All posts by hlancey@bloomberg.net

Minbos Signs MoU with Foskor

Australia, News Briefs, Phosphate, Phosphate Rock, South Africa

Australian mining company Minbos has announced a non-binding memorandum of understanding (MoU) with South Africa-based Foskor for a potential supply agreement from its Angola mine, according to a July 1 statement.

Under the MoU, Minbos will provide samples to evaluate the possibility of using phosphate rock from its Cabinda project in Angola at Foskor’s phosphate fertilizer plants in Richards Bay, South Africa.

“The company has been engaged with Foskor for some months as the two companies discussed how a possible collaboration would work,” said Lindsay Reed, Managing Director of Minbos. “The combination of an earlier-than-anticipated completion of the new deep-water port at Caio and the ability of the company to build in the Stage-2 expansion as part of the initial construction has allowed both companies to progress their discussions.”

The Cabinda phosphate project, comprising the Cácata phosphate deposit and the Futila fertilizer plant, will operate for 20 years, producing 236,000 mt/y of fertilizer over 20 years, based on a maiden reserve of 4.72 million mt at 30.1% concentration at the Cácata mine.

Construction of the Stage-1 quay at Porto do Caio remains on track to be completed in December 2025, potentially enabling exports of rock from Cabinda in 2026.

Foskor is a South African-based company that owns and operates a phosphoric acid-based fertilizer plant located in Richards Bay, South Africa.

Belarus Sends First Shipment to Iran via INSTC

Africa, Asia, Bangladesh, Belarus, China, Europe, India, Iran, News Briefs, Russia

Belarus has shipped the first lot of fertilizer to Iran along the International North-South Transport Corridor (INSTC), according to Interfax. The shipment was made along the western route of the North-South ITC in the first half of June.

The ITC provides an alternative route for Belarusian exporters, representing a logistical innovation for multimodal supply chains to India, China, Bangladesh, and countries on the African continent through Iranian seaports.

The International North–South Transport Corridor is a 7,200-km multi-mode network of ship, rail, and road route for moving freight between India, Iran, Azerbaijan, Russia, Central Asia, and Europe. The project started in 2002 and the first container shipments moved in 2017.

As of July 2022, Russia announced that it has successfully completed its first transport of goods to India via the INSTC. Land and rail transportation of fertilizer has become an alternate route to marine shipping for the movement of sanctioned Russian and Belarusian fertilizers.

Meristem Launches EXCAVATOR® AMS

Ammonium Sulfate, News Briefs, U.S.

Ohio-based Meristem Crop Performance® on June 27 announced the launch of EXCAVATOR® AMS, a new formulation of its EXCAVATOR product designed to break down residue and cover crops faster, speed nutrient release, reduce labor, and improve the efficacy of herbicide applications.

Meristem said the new formulation includes ammonium sulfate, which it described as a “non-ionic surfactant to make burndown of weeds and cover crops more effective and more convenient.”

“It’s time to fight back and take cost out of your synthetic fertilizer spend by unlocking the plant nutrition you already own,” said Mitch Eviston, Meristem Founder and CEO. “Additionally, we are giving the farmer a best-in-class water condition and surfactant system for free and a nitrogen kicker making EXCAVATOR AMS the best residue breakdown product on the market.”

Tractor Supply Company Abandons DEI Initiatives

Carbon, News Briefs

Tractor Supply Company (TSC) on June 27 issued a statement on its website saying it will eliminate Diversity, Equity, and Inclusion (DEI) roles and retire current DEI goals, and will no longer submit data to the Human Rights Campaign. Additionally, the company said it will withdraw its carbon emission goals and focus instead on its land and water conservation efforts.

“We work hard to live up to our Mission and Values every day and represent the values of the communities and customers we serve,” the Brentwood, Tenn.-based company said. “We have heard from customers that we have disappointed them. We have taken this feedback to heart. Going forward, we will ensure our activities and giving tie directly to our business.”

As part of an initiative to “stop sponsoring nonbusiness activities like pride festivals and voting campaigns,” TSC said it plans instead to engage its Team Member Engagement Groups on “mentoring, networking and supporting the business,” while focusing on “rural America priorities including ag education, animal welfare, veteran causes, and being a good neighbor.”

