All posts by hlancey@bloomberg.net

Australian Potash Completes Capital Raise

Australia, News Briefs, Potash, Sulfate of Potash

Former aspiring junior sulfate of potash producer Australian Potash Ltd. has completed a $2.98 million capital raise, issuing nearly 3 billion shares at $0.001 each, accompanied by billions of options.

The funds are reportedly allocated to various projects including drilling at the Lake Wells Gold Project, some 500 kilometers northeast of Kalgoorlie in Western Australia, and administrative costs, with the majority aimed at working capital and further exploration. The company plans to apply for the options to be quoted on the ASX.

Australian Potash went into voluntary administration last December (GM Dec. 8, 2023) and emerged in February (GM Feb. 2, p. 28) following creditor approval of a Deed of Company Arrangement (DOCA), which allowed the administrators to step down and Australian Potash to be returned to the directors as a solvent entity.

In the months prior to administration, Australian Potash had been turning its focus to critical minerals, which included its Nexus rare earth elements project in the West Arunta and the Lake Wells Gold Project. The company said it is these projects that it will now focus on.

The company surrendered the mining leases for its Lake Wells SOP Project in August last year after it was unable to secure further funding (GM Aug. 18, 2023). The project, which was aiming at potential production of 150,000 mt/y of SOP (GM May 25, 2021), was put on ice in June (GM June 16, 2023).

APC retains the database for the development of Lakes Wells, as well as its interest in the exploration license tenure it holds for the project. The company reported in December that it was ready to deploy the project information and know-how should a new opportunity emerge for the project.

BioPrime AgriSolutions Partners with Yara India

India, News Briefs, South Asia

Indian ag-biotech start-up BioPrime AgriSolutions Pvt. Ltd. has announced a strategic partnership with crop nutrition company Yara India, a subsidiary of Yara International. The companies said the collaboration brings together BioPrime’s SNIPR technology in the branded product “Chiron” with Yara India’s expertise in crop nutrition.

“We are delighted to announce Yara India’s strategic partnership with BioPrime, a leading player in bio-stimulants,” said Sanjiv Kanwar, Managing Director, Yara South Asia. “This alliance signifies not just our mutual commitment to innovation and sustainability, but also a shared vision of a greener future for India. Yara India is committed to enhancing crop nutrition and soil health, ensuring healthier crops and improved livelihoods contributing to a nature-positive food future.”

BioPrime’s SNIPR technology utilizes small molecules to modulate plant responses effectively, the company said, enhancing flower count and improving flower-to-fruit conversion, resulting in a significant increase in crop yields, uniformity of produce, and a higher-grade output.

“We are excited to collaborate with Yara India to deliver sustainable solutions built on the back of nature for the benefit of farming community,” said Dr. Renuka Diwan, CEO of BioPrime. “Together with Yara India, we have the huge opportunity to cater to the unmet needs of the farmers facing the brunt of weather uncertainties leading to loss in yield.”

Ammonia

Ammonia, Brazil, Eastern Cornbelt, Indonesia, Market Watch, Northern Plains, Northwestern Europe, Southeast Asia, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf/Tampa:

The drop in May Tampa ammonia, to $450/mt CFR from April’s $475/mt, also pushed truck offers down out of Gulf Coast production points. Sources reported truck pricing at a low of $410/st FOB Gulf Coast terminals during the week, down from $525-$550/st FOB in April.

US Imports:

July-March ammonia imports fell 19.7% year-over-year, according US Census Bureau data, to 836,776 st from 1.04 million st. March imports were down 83.3%, to 24,799 st from 148,175 st. Canada sent 875,759 st to the US in the July-March fertilizer year-to-date, Trinidad and Tobago shipped 713,002 st, and Saudi Arabia sent 22,091 st.

US Exports:

Ammonia exports for March stood at 24,799 st, down 83.3% from the year-ago 148,175 st. July-March exports totaled 836,776 st, a 19.7% decline from the 1.04 million st posted one year earlier. Morocco was the top US export destination in July-March with 263,476 st, followed by Norway with 161,963 st. Chile took 83,115 st, ahead of 73,305 st to Mexico.

