All posts by hlancey@bloomberg.net

SABIC Agri-Nutrients Posts 2Q Results

Ammonia, Earnings, News, Nitrogen, Saudi Arabia, Urea

Riyadh-based SABIC Agri-Nutrients Co. Ltd. posted a 78% drop in second-quarter net profit after Zakat and tax, to SAR651 million (approximately $173.4 million at current exchange rates) from SAR3.03 billion the previous year. Revenues fell by 54% year-over-year, to SAR2.63 billion from SAR5.7 billion.

The company cited a 52% decline in average selling prices for its product during the quarter, as well as a 3% fall in sales volumes.

For the half-year, SABIC Agri-Nutrients Co.’s net profits after Zakat and tax shrank by 71%, to SAR1.63 billion from SAR5.54 billion last year. Six-month revenues were down 48%, to SAR5.39 billion from SAR10.36 billion. Earnings per share for the first half were SAR3.43 versus SAR11.63 in the same prior-year period.

CEO Abdulrahman Shamsaddin highlighted the company’s completion in the second quarter of the procedures to acquire a 49% stake in Dubai-based agri-nutrient blender and distributor ETG Inputs Holdco Ltd. (GM April 14, p. 25), “which reflects SABIC Agri-Nutrients Co.’s focus on growth in the value chain,” he said.

SABIC Agri-Nutrients Co. is 50.1% owned by Saudi Basic Industries Corp. (SABIC). Its fully owned subsidiaries include National Chemical Fertilizer Co. and SABIC Agri-Nutrients Investments Co. It also owns a 50% stake in Al-Jubail Fertilizer Co. and a 33.33% holding in Bahrain-based nitrogen fertilizer producer Gulf Petrochemicals Industries Co. Its product portfolio includes ammonia, urea, DAP, and specialized fertilizer.

The company also owns minority interests in Yanbu National Petrochemical Co. (1.69%) and in Arabian Industrial Fibers Co. (3.87%).

Yara International ASA – Management Brief

Management Briefs, Topics, U.S.

Yara International ASA announced on Aug. 10 that Magnus Krogh Ankarstrand has been appointed Executive Vice President, Corporate Development. He has held the position of CEO, Yara Clean Ammonia, since 2021 and previously held positions as Senior Vice President of Yara North America, CFO of the Industrial segment, and Director of Strategy & Business Development. He also has previous experience from The Boston Consulting Group and the Royal Norwegian Navy. He holds a degree from The Norwegian School of Economics (NHH – Siviløkonom).

The process to identify Ankarstrand’s successor as CEO of Yara Clean Ammonia has been initiated, and during a transition phase Ankarstrand will also retain this responsibility. Jorge Noval is named EVP and CEO Yara Industrial Solutions. He previously held the position of President, Yara Industrial Solutions, and will join the Yara Group Executive Board with this change.

“Yara has a clear strategic direction as presented in our recent Capital Markets Day and we are already well into the execution phase,” said Svein Tore Holsether, President and CEO of Yara International. “Magnus and Jorge both bring extensive experience to the Group Executive Board and represent areas which are key in our strategy execution. I am delighted to welcome them both onto the team.”

The changes are effective immediately. In addition to Holsether, Ankarstrand, and Noval, the Group Executive Board now consists of Chrystel Monthean, EVP Yara Americas; Fernanda Lopes Larsen,EVP Yara Africa and Asia; Mónica Andrés, EVP Yara Europe; Johan Labby, EVP Global Plants & Operational Excellence; Thor Giæver, EVP and CFO; Kristine Ryssdal, EVP and General Counsel; and Solveig Hellebust, EVP People, Process and Digitalization.

Compass Minerals – Management Brief

Management Briefs, Topics

Compass Minerals on Aug. 7 announced the addition of Jonathan Rose to its senior management team in the role of Chief Strategy Officer. He will lead efforts to continue charting a long-term strategic roadmap for the company through the optimization of its core Salt and Plant Nutrition businesses while growing into the adjacent markets of lithium and next-gen fire retardants.

Prior to joining Compass, Rose most recently served as CFO for Standard Power. He brings nearly three decades of leadership experience in strategy, finance, mergers and acquisitions, and human resources – largely focused on the mining and metals space – at some of the largest investment banks and financial service companies in the world. Earlier in his career, he also co-led diversity recruiting efforts for a multinational investment bank and spent time as a field coordinator for a non-profit dedicated to international development and education.

