All posts by hlancey@bloomberg.net

Moranbah Gas Supply Deal Now Unconditional

Ammonium Nitrate, Australia, News, News Briefs

Incitec Pivot Ltd. (IPL) said its new long-term gas supply agreement for the Dyno Nobel ammonium nitrate (AN) plant in Moranbah, northwest Queensland, is now unconditional, with the new supply deal to begin in April 2026 following the expiration of the current gas supply agreement.

The new supply deal will continue until at least March 2033, with an option to extend to March 2037. IPL said the gas will be supplied on competitive terms and is expected to sustain the long-term competitive advantage of the Moranbah ammonium nitrate plant.

IPL said the new agreement, which was reached in May (GM May 19, p. 25) with wholly owned subsidiaries of Queensland Pacific Metals Ltd. (QPM), became unconditional on Aug. 25 following QPM’s successful completion of the acquisition of the Moranbah Gas Project, which will supply the gas (GM April 7, p. 27).

As part of the new supply deal, Dyno Nobel is providing A$80 million (approximately $51.8 million at current exchange rates) in financial support to QPM in the form of a gas prepayment facility, which will support the field development required for gas supply.

The Moranbah plant has 330,000 mt/y of  ammonium nitrate production capacity and manufactures  ammonium nitrate in prill form for ANFO and emulsion. The facility largely services customers in Queensland’s Bowen Basin region, a major coal-producing area and home to Australia’s largest coal reserves.

France Earmarks €4 B to Support Hydrogen Output

Ammonia, France, Hydrogen, Natural Gas, News, News Briefs

France will allocate €4 billion ($4.4 billion) to subsidize production of low-carbon hydrogen as part of the country’s push to help manufacturers reduce emissions, according to Bloomberg, citing Energy Transition Minister Agnes Pannier-Runacher.

The fund is part of a €9 billion strategy pledged by President Emmanuel Macron in 2021 to support a cleaner, but more expensive, way to produce the gas for use in refining, chemicals production, and other industrial processes. Hydrogen made from water and non-fossil fuel generators is currently far more costly than that extracted from natural gas. 

“The idea is to bridge the gap between the price of hydrogen made with a process that’s using natural gas, and the higher price stemming from projects using new technologies, which need to scale up,” Pannier-Runacher said during a visit to a fertilizer plant owned by LAT Nitrogen in eastern France on Aug. 30. 

LAT Nitrogen, owned by Czech group Agrofert, is considering applying for subsidies with Electricite de France SA to build a 50-megawatt electrolizer to produce 6,000 mt of low-carbon hydrogen per year, the company reported on Aug. 31.

The €4 billion will help support the production of low-carbon hydrogen using 1 gigawatt of power capacity, the equivalent of about 1 nuclear plant, the French minister said. The government will favor hydrogen projects that are able to reduce production when demands on the French power grid are high, she said.

The manufacturing sector accounts for about a fifth of France’s carbon emissions, and the production of ammonia – a key ingredient for fertilizers – represents 1.5% of the total, according to the ministry.    

AmmPower Adds Patent, Distribution Agreement

Ammonia, Canada, Green Ammonia, News, News Briefs

Toronto-based clean technology developer AmmPower on Aug. 25 announced that its new ammonia synthesis converter technology designed for small production units has been granted a utility patent by the US Patent and Trademark Office (USPTO).

The technology, specifically targeted to provide small-scale and modular green ammonia production, was managed by AmmPower Chief Technologist Dr. Zhenyu Zhang in cooperation with SANsyco Consulting LLC and a group of experienced ammonia industry experts. The assignment of patent rights for the reactor technology to AmmPower is expected to be completed in September.  

The technology is also the subject of an international Patent Cooperation Treaty (PCT) application eligible to secure IP rights in PCT member states. The company said the successful USPTO patent award and the PCT patent filing will further strengthen AmmPower’s leading IP positions at a global scale in response to worldwide customer inquiries of the Ammonia Making Machine (IAMM™) units.

AmmPower on Aug. 29 announced that it engaged LEDOLAS to distribute its IAMM units in North and Central America, Australia, Chile, and Peru. 

AmmPower also announced that it has terminated its previously announced investor relations and communications services agreement with Vancouver-based Transcend Capital Inc. due to Transcend’s perceived conflict of interest with another company operating in the green ammonia space.