Eastern Cornbelt:

Weather delays were pressuring ammonia prices in the region. Sources quoted the market at $590-$625/st FOB in the Eastern Cornbelt, depending on location, down from last week’s $625-$645/st FOB range. The low was confirmed at Lima, Ohio, though most Illinois and Indiana terminals were also reported at the $590-$600/st FOB range during the week.

Western Cornbelt:

Ammonia dropped to $590-$600/st FOB at most Western Cornbelt terminals early in the week, down from $605-$645/st FOB, as the tail end of the preplant run continued to experience rain delays. Ammonia prices were also down in the Southern Plains, with Oklahoma terminals falling to $535-$575/st FOB from the prior $580-$615/st FOB range.

Northern Plains:

The ammonia market slipped to $635-$650/st FOB regional terminals in the Northern Plains, depending on location, with the latest delivered offers reported at the $650-$675/st level.

Northwest Europe:

Despite a 4% increase in European natural gas prices this week to around $9.50/MMBtu, muted downstream demand and the lower Tampa settlement continued to weigh on Northwest European ammonia prices, which remained at $460-$470/mt CFR.

Southeast Asia:

With Malaysia’s Bintulu ammonia plant down and Ma’aden’s line at Ras al Khair also offline, ammonia availability in Southeast Asia was snug in early May, resulting in higher price indications. This week’s market was quoted at $315-$330/mt FOB, up from last week’s $300-$330/mt FOB range.

Indonesia:     

Ammonia imports in Indonesia totaled 449,000 mt for the first quarter, according to Trade Data Monitor, a 19% increase from the year-ago 377,000 mt. South Korea took 135,000 mt, China bought 89,000 mt, and India and Taiwan received 37,000 mt each. March imports were 142,000 mt, up 19% from 120,000 mt in March 2023.

Brazil:

January-April ammonia imports in Brazil totaled 133,000 mt, Trade Data Monitor reported, a 37% increase from the year-ago 97,000 mt. Trinidad and Tobago sent 108,000 mt, and Turkey shipped 25,000 mt. April imports were 25,000 mt, up 73% from 15,000 mt in April 2023.

While Brazil is not a major urea exporter, it does occasionally send out excess material. January-April exports were 60 mt, compared to the 33,000 mt shipped through the first four months of 2023. No ammonia was exported in April, off from the 20 mt shipped in April 2023.

Urea

Argentina, Black Sea, Brazil, China, Eastern Canada, Eastern Cornbelt, ethiopia, India, Indonesia, Market Watch, Mediterranean, Middle East, Northeast, Northern Plains, Philippines, Southeast Asia, U.S. Exports, U.S. Gulf, U.S. Imports, Urea, Western Cornbelt

US Gulf:

The NOLA urea market slipped to $280-$297/st FOB for new business, down from $285-$308/st FOB last week, with the low reported for first-half June trades and the high for prompt/loaded barges. Full May business was quoted in the $284-$292/st FOB range during the week.

US Imports:

March urea imports softened 47.8%, to 64,837 st from the year-ago 124,280 st. Imports totaled 640,122 st in July-March, down 48.1% from 1.23 million st in the prior year. July-March imports from Russia were 1.02 million st, while Qatar sent 742,055 st. Saudi Arabia shipped 443,727 st, ahead of 407,820 st from Algeria.

US Exports:

March urea exports fell 47.8%, to 64,837 st from the year-ago 124,280 st. July-March exports moved down 48.1%, to 640,122 st from 1.23 million st in the prior year. Exports to Canada totaled 437,754 st in July-March, followed by 86,162 st to Mexico and 77,097 st to Chile.

Eastern Cornbelt:

Urea prices continued to slip in the Eastern Cornbelt, falling to $370-$390/st FOB river terminals for prompt tons, down from last week’s $390-$410/st FOB range. While the low was reported out of spot Illinois River terminals, the Cincinnati market slipped to $375-$385/st FOB for the latest offers, down sharply from the prior $400-$410/st FOB range.

Western Cornbelt:

Urea in the Western Cornbelt remained in a broad range at $365-$410/st FOB during the week, with the high reported in Iowa. The St. Louis, Mo., market was pegged at $365-$375/st FOB, down from last week’s $370-$380/st FOB range.

