All posts by dhouder1@bloomberg.net

Construction Starts on Saudi Hydrogen/NH3 Project

Ammonia, Green Ammonia, News, News Briefs, Saudi Arabia

Saudi Arabia’s $8.4 billion NEOM green hydrogen and green ammonia project is now formally under construction and is expected to be completed by the end of 2026, ACWA Power Co. said in a filing to the Tadawul stock exchange on July 7.

The company’s affiliate, NEOM Green Hydrogen Co. (NGHC), issued a full award notice to proceed (NTP) to the engineering, procurement, and construction (EPC) contractor, which has been approved, ACWA Power said.

NGHC in May reported that it had concluded the EPC contract at a value of $6.7 billion, with US-based Air Products as the nominated contractor and system integrator for the entire facility (GM May 26, p. 32). Air Products has also awarded major contracts to various technology and construction partners.

NGHC is an equal joint venture between ACWA Power, Air Products, and NEOM (GM July 10, 2020). The mega-plant will integrate up to 4GW of solar and wind energy to produce up to 600 mt/d of carbon-free hydrogen in the form of green ammonia. Air Products and NGHC earlier reached an exclusive 30-year agreement for Air Products to offtake all the green ammonia produced at the facility.

Following last week’s NTP, ACWA Power’s SAR1.125 billion ($300 million) contribution to the limited notice to proceed (LNTP) will convert into its equity in the project. According to the statement, all project agreements have been signed, and all shareholding partners have agreed to manage certain execution risks related to the EPC contract.

NGHC reported in May that it had achieved financial close for the project, which will be built at Oxagon in Saudi Araboa’s NEOM region. When fully operational, the plant will be the world’s largest green hydrogen production facility to date.

Maire Awarded Contract for N Complex in Africa

Africa, Ammonia, Green Ammonia, News, News Briefs, Urea

The Italian engineering company Maire Tecnimont SpA announced on July 12 that its subsidiary NextChem Holding, through Stamicarbon, part of the Sustainable Technology Solutions business unit, has been awarded licensing and proprietary equipment contracts for an integrated ammonia and urea complex in Sub-Saharan Africa.

The complex, which is expected to be operational in 2026, has a projected capacity of 4,600 mt/d of ammonia and 8,000 mt/d of urea in two production trains. The €100 million award is the largest to date for Stamicarbon and follows the licensing and process design package contracts awarded by the same client in August 2022.

“We are very proud of this project, which will adhere to the highest environmental standards, thanks to cutting-edge technologies able to maximize energy efficiency and effectively reduce emissions,” said Alessandro Bernini, Maire CEO. “This record-breaking award, which will generate a double-digit profitability, further confirms our global leadership in nitrogen technological solutions and our concrete commitment to reduce the carbon footprint of the fertilizer industry in the region, where we are creating value to support its industrial and social development.”

Yara Finalizes Sale of Yara Cameroon Stake

Calcium Ammonium Nitrate, News, News Briefs, North Africa, NPK

Yara International ASA is to withdraw from Cameroon following a deal to sell its 65% stake in Yara Cameroon to NJS Group, a minority shareholder in the Cameroon firm since its inception.

Yara Cameroon imports and distributes NPK and calcium nitrate fertilizers. The 65% stake was held by Yara International France. The sale will give NJS full control of the Cameroon company

According to a North Africa Post report, the two parties have concluded an exclusive distribution agreement for premium NPK fertilizers, YaraMila, and YaraLiva Nitrabor calcium nitrate.

Emmerson’s Khemisset Potash Application Delayed

Morocco, News, News Briefs, North Africa, Potash

Isle of Man-based Emmerson Plc reported that the environmental approval for its Khemisset potash and salt project in northern Morocco has now been referred to a national ministerial committee after the local regional committee was unable to approve the application due to concerns about the project’s impact on water resources (GM April 21, p. 28).

“In particular, the issues raised have centred around the disposal of brines through deep well injection; the storage of salt tailings at surface; the use of water from local sources; and the impact of the Khemisset project on local highways and land users,” Emmerson said in a July 6 statement.

The company reiterated that it has invested considerable resources into developing “robust solutions” in all these areas, including using dry stack tailings and sourcing waste water rather than fresh water from nearby reservoirs.

