Nitrogen producer KazAzot has exported its first batch of domestically produced ammonium nitrate via Azerbaijan to the port of Batumi in Georgia for export, according to an Azeri news report. The Kazakh producer plans to export an additional 16 lots this year.
KazAzot’s ammonium nitrate plant is the only nitrogen unit in the country and was commissioned in 2006 with an initial nameplate capacity of 330,000 mt/y. It underwent a capacity expansion to 400,000 mt/y in 2020.
ATOME PLC (formerly ATOME Energy PLC), Leeds, UK, announced on Feb. 14 that National Ammonia Corp. SA (NAC), its Central American subsidiary, has entered into a Framework Collaboration Agreement with Instituto Costarricense de Electricidad (ICE), the Costa Rican state power company, to evaluate feasibility for the power supply to a green ammonia and fertilizer project in Costa Rica.
An agreement is expected to be entered into following the conclusion of the studies in the second half of 2024. ATOME said the project has been endorsed by Costa Rica President Rodrigo Chaves, along with key members of his cabinet. ATOME noted that Costa Rica’s electricity grid is 99% powered by renewable sources and managed by ICE, making it one of the greenest countries in the world.
The Costa Rican Project is expected to be similar in size to ATOME’s Villeta Project in Paraguay, which is expected to produce 250,000 mt/y of green calcium ammonia nitrate (GM Jan. 19, p. 25).
“Within a year since the creation of NAC, thanks to the significant progress on our Villeta project and our strong local team led by Cavendish SA, we have been able to establish an excellent working relationship with ICE with the aim of building Costa Rica’s first green fertilizer facility,” said Olivier Mussat, ATOME CEO.
The company noted that Costa Rica imports all of its fertilizer needs. “There is a substantial local market for the fertilizer we intend to produce as well as being strategically located to access global markets,” Mussat said.
“Whilst the 145MW Villeta Phase 1 Project remains the near-term priority of the team, the progress made on Costa Rica is significant news for ATOME,” he continued. “Beyond adding another flagship project to our pipeline, it is a demonstration of ATOME’s business plan and its growing reputation as a world leader in green fertilizer. It also shows that ATOME’s own developed technical and commercial IP is able to be replicated on a cost-effective basis elsewhere giving us a significant edge in speed of mobilization, costs, and efficacy.”
The US EPA on Feb. 14 issued an Existing Stocks Order to allow for the limited sale and distribution of dicamba over-the-top (OTT) products XtendiMax, Engenia, and Tavium that were already in the possession of growers or in the channels of trade and outside the control of pesticide companies as of Feb. 6, 2024.
The order is in response to a Feb. 6 ruling by the US District Court of Arizona vacating the 2020 registrations for the OTT dicamba products (GM Feb. 9, p. 34). The order is limited in time and scope, allowing only for certain sales, distribution, and uses of existing stocks of these formerly registered dicamba products for the 2024 growing season.
The order also prohibits the use of these dicamba products except where the use is consistent with the previously approved labeling, which included measures intended to reduce environmental damage caused by offsite movement of the pesticide.
EPA said it has received ample evidence that millions of gallons of OTT dicamba had already entered the channels of trade prior to Feb. 6. Additionally, it said most growers have already placed orders for dicamba-tolerant seed for the 2024 growing season and, given the timing of these registrations being vacated, are not able to pivot to another herbicide-tolerant seed and herbicide system.
“ARA is extremely grateful for the quick action taken by EPA to issue an Existing Stocks Order for the dicamba product registrations vacated by the federal court in Arizona on Feb. 6, 2024,” said Daren Coppock, President and CEO of the Agricultural Retailers Association (ARA).
“This order will allow for the continued distribution, sale, and use of these products within the channels of trade and growers’ possession consistent with the FIFRA approved labels,” Coppock added. “As EPA noted in the order, ARA’s consistent position has been that, absent an EPA order allowing for the limited sale, distribution, and use of existing stocks, there will be unnecessary chaos and economic harm to agricultural retailers, distributors, and the farmers they serve.”
US Gulf/Tampa:
Domestic and international ammonia prices remained stable-to-soft ahead of the Tampa settlement for March. The February contract closed at $445/mt CFR, down $80/mt from January’s $525/mt CFR.