India’s ONGC to Spend $24.2 B to Become Net Zero

Green Ammonia, Hydrogen, India, News, News Briefs

India’s Oil and Natural Gas Corp. (ONGC) plans to invest 2 trillion rupees ($24.2 billion) to reach net-zero carbon emissions on an operational level by 2038, according to Bloomberg, citing ONGC Chairman Arun Kumar Singh in an Aug. 29 press briefing. 

“It is not a story of ‘or’ but an ‘and’ story,” said  Singh. “We have financial muscle to invest in both hydrocarbons and new energy.”

About half of the planned investment will be made by 2030 in building 10 gigawatts of renewable power capacity, green ammonia, and hydrogen projects. ONGC has already signed onto a 5 gigawatt solar project in Rajasthan and will be adding another 5 gigawatts through wind and solar projects.

“Carbon markets are in the offing,” Singh said. “There is opportunity in export of green fuels. The financing cost of clean energy projects is also low.”

ONGC’s plans to become net-zero at the operational level – called Scope 1 and Scope 2 emissions – is in line with its peers globally. Billionaire Mukesh Ambani on Aug. 28 said his plans use solar and offshore wind, among others, to make Reliance Industries net-zero by 2035.

India’s largest oil and gas producer has been battling declining oil reserves and output for years. That production decline has impacted its earnings.

Singh said the company still has capability to raise as much as 5 trillion rupees from the market. During a presentation on Aug. 29, ONGC said declining output will find reprieve after oil and gas production starts from the offshore East Coast Block KG-DWN-98/2. 

The company will begin producing oil from the block by October or November with an initial output of 10,000 barrels/day. Output is then set to expand to 20,000 barrels/day by March and will hit a peak of 45,000 barrels/day in the fiscal year ending March 2025, the company said in the presentation. Gas production will start by mid-2024.

ONGC has also started looking for oil and gas in the Mahanadi basin in the eastern offshore, Singh said. “The company and country are very optimistic on eastern offshore,” he said.

Ammonia

Ammonia, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, South Central, Southeast Asia, Southern Plains, U.S. Gulf, Western Cornbelt

US Gulf/Tampa:

The Tampa ammonia price for September closed at $390/mt CFR during the week, up more than 32% from the $295/mt CFR August price. While an increase was expected, sources speculated that last week’s Nutrien/Ma’aden deal added fuel to the market, pushing the Tampa price higher than anticipated.

The NOLA barge market also adjusted to reflect a Tampa equivalent, strengthening to $354/st FOB from the prior $268/st FOB.

Eastern Cornbelt:

Ammonia continued to be reported in the $500-$525/st FOB range out of terminals in the Eastern Cornbelt, unchanged from last week.

Western Cornbelt:

Ammonia was steady at $500-$525/st FOB in the Western Cornbelt, with the low reported in Nebraska and the high in Missouri.

Southern Plains:

Ammonia pricing covered a broad range in the Southern Plains, from a reported low of $425/st FOB Pryor, Okla., for prompt tons to a high of $500/st FOB Enid, Okla., for prompt or prepay.

South Central:

Ammonia remained at $350-$380/st FOB South Central terminals for the last confirmed business, with the truck market out of Gulf Coast production points reported at $270-$280/st FOB. An increase is expected in the wake of the new Tampa September price, however.

India: 

A FACT ammonia tender calling for 7,500 mt closed with no data released by the company. Sources speculated that the shortage of public information could be due to a lack of participation. Alternatively, one trader said that if an offer was made, the price was likely too high for FACT to seriously consider.

Sales of ammonia to small buyers such as FACT became more complicated after last week’s $400/mt FOB Nutrien/Ma’aden deal, which put the official Arab Gulf spot price well above levels that buyers are willing to accept. On a positive note for buyers, material is becoming available from both Iran and Venezuela at prices that are more acceptable to purchasers, one trader said.

So far, India’s last spot price of $380-$385/mt CFR holds as the basis for most talks, while larger quantities purchased under long-term contracts continue to see prices in the $340s/mt CFR.

Middle East: 

The ammonia market is still feeling the impact of the Nutrien/Ma’aden deal priced at $400/mt FOB. New information showed that Nutrien is only taking 20,000 mt, sources said, rather than the previously expected 25,000 mt.

The price set a benchmark that was too high for buyers around the world. Sources put the Northwest Europe-equivalent price around $500/mt CFR, the US-equivalent at $550/mt CFR, and the Southeast Asia price at $470-$480/mt CFR, none of which are workable in these areas.