Northern Plains:

Urea prices were lower in the Northern Plains. Sources quoted the latest St. Paul, Minn., terminal offers at $370-$390/st FOB, down from last week’s $380-$410/st FOB, with reports that pricing could drop to $355/st FOB in June. Rail-DEL urea in eastern North Dakota was pegged at $440-$460/st, well below the last confirmed offers in the low-$500s/st DEL.

Northeast:

The urea market fell to $430-$445/st FOB regional terminals in the Northeast, with the low confirmed at Fairless Hills, Pa. Rail-DEL pricing in the region was pegged as low as $415/st on a spot basis, however, based on softer NOLA and Midwest values.

Eastern Canada:

Urea was quoted at C$620-$700/mt FOB in Eastern Canada, down C$25/mt at the high end of the range.

India: 

Urea stockpiles in India remain at record levels, with sources noting reserves at approximately 10 million mt. The high inventories mean that India is in no rush to call its next urea tender, sources said. Should India call a tender in May, one trader noted, it will be for political reasons and not because of demand.

Urea supplies have always been a touchy subject in Indian politics. The product is the most heavily subsidized fertilizer in the country, and past efforts to ease these subsidies have led to major political confrontations. The current government has stepped up both domestic production and the introduction of alternative products such as liquid Nano Urea. These efforts have reduced the amount of urea being imported, allowing the government to lower its subsidy outlays.

International traders now expect the tender call to come sometime in June for July and August shipments. However, Indian companies have a tradition of announcing a tender around the time of the IFA world conference, some added, and this year’s event will be held in Singapore on May 20-22. A tender call around those dates would fit with prior expectations.

Even with large reserves on hand, more purchases may be necessary. Weather predictions indicate that the monsoon season might be slightly better than average, sources said, which could lead to more demand.

Black Sea:     

Black Sea prilled urea prices remained at $250-$260/mt FOB.

Mediterranean:

Urea offers into Italy were heard at similar levels to last week’s $315-$320/mt CFR. In nearby Romania, offers were lower at $310/mt CFR. With no fresh sales confirmed in the Mediterranean region despite lower FOB Egypt indications of $285-$290/mt FOB, however, the price range remained unchanged at $315-$320/mt CFR.

Southeast Asia:

No further granular urea business was confirmed this week in Southeast Asia, with regional demand in Thailand, Vietnam, and Philippines reportedly delayed by lack of rains and nearby India sitting on high stocks. As a result, the Southeast Asia granular urea price remained at $305-$306/mt FOB.

Petronas’ Bintulu urea plant went down for unplanned maintenance at the end of last week and will remain offline for a minimum of two weeks. Separately, Pupuk Pusri awarded 5,000 mt of prills at $312.50/mt FOB, which will likely head to a nearby destination in Southeast Asia.

Indonesia:     

Granular urea remains at $305-$306/mt FOB in Indonesia, the result of a late-April selling tender.

A new prilled urea tender, offering one cargo of 6,000 mt and another of 12,000 mt, closed this week at the unexpectedly high price of $312.50/mt FOB. Granular is typically sold at a premium to prilled.

One trader said the tender was called to accommodate demand from a buyer in Southeast Asia. Indonesian law requires urea exports to sell via a tender, a requirement enacted several years ago to avoid any perception of insider trading or corruption. Once the tender is settled, additional tonnage beyond the original offer may be sold, but only at the tender price.

The tender price falls in line with reports that TFC/Taiwan bought 6,000 mt of prilled urea, most likely from Indonesia, at $341/mt CFR. Sources also reported that Atlas, in the Philippines, is looking for 6,000 mt of prilled and granular urea. Indonesia is the main supplier to Southeast Asian buyers looking for small lots such as these.

Indonesia exported 341,000 mt of urea in January-March, Trade Data Monitor reported, a significant increase from the 107,000 mt shipped in first-quarter 2023. Australia took 201,000 mt, for 59% of the exports, followed by the Philippines with 46,000 mt. March exports were noted at 223,000 mt, more than double the 107,000 mt shipped in March 2023.

Philippines:   

Atlas on May 14 will close a purchase tender for 6,000 mt each of prilled and granular urea, as well as 6,000 mt of caprolactam grade ammonium sulfate. Shipment is required by June 15. Sources named Indonesia as the most likely source for offers in the tender.