US Imports:
Ammonia imports fell 11.2% in July-December, according to data compiled by the US Census Bureau, to 1.00 million st from the year-ago 1.13 million st. December imports were down 18.7%, to 145,972 st from 179,484 st in December 2022. Canada sent 584,948 st to the US in the July-December period, while Trinidad and Tobago shipped 366,418 st and Saudi Arabia added 22,091 st.
US Exports:
Ammonia exports fell 38.4% in December, to 82,646 st from 134,264 st in December 2022. July-December totals dropped 11.4% year-over-year, to 641,478 st from 724,228 st. Morocco was the top July-December export destination with 203,157 st, followed by 130,580 st to Norway. Chile received 55,557 st, ahead of 50,143 st to Mexico.
Eastern Cornbelt:
Ammonia pricing in the Eastern Cornbelt was unchanged at $550-$575/st FOB regional terminals for prompt tons and $590-$600/st FOB for spring prepay.
Western Cornbelt:
Ammonia remained at $550-$580/st FOB or DEL in Iowa and Nebraska for prompt tons, with spring prepay quoted in the $580-$600/st FOB range, depending on location. In the Southern Plains, the latest prompt offers out of production points in Oklahoma and Kansas were reported in the $500-$520/st FOB range, down from a recent high of $550/st FOB.
Northern Plains:
Ammonia continued to be quoted in the $600-$640/st range FOB in the Northern Plains, with the low for fill and the high for prepay, though sources reported low availability for prompt material. Delivered ammonia pricing in North Dakota was steady at $600/st for fill and $625-$670/st for spring prepay, depending on location.
Northwest Europe:
No CFR ammonia transactions were confirmed in Northwest Europe this week. The import appetite remains muted, with stable-to-soft natural gas prices resulting in ammonia production costs just shy of $300/mt. Buyers are confident that they can source cheaper material if they opt to wait. As a result, the latest price indications were down $10-$20/mt, to $460-$480/mt CFR.
India:
Sources reported a Marubeni sale into India at $320/mt CFR. The deal represents a continued slide in imported ammonia prices.
Middle East:
Jordan is reportedly looking for a prompt spot deal. The attacks on vessels in the southern Red Sea appear to have prevented the delivery of its usual shipments from the Arab Gulf, players said.
Indonesia:
Indonesian ammonia exports totaled 1.8 million mt in 2023, Trade Data Monitor reported, a roughly 7% decline from the year-ago 1.9 million mt. South Korea took 507,000, ahead of 427,000 mt to China. Taiwan received 238,000 mt, followed by India with 222,000 mt.
December 2023 exports were 161,000 mt, up 13% from the 143,000 mt shipped in December 2022.
US Gulf:
New NOLA urea business for February-March was reported at $353-$360/st FOB, up from last week’s $345-$350/st FOB range. Loaded physical barge trades were quoted at $357-$360/st FOB during the week, with March trades pegged in the $353-$358/st FOB range.
April business was pegged at $350-$355/st FOB, with May transaction reported in a broad $335-$350/st FOB range, but both were outside the week’s reporting window.
US Imports:
December urea imports totaled 370,085 st, up 24.3% from the year-ago 297,812 st. July-December volumes totaled 1.65 million st, a 1.0% increase on the prior year’s 1.63 million st. July-December imports from Russia were 508,100 st, while Qatar sent 376,603 st. Saudi Arabia shipped 261,727 st, ahead of 185,553 st from Algeria and 183,676 st from Canada.
US Exports:
Urea exports for December softened 18.9% year-over-year, to 78,516 st from 96,800 st. July-December exports were 48.7% lower, at 444,597 st compared to 866,033 st last year. Exports to Canada totaled 253,511 st in July-December, followed by 77,606 st to Mexico and 77,039 st to Chile.
Eastern Cornbelt:
Urea prices remained at $400-$410/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati, Ohio. The market out of Illinois River terminals remained at the $405/st FOB level for February-March and $410/st FOB for April-May tons.