Industry watchers also noted that the deal’s $400/mt FOB price came at a time when production in the industry was coming back online. The previously reported cutbacks from Saudi Arabia and Trinidad and Tobago are expected to be erased by the end of September, leaving a surplus in the market.

The lack of any new spot deals in the area leaves the price at $400/mt FOB. The bulk of the ammonia flowing out of the region is purchased under long-term contracts with significantly lower prices.

Northwest Europe:  

Fluctuating ammonia prices were reported as natural gas values and availability shift from day to day. Sources put the market at $380-$400/mt CFR for the week.

There was talk of a possible increase to $410/mt CFR based on reports of an Algerian deal at $380/mt FOB. Sources could find no confirmation of the Algerian price idea, however, and talk of higher prices in Europe subsequently faded.

EuroChem continues to send ammonia to its Antwerp facility from a Baltic port via a convoluted process. The ammonia is piped from a truck to an anchored vessel for storage, and then onward to another ship for delivery. Sources described the process as slow, but steady.

While no price could be tied to the product arriving at the EuroChem plant in Europe, sources noted that some of the Baltic ammonia is being sold to Turkey for about $340/mt CFR. One trader calculated back the freight, as well as the more costly loading process, to a netback of $220-$250/mt FOB. This price is seen as a good deal for both EuroChem and Turkey.

Southeast Asia:

Major buyers in Taiwan and South Korea are reportedly paying in the $370s/mt CFR for ammonia, while simultaneously pushing for lower prices. The Nutrien/Ma’aden deal at $400/mt FOB Saudi Arabia is not workable into Asia, leaving talks for future tons up in the air.

Buyers can wait, sources said, as demand remains limited in the area. Buyers are currently taking only what is required under their contracts with Arab Gulf suppliers, said one trader. There have been no queries for extra spot tons.

The region’s limited demand for ammonia was reflected in the most recent import numbers from Thailand. Trade Data Monitor reported January-July imports at 217,000 mt, up 5% from 205,000 mt in the same period last year. July imports were 28,000 mt, down more than a third from the 45,000 mt received in July 2022. Malaysia supplied the bulk of the July tonnage with 25,000 mt, with the rest coming from Indonesia.

Urea

Argentina, Black Sea, Brazil, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, South Central, Southeast, Thailand, U.S. Gulf, Urea, Western Cornbelt

US Gulf:

The NOLA urea market was trending higher, with sources blaming low Mississippi River levels and concerns about a condensed fall shipping window for the bump. Loaded August barges reportedly traded as high as $370-$376/st FOB during the week, with September business quoted in the $340-$353/st FOB range.

The new NOLA business was up from last week’s $335-$360/st FOB range. Reports of deals concluded late last week in the low-$330s/st went unconfirmed.

Eastern Cornbelt:

Urea prices in the Eastern Cornbelt firmed slightly to $415-$450/st FOB in late August, with the high confirmed on a spot basis in the Illinois market. Pricing at Cincinnati, Ohio, was pegged in the $415-$425/st FOB range during the week.

Western Cornbelt:

Urea pricing was steady at $410-$430/st FOB in the Western Cornbelt, with the lower end of the range confirmed at St. Louis, Mo.

Southern Plains:

Urea in the Southern Plains was quoted at $420-$440/st FOB Catoosa/Inola, Okla., with tight inventories reported. The Houston, Texas, market was pegged at the $425/st FOB level, down $25/st from early August.

South Central:

The urea market slipped to $390-$435/st FOB in the South Central region, with the low confirmed by Kentucky sources out of spot Ohio River terminals and the high at Little Rock, Ark. The Convent, La., urea market dropped to $400/st FOB in late August, down $10/st from last report, with pricing at Memphis, Tenn., quoted in the $425-$430/st FOB range.

Southeast:

Urea prices were down in the Southeast, falling to $430-$440/st FOB port terminals from the prior $450-$470/st FOB range.

Black Sea:         

Black Sea prilled urea softened to a flat $320/mt FOB, off $5-$15/mt from the previous week. The move was in line with declines reported in other international spot markets.

India: 

Sources reported no new information regarding vessel nominations related to the Indian Potash Ltd. (IPL) tender. New bookings will most likely come after the 12 ships already identified begin their loading processes, sources said.

Initial concerns have apparently dissipated that the loading of 1.1 million mt of China-sourced award tonnage might not meet the Sept. 26 shipping deadline. Favorable weather conditions at Chinese ports could allow for more rapid loading operations than previously expected, players said.