“I am excited for the experience and new perspective that Jonathan will bring to this work as we continue to act with intention toward building a stronger Compass Minerals,” said Kevin S. Crutchfield, Compass President and CEO.

Rose earned a Bachelor of Arts in economics from the University of Virginia and a Master of International Affairs from Columbia University in New York City.

Yara Germany Partners on Cereal Decarbonization

Germany, Green Ammonia, News, News Briefs

Yara Germany, the Bindewald & Gutting Milling Group, and Harry-Brot have signed a cooperation agreement aimed at decarbonizing cereal cultivation in Germany through the use of green fertilizers. As early as the of 2023/24 growing season, contract farmers of the Bindewald & Gutting Milling Group will use Yara’s green fertilizer on an area of around 1,600 hectares. The fertilizer will be produced from green ammonia at Yara’s plant in Rostock, Germany.

“Our partnership with the Bindewald & Gutting Milling Group and Harry-Brot is a crucial first step to decarbonize German agriculture,” said Marco Fleischmann, Managing Director of Yara Germany. ​​​​​​​“It is a concrete example of how food production can be transformed in a sustainable way. However, not only all stakeholders along the food value chain are challenged and invited to actively participate in the green transformation of agriculture, but also politicians promoting the expansion of renewable energies.”

With nine locations and approximately 500 employees, the Bindewald & Gutting Milling Group is one of Germany’s leading flour producers. A market leader in bread and bakery products, Harry-Brot will transform the resulting flour into high-quality food products, thus covering the complete value chain from raw materials to grocery store shelves.

A study commissioned by Yara revealed that 74% of German consumers want product packaging to display the CO2 footprint, with 53% willing to pay extra for food produced with reduced fossil fuels. By using green fertilizer, grain CO2 footprints can be reduced by up to 30%, offering consumers a sustainable food choice and supporting climate-friendly production.

Yara noted that additional reduction in field emissions is attainable through optimized fertilizer management, incorporating balanced crop nutrition, the selection of the most efficient nitrogen form, and site-specific fertilization tailored to crop needs. By integrating these approaches with Yara’s digital precision farming tools, the company said it provides its partners with a comprehensive fertilization solution.

Yara said its nitrate-based mineral fertilizers produced in the European Union and Norway already have a carbon footprint roughly 50-60% lower compared with most non-EU fertilizers, thanks to the use of a best available technology (BAT) catalytic process that was first developed by Yara and later shared with other producers.

Yara said using renewable electricity to produce nitrate-based green fertilizers will lower the carbon footprint by a further 80-90%. The company said it continues to work across all production sites to reduce the remaining climate impact.

Belarus’ Share of African Potash Market Plunges

Africa, Belarus, News, News Briefs, Potash

Belarus’ share of the African potash fertilizer market fell to 3% in 2022 from 42% the previous year due to Western sanctions and the country’s loss of its key transshipment route via the Lithuanian port of Klaipėda, Russia’s Interfax news agencyreported, citing Valentin Rybakov, Belarus’ Permanent Representative to the United Nations (UN).

Rybakov was participating in an open debate in the UN Security Council on “Hunger and Conflict-related Food Insecurity in the World.”

According to Rybakov’s estimates based on FAO data, “the almost complete disappearance of Belarus from the list of potash suppliers [to Africa] last year led to a 16% drop in the grain harvest in Africa.” Belarus’ sales volumes to Africa were not reported.

Denmark’s FLSmidth Tabbed for Ma’aden Project

Denmark, News, News Briefs, Phosphate, Saudi Arabia

FLSmidth & Co. A/S, a Danish technology and service supplier to the global mining and cement industries, reported that it has been selected by Saudi Arabian Mining Co. (Ma’aden) to supply the key technologies and services for Ma’aden’s Phosphate 3 phase 1 phosphate mine site in the Northern Province of Saudi Arabia.

The order is valued at about DKK530 million (approximately $78 million at current exchange rates) and was booked in the third quarter of this year, the Danish company said in an Aug. 7 media statement. The equipment is expected to be fully integrated during 2025.

Under the new order, FLSmidth will supply all the key equipment associated with the phosphate beneficiation plant as well as technical support services through the design, construction, commissioning, and ramp-up phases.

The first phase of Ma’aden’s ambitious Phosphate 3 project is targeting the installation of an additional 1.5 million mt/y of phosphate fertilizer production capacity by 2025, with a second phase eying a further 1.5 million mt/y of phosphate fertilizer production capacity.