Western Cornbelt:
Urea was unchanged at $390-$410/st FOB in the Western Cornbelt, with both the high and low once again confirmed in St. Louis, Mo. In the Southern Plains, the latest Catoosa/Inola, Okla., offers were quoted as high as $420/st FOB, up from the prior $410-$415/st FOB range.
Northern Plains:
Urea prices jumped to $400-$420/st FOB and $500-$540/st DEL in the Northern Plains, depending on location and time of shipment, up sharply from the $385-$390/st FOB and $430-$490/st DEL ranges reported in late January. Sources reported limited availability, with no Q1 or April tons being offered from some regional suppliers.
Northeast:
Sources reported firming urea prices in the Northeast in mid-February as vessel delays contributed to tight supplies. The latest offers jumped to $410-$420/st FOB in the region, up sharply from the $385-$395/st FOB range reported in late January, with the high reported at Baltimore, Md., and the low at Fairless Hills, Pa.
The East Liverpool, Ohio, urea market was pegged at $415/st FOB during the week, with delivered tons quoted at the $430/st level in Pennsylvania.
Eastern Canada:
The urea market tightened to C$680-$725/mt FOB in Eastern Canada, depending on location, up from the prior low of C$645/mt FOB.
India:
The last vessel carrying product for the National Fertilizers Ltd. (NFL) tender has been nominated, sources said, and will pick up its cargo from Ruwais. Under the terms of the tender, the deadline for shipping material is Feb. 29.
With the last cargo of urea ready to be loaded, plans for the next tender would normally be underway. Uncertainty is growing as to when a new tender might be called, however. Market sources initially expected the call to come just as the last vessel from the previous tender began loading. Players are now saying the tender call may not come until early March.
Traders are not expecting large purchases in the next Indian tender. Sources pointed to a tighter supply situation for April and May shipments, noting that Australia, Brazil, and the US are all expected to be looking for tons at that time.
There is a growing view that China will only be willing to supply one or two cargoes for the tender. At the same time, transportation issues may exclude large-scale participation from Russia, despite reports that Russian urea supplies are growing.
Russian material from the Black Sea would normally transit the Suez Canal to reach India. With the ongoing attacks against vessels in the Red Sea and Gulf of Aden, however, shipowners are reluctant to allow their vessels to enter these waters. In lieu of the Suez route, shipments to India from Russia will have to go around the tip of Africa, a more expensive journey. As a result, either the delivered price might be too high for the Indian buyer or suppliers will have to accept a significantly lower netback in order to make the delivered price more competitive.
The material received under the new tender will be financed through the 2024/25 budget taking effect on April 1. Fertilizer subsidies have been reduced under that budget, however. According to figures released to local media, the amount set aside to subsidize nitrogen fertilizers – mostly consisting of urea – will total about Rs1.2 trillion ($14.3 billion), a drop of approximately 8% from the Rs1.3 trillion ($15.5 billion) allocated in the 2023/24 budget.
The biggest cut will come from subsidies set aside for imported urea. The new level was reported at Rs187 billion, down 30% from Rs265 billion in the current budget.
The Indian government has pushed for both lower subsidies and stepped-up domestic production, and sources said they have seen reports of increased output achieved by Indian urea plants. This increased production could also impact how many tons will be sought in the next tender.
Black Sea:
Russian urea reserves are reportedly building and will soon need to be exported, sources said. For some of the product, the most logical place to go is India, though sellers will have to consider that offers into India are priced on a delivered basis and their cargos will most likely be forced to take the longer and more expensive route around Africa. This would mean that producers will have to absorb a cut in their estimated netbacks.
The price for prilled urea has already begun to slip. Sources reported the week’s market at $300-$310/mt FOB.
Mediterranean:
Granular urea in the Mediterranean continued to inch higher, albeit at a slower pace. Sources said $435/mt CFR was achieved into Spain for small lots, despite concerns about drought conditions in the country. Offers of $420-$425/mt CFR were heard at the lower end of the range in Italy for the last sales, but no fresh business was confirmed.
Elsewhere, Turkey is still reportedly looking for cargos, with Iranian offers reflecting more than $400/mt CFR. Iranian availability is questionable, however, following reports of explosions affecting the gas pipeline supplying a prilled urea plant in the North Khorasan region of Iran.