Indonesia:     

Pupuk Indonesia Holding Co. closed another selling tender this week, with prices coming off from the previous tender. Ameropa came in with a $367/mt FOB low bid for 30,000-45,000 mt of granular urea, sources said. The low bid for 15,000 mt of prilled material was quoted at $363/mt FOB.

Before the tender closed, sources reported a 10,000-15,000 mt sale at the market’s earlier $392/mt FOB price. This sale, as well as the granular deal in the latest tender, are reportedly bound for Australia. The prilled urea in this latest sale was said to be for shipment to the Philippines.

Middle East: 

Producers remained quiet this week as they worked to fulfil long-term contracts and orders related to the IPL/India tender. The lack of any new spot sales leaves the price in the low-$380s/mt FOB, as set by the IPL tender.

Egyptian producers have likewise gone silent, apparently content to process shipments of product secured before the urea market began to soften. The market’s last spot deal was concluded in July at $467/mt FOB.

China:

Sources reported the netback from a small sale of prilled urea to Taiwan in the low-$350s/mt FOB. The purchase, by TFC, appears to be the only new spot sale out of the area, with most Chinese traders and producers focused on fulfilling orders received under the IPL/India tender. Sources said the lack of business outside of the Indian tender is pushing down pricing expectations.

Fears that the 1.1 million mt expected to ship from China to India might not load before the Sept. 26 tender deadline appear to have waned. Improved weather conditions are making it easier for the docks to run full shifts to push through the tonnage already cleared for export, sources noted.

Of the 800,000 mt of urea currently at the ports, about 500,000 mt still requires export approval. Inspectors are reportedly moving quickly. The remaining tonnage for the Indian orders is expected to arrive at the ports just as the current product is loaded and gone.

Sources said they have not heard of any new vessel nominations to take Chinese urea to India. However, as soon as the first wave of nominated ships begins loading, said one trader, new nominations are likely to come quickly.

Only prilled urea is likely to be loaded for exports, sources noted. Granular product is currently more expensive at China and remains in strong demand from domestic buyers.

Thailand:      

January-July urea imports totaled 1.4 million mt, Trade Data Monitor reported,a 15% increase from the year-ago 1.2 million mt. July imports were recorded at 193,000 mt, down 34% year-over-year from 293,000 mt received in July 2022.

Saudi Arabia dominated the July market with 84,000 mt, for 44% of the imports. Saudi producers have a long relationship with Thai buyers, giving them significant discounts in return for steady purchases. These discounts often leave the landed price into Thailand lower than the spot FOB price from the Arab Gulf.

Brazil:

Import pricing slipped to $340-$355/mt CFR, off from last week’s $370-$375/mt CFR. The market remains largely inactive with only limited trading volumes observed. While negotiations were reported at the lower end of the range, delayed purchasing from farmers could push the import season back by a few months, sources said.

Rondonopolis urea prices slid below the $500/mt FOB threshold to $480-$490/mt FOB ex-warehouse, a decline from last week’s $500-$520/mt FOB. Despite an interest from sellers to speed up corn safrinha sales to ensure timely deliveries, softer corn prices and the resulting weaker barter ratios complicated negotiations for the 2024 season.

Sources noted a lag in safrinha sales compared to the previous year, with farmers having secured about 55-60% of supplies to date, below the 80% year-ago average. Some experts believe the market is returning to its customary pace of purchases, however, as farmers enjoyed more favorable barter ratios in recent years, allowing for earlier safrinha procurement.

Argentina:    

Trade Data Monitor noted January-July urea imports at 308,000 mt, off 28% from 427,000 mt recorded during the same period of 2022. July imports were 135,000 mt, up 24% from 110,000 mt received last July. Egypt took 44,000 mt for the month, followed by Algeria with 40,000 mt and Oman with 32,000 mt.

UAN

Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

US Gulf:

The NOLA UAN barge market continued to be reported in the $230-$235/st ($7.19- $7.34/unit) FOB range for the last business. “NOLA UAN is very quiet, so it’s hard to peg a value,” commented one source.

Eastern Cornbelt:

The UAN-32 market remained at $275-$290/st ($8.59-$9.06/unit) FOB regional terminals in the Eastern Cornbelt, with Illinois sources reporting $280/st ($8.75/unit) FOB as a common level. The latest UAN-28 offers were reported at $245-$253/st ($8.75-$9.06/unit) FOB Cincinnati and $261/st ($9.32/unit) FOB Burns Harbor, Ind.

