mt CFR for April deliveries to the ports. Corresponding inland prices are also showing strength into the $420s/mt CFR.

The price difference in moving MAP inland form different ports will impact the delivery ports in the coming year. Sources said the Port of Santos, near Sao Paulo, is expected to begin receiving more MAP from overseas because of its better position to move tons inland. One trader said moving tons through Santos is about $30/mt cheaper than the more southern port of Paranagua.

India:
Buyers are stepping back into the market because the good rains have extended the application season. Sources said a few deals for prompt tons in the upper-$320s/mt CFR have been reported. One trader said if the demand keeps up, the price might move up a dollar or two as availability tightens in the limited time that buyers have.

Pakistan:
Some spot and extra contract tons have reportedly been picked up by Pakistan buyers. Sources said the price for the material was in the low-$330s/mt CFR, which matches the sub-$330/mt CFR price being paid in India.

Saudi Arabia:
DAP produced in Saudi Arabia was heard falling to $320-$330/mt FOB in recent trading, a decline from $325-$330/mt FOB at last report.

TSP

Market Watch, South Central, Triple Superphosphate, U.S. Gulf, Western Cornbelt

U.S. Gulf:
Last-done TSP barges were steady at $270/st FOB, sources said.

Western Cornbelt:
The TSP market in the Western Cornbelt had reportedly slipped to $278-$305/st FOB St. Louis and $300/st FOB Caruthersville.

South Central:
The TSP warehouse market was quoted at $295-$300/st FOB in the South Central region, reflecting another slight drop from last report, with the low confirmed at Memphis and the high out of spot Arkansas River terminals.

Phosphoric Acid

Eastern Cornbelt, India, Market Watch, Phosphoric Acid, Southern Plains, U.S. Exports, Western Cornbelt

U.S. Exports:
Phosphoric acid exports were reported at 6,496 st for August, a 77 percent decrease from the 28,620 st one year earlier. Totals were also down for the July-August period at 42,960 st, a 47 percent decline from the previous year’s 81,320 st.

Eastern Cornbelt:
Phos acid postings were steady at $10.00-$10.10/unit rail-DEL in the Eastern Cornbelt for October tons.

Western Cornbelt:
Phos acid pricing for October remained at $9.90/unit rail-DEL in Iowa, Nebraska, and Missouri.

Southern Plains:
Phos acid pricing in the Southern Plains for October remained at $9.90/unit rail-DEL in Colorado, Kansas, and New Mexico, and $10.00/unit rail-DEL in Oklahoma, Texas, and Louisiana. Those levels were unchanged from September.

India:
Phosphoric acid at India was contracted at $655/mt CFR for the third quarter, down $73/mt from the previous $728/mt CFR contract.

Ammonium Polyphosphate

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

Eastern Cornbelt:
The 10-34-0 market was unchanged at $365-$380/st FOB for fill offers in the Eastern Cornbelt, with the low at Cincinnati and the high out of inland tanks.

Western Cornbelt:
The 10-34-0 market was steady at $355-$375/st FOB in the Western Cornbelt, with the low in Nebraska and the high in Iowa.

Southern Plains:
10-34-0 continued to be quoted at $365-$370/st FOB in the Kansas market. 11-37-0 pricing in Texas was steady at $375-$425/st FOB, with the low reported or imports and the upper end for domestic product.

Muriate of Potash

Canada, Eastern Cornbelt, Market Watch, Potash, Russia, South Central, Southeast, Southern Plains, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf:
NOLA prompt potash barges were called $238-$245/st, down from the earlier $240-$248/st FOB.

U.S. Imports:
July-August potash imports fell 22 percent, to 1.9 million st from the year-ago 2.44 million st. August imports were down 14 percent, to 1.05 million st from 1.22 million st.

Eastern Cornbelt:
Potash pricing was pegged at $280-$285/st FOB Cincinnati, $285-$290/st FOB on the Illinois River, and up to $295/st FOB inland warehouses on a spot basis. Sources reported no new business at producer postings of $315/st FOB or higher in the region.

Western Cornbelt:
Potash was pegged at $275-$285/st FOB most regional warehouses in the Western Cornbelt, with the low confirmed at St. Louis and the upper end in Iowa. The Caruthersville market was reported in the $280-$285/st FOB range for the week.

Southern Plains:
Potash was pegged at $280-$290/st FOB Catoosa/Inola and $295/st FOB Houston, down some $15/st from last report. Postings from Intrepid at Carlsbad, N.M., remained at $342/st FOB for 62 percent standard and $335/st FOB for 60 percent granular.