TSC noted that it is the largest supporter of FFA and has longstanding relationships with 4-H and other educational organizations. “We will continue to listen to our customers and Team Members,” the statement added. “Your trust and confidence in us are of the utmost importance, and we don’t take that lightly.”

Ammonia

Ammonia, California, Eastern Cornbelt, Middle East, Northwestern Europe, Pacific N.W., Southeast Asia, Tampa, Thailand, U.S. Gulf, Western Canada, Western Cornbelt

US Gulf/Tampa:

Tampa ammonia for July was concluded at $415/mt CFR, up $15/mt from June’s $400/mt CFR. While some players earlier speculated that July would be lower based on aggressive fill offers in the Midwest, others suggested a rollover or slight increase after Cornbelt prices rebounded slightly and reports circulated of new business out of Trinidad at the $375/mt FOB level.

The increase at Tampa pushed the NOLA barge market to an indicative $378/st FOB.

Eastern Cornbelt:

The latest ammonia prices remained at $460-$475/st FOB in Illinois and Indiana in early July. While some were expecting a round of fall prepay offers during the week, no official programs were reported.

Western Cornbelt:

Limited ammonia offers were reported in the $460-$470/st FOB range in the Western Cornbelt in early July, with no fall prepay offers on the table yet. In the southern US regions, prices reportedly bumped up to $380-$425/st FOB out of production points and Gulf Coast truck terminals.

California:

Ammonia reference prices in California were steady at $680/st DEL for anhydrous and $187-$197/st FOB for aqua ammonia.

Pacific Northwest:

Ammonia pricing in the Pacific Northwest remained at $625-$650/st FOB, with the aqua ammonia market steady at the $168/st FOB level in the region.

Western Canada:

Ammonia fall prepay offers in Western Canada were quoted at the C$900-$910/mt DEL level, down from June’s C$950-$1,000/mt DEL range.

Northwest Europe:

With several spot inquiries by European producers and a $15/mt increase in the Tampa July settlement, ammonia prices in Northwest Europe continued to find support at $460-$470/mt CFR, despite seasonally waning downstream nitrates demand.

Southeast Asia:

Ammonia in Southeast Asia remained at $350-$400/mt FOB. No further spot business was reported and supply tightness in the region appears to have eased.

Middle East: 

The tightness in the Middle East ammonia market could begin to ease as production operations in Saudi Arabia slowly come online, sources said. While the market’s available supply has allowed sellers to cover contracts, the lack of excess material has left little opportunity for spot market sales.

Thailand:      

January-May ammonia imports totaled 147,000 mt, Trade Data Monitor reported,roughly unchanged from one year earlier, with Malaysia accounting for 84,000 mt. May imports were 44,000 mt, up from 17,000 mt in May 2023, with Malaysia supplying about 92% of the material.

Turkey:         

Reports continue to circulate that Turkish buyers have been receiving ammonia from Venezuela. According to Turkey’s official import figures as reported by Trade Data Monitor, however, none of the 388,000 mt reported to reach Turkish ports in January-May originated from Venezuela.

Ships laden with Venezuelan ammonia typically stop in Trinidad and Tobago before moving on to Turkey, sources noted, and the stop in Point Lisas could lead Turkish customs officials to record the arriving tons as coming from Trinidad. According to the official records, Turkey received 69,000 mt from Trinidad during the first five months of the year. The top provider for the period was Algeria with 141,000 mt, followed by Oman with 81,000 mt.

May 2024 imports were reported at 57,000 mt, down more than 50% from the 123,000 mt received in May 2023. May also marked the return of Russian ammonia to the Turkish market, with Turkish buyers taking 25,000 mt for the month.

Prior to the war in Ukraine, Russia was a primary supplier of ammonia to Turkey. In 2020, Russian exports to Turkey peaked at 722,000 mt. During the war and following the closure of the ammonia pipeline through Ukraine, Russian imports dropped to 62,000 mt in 2023.

Urea

Black Sea, Brazil, California, China, Eastern Cornbelt, India, Indonesia, Market Watch, Mediterranean, Middle East, Pacific N.W., Southeast Asia, Thailand, Turkey, U.S. Gulf, Urea, Western Canada, Western Cornbelt

US Gulf:

Limited NOLA urea business this week was reported at $300-$302/st FOB for loaded barges and $288-$297/st FOB for full July, down from last week’s $303-$308/st FOB range.