In addition, it said it has committed to completing in-situ injectivity test work before construction to confirm the feasibility of deep well injection as a means of disposing of brines, while examining alternative means to process brines in order to minimize, or even eliminate, the requirement of brine disposal.

Emmerson CEO Graham Clarke said he remains confident the national committee will take into account the company’s efforts to minimize the environmental impact of the project. The company also said that basic engineering studies at Khemisset are reaching completion with final reports and designs due shortly.

Once completed, the information will be incorporated into an updated Bank Feasibility Study (BFS), which will take roughly six months to complete and will be started once the environmental approval has been received. Project finance due diligence will run in parallel with the updated BFS.

Emmerson is targeting production of 800,000 mt/y of potash and 1 million mt/y of salt at Khemisset.

Russian Companies Express Interest in Oman

Middle East, News, News Briefs

Russian companies are interested in developing fertilizer production facilities in Oman studying plans, according to an Interfax report, citing Russian Foreign Minister Sergey Lavrov at a press conference on July 11.

Lavrov’s comments followed a meeting with Oman’s Foreign Minister Sayyid Badr Albusaidi. Oman is reportedly considering the Russian proposals.

According to the report, the Russian companies are interested in producing fertilizers and chemicals to meet Oman’s domestic demand and for export to Southeast Asia and Africa. The companies are also looking at participating in water management projects in Oman. The report did not name the Russian companies.

Muriate of Potash

Brazil, Eastern Canada, Eastern Cornbelt, India, Market Watch, Northeast, Potash Muriate, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf:

NOLA potash barges remained in the $345-$365/st FOB range as the industry awaits the launch of summer fill programs. While many had expected an announcement this week, sources said the focus appeared to be on UAN and ammonium sulfate fill offers ahead of the Southwestern Fertilizer Conference.

US Imports:

May potash imports totaled 1.01 million st, up 1.1% from 998,217 st in May 2022. July-May exports stood at 11.12 million st, however, falling 9.2% from the year-ago 12.25 million st. July-May imports from Canada were noted at 9.74 million st, while Russia sent 995,086 st and Israel added 274,012 st.

US Exports:

Potash exports for May softened 76.5% year-over-year, to 91,825 st from 390,362 st. July-May shipments were 12.2% lower, at 3.23 million st compared to the year-ago 3.67 million st. Cargoes destined for Brazil totaled 1.16 million in July-May. China took 483,253 st, followed by 347,695 st to South Korea.

Eastern Cornbelt:

Potash terminal pricing was pegged in the $390-$425/st FOB range in the Eastern Cornbelt, depending on location. The latest Cincinnati offers were confirmed at $390-$395/st FOB, below the last reported $400-$405/st FOB range.

Western Cornbelt:

Potash remained at $395-$425/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and the high in Iowa.

Northeast:

Potash was pegged at the $445/st mark FOB Baltimore and East Liverpool, Ohio, while delivered tons in central Pennsylvania remained at the $465/st level in early July.

Eastern Canada:

Potash pricing in Eastern Canada remained at the C$740/mt level FOB regional warehouses, with no fill programs on the table during the week.

India: 

India imported 1.1 million mt of potash in January-May, according to Trade Data Monitor, a19% decline from 1.3 million mt in the prior-year period. May imports were 574,000 mt, up 60% from the year-ago 358,000 mt. Canada supplied 280,000 mt for the month, followed by Israel with 87,000 mt.

Brazil:

The potash price moved up to $340-$350/mt CFR in Brazil as buyers tried to stay ahead of production curtailments in Canada related to the port strike.

The Rondonopolis price lost most of its low-cost tonnage, moving to $460-$485/mt FOB ex-warehouse. At the same time, the upper end of the range dropped $5/mt as aggressive buyers tried to “help” sellers clear out their warehouses.

Potash imports fell 13% in January-June, Trade Data Monitor reported, to 5.9 million mt from the year-ago 6.9 million mt. Canada sent 2.3 million mt, followed by Russia with 2 million mt.

Imports totaled 3.5 million mt in the second quarter, down 19% from 4.3 million mt received in April-June 2022. June imports stood at 1.2 million mt, down from the year-ago 1.6 million mt.