Ma’aden CEO Robert Wilts told participants at an earnings call in late May that the project was “accelerating towards a final investment decision later this year” (GM June 2, p. 24). The first plant in the Phosphate 3 project, a 1.1 million mt/y capacity ammonia plant at the Ras Al-Khair Industrial City facility, is already operational (GM Nov. 4, 2022).

Asia-Potash International Accelerates Laos K Project

Asia, China, Indonesia, News, News Briefs, Potash, Thailand

China-based Asia-Potash International Investment (Guangzhou) Co. Ltd. expects to start operations at its potash project in Laos ahead of schedule after making good progress in securing a mining agreement with the Laos government, according to a bne IntelliNews report, citing the Vientiane Times.

The Chinese company, which is working on the project through subsidiary Sino-Agri International Potash Co., has completed all geological exploration work in six months on a 48.52 km2 exploration area of potash salt deposits in Laos’ central Khammouane Province.

As a result, the mining rights for the exploration area are expected to be upgraded from exploration rights to mining rights one year ahead of schedule, according to the report. Asia-Potash International, which is based in China’s southern Guangdong Province, applied for mining rights in April 2022, and the agreement was officially signed on Nov. 28, 2022.

According to Asia-Potash International’s website, Sino-Agri International earlier completed a 100,000 mt/y potash fertilizer pilot project, and is targeting an initial potash production facility of 500,000 mt/y, ultimately looking to expand to some 1 million mt/y.

Asia-Potash International, through Sino-Agri International Potash Co., signed a Memorandum of Understanding (MOU) in March with the Laos government for the joint development of “the Asia-Potash Intelligent Circular Industrial Park,” some 250 km from the Laos capital, Vientiane, in Khammouane Province (GM March 21, p. 27).

The proposed park will be separated into three sectors, one of which will be a potash fertilizer sector that will be used to develop an industry based on local potassium ores, according to Sino Agri Managing Director and General Manager Tong Yongheng.

Potash fertilizer output of Chinese companies active in Laos was 1.5 million mt in 2021, and is targeting 5 million mt by 2025, according to an April 2022 report by Guosen Securities, a Chinese state-owned financial services company headquartered in Shenzhen, China.

According to Trade Data Monitor, a total of some 592,598 million mt of Laos potash was imported by various countries in 2021. Of that total, China was the biggest importer, taking 416,617 mt, increasing its imports of Laos potash to 606,987 mt in 2022. Indonesia and Thailand were the next biggest importers, both in 2021 and 2022.

Ammonia

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

US Gulf/Tampa:

Tampa ammonia remained at $295/mt CFR for August, with no word on the direction for September.

US Imports:

June ammonia imports firmed 0.3% year-over-year, according to US Census Bureau data, to 215,157 st from 214,592 st in June 2022. Imports fell 10.2% in the July-June fertilizer year, however, to 2.45 million st from the year-ago 2.73 million st.

July-June imports from Trinidad and Tobago totaled 1.27 million st. Canada sent 1.10 million st, followed by Algeria with 27,887 st.

US Exports:

June ammonia exports were noted at 83,091 st, an 11.9% decrease from the year-ago 94,295 st. July-June volumes were up 191.4%, however, to 1.35 million from the prior-year 464,333 st.

Chile led US export destinations in July-June with 289,395 st, followed by Norway with 207,796 st. Morocco bought 154,414 st, ahead of Mexico’s 134,480 st.

Eastern Cornbelt:

Ammonia prices continued to be quoted at $465-$485/st FOB in the Eastern Cornbelt for prompt or prepay tons, with the low in Illinois and the high reported in Indiana and Ohio.

Western Cornbelt:

The ammonia market remained at $440-$475/st FOB in the Western Cornbelt, with the low confirmed at Hoag, Neb., and the high at Palmyra, Mo. Iowa terminals continued to be reported in the $440-$470/st FOB range, depending on location.

Southern Plains:

Ammonia pricing in the Southern Plains was pegged at $385-$425/st FOB, with the low at Pryor, Okla., and the high reported at Verdigris, Okla.

South Central:

The ammonia market in the South Central region was quoted at $350/st FOB Cherokee, Ala., and $380/st FOB Memphis, Tenn. Truck pricing out of Gulf Coast production points was reported at $270-$280/st FOB in early August.