In the Black Sea, an uptick in demand from Ukraine, Romania, and Bulgaria has also pushed granular prices closer to the $400/mt FOB mark, with more than 20,000 mt reportedly committed this week between the three destinations.
Indonesia:
Indonesia’s Feb. 14 general elections resulted in the same party maintaining power, though different leaders were elected. Sources said the transition is expected to be swift and easy.
Had the opposition won, traders said the resulting change in leadership to both the government and publicly owned companies would have resulted in delayed calls for urea selling tenders. The current situation left some Asian traders expecting Pupuk to call a tender next week, though others said a new tender may not come until early March.
Should Pupuk release too many tons for purchase, traders are concerned that a dramatic price drop could follow. Pupuk will typically offer up to 45,000 mt of granular urea and 20,000 mt of prilled in its tenders. Following a settlement in the tender, additional tons might be purchased in private deals.
2023 urea exports fell 22% year-over-year, according to Trade Data Monitor, to 1.4 million mt from 1.8 million mt in 2022. The Philippines led buyers with 276,000 mt, while India took 267,000 mt and Australia received 174,000 mt. An additional 23 countries took the remaining exports.
December shipments were reported at 263,000 mt, up sharply from 40,000 mt in December 2022, with India taking 87,000 mt.
Southeast Asia:
The region was quiet during the week due to the Lunar New Year holiday. Urea availability is tight with Indonesia and Malaysia out of the spot export market, the latter due to contract commitments and a turnaround of the Gurun plant and the former due to reduced export licenses. Current cargoes are possible only ex-Vietnam and Brunei.
Regional producer Petronas, in Malaysia, reported that its Bintulu plant is back up and running. Sources said the facility will first focus on covering contracts before switching to building reserves for potential spot sales. Facilities in Brunei have also returned to operation, sources said, citing circulating reports of small sales to regional buyers.
Given the uptick in demand in Thailand and Australia, spot prices for Southeast Asian material are expected to continue to move up. With no fresh deals reported, however, the price in Southeast Asia remains unchanged at $380-$400/mt FOB.
Middle East:
An Australian buyer has reportedly nailed down a 30,000 mt granular urea order at $385/mt FOB, edging the market above the previous $380-$385/mt FOB level. Producers to now asking $390/mt FOB for granular product, while the area’s limited amount of prilled urea is reportedly being offered in the $325-$335/mt FOB range, a deep discount to granular.
So far, producers are said to be happy with their lineups for February and early March, though they are expected to start building reserves heading deeper into March. Sellers will be looking to cover deals into Australia, Brazil, India, and the US. The seasonal interest from these major buying locations could prevent any sliding in prices, even if producers assemble large reserves.
Egyptian producers have built solid order books through mid-March, sources said. Prices remained at $410/mt FOB for the week, though discrete inquiries reportedly showed that producers are now talking about $415/mt FOB deals.
China:
All talk of export pricing out of China is currently derived from either factory prices or calculating an equivalent price from some other deal. The government’s export restrictions remain in place, and sources expect no changes to that policy until mid-March at the earliest.
Speculation surrounding granular prices was steady in the $370s/mt FOB, with some claiming that prices had tightened to $375-$380/mt FOB. Estimates for prilled urea were calculated from domestic price reports attached to factories and regional warehouses. Sources put the theoretical export price at $350-$360/mt FOB.
Sources previously expected the Chinese government to resume urea exports in late March. Now, however, there is talk that export permission might be announced in mid-March, but with no actual exports allowed until April. One source said the time gap was to allow for customs officials to process and issue the proper paperwork. The so-called CIQ process can take two weeks.
If the government allows shipments in April, some of the tons could end up being offered in the next Indian tender, sources said. While some players said they would like to see several Chinese cargoes offered into India, most expected only one or two cargoes to be part of the Indian tender.
Initially, the exports will focus on small-lot demands from regional buyers, sources said. Orders of 5,000-10,000 mt are more likely to be approved for quick shipment ahead of the larger volumes that would be needed for India. The slower release of material could help to avoid cratering the market. If China were to reintroduce large quantities all at once, said one trader, prices could drop significantly.