South Central:
Potash pricing in the South Central region was pegged at $275-$285/st FOB terminals, with the low confirmed at Memphis and reflecting a $5/st drop from last report.

Southeast:
The potash market in the Southeast was pegged at $290-$305/st FOB port terminals for import tons, down slightly from last report, with the low at Wilmington and the upper end FOB Chesapeake, Va. Rail-DEL pricing was quoted at $315-$330/st in the region, depending on grade and location.

Canada:
The Mosaic Co. announced on Oct. 10 that it will temporarily reduce production at its Esterhazy mine, which, when combined with the previously announced potash curtailment, brings its total potash curtailments to up to 600,000 mt. The company cited increasing inventories as a result of the short-term slowdown in global potash markets, and increased risks of a delay in the settlement of the Chinese supply contract.

K+S, Uralkali, Nutrien, and Belaruskali have all announced production cutbacks in recent weeks. Israel Chemicals Ltd. (ICL) also plans a three-week shutdown for a plant upgrade at the company’s Dead Sea site towards the end of the year, which would take out about 180,000 mt of ICL’s overall output and sales in the second half of this year.

There is still no word of any conclusion of contract supply negotiations taking place between India’s biggest potash importer, Indian Potash Ltd. (IPL), and Uralkali, and likely other suppliers. Uralkali said it plans “a potash accord with India in the near future,” however, according to an Oct. 10 Interfax report, citing Uralkali Senior Independent Director Paul Ostling.

Mosaic President and CEO Joc O’Rourke said in a recent conversation with analysts at Sanford C. Bernstein & Co., reported by Bloomberg, that he believes a settlement of the Indian contracts will come “at the start of this current quarter.”

As for China, O’Rourke said he sees contract settlements being reached toward the end of the fourth quarter. While noting that “China contracts aren’t the steady flow they once were,” he said he still views them “as necessary” due to the ties to the country’s import licenses, Bloomberg reported.

There has been talk in recent weeks among some other market participants that China is likely to put off settling annual supply contracts until early next year, however, amid lackluster demand in the country and high port inventories.

Russia:
Exports of potash in the eight months through August increased by 7.5 percent year-over-year, to 5.43 million mt, Itar-Tass (Russia) reported, citing Russia’s Federal Customs Service.

Sulfur

ADNOC - Abu Dhabi, Alberta, Brazil, China, Qatar, Sulfur, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Vancouver, West Coast

Tampa:
The Tampa sulfur market’s second large buyer announced a fourth-quarter settlement with suppliers on Oct. 8 valued at $46/lt CFR, a $29/lt decline from the third-quarter $75/lt contract, and matching pricing announced in the previous week by other consumers (GM Oct. 4, p. 14).

With major buyers in agreement, the fourth-quarter Tampa molten sulfur index softened to $46/lt CFR.

Numerous factors contributed to the decline, including weakness in both the domestic phosphate and offshore sulfur markets. Recent price ideas in the U.S. Gulf sulfur market in the upper- to mid-$40s/mt FOB were named as a significant guidepost for Tampa, as were recently concluded Brazil trades reported at $66/mt CFR.

The large drop was not unexpected, as early prediction were heard in a $20-$30/lt range below third-quarter levels. Those projections quickly deteriorated to $30/lt or more in the weeks preceding the agreement, leading some to describe the ultimate $46/lt outcome as a “gift” to sulfur producers.

The $46/lt contract represents the market’s lowest valuation since the fourth-quarter settlement of 2009, valued at $30/lt.

Trailing Tampa lower, the Houston molten contract moved to $31/lt from $60/lt in the previous quarter. U.S. Gulf/NOLA contracts softened to $35/lt from $64/lt in Q3.

Union workers at the 285,000 barrel/d Phillips 66 Bayway refinery in Linden, N.J., could be headed for a lockout after failing to ratify a proposed contract extension on Oct. 4, Reuters reported. The workers are currently operating under a rolling 24-hour contract after their previous long-term deal expired on Sept. 30.

At issue is a management plan to expand worker responsibilities to include the operation of multiple refining units, viewed as a potential safety concern by the union. The proposal also included an 11 percent pay raise.