Ammonia

Ammonia, Black Sea, Brazil, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, Southeast Asia, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf/Tampa:

Tampa ammonia remained at $285/mt CFR for July, $55/mt below June’s $340/mt CFR price. Truck pricing out of Gulf Coast terminals was quoted in the $260-$280/st FOB range, with the NOLA market at a Tampa-equivalent of $259/st FOB, although sources reported no new activity on the Gulf Coast.

US Imports:

Ammonia imports fell 11.1% in the July-May fertilizer year-to-date, according to US Census Bureau data, to 2.24 million st from 2.51 million st in the prior year. May imports were 9.3% lower, to 294,294 st from the year-ago 324,423 st.

July-May imports from Trinidad and Tobago were reported at 1.16 million st. Canada sent 1.00 million st, followed by Algeria with 27,887 st.

US Exports:

Ammonia exports moved up 243.2% in July-May, to 1.27 million st from the year-ago 370,038 st. May cargoes totaled 137,368 st, up 92.9% from last year’s 71,203 st. Norway was the top US export destination in July-May, taking 207,796 st, followed by Chile at 205,418 st and Morocco at 126,635 st.

Eastern Cornbelt:

Fall prepay prices for ammonia were announced on July 13 at $425/st FOB in Illinois and $430/st FOB in Indiana, up from the last fill business reported in the $350-$365/st FOB range. Sources said the earlier fill offers are now off the table.

Western Cornbelt:

A new round of fall prepay prices on July 13 pushed the ammonia market to $390/st FOB in Nebraska, $410/st FOB in Iowa, and $415/st FOB Palmyra, Mo., up from the prior fill offers in the $340-$350/st FOB range. New prepay pricing in the Southern Plains included $375/st FOB Verdigris, Okla., up from the earlier $300/st FOB fill offer at that location.

Northwest Europe:  

Natural gas prices in Europe continue to drop, lowering the production cost to ammonia producers. Sources now put the break-even price around $350-$360/mt ex-plant, leading to softer bids for product. Buyers are now reportedly demanding tons at $300/mt CFR, with no deals reported at that level.

The best guess for prices in Northwest Europe now stands at $310-$315/mt CFR, sources said, but with an expectation that prices will fall. Only sales revolving around existing contracts have been reported so far, leaving a void in the spot market.

Russia’s efforts to move product out of its St. Petersburg port have been paying off. Two vessels from Ust-Luga have come into Antwerp, sources said. The cargoes were shipped by EuroChem for its own facilities, so pricing is opaque. A third cargo from Ust-Luga was sent to Turkey and is currently being unloaded.

The Russian port handling the ammonia shipments was designed for dry bulk commodities. To make it work as an ammonia port, sources said the ammonia is being piped directly from trucks to an anchored vessel, which serves as a floating storage facility. From the storage vessel, other ships are loaded for export.

Black Sea:     

No Russian ammonia exports from the Black Sea are expected until 2024. The effort to build an ammonia terminal at the Port of Taman is taking longer than anticipated. Sources now expect the facility to be ready for use during the first quarter of 2024, instead of the last quarter of 2023.

Sources reported that Turkey is cutting back on its purchases of so-called “distressed” ammonia, a common term for ammonia originating from sanctioned states such as Russia, Venezuela, and Iran. Turkey has already purchased cargoes from Russia and Venezuela, sources reported. Both vessels should finish unloading by next week.

The cargoes represent the first shipments from the two countries this year. Turkey’s purchases of Iranian ammonia have represented a small portion of the country’s total imports. Turkey imported 796,000 mt in 2022, of which Iran supplied 32,000 mt. Iran sent 11,400 mt of Turkey’s 395,000 mt imports in January-May 2023.

India: 

The spot ammonia price, based on a FACT deal from late June, held at $304-$310/mt CFR. A subsequent tender call, reported to draw few offers, caused the company to postpone its latest tender.

The last tender had only one offer. Sources said FACT faces an ongoing problem of getting offers because of the low tonnage requested. The 7,500 mt tenders will only work for most sellers if the tons can be combined with more material to be unloaded at a second stop. Unfortunately for FACT, the company is currently the only spot ammonia buyer in India.

The bulk of ammonia flowing into India is attached to long-term contracts. Demand for ammonia is slow and steady enough that none of the main buyers are seeking spot tons to augment their contracted purchases. At the same time, most producers are currently happy with their order books and do not see a need to make accommodations for FACT. Sources estimated the contract price of ammonia at $270/mt CFR or lower.