Eastern Cornbelt:

Urea was quoted at $365-$375/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati, Ohio. Most Illinois River terminals were reported at the $370/st FOB level for July-August tons.

Western Cornbelt:

Urea in the Western Cornbelt was pegged at $345-$365/st FOB, with the low reported at St. Louis, Mo.

California:

Urea was unchanged at $490-$540/st FOB in California, with the low reported for granular bulk tons at Stockton and the high for prilled urea at San Diego. Bagged granular urea pricing remained at the $560/st FOB Stockton level during the week. No current DEL prices were confirmed in California in early July.

Pacific Northwest:

The urea market was quoted at $415-$420/st FOB in the Pacific Northwest, depending on location, with delivered tons reported at $385-$410/st in early July.

Western Canada:

Urea was up slightly in Western Canada, to C$630-$640/mt DEL from the prior C$625-$640/mt range, depending on time of shipment.

India: 

The market continued to await the close of the Indian Potash Ltd. (IPL) tender on July 8. Sources expect prices to run slightly above the last tender and that IPL will take less than 1 million mt, with the bulk of the product coming from the Arab Gulf. There are also reports that a number of traders are talking with Russian suppliers for support in the tender.

Black Sea:     

Prices remained stable for Black Sea prilled urea at $305-$310/mt FOB. Sources continue to speculate that Russian prilled will make a large appearance in the IPL/India tender that is slated to close July 8.

Turkey:         

January-May urea imports fell 6% year-over-year, according to Trade Data Monitor, to 1.6 million mt from 1.7 million mt. Oman led suppliers with 849,000 mt, while Egypt added 517,000 mt. May imports were noted at 280,000 mt, a 24% decline from the 368,000 mt received in May 2023.

Ethiopia:       

Urea imports to Ethiopia stood at 502,000 mt in January-June, Trade Data Monitor reported, more than double the 250,000 mt received in January-June 2023. Egypt supplied 60% of the tonnage with 304,000 mt, followed by Oman with 155,000 mt. Ethiopia imported 205,000 mt in June, a significant increase from the 50,000 mt received one year earlier. Second-quarter imports were counted at 255,000 mt, up from 100,000 mt in April-June 2023.

Mediterranean:

Granular urea in the Mediterranean was up slightly at $375-$385/mt CFR.

European urea buying is seasonally muted, easing concerns and moderating the price impact of prolonged Egyptian outages. Fresh offers in Italy were heard at $385/mt CFR, and with Yara’s production still down, stocks at Ravenna port are low. Elsewhere in the Mediterranean, French buyers are not motivated to resupply and offers of $390/mt CFR and above failed to attract interest.

Southeast Asia:

Southeast Asia granular urea pricing remained at $312-$350/mt FOB. No granular urea sales were reported this week in the region as suppliers assess their positions ahead of the IPL tender closing on July 8. Availability is limited, with Kaltim in turnaround and Bintulu tripped.

Indonesia:     

Pupuk Holdings on July 4 called a snap tender to close July 5 for up to 45,000 mt of granular urea. This is Pupuk’s first tender since mid-May, when the company sold 280,000 mt of product for June and July shipment. The tons offered this week were said to be for August shipment.

While Pupuk did not indicate a reserve price, prior to the tender call sources said the producer would be looking for a minimum of $350/mt FOB. That idea was based on recent sales from Malaysia and Brunei in the mid- to upper-$340s/mt FOB. Tender results were not available as Green Markets went to press on July 5.

The tender call surprised many in the industry. Sources were expecting Pupuk to hold off until the IPL/Indian tender closes on July 8. In calling a tender now, Pupuk might be helping to establish a price for the Indian tender more to its liking. One trader noted that any offer into India under $360/mt CFR would not sit well with the Indonesians.

Thailand:      

Urea imports totaled 1.1 million mt in January-May, according to Trade Data Monitor, a 20% increase from the year-ago 931,000 mt. Saudi Arabia, which traditionally offers steep discounts to Thai buyers, sent 461,000 mt. May imports were 173,000 mt, down by almost half from the 329,00 mt received in the prior May.

