All posts by mickeybarb@charter.net

IHI, Gentari Ink MOU on Malaysian Green Ammonia

Green Ammonia, Japan, Malaysia, News, News Briefs

IHI Corp., Tokyo, on Dec. 15 announced that it has concluded a Memorandum of Understanding with Gentari Hydrogen Sdn Bhd, a subsidiary of PETRONAS’ clean energy entity, to evaluate the feasibility of leveraging the abundant solar resources of Malaysia to produce and sell green ammonia derived from renewables.

Under the MOU, IHI and Gentari will consider a business model for ammonia production in Johor, Malaysia, a suitable site for solar power generation, where green ammonia will be produced, used locally for power generation and marine fuel supply, and exported to the Japanese and Asian markets.

In this study, IHI will conduct technical studies and ammonia demand surveys for Japan, while Gentari handles the assessment of renewable energy supply and various facilities in Malaysia, as well as various market demand surveys.

After conducting a feasibility study that runs until the beginning of 2023, the project aims to develop a commercial ammonia production plant to commence operations in 2026. IHI and Gentari aim to demonstrate several ammonia application models in Malaysia and build a fuel ammonia supply chain to address the future increase of clean fuel demand.

Uralchem Eyes Cargill, Viterra Grain Assets

News, News Briefs, Russia

Russian fertilizer supplier Uralchem has informed President Vladimir Putin it is willing to buy the local assets of grain traders Cargill and Viterra, and asked a government commission to approve the deal, according to Bloomberg, citing a Kommersant report.

In a letter to Putin dated Nov. 21, seen by Kommersant, Uralchem CEO Dmitry Konyaev argued that Cargill and Viterra intend to cease operations in Russia in 2023, while their grain trading activities, including exports, overlap with Uralchem’s business. They use the same ports for grain shipments as Uralchem does for fertilizers and use similar types of ships for transportation.

Putin was reported to have agreed with Uralchem’s arguments and sent the case to Prime Minister Mikhail Mishustin and the Cabinet.

Since farmers sell grain to Cargill and Viterra and Uralchem sells fertilizer to the farmers, Uralchem sees synergies, a company spokesman told Reuters. However, he said the company is only talking about negotiations and that “no one would be twisting their arms.”

Russian Agriculture Minister Dmitry Patrushev was quoted in early December as saying that Russia does not intend to “kick out” foreign grain traders, according to a Reuters report.

Both Viterra and Cargill deny they plan to leave Russia. Kommersant cited Cargill’s letter to the Agriculture Ministry dated Dec. 6, saying the company works as usual and has no plans to sell Russian assets. The CEO of Viterra’s local unit also denied plans to sell assets.

Ammonia

Ammonia, Black Sea, Brazil, Eastern Cornbelt, India, Lithuania, Malaysia, Market Watch, Middle East, Northwestern Europe, South Central, Southern Plains, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf/Tampa:

Tampa ammonia for December continued at $1,030/mt CFR, down $120/mt CFR from November’s $1,150/mt CFR.

US Imports:

Ammonia imports for July-September firmed 2.7% from the year-ago, according to data compiled by the US Census Bureau, to 643,611 st from 626,665 st. September imports rose 11.2%, to 225,095 st from 202,351 st.

US Exports:

Ammonia exports for September were counted at 122,655 st, up 178.4% from the year-ago 44,065 st. July-September shipments firmed 209.0%, to 419,122 st from 135,626 st in the prior year.

Eastern Cornbelt:

The first round of spring prepay programs in the Eastern Cornbelt saw ammonia prices falling $150-$200/st from the last confirmed prompt business.

Koch was reportedly first out of the gate on Dec. 13, offering prepay ammonia at $1,110/st FOB most Midwest terminals, with CF following at $1,100/st FOB Illinois and Indiana terminals. Koch then matched CF’s Illinois price, with the exception of Wood River, Ill., which remained at $1,110/st FOB. Nutrien posted $1,095/st for prepay ammonia FOB Lima, Ohio.

Western Cornbelt:

Spring prepay prices for ammonia on Dec. 13 included $1,100/st FOB Palmyra, Mo., $1,070/st FOB in Iowa, and $1,060/st FOB in Nebraska. In the Northern Plains, prepay ammonia pricing was reported at $1,160/st FOB Glenwood, Minn., Velva, N.D., and Grand Forks, N.D., and $1,110/st FOB Murdock, Minn.

There were reports as well of ammonia winter fill pricing offers from CF on Dec. 13 that included $1,035/st FOB in Nebraska, $1,050/st FOB in Iowa, and $1,100/st FOB in North Dakota and Minnesota.

Southern Plains:

Ammonia prepay/fill offers on Dec. 13 included $875/st FOB Woodward, Okla., and Borger, Texas, $900/st FOB Pryor, Okla., and $950/st FOB Verdigris, Okla., well below the last prompt fall business in the $1,100-$1,175/st FOB range. Truck pricing FOB Beaumont, Texas, was reported at the $980/st FOB level at midweek.

South Central:

The latest truck offers for ammonia out of Gulf Coast terminals dropped to the $980-$1,000/st FOB range for new business, down from $1,050-$1,080/st FOB in November.