January-May ammonia imports totaled 983,000 mt, Trade Data Monitor reported, up 18% from the year-ago 832,000 mt. May imports of 241,000 mt were up from 182,000 mt in May 2022. Saudi Arabia sent 104,000 mt for the month, followed by Bahrain with 56,000 mt.

Middle East: 

Producers remain comfortable with their contract ammonia orders. However, the lagging Southeast Asia market could soon force a shift in the situation, sources said, as production is already exceeding demand. The growing excess tonnage could force producers to accept lower prices just to free storage space.

The ammonia market’s most recent spot price, reported several weeks ago, continues to hold at $200-$210/mt FOB for now. Buyers inquiring about spot tonnage are quoted a price of $240-$250/mt FOB. None of the markets can absorb that price, sources said, so the deals go unfulfilled.

Demand for ammonia is expected to remain weak compared to production, sources said. Southeast Asian buyers are taking the minimum required under their contracts. European buyers are demanding lower prices and pressing the producers to absorb the import duty imposed on Arab Gulf ammonia, forcing a lower netback. So far, producers claim they are at a balance with supply and demand and see no reason to lower their pricing expectations for spot material.

Iran exported 349,000 mt of ammonia in January-June, according to Trade Data Monitor, a 44% year-over-year increase from 242,000 mt. India purchased 312,000 mt for 89% of the market.

Second-quarter exports totaled 206,000 mt, up 64% from the year-ago 126,000 mt. Iran shipped 86,000 mt in June, up 93% from 45,000 mt in June 2022. India bought 82,000 mt.

Southeast Asia:         

Ammonia demand is down due to reduced industrial output. Sources said buyers are not showing any interest in picking up spot tons or even asking for a few extra tons in existing contracts. The low demand is putting downward pressure on prices. The only thing preventing a major drop, said traders, is the lack of ammonia produced in the region itself.

In Indonesia, Kaltim III is down for a routine turnaround. A Malaysian plant, reported offline in June for unscheduled maintenance, will shut once again for a routine one-month turnaround. At the same time, the area’s softer prices are keeping Chinese offers off the table.

Indonesia exported 698,000 mt of ammonia in January-May, Trade Data Monitor reported, a 16% decline from 828,000 mt exported during the same period in 2022. May exports were noted at 101,000 mt, down 43% from the year-ago 176,000 mt. China purchased 41,000 mt for the month, Australia took 23,000 mt, and South Korea received 15,000 mt.

Brazil:

Ammonia imports to Brazil fell 34% in January-June, Trade Data Monitor reported, to 158,000 mt from 239,000 mt in the prior year. Trinidad and Tobago led suppliers with 153,000 mt. June imports totaled 38,000 mt, all from Trinidad and Tobago, down from 42,000 mt in June 2022.

January-June exports were reported at 33,000 mt, off from the year-ago 49,000 mt. The US bought 18,000 mt, followed by South Africa with 15,000 mt. Brazil exported just 41 mt in June versus 15,000 mt reported in June 2022.

Urea

Black Sea, Brazil, China, Eastern Canada, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf:

NOLA urea barge business was reported in the $315-$330/st FOB range for July shipment, with August-September trades quoted in the $323-$330/st FOB range. Some speculated that $325-$335/st FOB is likely for the next round, citing thin supply at NOLA and stepped-up buying in international markets, including Brazil and the EU.

“Producers are well-sold forward and are now making September sales,” reported one contact. “I expect 3Q to remain firm.”

US Imports:

Urea imports fell 20.2% in July-May, to 4.58 million st from the prior-year 5.74 million st. Imports were up 27.7% in May, however, to 771,385 st from the year-ago 603,981 st.

Imports from Qatar totaled 1.13 million st in July-May, followed by Russia with 761,300 st and Saudi Arabia with 622,222 st.

US Exports:

May urea exports were reported at 36,610 st, a 77.2% decrease from the year-ago 160,879 st. July-May volumes were up 66.7%, however, to 1.34 million from the prior-year 804,319 st.

July-May exports to Canada totaled 629,806 st, followed by 112,100 st to Mexico. Poland bought 107,840 st.