Ethiopia:
After scrapping its Jan. 29 tender, Ethiopian Agricultural Businesses Corp. (EABC) called another tender to close on Feb. 26. The company is looking for 365,000 mt spread over seven lots to be shipped through mid-May. The first six lots should total 52,000 mt each, while the final lot would come in just above 53,000 mt.
| Shipping Date | Lot Number |
| March 15 | 1 |
| 2 | |
| March 20 | 3 |
| April 5 | 4 |
| April 15 | 5 |
| May 5 | 6 |
| May 15 | 7 |
EABC has also reportedly changed the terms of the tender. While the company normally asks for cargoes priced on an FOB Djibouti basis, EABC is asking for prices on a CFR/CIF basis in the new tender. Sources said the most likely reason for the change is to put the responsibility for shipping on the offering company.
Vessels with material destined for Ethiopia have to pass through parts of the Red Sea and Gulf of Aden. With more vessel owners reluctant to allow their ships to enter that area, and with insurance rates rising higher because of the risks posed to ships, delivery costs have skyrocketed.
Brazil:
Imported urea prices dipped slightly during the week, to $390-$400/mt CFR from last week’s $390-$405/mt CFR, with sources citing the Carnival festivities and Brazil’s waning nitrogen season. While demand has been focused at the low side of the range, traders have been largely unwilling to budge from their higher offer levels. Product from sanctioned origins was offered around $380/mt CFR, sources said.
As farmers move forward with the soybean harvest, more space is available to seed the second corn crop. According to Brazil’s National Supply Co. (Conab), corn planting reached 48.3% in Mato Grosso state last week, above 35.9% through the same period of 2023. In order to take advantage of the rains, sources said there is a Feb. 25 deadline for corn planting in southern Mato Grosso. Farmers who delayed sowing soybeans – and subsequently have yet to begin their harvest – will face higher levels of risk in planting after Feb. 25.
Urea demand is falling as the corn season begins, sources said, though Rondonópolis prices firmed to $495-$535/mt FOB ex-warehouse. Given the pressure on CFR prices reported this week, sources expect inland urea prices to begin softening in the near-term.
US Gulf:
The NOLA UAN market remained at the $240-$245/st ($7.50-$7.66/unit) FOB range for the latest indication, though no new transactions were confirmed and offers were reportedly hard to come by.
US Imports:
December UAN imports stood at 187,515 st, down 29.8% from the 266,930 st reported in December 2022. July-December volumes softened 12.6%, to 1.08 million st from the prior year’s 1.24 million st. Russia sent 650,326 st for July-December, Canada added 203,158 st, and Trinidad and Tobago sent 191,363 st.
US Exports:
December UAN exports totaled 227,067 st, a 22.9% increase on the year-ago 184,737 st. Exports softened to 1.07 million st in July-December, however, off 27.1% from the 1.47 million st reported through the same period of 2022.
France accepted 328,761 st of US product in July-December, Australia took 257,298 st, and Argentina received 190,019 st.
Eastern Cornbelt:
UAN-32 edged up to $280-$295/st ($8.75-$9.22/unit) FOB regional terminals, depending on location and time of shipment, with the low reported at Mount Vernon, Ind. The Cincinnati market was pegged at $285/st ($8.91/unit) FOB for February-March and $295/st ($9.22/unit) FOB for April-May, with UAN-28 offers reported at $249/st ($8.89/unit) FOB for prompt and $258/st ($9.21/unit) FOB for spring.
“Inland markets are gradually working their way higher,” commented one UAN source. “The urea market has spurred positive sentiment and buying interest on UAN, with customers across the country looking for both Q1 and Q2 shipments.”
Western Cornbelt:
UAN-32 was pegged at $270-$290/st ($8.44-$9.06/unit) FOB in the Western Cornbelt, depending on location and time of shipment, with the St. Louis market remaining at the $275/st ($8.59/unit) FOB level for prompt tons.
“This week we saw an increase in buying interest in the plains driven by what appears to be healthy wheat topdress demand,” said one contact.