Black Sea:     

The plan to upgrade the port facility at Taman, located on the eastern side of the Black Sea, to a 2 million mt/y ammonia shipping capacity is moving on schedule, TogliattiAzot (ToAz) told Russian leaders this week. The project is scheduled to be completed by 2026.

Work at the Taman port followed repeated failed efforts by Russia to reopen the ammonia pipeline to Odessa. Without the pipeline, ammonia exports from the Black Sea were halted. Russia tried to tie the pipeline’s reopening to the Turkish-brokered Black Sea Grain Initiative, the now-defunct deal that allowed Russian fertilizers and Ukrainian grain to be shipped through the war zone without fear of attack. Russia recently backed out of the agreement.

Northwest Europe:  

The 20% jump in natural gas prices in Europe does not seem to have bothered regional ammonia producers. Sources tied the price increase to reports of a potential strike action in Australia. Based on European fundamentals alone, said one source, prices should otherwise continue the slight declines seen in recent weeks.

For now, ammonia traders and producers described discussions about the gas price rise as a “storm in a water glass.” Producers, said one source, are faced with the same dilemma they had before the price jump of how to proceed. They can either sign long-term contracts at current rates, knowing the trend is likely to continue downward, or they can continue to buy spot tons as needed from the cheaper international market.

Sellers are pushing for a price of $370/mt CFR, but do not yet seem able to achieve it. Sources said demand is soft, leaving suppliers with little leverage to push prices higher.

Small buyers were said to be paying $350-$365/mt CFR, while larger buyers are getting their tons for less than $350/mt CFR. These deals, said traders, are based on contracts. The lack of any spot deals makes pricing ideas difficult to nail down.

India: 

FACT previously said that it scrapped its last tender because it could cover its needs either from its own facilities, or from some other Indian supplier. However, sources now say the real reason was either that no one offered product to FACT, or that only one offer was made at a price FACT could not accept.

The last spot deal into India, a previous FACT tender that was covered by Trammo, was valued at $350/mt CFR. This price is significantly higher than what other customers are said to be paying. Larger buyers with long-term contracts are getting their ammonia for less than $300/mt CFR, players said. This lower price cannot be replicated in any spot deal, however.

Southeast Asia:        

Buyers are taking what their contracts require and nothing more, sources said. The latest price out of the area was quoted at $320/mt CFR to a South Korean buyer. The material came from the Arab Gulf, for an estimated netback of $220-$240/mt FOB. Traders were quick to point out that the cargo was handled under a contract, meaning the price was not available to any spot buyer.

Middle East: 

Ma’aden sold a 5,000 mt cargo to Jordan Phosphate Mines Co. (JPMC) at $380/mt CFR, according to circulating reports. The transactions nets back to $320/mt FOB, sources said.

That price falls far outside of the current market. One trader said the tonnage apparently came from a larger cargo destined for OCP/Morocco. The netback equates to about $400/mt CFR into Southeast Asia and is dramatically higher than any buyer is willing to pay.

Sources doubted that any future buyers would be willing to match the $320/mt FOB price. Ammonia seekers are reportedly looking to push down the Arab Gulf price from the $290-$300/mt FOB level seen before the JPMC deal.

Brazil:

January-July ammonia imports totaled 176,000 mt, Trade Data Monitor reported,down about 35% from the year-ago 271,000 mt. July imports were 19,000 mt, a 40% decrease from 32,000 mt received in July 2022.

Ammonia exports for the first seven months of the year softened slightly, to 48,000 mt from 49,000 mt shipped in January-July 2022. Brazil took 15,000 mt, Germany received 11,000 mt, and France bought 4,000 mt. There were no exports reported in July 2022.

Urea

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

US Gulf:

NOLA urea barge prices slipped to $355-$395/st FOB during the trading week, down from the prior week’s broad $375-$445/st FOB range. September business was reported in the $355-$370/st FOB range, with August barges confirmed at $365-$395/st FOB for new business.

US Imports:

Urea imports fell 20.4% in July-June, to 4.91 million st from 6.17 million st in the prior year. June imports moved 22.5% lower, to 338,118 st from the year-ago 436,473 st. Imports from Qatar totaled 1.13 million st for the fertilizer year. Russia sent 864,511 st, and Saudi Arabia added 664,939 st.

US Exports:

Urea exports rose 53.5% in July-June, to 1.35 million st from the year-ago 880,144 st. June shipments were 10,310 st, however, off 86.4% from 75,825 st in the previous June. July-June exports to Canada were 696,395 st, followed by 116,011 st to Mexico. Poland took 107,840 st.