Eastern Cornbelt:

Urea prices plunged to $380-$400/st FOB in the Eastern Cornbelt, down from $440-$480/st at last report, with the low confirmed at Cincinnati, Ohio, for limited supply.

Western Cornbelt:

Urea prices dropped to 360-$390/st FOB in the Western Cornbelt, down from last week’s $425-$460/st FOB range, with the low confirmed at St. Louis, Mo. The latest offers at Catoosa/Inola, Okla., were pegged in the $380-$390/st FOB range, down from the prior $430-$470/st FOB.

Northern Plains:

Delivered urea pricing in the Northern Plains fell to $375-$400/st for the latest offers, down sharply from the $500-$520/st DEL level reported in mid-June.

Northeast:

Urea was quoted at the $435/st level FOB Fairless Hills, Pa., with reports that inventories were nearly tapped out at Baltimore and Chesapeake, Va., in early July.

Eastern Canada:

The Eastern Canada urea market slipped to C$615-$660/mt FOB, down from C$635-$850/mt FOB in mid-June.

Black Sea:

Prilled urea prices jumped to $300-$320/mt FOB, up from the mid-$240s/mt FOB reported last week. The move, while more dramatic than recent increases reported from other markets, puts the price more in line with other producers in the global urea market.

India: 

India remains on track to call another urea tender by July 17, sources said. National Fertilizers Ltd. (NFL) is expected to make the call.

Because Rashtriya Chemicals and Fertilizers Ltd. (RCF) fell short of its 800,000 mt purchasing goal in the last tender, sources speculate that NFL will have to make up for the shortage and bring in another 800,000 mt, for a total target of 1 million mt.

One of the reasons that RCF could not secure its desired tonnage was the low price it paid. Chinese producers refused to budge from their price, as they were able to get higher netbacks from a strong domestic market. There may still be limitations on Chinese product when the next tender is called, but as urea prices have been going up, sources expect that some Chinese urea might make up part of the tender offers.

The next Indian tender will face a bullish urea market. Prices have been edging up in every major producing country. The higher prices could free up tons that would not be offered at prices similar to the previous tender. However, there is still the issue of getting Chinese urea cleared by inspectors in time. If the new tender stipulates a short shipping period – as the RCF tender did – traders said they may be reluctant to seek Chinese product to offer.

With most Russian urea out of play because of logistics and the possibility that Chinese product might make a limited appearance, sources said the bulk of the tender requirements will once again come from the Middle East. Arab Gulf producers are pushing for higher prices each week.

Trade Data Monitor put January-May urea imports at 2.4 million mt, down 38% from the year-ago 3.4 million mt. May imports were reported at 439,000 mt, up from 278,000 mt in May 2022. Oman supplied 214,000 mt for the month, ahead of 69,000 mt from Russia. Bahrain sent 47,000 mt.

Indonesia:     

Sources reported that Kaltim III is down for routine maintenance, and Kaltim V might follow due to a lack of sales. Urea exports from Indonesia have been nil since mid-June.

Sources initially attributed the limited June exports to a strong domestic market. Others, however, have pointed to an ongoing investigation into the pricing policies of Pupuk Holdings, the parent company for Indonesia’s urea producers. While some traders are optimistic that exports could resume in late July, others believe nothing will happen until there is a break in the investigation.

January-May urea exports totaled 489,000 mt, according to Trade Data Monitor, off 21% from the year-ago 617,000 mt. May exports rose to 213,000 mt, up from 146,000 mt shipped in May 2022, with Australia taking 80,000 mt, Mexico 33,000 mt, and Myanmar 25,000 mt.

Middle East: 

Sources said the urea price has moved up to $315-$320/mt FOB, citing increased demand from Brazil and Australia.

Discussions have taken place in the low-$330s/mt FOB for August shipments, sources said, but without any confirming data. At the same time, sources noted an end-September deal brokered out of Oman at $350/mt FOB. Other September deals were rumored at a similar level.

If the price moves into the $330s/mt FOB as expected, the India tender will end up with prices in the mid- to upper-$340s/mt CFR, a big boost from the $280-$285/mt CFR level that India achieved in the last tender.

Sources reported sales out of Iran at $270/mt FOB late last week, just before the “official” price of $290/mt FOB was laid on the table this week. Sellers of Iranian urea now appear to be targeting the urea-hungry Brazil market. Two selling tenders may be called by the end of the month to set new pricing levels.