Middle East: 

Urea deals were reportedly closed out of the Middle East this week at $265-$268/mt FOB, though no buyers or sellers were named.

The price drop was expected, said traders. Arab Gulf producers have returned to full production at a time when demand from large buyers is absent. India is in no rush to call a follow-up to its March tender. At the same time, Australian buyers previously engaged in a series of large forward acquisitions, leaving limited need for additional purchases.

The combination of steady production and reduced demand has producer warehouses filling more rapidly than planned, and some sellers are becoming desperate to move tons. In some cases, producers have reportedly urged buyers to take as many tons as their warehouses could hold, offering to work out the price later, a practice one trader called “stuffing the channel.”

The move gives buyers the security of knowing tons are available and that pricing will be determined when the product is moved out of the warehouse. Given the market’s growing softness, this is a good deal for buyers, said one trader.

No new business was reported out of Egypt during the week. Demand from Egypt’s primary market, Southern Europe, has reportedly gone flat.

In addition to the general softness in urea pricing, Egyptian producers will begin facing more competition in Argentina. Until this week, all non-Egyptian urea was hit with a 5.4% import tariff. The government of Argentina has now lifted that tariff, however, allowing suppliers from Algeria and Nigeria to compete against Egypt for Argentina’s business.

Egypt sent 364,000 mt of urea to Argentina in 2023, about 44% of that country’s 825,000 mt total for the year, while Egypt has sent just 10,000 mt of Argentina’s 202,000 mt imported in 2024 to-date. However, imports usually pick up during the second half of the year.

China:

Sources now expect Chinese urea exports to resume no earlier than June or July. Some predicted that serious movement may not come until August.

The country’s government-imposed export restrictions were part of an effort to build large stockpiles of urea for the domestic market. At the same time, the government expected prices to fall and remain low due to the growing reserves. Permission to export, when granted, was based on ensuring that domestic reserves remained high, along with the expectation that a plentiful supply will keep prices low.

Unfortunately for the government’s planners, demand has risen alongside inventories, and prices moved up as the expected window for exports approached – even as domestic reserves remained high. Traders who began the export clearance process in April are now finding they will have to start all over again, sources said.

The government has reportedly canceled export permits issued or initiated for 2024 shipments. Where the export process previously only included an analysis of urea stockpiles, sources said the new process will also include pricing. Urea being offered for export at prices deemed too high by the inspectors will not be approved for shipment.

The China Nitrogenous Fertilizer Association met on May 8-10 to review the country’s supply/demand balance and to look at ways to deal with differences between the domestic and international markets. The producers appeared hopeful they could return to their plants with a solid plan that would allow for some exports, sources noted.

Even without the pressure of exports on the domestic market, sources reported ex-factory prices rising once again. The latest prices were estimated at $311-$313/mt for prills and $317-$318/mt for granular. Including the cost to prepare the tonnage for export, the equivalent offshore price comes to $335-$338/mt FOB for prills and $342-$345/mt FOB for granular, players said. Earlier in the week, sources noted price discussions in the $310-$330/mt FOB range.

One trader stressed that whether the discussion price was $310/mt or $345/mt FOB, it was only a discussion. No deals were done at any level during the week, and none are expected until the government is satisfied that reserves will be sufficient to force prices down.

Brazil:

Granular urea prices fell $10/mt in Brazil, to $300-$305/mt CFR from last week’s $310-$315/mt CFR, with bids reported at $290/mt CFR. Players reported a slight uptick in nitrogen interest for the safra during the week.

Rondonópolis urea prices softened $5/mt to settle at a flat $450/mt FOB, while third-quarter urea was offered at $470-$480/mt FOB. Due to the market’s ongoing focus on phosphates, urea trades were limited, sources said.

January-April urea imports in Brazil stood at 1.97 million mt, according to Trade Data Monitor,up 8% from the 1.8 million mt received through the first four months of 2023. Nigeria sent 453,000 mt, followed by Qatar with 349,000 mt. April imports were 387,000 mt, down 14% from 451,000 mt in April 2023.

Argentina:    

Argentina has removed its 5.4% tariff from all imported urea. Until the change was announced, only Egyptian material was exempt from the duty. The action will allow for Algeria and Nigeria, the second and third largest suppliers to Argentina, to push for a greater share of the market.