Western Cornbelt:

UAN-32 was unchanged at $275-$290/st ($8.59-$9.06/unit) FOB in the Western Cornbelt, depending on location, with the low at St. Louis and the high in Iowa. Rail-DEL offers in Nebraska were pegged in the $285-$300/st ($8.91-$9.38/unit) range.

Southern Plains:

UAN-32 in the Southern Plains remained at $255-$265/st ($7.97-$8.28/unit) FOB regional production points for 4Q tons, with limited offers available.

South Central:

The UAN-32 market was reported at $260-$280/st ($8.13-$8.75/unit) FOB South Central terminals, with the low in Louisiana and the high reported in Kentucky.

Southeast:

UAN-32 pricing in the Southeast was pegged at $250-$260/st ($7.81-$8.13/unit) FOB port terminals for the latest offers, depending on location.

Ammonium Nitrate

Ammonium Nitrate, Market Watch, South Central, Southern Plains, Western Cornbelt

Western Cornbelt:

Ammonium nitrate was unchanged at $400-$420/st FOB for the last confirmed offers in Missouri.

Southern Plains:

The ammonium nitrate market was quoted at $330-$360/st FOB in the Southern Plains, with the low confirmed at Muskogee, Okla. Delivered pricing fell in the $370-$380/st range in the region in late August.

South Central:

The ammonium nitrate market was steady at $290/st FOB Yazoo City, Miss., and $340/st FOB spot river terminals in the South Central region.

Ammonium Sulfate

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

US Gulf:

The ammonium sulfate barge market remained at the $220/st FOB NOLA level for the last confirmed trades. Posted prices were up, however, with Interoceanic (IOC) on Aug. 28 announcing new granular barge pricing at $255/st FOB NOLA for August-October shipments and $265/st FOB for November-December.

Eastern Cornbelt:

Granular ammonium sulfate was pegged at $285-$310/st FOB in the Eastern Cornbelt in late August, with the low confirmed at Cincinnati.

IOC on Aug. 28 announced updated pricing for granular ammonium sulfate at $300/st FOB Upper Mississippi, Illinois, and Ohio river terminals for August-October shipment, with November-December prices firming to $315/st FOB at those locations.

Western Cornbelt:

The granular ammonium sulfate market was quoted at $275-$300/st FOB in the Western Cornbelt, with the low at St. Louis and the high in Iowa.

New postings from IOC for August-October shipment included $295/st FOB St. Louis; $300/st FOB Upper Mississippi River terminals; $310/st FOB Sioux City, Iowa, Omaha, Neb., and Casselton, N.D.; and $320/st rail-DEL in the Northern Plains. IOC’s postings for November-December shipment are $15/st higher.

Southern Plains:

The granular ammonium sulfate market tightened to $275-$290/st FOB in the Southern Plains, with the high reported at Catoosa/Inola and the low reflecting IOC’s latest Houston price for August-October shipment. IOC’s Houston price for November-December is $290/st FOB.

South Central:

The granular ammonium sulfate market was pegged in a broad range at $270-$350/st FOB in the South Central region, with the low at Memphis and the high reported at Little Rock. IOC’s Aug. 28 postings at Delta terminals included $295/st FOB for August-October shipment and $310/st FOB for November-December shipment.

Southeast:

Ammonium sulfate prices ranged broadly at $220-$305/st FOB in the Southeast, depending on location and grade, with the low confirmed in Alabama. AdvanSix on Aug. 26 raised its ammonium sulfate prices FOB Hopewell, Va., to $305/st for granular, $275/st for mid-grade, and $255/st for standard, up $10/st from the company’s Aug. 14 postings.

China:

The price remained steady in the upper-$160s/mt FOB for caprolactam grade amsul.

The Panama Canal Authority’s announcement that it is restricting vessel passages due to severe drought conditions does not seem to have impacted the China-Brazil trade. Sources in Asia described China’s normal route to Brazil as via the Cape of Good Hope, and not through the Panama Canal.

Brazil is China’s single largest buyer of amsul. Trade Data Monitor reported January-July exports to Brazil at 1.7 million mt, nearly 25% of China’s total 6.9 million mt exported during the period.

Sources expect issues for delivery to Mexico’s East Coast, however, as these shipments will have to pass through the Panama Canal. The typical 3-5 day wait for entrance to the canal is currently running closer to 11 days, according to media reports. The Canal Authority noted delays up to 19 days earlier in August.