U.S. refining capacity pushed lower for the week, according to the Energy Information Administration (EIA), marking a fourth consecutive period of declining utilization stretching back to Sept. 13. Refiners operated at 85.7 percent for the week ending Oct. 4, down 0.7 points from the prior week’s 86.4 percent, and also trailing the year-ago 88.8 percent and the five-year average of 87.3 percent.

Daily crude inputs also pushed lower, sinking beneath the 16 million barrel/d mark for the first time since March 29. Refiners processed an average of 15.656 million barrels/d, a 451,000 barrel/d decline from 16.017 million barrels/d reported for the previous week.

U.S. Imports:
August sulfur imports were noted at 329,362 st, a 76 percent rise from 187,394 st last year. Imports were also up for the July-August period to 672,354 st, a 75 percent jump from the previous 384,982 st.

U.S. Exports:
Sulfur exports for August slipped to 135,878 st, down 29 percent from last year’s 190,103 st. July-August shipments totaled 268,094 st, down 35 percent from 414,821 st.

U.S. Gulf:
Price ideas on the U.S. Gulf market continued at $45-$50/mt FOB, sources said, unmoved from one week earlier.

Brazil:
The most-recent Brazil spot market continued to be noted at $66/mt CFR, unchanged from the prior report.

Buyers in Brazil voiced intentions to forego negotiating fourth-quarter supply contracts, and instead expected to meet their needs through the spot market. Market watchers believed the move signaled expectations of further price declines in the coming months.

Third-quarter contracts with suppliers located in the Middle East were quoted at $103/mt CFR.

Vancouver:
Husky Energy on Oct. 4 announced plans to sell its Prince George Refinery to Tidewater Midstream and Infrastructure, Reuters reported. The all-cash deal for the 12,000 barrel/d refinery was valued at $161.59 million.

Market players continued to call the Vancouver market in the $45-$50/mt FOB range, steady from recent reports.

Alberta:
Alberta sulfur netbacks softened to (-)$81-(-)$20/mt FOB based on falling values at Tampa. The market was previously noted at (-)$52-(-)$20/mt FOB.

West Coast:
West Coast prills continued at $45-$50/mt FOB, flat from one week earlier. Molten sulfur contracts were reported at $42-$46/lt FOB for fourth-quarter contracts, falling from $70-$85/lt FOB in the previous quarter.

China:
The recent China prill market was heard at $67-$72/mt CFR, steady from the prior report.

ADNOC:
The Abu Dhabi National Oil Co. announced October prill pricing at $49/mt FOB Ruwais, a $20/mt FOB decline from the previous month’s $69/mt FOB offer.

Qatar:
Muntajat set pricing at $48/mt FOB Ras Laffan for October, down $17/mt from $65/mt FOB in September.

Sulfuric Acid

Sulfuric Acid, U.S. Exports, U.S. Gulf, U.S. Imports

U.S. Gulf:
Market watchers continued to report recent Gulf sulfuric acid pricing in the $65-$70/mt CFR range, steady from one week earlier. The Brazil market was called approximately $5/mt higher at $70-$75/mt CFR, also unchanged from the previous report.

In the U.S. rail market, West Coast contracts were quoted at $120-$160/st DEL for 2019 contracts. U.S. Gulf Coast deliveries fell in a $100-$120/st DEL range, and Midwest tons were clocked even with the West Coast at $120-$160/st DEL.

U.S. Imports:
Sulfuric acid imports were noted at 289,184 st for August, an 11 percent increase from 259,775 st in 2018. Importers took in 565,552 st for the July-August period, a slight increase from the previous year’s 563,238 st.

U.S. Exports:
August sulfuric acid exports softened to 18,501 st from the year-ago 27,304 st, a 32 percent decline. July-August shipments were noted at 34,542 st, falling 45 percent from 63,156 st in 2018.

Ammonium Thiosulfate

Amthio, Eastern Cornbelt, Market Watch, South Central, Southern Plains, Specialty, Western Cornbelt

Eastern Cornbelt:
Ammonium thiosulfate was pegged at $215-$235/st FOB in the Eastern Cornbelt.

Western Cornbelt:
Ammonium thiosulfate remained at $215-$225/st FOB in the region, with the low in Nebraska and the upper end in Iowa.

Southern Plains:
Ammonium thiosulfate pricing remained in a broad range in the Southern Plains, from a low of $150/st FOB in the Houston market to a high of $210-$215/st FOB in Kansas.

South Central:
The ammonium thiosulfate market was steady at $190-$235/st FOB in the South Central region, with the low based on netbacks and the upper end FOB Memphis.