Ethiopia:       

No awards have yet been announced from the most recent Ethiopian Agricultural Businesses Corp. (EABC) tender.

January-April urea imports to Ethiopia rose 84% year-over-year, Trade Data Monitor reported, to 276,000 mt from 150,000 mt. Egypt led suppliers with 203,000 mt, for 74% of the imports, followed by Nigeria with 44,000 mt. April imports totaled 29,000 mt, a sharp increase from 24 mt in April 2023, with all of the tonnage coming from Oman.

UAN

Eastern Canada, Eastern Cornbelt, France, Market Watch, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, UAN, Western Cornbelt

US Gulf:

Another drop in upriver terminal prices pressured UAN barge indications lower. Although no new NOLA business was confirmed, sources quoted the market at $235-$255/st ($7.34-$7.97/unit) FOB, down from last week’s $250-$260/st ($7.81-$8.13/unit) FOB range, with the low reflecting indications late in the week based on falling river terminal prices.

US Imports:

UAN imports for July-March fell 22.1% year-over-year, to 1.69 million st from 2.17 million st. March imports were 206,562 st, down 28.8% from 290,062 st in the year-ago period. Russia sent 946,745 st for July-March, while Canada shipped 347,614 st, ahead of 336,065 st from Trinidad and Tobago. 

US Exports:

UAN exports fell 28.9% in July-March, to 1.39 million st from the year-ago 1.96 million st. March cargoes were counted at 56,223 st, a 53.1% decrease from the 119,891 st reported one year earlier. France purchased 375,889 st of US product in July-March, Australia took 337,767 st, and Argentina received 210,302 st.

Eastern Cornbelt:

After last week’s $20/st downward correction, sources said UAN-32 terminal prices fell again this week, to $270/st ($8.44/unit) FOB Mount Vernon, Ind., $275/st ($8.59/unit) FOB Cincinnati, and down to $285-$290/st ($8.91-$9.06/unit) FOB spot Illinois River terminals.

The UAN-28 market was pegged at $240.63-$253.75/st ($8.59-$9.06/unit) FOB in the Eastern Cornbelt, depending on location and timing, with the higher numbers confirmed early in the week.

Western Cornbelt:

Another drop in UAN-32 prices pushed the prompt market down to $270-$290/st ($8.44-$9.06/unit) FOB in the Western Cornbelt, below the prior week’s $290-$320/st ($9.06-$10.00/unit) FOB range, with the low confirmed both at Port Neal, Iowa, and St. Louis.

Northern Plains:

The UAN market out of terminals in Minnesota was pegged at $310/st ($9.69/unit) FOB for UAN-32 and $270/st ($9.64/unit) FOB for UAN-28, though supply was described as tight. Delivered UAN-28 offers in North Dakota remained at a high of $325/st ($11.61/unit) for tons from Canada.

Northeast:

The latest UAN-32 offers were quoted at $310-$320/st ($9.69-$10.00/unit) FOB port terminals in the Northeast, with the Fairless Hills market reported at the $315/st /st ($9.84/unit) FOB level, give or take. UAN-32 pricing out of inland terminals in upstate New York remained at $365/st ($11.41/unit) FOB in early May.

Eastern Canada:

UAN-28 pricing in Eastern Canada remained at C$420-$460/mt (C$15.00-$16.43/unit) FOB in early May. The UAN-32 market in Ontario was steady as well at the C$480/mt (C$15.00/unit) FOB level.

France:

No further prompt UAN demand was reported this week at Rouen. New-season offers at €215/mt FCA appear to have found some traction, while indicative prompt interest for trucks was reported just shy of €230/mt FCA, resulting in a range of €215-€230/mt FCA for the week. The gap between old and new prices is expected to converge by the end of the month.

Ammonium Nitrate

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

US Imports:

Ammonium nitrate imports for July-March moved up 4.7%, to 229,834 st from the year-ago 219,422 st. March lifted 70.1%, to 26,207 st from 15,408 st in March 2023. Canada sent 196,209 st in July-March, Russia followed with 31,235 st, and China added 802 st.