Eastern Cornbelt:

Urea remained at $450-$480/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati, Ohio, and the high at river terminals in Illinois.

Western Cornbelt:

Urea was pegged in a broad range at $430-$480/st FOB in the Western Cornbelt, depending on location, with the low confirmed at St. Louis, Mo.

Southern Plains:

Urea was in tight supply at Catoosa/Inola, Okla., with the market there quoted at $440-$460/st FOB. Urea pricing at Houston, Texas, was reported at the $450/st FOB level during the week.

South Central:

Urea prices covered a broad range at $410-$480/st FOB in the South Central region, with the low confirmed at Convent, La., and the high at Little Rock, Ark. Kentucky sources pegged the Ohio River market at the $440-$450/st FOB level during the week.

Southeast:

Urea firmed to $460-$470/st FOB port terminals in the Southeast, where available. Supplies were reportedly out at Wilmington, N.C., Norfolk, Va., and Savannah, Ga., in early August.

India: 

The Indian Potash Ltd. (IPL) urea tender closed on Aug. 9, with 26 companies offering at total 3.4 million mt. The low price for West Coast delivery came from MacroSource, offering 45,000 mt at $399/mt CFR. The lowest East Coast price came from Samsung, with 80,000 mt offered at $396/mt CFR.

All other offers in the tender were priced above $400/mt CFR. Sources said IPL sent counterbids to the 13 companies with the next-lowest offers for East Coast deliveries, and to the 11 next-lowest offering firms for West Coast arrival. Traders have until Aug. 14 to respond to the counterbids. As of Friday, reports indicated that IPL had issued counterbids to cover all offers for East Coast deliveries.

Sources expressed concern that the offering companies may not be able to respond as IPL would like. The next 13 companies offering delivery for the East Coast showed a price range of $410-$425/mt CFR, covering a total 1.3 million mt out of the 1.6 million mt offered into the East Coast. The 11 companies offering West Coast delivery were priced in a $401-$423/mt CFR range, for 1.2 million mt.

Suppliers offering at $415/mt CFR and below might be able to meet the counterbids, some traders said. If so, that would draw in about 1.3 million mt, in addition to the 125,000 mt from Samsung and MacroSource that are already locked in place.

IPL Urea Tender
Offering Company East CoastWest CoastTotal Offers
Quantity (‘000 mt) US$/MT CFR Quantity (‘000 mt) US$/MT CFR
Aditya Birla Global 180,000 420.50 200,000 423.75 380,000
Agri Commodities 25,000 419.40 90,000 432.00 115,000
Agrifields 50,000 434.00     50,000
Ameropa 144,550 410.00 238,950 414.00 383,500
Aries 160,000 414.19 110,000 417.19 270,000
Continental 100,000 425.00 50,000 423.25 150,000
Dreymoor 97,000 418.99 92,000 428.99 189,000
EuroChem Agro Asia 55,000 416.00 55,000 420.00 110,000
EuroChem Middle East     50,000 421.00 50,000
Fertcom 45,000 445.00 45,000 430.00 90,000
Fertiglobe     45,000 438.00 45,000
Keytrade 50,000 428.00     50,000
Koch 60,000 411.00 150,000 415.00 210,000
Liven Nutrients     50,000 414.17 50,000
MacroSource 45,000 415.00 45,000 399.00 90,000
Medallion 50,000 415.00     50,000
MidGulf 200,000 412.75 200,000 416.75 400,000
OQ Trading 90,000 424.00 150,000 422.00 240,000
Prima Resources 50,000 427.00     50,000
Rayson Global     45,000 420.00 45,000
Samsung 80,000 396.00 135,000 401.20 215,000
Southern Cross 50,000 480.00     50,000
Sun International 100,000 414.90     100,000
Total 1,631,550 1,750,950 3,382,500

The netback to China from the lowest East Coast offer was put in the upper-$370s/mt FOB, below what producers had hoped for, and may reduce the number of Chinese tons available for India. The netback to the Arab Gulf was put in the upper-$370s/mt FOB.

After digesting the numbers, there appeared to be a consensus that most traders may not be able to meet the low prices set by Samsung and MacroSource. The estimated take for this tender circled around 800,000-900,000 mt, well below the 1.5 million mt that industry watchers said India needs to stay even with demand.