Middle East: 

Traders are reportedly bidding in the $340s/mt FOB while producers continue to hold offers in the $350s/mt FOB. The lack of new spot business prevented any confirmable price changes.

Producers are slowly rebuilding their inventories after several plants were taken offline for routine maintenance. The area’s return to production is coming just as India called a urea tender. Sources expect the bulk of the tons offered in the tender to come from the Arab Gulf.

Natural gas supplies were being restored to urea production facilities during the week, Egyptian producers reported. Some plants have begun to slowly ramp up operations, though concerns remain that supplies could be cut back once again.

MOPCO is reportedly starting up only one of its three urea lines. One trader said the move made sense given the volatility of gas supplies in Egypt.

The recent closure of plants cost the country an estimated 550,000 mt of its roughly 7 million mt/y production capacity, sources said. Once production is back up and any domestic concerns are covered, sources speculated that producers will be aiming for at least a $30/mt price increase, placing Egyptian prices in line with recent deals closed by Algeria in the $370s/mt FOB.

China:

Rumors from China now indicate the government may extend its export restrictions into October. The restrictions were initially slated to be lifted in June. However, concerns surrounding rising prices in the domestic market prompted the government to block exports in an effort to force the local market down.

In addition to discouraging exports, the government is said to be leaning on producers to increase output. Most plants are reportedly functioning at just 60% of rated capacity. Sources said the government would like to see production increase to at least 80%.

Brazil:

Brazil granular urea prices were steady at $355-$365/mt CFR. Buyers remained on the sidelines pending the results of the Indian tender, and the week’s limited demand was further constrained by the devaluation of the Brazilian real. International factors remained largely unchanged, with natural gas supply in Egypt gradually returning while Chinese export restrictions continue. Sanctioned product was offered at $340/mt CFR.

A 5% week-over-week decline in corn prices reportedly impacted sentiment at Rondonópolis, though buyers still have time to decide on fertilizer purchases for the second corn crop and how best to maximize barter ratios. Prices fell in the $480-$500/mt FOB range for immediate delivery. Fourth-quarter deals closed above $500/mt FOB, with offers noted at $505-$510/mt FOB.

UAN

California, Eastern Cornbelt, France, Market Watch, Pacific N.W., U.S. Gulf, UAN, Western Canada, Western Cornbelt

US Gulf:

UAN barge prices remained at last week’s $207-$210/st ($6.47-$6.56/unit) FOB for the latest indications, though no actual business was confirmed during the holiday week.

Eastern Cornbelt:

UAN-32 fill offers remained on the table at $245/st ($7.66/unit) FOB Mount Vernon, Ind., $248-$255/st ($7.75-$7.97/unit) FOB Illinois terminals, and up to $275/st ($8.59/unit) FOB Terre Haute, Ind. Prices in Cincinnati were quoted at $248-$255/st ($7.75-$7.97/unit) FOB for UAN-32 and $217-223.13/unit ($7.75-$7.97/unit) FOB for UAN-28.

Western Cornbelt:

UAN-32 fill pricing continued at $240-$265/st ($7.50-$8.28/unit) FOB regional terminals in the Western Cornbelt, depending on location, with the St. Louis market reported at the $250/st ($7.81/unit) FOB level in early July.

California:

UAN-32 fill program offers in California were quoted in the $285-$300/st ($8.91-$9.38/unit) FOB range, down from the last prompt offers at $315-$325/st ($9.84-$10.16/unit) FOB.

Pacific Northwest:

UAN-32 slipped to $285-$300/st ($8.91-$9.38/unit) FOB in the Pacific Northwest for fill tons, down from the last prompt offers at $320/st ($10.00/unit) FOB, with the upper end of the range quoted at Kennewick, Wash. No current delivered prices were reported in the region in early July.

Western Canada:

The latest UAN-28 offers in Western Canada dipped to C$385-$394/mt (C$13.75-$14.07/unit) DEL, depending on time of shipment, down from C$400/mt (C$14.29/unit).

France:

UAN buying at Rouen has ground to a halt, with limited-to-no prompt interest reported. Some buyers reported lower offers following the US summer fill, but these have failed to gain traction with buyers who currently enjoy good coverage. As a result, prices were stable at €245-€265/mt FCA.