US Exports:

March ammonium nitrate exports were noted at 74,254 st, a 99.2% increase on the year-ago 37,273 st. July-March volumes were up 50.5%, at 634,048 st compared to the 421,185 st posted one year earlier. Canada received 322,832 st of US product in July-March, Mexico purchased 213,326 st, and Lithuania took 39,690 st.

Western Cornbelt:

Ammonium nitrate was quoted at $395-$410/st FOB in Missouri, down $10-$20/st from last report, with the low confirmed in the south and the high in northern areas of the state. Pricing was also lower in the South Central region, with the latest El Dorado, Ark., offers pegged at the $370/st FOB level, down from $380/st FOB.

France:

Ammonium nitrate prices in France moved lower, with one producer slashing its price to €325/mt CPT and another still reporting limited traction at the high of €350/mt CPT.

Until recently, ammonium nitrate has been insulated from the dip in urea and other nitrogen prices, but sources said the market is correcting ahead of new-season prices. A new price announcement from Yara is expected soon.

Brazil:                                          

Ammonium nitrate imports in Brazil totaled 196,000 mt in January-April, according to Trade Data Monitor, a20% decline from the year-ago 244,000 mt. Russia shipped 155,000 mt, ahead of 31,000 mt from the US. April 2024 imports were pegged at 26,000 mt, down 55% from the 58,000 mt received in April 2023.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Canada, Eastern Cornbelt, Northeast, Northern Plains, Pakistan, Philippines, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf:

The NOLA ammonium sulfate barge market continued to be reported in the $400-$405/st FOB range for the latest offers, though no new barge sales were confirmed during the week.

US Imports:

March ammonium sulfate imports were 188,687 st, a 144.9% increase on the year-ago 77,049 st. July-March volumes totaled 909,211 st, up 75.4% from 518,296 st in the prior year. Imports from Canada were noted at 392,918 st for July-March, ahead of 176,733 st from Belgium. Germany moved into third place with 92,736 st, beating 89,936 st to Russia.

US Exports:

Ammonium sulfate exports softened 12.6% in July-March, to 526,440 st from the year-ago 602,510 st. March shipments were 67,520 st, however, up 103.1% from 33,237 st in the previous March. Exports to Peru totaled 161,999 st in July-March, followed by Canada with 70,133 st. Mexico took 57,064 st, ahead of Brazil’s 40,743 st.

Eastern Cornbelt:

Granular ammonium sulfate slipped to $415-$435/st FOB in the Eastern Cornbelt, with the low confirmed at spot Illinois River locations and the high out of inland warehouses. The Cincinnati market was pegged at $430-$435/st FOB during the week.

Western Cornbelt:

The granular ammonium sulfate market dropped to $405-$430/st FOB in the Western Cornbelt, below last week’s $420-$440/st FOB, with the low confirmed at St. Louis and the high in Iowa.

Northern Plains:

Sources reported the latest granular ammonium sulfate offers in the Northern Plains at $415-$430/st FOB St. Paul and $460-$480/st DEL in North Dakota. Reference prices at some North Dakota terminals were also reported at the $470-$480/st FOB level in early May.

Northeast:

The granular ammonium sulfate market strengthened to $420-$430/st FOB and $415-$425/st DEL in the Northeast, up from $400-$420/st FOB and $395-$415/st DEL in mid-April.

Eastern Canada:

The ammonium sulfate market continued to be reported in a wide C$570-$675/mt FOB range in Eastern Canada, depending on location and supplier.

China:

The price for caprolactam grade amsul in China was steady at $120-$125/mt FOB. The usual game of producers arguing for the higher end of the range and buyers claiming the low end continues to play out, sources said. Domestic demand for amsul and steady demand from Southeast Asian buyers are keeping pace with supply, sources said.

Pakistan:       

Trading Corporation of Pakistan Ltd. (TCP) is looking to secure 6,000 mt of caprolactam grade amsul as part of a larger deal involving DAP from China. While the price for the DAP portion of the transaction has been circulating at a reported $532/mt CFR, no price has been heard for the amsul.

Philippines:   

Atlas is seeking 6,000 mt of caprolactam grade amsul as part of deal including 6,000 mt each of prilled and granular urea. The tender closes on May 14 with a shipping deadline of June 15. An earlier tender for 8,000 mt was reportedly scrapped after offers in the high-$140s/mt CFR were deemed too expensive.