Any final agreement short of 1.5 million mt could lead to another tender, said traders. However, the Indian government would be reluctant to call another tender until all the tons from the current one are committed to vessels and assigned loading dates. That would mean no new tender is likely until the end of September.

Sources added that if IPL cannot secure 1.5 million mt, the urea market will continue to strengthen as producers anticipate the next tender. If the buyer is able to pick up more than 1 million mt, however, the market could see prices softening in the knowledge that no large buying will be needed for some time.

Black Sea:     

Prices fell to $340-$360/mt FOB, fitting with the low price offered to the Indian West Coast in the IPL tender.

Indonesia:     

Pupuk closed its selling tender for granular and prilled urea on Aug. 9. Liven Nutrients took both awards, sources said. Liven will reportedly take 30,000 mt of granular at $414/mt FOB, and 5,000 mt of prilled at $406/mt FOB.

The price makes the Indonesian product unsuitable for India unless the trader is willing to take a financial loss. Sources said Australia could be the targeted buyer. One trader noted that Australian buyers often try to use the Indian tender price as a benchmark for their own purchases, however. If the buyers in Australian hold to that tradition, selling there will also be difficult.

Middle East: 

The netback from the Indian tender puts the Middle East price at $375-$380/mt FOB, a drop of $20-$25/mt from previous estimates. Sources said that even without the $399/mt CFR low price offered into India’s West Coast, the next lowest offer of $401/mt CFR would still lead to a netback below the Middle East’s recent $400/mt FOB price.

No producers offered tons into the Indian tender on an FOB basis. In the past these prices were an indication of where producers thought the market should go. This time, however, sources identified two direct offers from producers using their own trading operations. OQ Trading offered 240,000 mt into India’s West Coast, for a netback to the Arab Gulf of $407-$412/mt FOB. Fertiglobe offered 45,000 mt, for an effective netback of $423-$428/mt FOB.

Sources speculated that OQ and Fertiglobe might be willing to accept IPL’s $396-$399/mt CFR counterbids just to ensure movement of product.

With all discussions focused on India, Egyptian producers were quiet this week. No new deals were reported.

China:

Sources estimated the netback to China from the East Coast India tender offer at $375-$380/mt FOB, about $10/mt lower than producers had expected. The price may cause producers to hesitate about making cargoes available for sale to India.

Tonnage at export warehouses was put at 200,000-300,000 mt. This product will most likely be used to cover awards in the Indian tender. Another 300,000 mt was noted in domestic warehouses, ready to be transferred to the ports. Producers must first secure permission from the government to move the product, however.

Moving urea from domestic warehouses to the ports could take 2-3 weeks once permission to export is granted, sources said. At that time, it would take another three weeks to line up a Panamax to get to the proper port, one trader said. This time frame cuts very close to IPL’s Sept. 26 shipping deadline. Producers and traders were said to be considering whether it is worth the risk to accept the lower price and commit to the Indian market, on the off chance the shipping deadline could be missed and penalties assessed.

One trader offered a more optimistic view, claiming that up to an additional 300,000 mt could easily be made available, giving India a possible 400,000-600,000 mt. In addition, he noted that some of the export inspections could take place at the ports, rather than at factories or local warehouses.

Any tons that come out of China will be prilled urea. Sources reported a lack of granular being offered for export. One trader noted that a major trading house recently paid $420/mt CFR for a small cargo of granular. At the same time, prilled was being quoted at $390/mt FOB.

Brazil:

With the market at a virtual standstill due to the global focus on the Indian tender and its lower-than-expected prices, levels at Brazil fell to $410-$430/mt CFR from last week’s $440-$450/mt CFR, a nearly 5.5% decline.

Sources noted sanctioned product transacting in a $410-$420/mt CFR range. While material from sanctioned origins typically carries a $20/mt discount non-sanctioned product, players quoted similar prices for both grades as the market awaits confirmation of purchase volumes at India.

Levels at Rondonopolis followed the import price lower, to $540-$560/mt FOB. Despite the drop, farmers expect additional declines through October. Up to 60% of purchases for the corn safrinha have been delayed in some areas, sources estimated.

Urea imports totaled 3.5 million mt for January-July, according to Trade Data Monitor, offfrom 3.8 million mt reported through the same period of 2022. Brazil imported 647,000 mt in July, below 671,000 mt received in the prior-year period. Oman supplied 177,000 mt for the month, followed by Qatar with 170,000 mt. Russia added 68,000 mt.