Iran exported 2 million mt in January-June, Trade Data Monitor reported, down slightly from the 2.2 million mt shipped in first-half 2022. Turkey dominated the market, taking 1.1 million mt, while the remaining tons were picked up by 23 countries receiving 200,000 mt or less.

Second-quarter exports stood at 1.4 million mt, down 8% from the 1.3 million mt recorded in April-June 2022. Turkey took 771,000 mt of Iranian material. June exports totaled 468,000 mt, up slightly from the year-ago 440,000 mt, with Turkey receiving 232,000 mt, followed by Sri Lanka with 149,000 mt.

Egyptian prices moved up again, with MOPCO and Abu Qir reporting sales at $375-$380/mt FOB. MOPCO started the rise in prices, selling two 5,000 mt cargoes at $375/mt FOB before Abu Qir came in with a sale of 20,000 mt at $378/mt FOB. The week closed with MOPCO moving 5,000 mt and 10,000 mt cargoes at $380/mt FOB.

China:

Sources reportedly spent most of the week trying to figure out what was happening in the Chinese urea market. Players noted increased domestic demand at a time when that market is traditionally quiet.

The movement has caused pricing ideas to shift upward. Prilled urea was pegged at $310-$315/mt FOB, with a goal of $320/mt FOB by next week. Granular was put at $320-$325/mt FOB, with discussions pushing to $330/mt FOB later in the week.

One source reported the results of a tender in Taiwan at $325-$326/mt CFR, for a netback to China of about $300/mt FOB. However, this same source said he could not see any offers at that netback, leading him to believe the winning offer was a short sale rather than an indicator of the current market.

Expectations that Chinese product might be considered in the upcoming India tender were dampened by reports that export inspections at China are unlikely to get faster. Sources had previously reported that the speed of the inspections – necessary to export urea – would be reduced to a week from the current 15-30 days. Sources now say there does not appear to be any effort to speed up the inspection process, nor in reducing the time needed to clear all of the required bureaucratic paperwork.

If the Indian tender is called in mid-July and has a long shipping date – into October, for example – some Chinese product might be considered for the tender. However, should the tender carry a shorter shipping window, such as a mid-September shipping date, traders will be too concerned that China’s clearance process may not conclude in time to meet the deadline.

Brazil:

Selling to Brazil has become the mantra of the global urea market. Prices moved up to $355-$365/mt CFR on stronger demand. Sources reported more offers coming in at the higher end of the range, with expectations that prices will continue to rise.

Rondonopolis prices moved up to $480-$515/mt FOB ex-warehouse. Sources said negotiations for Safrinha tons have stalled following reports of lower corn prices. The focus for buying appears to be on forward purchases instead of for immediate need.

Urea imports fell 9% in January-June, Trade Data Monitor reported, to 2.8 million mt from the prior-year 3.1 million mt. The tonnage was sourced from a diverse group of providers.

Country of OriginQuantity (mt)% of Imports
Qatar523,00019
Oman 506,000 18
Nigeria 449,000 16
Russia 419,000 15
Venezuela 329,000 12
Algeria 296,000 11

While Brazil has reported no imports from Iran so far in 2023, sources believe Iranian producers will attempt sales into Brazil in the second half of the year.

Second-quarter imports totaled 1.4 million mt, down slightly from the year-ago 1.5 million mt. June imports were 395,000 mt, off from 522,000 mt received in June 2022. Russia and Qatar sent 111,000 mt and 89,000 mt, respectively.

UAN

Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, U.S. Exports, U.S. Gulf, U.S. Imports, UAN, Western Cornbelt

US Gulf:

The NOLA UAN market tightened to $190-$195/st ($5.94-$6.09/unit) FOB in the wake of fill programs announced during the week, with most touting the upper end of the range for new business.

US Imports:

July-May UAN imports firmed 63.4% year-over-year, to 2.65 million st from 1.62 million st. May imports were up 294.7%, registering at 307,086 st compared to the year-ago 77,809 st. Russia sent 1.88 million st in July-May, while Canada added 399,498 st and Trinidad and Tobago sent 324,154 st.