Brazil:

Ammonium sulfate imports in Brazil continued at the week-ago $160-$170/mt CFR level. While urea has declined 18.2% in the last eight weeks, ammonium sulfate has moved just 1.3% lower. Prices fell to $270/mt FOB at Rondonópolis, losing $20/mt from last week. Offers were reported at $300-$310/mt FOB for delivery in the third quarter.

Brazil imported 1.1 million mt of amsul in January-April, Trade Data Monitor reported, a 5% rise from the 1.02 million mt received during the first four months of 2023. China continued to dominate the import slate with 1 million mt. April imports were 259,000 mt, up 6% from 244,000 mt in April 2023.

DAP/MAP

Baltic Sea, Benelux, Brazil, Central Florida, China, DAP/MAP, Eastern Canada, Eastern Cornbelt, India, Morocco, Northeast, Northern Plains, Pakistan, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

Central Florida:

Central Florida phosphate prices were noted at $580/st FOB for DAP and $600/st FOB for MAP, both unchanged from the prior report. North Florida MAP postings softened to $630/st FOB, however, down from the prior $650/st FOB level.

US Gulf:

NOLA DAP barges fell to $505-$535/st FOB in limited trading, players said, down from $525-$540/st FOB at last report. MAP barges recovered from the week-ago $480-$485/st FOB low, however, lifting to $520-$530/st FOB.

US Imports:

March DAP imports stood at 290,840 st, off 3.3% from the 300,800 st reported last March. July-March volumes were noted at 1.43 million st, however, a 91.2% rise from the year-ago 745,394 st. July-March imports from Saudi Arabia were counted at 868,727 st, up 96.4% from the year-ago 442,230 st, followed by 294,902 st from Jordan. Egypt shipped 126,765 st.

March MAP/Other imports totaled 52,804 st, a 55.0% increase from 34,065 st in March 2023. July-March imports were 777,013 st, up 10.3% from the year-ago 704,480 st. Saudi Arabia led sellers with 211,605 st in the fertilizer year-to-date, narrowly topping 191,914 st from Mexico, while Tunisia sent 175,693 st.

US Exports:

No new export DAP or MAP business was reported out of the US Gulf, leaving the market unchanged at $570/mt FOB.

DAP exports softened 39.0% in July-March, to 361,476 st from the year-ago 592,948 st. March exports stood at 34,567 st, dropping 47.5% from the 65,876 st reported one year earlier. US DAP sellers sent 95,398 st to Peru in July-March, ahead of 64,932 st to Uruguay and 49,209 st to Brazil. Canada took 41,936 st.

MAP/Other exports softened 14.1% in March, to 204,796 st from the year-go 238,353 st. July-March exports were 1.54 million st, down 4.1% from the year-ago 1.60 million st. Canada received 1.22 million st of MAP from the US in July-March, ahead of 111,136 st to Australia and 44,189 st to Brazil. Mexico bought 42,059 st.

Eastern Cornbelt:

DAP prices remained under pressure, with Illinois River terminal offers dropping to $620/st FOB on a spot basis, down from last week’s $630/st FOB low. The Cincinnati DAP market was pegged at the $665/st FOB level during the week. In the Great Lakes region, delivered DAP was reported at the $668/st level in early May.

MAP was quoted at $665-$695/st FOB in the Eastern Cornbelt, with both the high and low reported at Cincinnati during the week. In the Great Lakes region, delivered MAP offers were pegged at the $708/st level for May tons.

Western Cornbelt:

DAP slipped to $640-$665/st FOB in the Western Cornbelt, with MAP pegged at $675-$695/st FOB in the region. The St. Louis market was quoted at $640-$650/st FOB for DAP and $675-$680/st FOB for MAP.

Northern Plains:

DAP was pegged at $660-$675/st FOB St. Paul, with MAP slipping to $670-$695/st FOB at the Cities. The lower end of both ranges was attributed to pressure from rail-DEL offers coming from the western US.

Northeast:

DAP remained at $695/st FOB East Liverpool, Ohio. MAP was pegged in a broad range at $660-$700/st FOB in the region, depending on location, with the low out of spot port terminals and high at East Liverpool. Rail-DEL MAP offers in Pennsylvania were also quoted at the $695/st level in early May.