Thailand:      

January-July ammonium sulfate imports fell 44% year-over-year, Trade Data Monitor reported, to 154,000 mt from 275,000 mt. July imports of 40,000 mt – mostly from China – were off 33% from the 60,000 mt purchased in July 2022.

Brazil:

Ammonium sulfate prices in Brazil continue to retreat. Sources put the landed price at $170-$175/mt CFR, a 5.5% decrease from the week-ago $180-$185/mt CFR.

In line with the urea trend, ammonium sulfate prices at Rondonopolis dropped by $15/mt, settling at $295-$315/mt FOB ex-warehouse. Negotiations remain subdued amid expectations of further declines.

DAP/MAP

Argentina, Brazil, Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Market Watch, South Central, Southeast, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

Hurricane Idalia halted activity in the Central Florida market, resulting in steady pricing from the previous week. Truck-loaded DAP shipments were listed at $500/st FOB, while MAP trucks remained at $550/st FOB. In North Florida, MAP postings continued at $625/st FOB.

US Gulf:

Traders reported limited business at NOLA. DAP prices fell to $510-$525/st FOB from the week-ago $530-$540/st FOB, while offers at $530/st FOB reportedly failed to transact during the week. MAP declined to a flat $630/st FOB, off from the previous $630-$640/st FOB.

US Exports:

Export activities came to a halt due to Idalia’s sweep through the Gulf, leaving prices unchanged at $550/mt FOB.

Eastern Cornbelt:

DAP was unchanged at $585-$595/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati. MAP remained at $685-$700/st FOB in the region, with the low again reported at Cincinnati. The Ottawa, Ill., MAP market was quoted firmly at the $690/st FOB level in late August.

Western Cornbelt:

DAP pricing in the Western Cornbelt moved to $575-$590/st FOB during the week, with the low confirmed at St. Louis. MAP remained at $675-$700/st FOB in the region, with the low at St. Louis and the high reported in Iowa.

Southern Plains:

DAP pricing in the Southern Plains remained at $580-$590/st FOB Catoosa/Inola and $600/st FOB Houston in late August, with MAP quoted at $675-$690/st FOB Catoosa/Inola and $690/st FOB Houston.

South Central:

DAP was steady at $580-$590/st FOB terminals in the South Central region.

Southeast:

MAP postings from Nutrien remained at $625/st FOB Aurora, N.C., and White Springs, Fla., in late August.

China:

Sources reported a strong push from buyers in India to reduce DAP prices this week. While nothing was concluded, traders said the new effort could set the netback to China at $535-$545/mt FOB, down about $5-$10/mt from the last deals.

While sources were clear that no business was done at this new level, the strength of the pushback against what had been a monthlong increase in prices was stronger than previously seen, and could take hold. OCP is reportedly gearing up for increased DAP production, giving buyers some extra arguments to use against Chinese producers.

India: 

No new DAP business was done. Sources said talks between buyers and Chinese producers were heating up, however, as buyers look for a better price.

For now, the target appears to be $555-$560/mt CFR. This is not out of line with the last bit of business at $558/mt CFR. The emphasis in the current round of talks appears to lie closer to the $555/mt CFR mark than the higher end, however.

A purchase tender called by Rashtriya Chemicals and Fertilizers Ltd. (RCF) for MAP or DAP Lite (15-40-0) will close on Sept. 4. The company is seeking two lots of 20,000 mt to be shipped in October and November. The material is slated to be used in RCF’s NPK manufacturing process. A query for 35,000 mt of potash was also included in the tender call.

Brazil:

Despite the market reportedly slowing as the phosphate season winds downs, MAP imports stretched to $530-$535/mt CFR from $530/mt CFR in the prior report. Offers were noted firming to $540/mt CFR.

MAP prices experienced a minor dip at Rondonopolis, settling at $640-$655/mt FOB ex-warehouse, with most offers centered on delivery for corn safrinha.

Offers were noted as high as $680/mt FOB, as suppliers continue to substitute MAP stocks for SSP and TSP – both in short supply at Brazil – in blending. Given that MAP is utilized in smaller quantities for winter crops compared to summer crops, industry insiders speculated that prices could see downward pressure ahead.

Argentina:    

Argentina imported 430,000 mt of MAP in January-July, according to Trade Data Monitor, a6% decline from the 459,000 mt logged through the same period of 2022. July imports were counted at 158,000 mt, up significantly from 36,000 mt in July 2022. Morocco accounted for 47% of the July market with 74,000 mt, followed by 53,000 mt to China.