Northern Plains:
The UAN-32 market remained at $295-$310/st ($9.22-$9.69/unit) FOB terminals in Minnesota, with the low for February-March and the high for Q2 tons. UAN-28 was quoted at the $315-$325/st ($11.25-$11.61/unit) DEL level in the Northern Plains for tons from Canada.
Northeast:
The UAN-32 market in the Northeast firmed to $265-$275/st ($8.28-$8.59/unit) FOB Fairless Hills and Baltimore, with the latest UAN-30 offers quoted at the $258/st ($8.60/unit) level FOB Baltimore. UAN-32 out of terminals in upstate New York was up $10/st, to $330/st (10.31/unit) FOB.
The 28-0-0-5S market was pegged at $278/st FOB Baltimore in mid-February, with 27-0-0-3S reported at the $251/st level FOB Baltimore.
Eastern Canada:
The UAN-32 market was unchanged at C$509/mt ($15.91/unit) FOB for the latest offers in Eastern Canada, with UAN-28 quoted in the C$446-$460/mt (C$15.93-$16.43/unit) FOB range.
France:
UAN prices at Rouen retreated some €10/mt, with several market players attributing the decline to an influx of Russian material. Others noted the backdrop of farmer protests, which are likely to hamper buyer appetite in the coming weeks, as well as softening natural gas (TTF) values as winter heating demand draws to a close.
Despite the drop, some sellers continue to find hope for UAN appreciation in the upward movement of urea.
US Imports:
December ammonium nitrate imports totaled 46,320 st, up 174.8% compared to 16,856 st in December 2022. July-December imports were 156,614 st, increasing 11.1% against the year-ago 140,970 st. Canada sent 130,646 st in July-December, while Russia sent 24,251 st, ahead of 595 st from Vietnam.
US Exports:
Ammonium nitrate exports for December stood at 41,493 st, down 21.3% from the year-ago 52,691 st. July-December exports totaled 438,332 st, however, a 41.8% rise from the 309,202 st posted one year earlier. Canada received 250,913 in July-December, Mexico purchased 118,124 st, and Lithuania took 39,690 st.
Western Cornbelt:
Ammonium nitrate remained at $310-$330/st FOB Missouri terminals for Q1 tons, depending on location.
US Gulf:
While the last confirmed business for NOLA ammonium sulfate barges remained at the $275/st FOB level, sources said the latest offers for import tons rose this week to $285/st FOB. Interoceanic (IOC) on Feb. 13 raised its list price to $300/st FOB NOLA barge, $25/st above the company’s Jan. 31 posting, though no new business was reported at the higher level.
US Imports:
Ammonium sulfate imports for December moved 56.0% higher year-over-year, to 48,768 st from 31,261 st. July-December imports firmed 50.6%, to 472,957 st from 314,031 st in 2022. Imports from Canada were noted at 265,407 st for July-December, ahead of 83,943 st from Russia and 58,143 st from Belgium.
US Exports:
December amsul exports lifted 41.5%, to 80,959 st from the year-ago 57,227 st. July-December exports moved down 11.7%, however, to 387,449 st from 438,737 st in the prior year. Exports to Peru totaled 111,845 st in July-December, followed by Canada with 45,142 st. Brazil took 40,743 st, Uruguay received 31,831 st, and Mexico bought 30,602 st.
Eastern Cornbelt:
Granular ammonium sulfate widened to $315-$345/st FOB in the Eastern Cornbelt, with the low confirmed out of spot Illinois River terminals. Postings from IOC moved up $25/st on Feb. 13, to $350/st FOB Ohio River terminals and $360/st FOB Illinois River terminals.
The latest granular ammonium sulfate offers in the Great Lakes region included $330-$345/st FOB and $355/st DEL.
Western Cornbelt:
The granular ammonium sulfate market edged up to $310-$330/st FOB in the Western Cornbelt, though reference prices were firming. IOC on Feb. 13 announced a $25/st increase for granular ammonium sulfate, with new postings reported at $325/st FOB Houston, Texas, $350/st FOB St. Louis, Mo., and Delta terminals, and $360/st FOB Upper Mississippi River terminals.