Eastern Canada:

MAP pricing in Eastern Canada was unchanged at C$985-$995/mt FOB, with DAP remaining at C$945/mt FOB Montreal.

Benelux:

The Northwest European DAP market remained in a lull, with new business described as scarce and indications drifting lower to $635-$645/mt FCA (€590-€600/mt FCA).

Morocco:

DAP prices ex-Morocco were stable this week, reflecting Indian netbacks on the low end and European business at the high. Other sales to Latin America reflected the approximate midpoint of the range in the mid-$550s/mt FOB.

Sources speculated that lower offers to Europe were circulating, but these levels could not be confirmed by press time, resulting in a flat price range of $495-$600/mt FOB.

Baltic:

MAP prices in the Baltic moved up $5/mt on the high end following a spot sale to a Latin American destination other than Brazil. The low end continued to reflect Brazilian netbacks, which are steady as Baltic producers hold CFR prices in Brazil, buoyed by reports of low stocks in the country.

China:

Some cargoes of DAP are reportedly being prepped for shipment from China. Initial hopes that shipments would have departed by now were dashed because of delays built into the export permission process designed to ensure that a plentiful supply of phosphates are on hand, especially while the application season remains in full swing. Domestic demand for DAP will be negligible by the end of the month, traders said, allowing for more exports.

Pricing ideas have been all over the map. The best guess for now is $500-$510/mt FOB, traders said, fitting with the latest prices reportedly under discussion for India and Pakistan.

Even though traders are convinced that no deals were done this week – or seriously discussed –for less than $500/mt FOB, they were equally convinced that prices will slip into the $490s/mt FOB before the end of the month.

Much of the pressure to lower prices is coming from India and the willingness of other DAP producing countries to meet the Indian bids. OCP is reportedly anxious to find buyers, even as the Moroccan producer also appears to be shifting attention toward TSP and SSP production and away from DAP. At the same time, Russian suppliers are equally anxious to sell their product at nearly any level that will get a deal done.

India: 

The most common price being tossed about for deals this week fell in the low-$520s/mt FOB, a significant drop from the $548/mt CFR that resulted from India’s last public DAP tender in April. One buyer has reportedly bid at $479/mt CFR, but with no takers. So far, the most ambitious plays seem to be landing closer to $500/mt CFR.

Bids are reportedly being tossed around at $505-$510/mt CFR. While no deals have yet been done at that level, there are expectations that these prices might be achieved in the next week or so, traders said.

Logistics may be touch-and-go as the monsoon season starts up. The rough summer weather could severely delay loading and unloading, sources said.

Pakistan:       

Reports are circulating that TCP is in the final stages of closing a purchase of DAP and ammonium sulfate. The DAP has a reported price of $532/mt CFR, netting back an estimated $506-$510/mt FOB to China.

Brazil:                             

The Brazil MAP range slipped to $550-$570/mt CFR from $570-$575/mt CFR at last report, with sources citing multiple offers of Chinese material in the decline. MAP 10-50 was reported in the $520-$525/mt CFR range, while players noted NP 11-44 at $455-$465/mt CFR.

Rondonópolis MAP pricing lost $5/mt from the top of the week-ago range, settling at $690-$705/mt FOB. While most market players described an inactive market, some reported a start to negotiations for the 2024/25 soybean season, though buyers remain hopeful that the barter ratio will improve.

January-April MAP imports in Brazil fell 36% year-over-year, Trade Data Monitor reported, to 1.03 million mt from 1.6 million mt. Russia sent 780,000 mt, and Morocco added 158,000 mt. April imports were put at 378,000 mt, off 18% from 459,000 mt in April 2023.

TSP

Brazil, Eastern Cornbelt, Market Watch, Triple Superphosphate, U.S. Gulf, Western Cornbelt

US Gulf:

NOLA TSP barges firmed $5/st at the top of the range, to $430-$445/st FOB from last week’s $430-$440/st FOB range.

Eastern Cornbelt:

TSP slipped to $505-$520/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati.

Western Cornbelt:

TSP was steady at $510-$520/st FOB in the Western Cornbelt, with the low reported at St. Louis.

Brazil:

Brazil TSP prices were steady at $410-$430/mt CFR.