US Exports:

UAN exports rose 324.3% in July-May, to 2.19 million st from the year-ago 515,109 st. May shipments were 123,091 st, up 56.9% from 78,441 st recorded in the previous May. The US sent 763,200 st to France in July-May, followed by 350,760 st to Australia and 295,592 st to Belgium

Eastern Cornbelt:

CF Industries released a UAN-32 fill program on July 11, with July-August pricing reported at $200/st ($6.25/unit) FOB Yazoo City, Miss., $225/st ($7.03/unit) FOB Mount Vernon, Ind., and $230/st ($7.19/unit) FOB Cincinnati and Peru, Ill. 

Rail-DEL fill pricing was pegged in the $245-$255/st ($7.66-$7.97/unit) range in the Eastern Cornbelt. The fill offers were reportedly pulled at noon on July 14.

The latest UAN-28 fill offers at Cincinnati included $201.25-$205/st ($7.19-$7.32/unit) FOB, down from the last prompt business at $225-$232/st ($8.04-$8.29/unit) FOB.

Western Cornbelt:

CF’s UAN-32 fill program on July 11 included July-August pricing at $220/st ($6.88/unit) FOB Port Neal, Iowa, and $225/st ($7.03/unit) FOB St. Louis, Mo. Rail-DEL fill pricing ranged from $240-$245/st ($7.50-$7.66/unit) in the Western Cornbelt.

Fill offers for UAN-32 in the Southern Plains included $205/st ($6.41/unit) FOB Verdigris, Okla., and $205-$210/st ($6.41-$6.56/unit) FOB Pryor, Okla. Woodward, Oka., fill pricing was reported at $210/st ($6.56/unit) FOB for September-October.

Northeast:

UAN-32 prices dropped to $275-$300/st ($8.59-$9.38/unit) FOB Baltimore, Md., depending on supplier. The market out of terminals in upstate New York was pegged at the $350/st ($10.94/unit) FOB level, down $10/st from last report.

The latest Baltimore price for 28-0-0-5S and 27-0-0-3S dropped to $296/st FOB and $260/st FOB, respectively.

Eastern Canada:

The UAN-28 market fell to C$365-$442/mt (C$13.04-$15.79/unit) FOB in Eastern Canada, down from last month’s C$480-$680/mt (C$17.14-$24.29/unit) FOB, following the launch of limited fill programs during the week. The latest UAN-32 price was pegged at the C$505/mt (C$15.78/unit) FOB level on a spot basis in Ontario, down C$40/mt from last report.

Ammonium Nitrate

Ammonium Nitrate, Brazil, France, Market Watch, Poland, U.S. Exports, U.S. Imports, Western Cornbelt

US Imports:

May ammonium nitrate imports softened 21.8%, to 25,280 st from the year-ago 32,329 st. Imports totaled 294,758 st in the July-May fertilizer year-to-date, off 6.0% from 313,685 st in the prior-year period.

Cargoes shipping from Canada totaled 200,619 st in July-May, followed by 90,712 st from Russia.

US Exports:

Ammonium nitrate exports were up 40.5% in July-May, to 567,234 st from the year-ago 403,741 st. May exports punched in at 67,539 st, up 96.7% from 34,338 st recorded one year earlier.

Canada purchased 299,088 st in the July-May period, while the US sent 146,967 st to Mexico and 72,444 st to Lithuania.

Western Cornbelt:

Ammonium nitrate pricing was unchanged at $400-$420/st FOB in Missouri.

Brazil:

Trade Data Monitor reported January-June ammonium nitrate imports at 408,000 mt, up from 168,000 mt imported in the first half of 2022. Russia supplied 407,000 mt of material, reflecting Russia’s changing export policy compared to the same period in 2022.

Second-quarter imports were noted at 222,000 mt – all from Russia – compared to 102,000 mt recorded in April-June 2022. Brail imported 86,000 mt in June, firming from 34,000 mt in the same period last year.

France:

Yara on July 13 announced a new list price for ammonium nitrate 33.5% (YaraBelaExtran 33.5) in France at €380/mt bulk CPT for September deliveries, with immediate effect. The new price is a €9/mt increase on the July price of €371/mt CPT. Once again, the supplier warned that only a limited volume would be available at this price.

Poland:

Grupa Azoty reported that its production of nitrogen fertilizers, which includes ammonium nitrate, CAN, urea, UAN, and other products, declined by 40% in June, to 143,000 mt from 238,000 mt in June last year.