Ammonium Sulfate

Ammonium Sulfate, Brazil, California, China, Eastern Cornbelt, Market Watch, Northwestern Europe, Pacific N.W., Thailand, Turkey, U.S. Gulf, Western Canada, Western Cornbelt

US Gulf:

The NOLA barge market for ammonium sulfate continued at a nominal $385-$390/st FOB, with no new business reported during the week.

Eastern Cornbelt:

Granular ammonium sulfate was unchanged at $415-$435/st FOB in the Eastern Cornbelt, with the low confirmed for limited tons out of Illinois River locations and the high at Cincinnati.

Western Cornbelt:

The granular ammonium sulfate market was unchanged at $410-$430/st FOB in the Western Cornbelt, with the low reported at St. Louis.

California:

The ammonium sulfate market dropped slightly to $375-$405/st FOB in California, with the low reported at Richvale and Helm and the high at French Camp.

Pacific Northwest:

Ammonium sulfate was unchanged at $365-$420/st FOB or DEL in the Pacific Northwest, depending on grade and supplier.

Western Canada:

Ammonium sulfate pricing in Western Canada dropped to C$450-$460/mt DEL for July-August offers, down from C$510-$520/mt DEL for the last prompt June business.

Northwest Europe:

Standard ammonium sulfate prices in Northwest Europe were stable at $160-$170/mt FOB amid thin trading. Producers are said to be comfortable through July. Granular ammonium sulfate moved $5/mt higher, however, to $210-$225/mt FOB.

China:

Discussions among traders and producers centered on pricing firmly in the $140s/mt FOB during the week. However, a buying tender out of the Philippines that closed late in the week showed prices in the upper-$130s/mt FOB. At the same time, selling tenders out of China put prices in the low-$140s/mt FOB.

Atlas, in the Philippines, closed a tender for 6,000 mt of caprolactam grade amsul for shipment by Aug. 5, with the lowest offer reported just under $170/mt CFR. With a requirement for delivery to be split between two ports, sources put freight costs around $30/mt, leaving a netback to China in the upper-$130s/mt FOB.

On the heels of the Atlas deal, TCC closed a selling tender for 10,000 mt of capro grade amsul to be shipped in late August or first-half September. The price worked out to the low-$140s/mt FOB. This price matches up with another tender by SCC, also for 10,000 mt, to be shipped in August.

Producers argued prices should see a rebound in September in response to expectations that Brazil will be stepping up its amsul demand. Some Southeast Asian buyers are projected to be seeking more tons as well, though Brazilian demand will likely be the market’s largest driver, one source noted. While Asian demand can boost prices, the source argued, that demand is less sustainable than Brazilian business.

Thailand:      

Thailand imported 244,000 mt of ammonium sulfate in January-May, Trade Data Monitor reported,a significant increase from the 87,000 mt received during the first five months of 2023, with 98% of the tonnage coming from China. May imports were 21,000 mt, a slight uptick from the 20,000 mt purchased in May 2023.

Turkey:         

With limited Chinese material reportedly available to buyers outside of Brazil or Southeast Asia after April, Turkey’s May imports showed product coming only from European suppliers. Turkeyimported 44,000 mt for the month, with all of the material sourced from Italy, Finland, and Spain. May 2023 imports were reported at 51,000 mt.

January-May imports were 494,000 mt, off 9% from the 540,000 mt received through the same period of 2023. Despite a complete lack of Chinese amsul in Turkey’s May import data, China remained the top year-to-date supplier with 385,000 mt, accounting for 78% of the five-month total.

Brazil:

Granular ammonium sulfate imports fell $5/mt at the bottom of the range to $185-$195/mt CFR, with buyers seeking only minimal volumes during the week. Inland pricing lost $5/mt at the low side, slipping to $305-$330/mt FOB Rondonópolis.

Amsul demand remained mild, in line with the broader nitrogen market. The July import lineup is expected to total 340,000 mt, a nearly 20% increase from the same period in 2023. While the industry continues to await Brazil import data for June, imports were up 5% for January-May.

DAP/MAP

Baltic Sea, Benelux, Brazil, California, Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Market Watch, Morocco, Pacific N.W., U.S. Exports, U.S. Gulf, Western Canada, Western Cornbelt

Central Florida:

Central Florida phosphate prices continued at $570/st FOB for DAP and $620/st FOB for MAP. The North Florida MAP price was steady at $630/st FOB.