Northern Plains:
The granular ammonium sulfate market strengthened to $335-$355/st FOB and $340-$370/st DEL in the Northern Plains, depending on location and supplier. IOC raises its postings $25/st on Feb. 13, to $360/st FOB Upper Mississippi River terminals, $370/st rail-DEL in the Northern Plains, and $375/st FOB Sioux City, Iowa, Omaha, Neb., and Casselton, N.D.
Northeast:
Granular ammonium sulfate pricing strengthened to $350-$355/st FOB and $355-$365/st DEL in the Northeast, up roughly $15/st from last report.
Eastern Canada:
New ammonium sulfate offers in Eastern Canada were pegged at $545-$590/mt FOB at mid-month, up from the prior C$530-$575/mt FOB range.
Northwest Europe:
Standard ammonium sulfate prices were unchanged. An unconfirmed sale of 3,000 mt was closer to the low end of the range, suggesting that higher prices have yet to be accepted by buyers, despite the strength in urea.
No granular ammonium sulfate business was reported despite offers retreating some €15-€20/mt, to €185-€200/mt FOB, equating to $200-$215/mt FOB at midweek exchange rates.
China:
Even though most business was closed for the weeklong Lunar New Year holiday, sources reported the price of caprolactam grade amsul tightening to $145-$150/mt FOB. Producers are reportedly ready to start talks at $160/mt FOB when offices reopen next week.
A limited supply of amsul available for export is reportedly keeping upward pressure on the market. Part of the shortage stems from domestic demand from NPK producers, sources said. Southeast Asian buyers are also looking for amsul as a substitute for urea.
Brazil:
Brazil ammonium sulfate imports were unchanged at $175-$185/mt CFR. With sources reporting low activity during the week, Rondonópolis ammonium sulfate prices continued at $300-$315/mt FOB ex-warehouse.
Central Florida:
Central Florida phosphate prices were unchanged at $630/st FOB for DAP and $655/st FOB for MAP. North Florida MAP postings continued at the week-ago $650/st FOB level.
US Gulf:
NOLA DAP pricing slid to $570-$582.50/st FOB, off from the week-ago $578-$585/st FOB, with the low end reportedly set on a first-half March trade. Indications for local product continued at $600/st FOB, though no business was reported at that level.
MAP barge trading was reported at $600-$615/st FOB, off $5/st from the top of the prior range, while local product was indicated at $620/st FOB. Citing a belief that phosphates are currently overvalued relative to the price of corn, some sources expect the market to be thinly traded for the remainder of the spring.
US Imports:
July-December DAP imports firmed 99.5% year-over-year, to 713,949 st from 357,920 st. December imports fell sharply, however, to just 770 st from the year-ago 39,301 st, a 98.0% decline. July-December imports from Saudi Arabia were unchanged at 454,703 st, while tons shipping from Jordan continued at 119,543 st. Australia sent 80,372 st.
MAP/Other imports softened 12.8% in December, to 68,369 st from 78,365 st in December 2022. Imports moved up 13.5% in July-December, however, to 521,354 st from the previous year’s 459,475 st. Saudi Arabia sent 143,702 st for the fertilizer year-to-date, while Tunisia fell to second place with 128,632 st. Mexico shipped 116,774 st, ahead of 81,991 st from Australia.
US Exports:
No new DAP or MAP spot export business was reported out of the US Gulf, leaving prices unchanged at $570/mt FOB.
DAP exports softened 46.0% in July-December, to 236,772 st from the year-ago 438,278 st. December cargoes were counted at 31,871 st, a 66.8% decline from the 95,993 st reported one year earlier. US DAP sellers sent 81,605 st to Peru in July-December, ahead of 37,250 st to Canada and 31,964 st to Uruguay. Brazil took 23,477 st.
December exports of MAP/Other were noted at 272,761 st, a 22.4% increase on the year-ago 222,907 st. July-December volumes were up 1.5%, at 1.00 million st compared to 988,684 st one year earlier. Canada received 765,681 st of US MAP in July-December, ahead of 76,770 st to Australia and 35,424 st to Mexico.