US Gulf:

Phosphate trading was limited due to the holiday-shortened week. DAP barges softened $10/st to $535-$545/st FOB, players said, while MAP held steady at $645-$650/st FOB.

US Exports:

DAP exports continued at $550/mt FOB for the latest business. With no spot transactions reported in recent months, MAP pricing remained at the $570/mt FOB level.

Eastern Cornbelt:

DAP slipped to $585-$620/st FOB in the Eastern Cornbelt, down from last week’s $600-$630/st FOB, with the low reported out of spot Illinois River terminals. The Cincinnati DAP market was quoted at $605-$610/st FOB, below last week’s $610-$620/st FOB.

MAP prices firmed to $675-$695/st FOB in the region, with both the high and low reported at Cincinnati in a “very snug market.” The latest MAP offers at Ottawa and LaSalle, Ill., were quoted firmly at the $695/st FOB level.

Western Cornbelt:

DAP dropped to $590-$620/st FOB in the Western Cornbelt, with the low reported at St. Louis. MAP remained at $670-$690/st FOB in the region, with the St. Louis market quoted at the $670-$680/st FOB level in early July.

California:

MAP slipped to $760-$790/st FOB or DEL for the latest offers in California.

Pacific Northwest:

MAP in the Pacific Northwest dropped to $740-$750/st FOB or DEL, down from the last prompt business in the $770-$780/st range.

Western Canada:

MAP was pegged at the C$1,040/mt DEL level in Western Canada for July-August shipments.

Baltic:

DAP prices in the Baltic firmed to $485-$605/mt FOB during the week, in line with increases from other origins. The low end reflected netbacks achieved by Russian producers on non-European business, while the high end represented returns achieved by the Lithuanian supplier on sales into Western Europe.

MAP prices in the Baltic were stable at $565-$575/mt FOB, reflecting unchanged Brazilian CFR levels as the recent wave of buying began tapering off.

Benelux:

DAP prices in Benelux were stable at €615-€620/mt FCA, translating to $660-$665/mt FCA at midweek exchange rates. While prices have responded to the bullish momentum in international markets, prompt demand in Western Europe is seasonally limited and can be covered by existing stocks, suggesting a cap to any further price increases.

Morocco:

The Moroccan producer continues to target European DAP sales, which have yielded netbacks as high as $615/mt FOB due to limited availability in the region, pushing the regional DAP market up to $500-$615/mt FOB. In terms of exports, January-April Moroccan DAP exports totaled 1.2 million mt, up 35% from the same period last year.

China:

Export inspections for DAP are taking longer to complete than usual, sources reported. While the process normally requires 10 days, one trader reported that buyers are now expecting as much as a 30-day delay in receiving their lots for export.

No large export cargoes are being reported out of China. All of the tons cleared so far – and the ones currently being inspected – were described as sub-10,000 mt lots to be shipped in containers.

No new pricing has surfaced, leaving the market’s last public business in the low-$520s/mt FOB. Sources used a recent $600/mt CFR deal from Australia to the US to calculate what the price might be had the cargo come from China, however. After subtracting freight and handling and then calculating the freight cost differences for a China-US sale, sources estimated a netback to China in the $540s/mt FOB.

One source clarified that while the price makes sense in the current market, nothing has yet been done out of China at that level.

India: 

The recent DAP tenders held by Rashtriya Chemicals and Fertilizers Ltd. (RCF) and National Fertilizers Ltd. (NFL) appear to have been scrapped.

More than a week after the tenders closed, sources said no information has been released regarding either the number of participating companies or the prices that were offered. In the past, silence such as this led traders to infer that only one or two companies participated in the tender, and that the prices offered were significantly higher than what the Indian buyers were willing to accept.

Brazil:

Reduced supply in several regions continued to pressure prices, as did the dollar’s recent strength. The current July lineup is expected total less than 500,000 mt, a decline from previous years, though the total could fluctuate in the coming weeks due to possible transshipments caused by high wait times at ports.

MAP imports continued at $620-$630/mt CFR into Brazil. With limited volumes available, prices were expected to increase to $640/mt CFR in the near term. Rondonópolis prices firmed to $760-$790/mt FOB, rising from $745-$780/mt FOB at last report.