Eastern Cornbelt:
DAP was unchanged at $635-$655/st FOB in the Eastern Cornbelt, with MAP at $670-$690/st FOB in the region. The lower end of both ranges was reported out of spot Illinois River terminals, with the Cincinnati market quoted at $650-$655/st FOB for DAP and $675-$685/st FOB for MAP.
Pricing in the Great Lakes region included MAP at $720-$730/st FOB Michigan warehouses and DAP at $685/st FOB or DEL.
Western Cornbelt:
DAP was unchanged at $635-$650/st FOB in the Western Cornbelt, with MAP reported at $660-$690/st FOB in the region. The St. Louis market was steady at $635-$645/st FOB for DAP and $660-$675/st FOB for MAP.
Northern Plains:
DAP and MAP offers at St. Paul, Minn., in mid-February remained at $660/st FOB and $720/st FOB, respectively.
Northeast:
The DAP and MAP markets at East Liverpool were steady at $665/st FOB and $700/st FOB, respectively, with delivered MAP quoted at the $715/st level in Pennsylvania. No current MAP offers were confirmed at Fairless Hills in mid-February.
Eastern Canada:
The latest MAP offers in Eastern Canada were reported at C$993-$995/mt FOB, up marginally from the previous C$985-$993/mt range. DAP was unchanged at C$935/mt FOB Montreal.
Morocco:
OCP continued to achieve $600-$610/mt FOB on sales into Western Europe, and the Moroccan producer is reportedly well-committed and opting to offer April volume against a reported spot inquiry from Mexico. Moroccan prices showed a wide range, with the low end reflecting netbacks from sales into India and the high end reflecting business into Western Europe.
India:
The imported DAP price remained at $595/mt CFR, through sources said that level will be difficult to maintain. Under India’s current subsidy plan, the breakeven price for imported DAP was noted at $495-$510/mt CFR.
Sources reported major buyers waiting in the wings for China to resume offering DAP on the global market. These buyers appear to be hoping that prices will drop once Chinese phosphate exports restart. However, Chinese producers are already talking about moving the price higher once they are allowed to ship offshore, sources said.
China:
Earlier in the month, traders anticipated an early March announcement that DAP and MAP exports would soon resume. However, sources now expect no such proclamation until mid-March, and that the tons will not be allowed to ship until April. The expectations are similar to those attached to urea exports.
Based on the current domestic market, sources estimated producer export price discussions at $590-$600/mt FOB.
Benelux:
No new sales could be confirmed this week, but indications for both Moroccan and Russian material nominally edged higher as the euro softened against the US dollar.
Moroccan DAP offers were reported at €590/mt FCA, which reflected $635/mt FCA on the low end at the midweek exchange rate. Russian DAP offered at €605/mt FCA, or around $650/mt, was not included in the range as some distributors indicated that €600/mt FCA was still on the table.
Brazil:
Brazil MAP prices were steady at $550-$560/mt CFR. Players reported seller efforts to push the market to $580/mt CFR, partly due to reports that OCP plans to prioritize TSP production over MAP. However, inland deals were reported at a $540/mt CFR-equivalent during the week.
Rondonópolis prices remained stable, with buyers and sellers finding liquidity in the $670-$690/mt FOB ex-warehouse range. Citing indications that supply limitations could press the market higher in the short-term, some companies sought deals at $700-$735/mt FOB, though low commodity prices remain a strong impediment to new negotiations.
Barter ratios in the physical market were noted above 30 bags of soybeans per mt of MAP, over the five-year average of 27 bags per mt.
US Gulf:
NOLA TSP barges pulled back to $445-$460/st FOB, off from last week’s $445-$470/st FOB range.
Eastern Cornbelt:
TSP remained at $520-$535/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati. Recent offers in the Great Lakes region included $560-$570/st DEL in Michigan.
Western Cornbelt:
The TSP market was unchanged at $505-$535/st FOB in the Western Cornbelt, with the low confirmed at St. Louis.
Brazil:
Landed TSP prices increased by $5/mt at the top of the range, to $425-$435/mt CFR from last week’s $425-$430/mt CFR. While low-side Rondonópolis offers were unchanged at $520/mt FOB ex-warehouse, new offers stretched the week’s upper limit by $5/mt, to $545/mt FOB.