Black Sea:

A Bulgarian buyer will reportedly take delivery of the last remaining Russian tons stored in Estonia for export. The government-to-government deal will move about 35,000 mt to Varna.

Sources said the Bulgarian government will pay the Estonian government, which will then pass on the funds to EuroChem, the original owner of the ammonia. The reported price was said to be sub-$900/mt CFR, significantly below the current estimated market price. A deal earlier this month into Turkey was pegged at $1,000/mt CFR.

Sources said the transaction will reduce existing demand in the market, with one source speculating that the lower demand could result in softer international ammonia prices.

Since the Russian invasion of Ukraine, Bulgaria has shifted its intake of ammonia from Black Sea sources to Egypt, Trinidad and Tobago, and the Arab Gulf. Last year, Bulgaria imported a total of 223,000 mt of ammonia, according to Trade Data Monitor. The country is on track to import a similar amount this year, but with only half the Ukrainian and Russian imports compared to 2021.

The former owner of Uralchem went on a publicity offensive to promote the idea of opening the ammonia pipeline from Russia to Odessa. The idea of restarting the pipeline is being pushed by the United Nations and Russia to get Russian ammonia back into the global economy.

Sources said the effort does not consider Russian bombing, not only in areas where the pipeline exists, but also targeting supporting infrastructure in Ukraine, such as the electricity grid. Without electricity, said one international trader, the pipeline cannot work, nor could vessels be loaded in Odessa. Sources said the main goal in pushing for reactivation of the pipeline is to draw in more hard currency for the Russian government.

India:

Long-term contracts and formula-based deals seem to account for the bulk of the ammonia coming into India. Much of this product is from Arab Gulf producers at rates well below estimated spot prices.

The spot tons reaching India appear to be from less-traditional locations such as China and producers in Southeast Asia, with the current landed price pegged at $850-$860/mt CFR. Even as buyers are able to secure most of the tons they need at this price, sources said efforts to get Arab Gulf producers to match that level still appear to be failing. The producers are reportedly asking at least $900/mt CFR before any talks can proceed.

Imports of ammonia for January-October were reported at 1.8 million mt by Trade Data Monitor, down 11% from 2 million mt imported during the same period in 2021. The main suppliers were Saudi Arabia with 756,000 mt, Qatar with 321,000 mt, and 217,000 mt sent by Indonesia.

October imports were reported at 218,000 mt, up about 12% from 194,000 mt received in October 2021. Saudi Arabia and Indonesia combined for roughly 48% of imports, sending 53,000 mt each. Qatar and Bahrain shipped 39,000 mt and 38,000 mt, respectively, while Malaysia rounded out India’s five largest suppliers with 30,000 mt, good for 14% of the import market.

Middle East:

Arab Gulf producers continue to tell potential buyers they are short on product for December and January. Sources said that while the rest of this month might indeed be fully booked, there are strong indications that some cargoes are available for January and possibly February purchases.

The main issue seems not to be the availability of product, but the price. Producers are holding out for prices closer to $900/mt FOB, while buyers are looking at levels closer to $800/mt FOB. The current estimated spot price of $850-$880/mt FOB came from calculating back an Arab Gulf-equivalent price from an early-December deal into Turkey valued at $1,000/mt CFR.

Some producers in the region are telling traders they will be taking routine turnarounds in January and February. So far, sources said Qatar and Saudi Arabia seem to be on the list of producers preparing to shut down for at least 30 days. Other producers are expected to follow suit.

Lithuania:

Nitrogen fertilizer maker Achema plans to suspend ammonia production on Monday, Dec. 19, due to higher natural gas prices, according to the news portal Delfi, citing the ELTA news agency, which learned the information from Achema. The company had not responded to inquiries at press time.

Northwest Europe:

The price remained stable at $1,050/mt CFR. Imports still seem to be the market’s determining factor, as high production costs due to rising natural gas prices are preventing European producers from competing.

Sources expect demand for ammonia to ease as industries begin scheduling holiday breaks at the end of the year. The slack market is anticipated to remain well into January.

The last of Russian export material held in a Baltic country storage facility has reportedly been sold. Sources said Bulgaria and Estonia reached an agreement to ship about 35,000 mt to Varna in a government-to-government deal. The EuroChem ammonia was reportedly placed into an Estonian storage facility soon after Russia invaded Ukraine. Buyers’ subsequent reluctance to take any Russian material – as well as the embargoes imposed on that product by individual Baltic states – left the tons in market limbo until now.

The final deal seems to have Bulgaria paying Estonia, which will then pay EuroChem for the product at a severe discount. The landed price is reportedly under $900/mt CFR at a time when prices in the southern Black Sea are closer to $1,000/mt CFR.

Malaysia:

Exports of ammonia for January-October were reported at 337,000 mt by Trade Data Monitor, off23% from the year-ago 438,000 mt. Thailand led buyers with 200,000 mt, followed by India with 45,000 mt, and South Korea with 30,000 mt. October exports were counted at 5,000 mt, compared to 52,000 mt in October 2021. Thailand took 4,900 mt of the exports.

Malaysian tons totaling 30,000 mt reportedly received by India in October contrasted against Malaysia’s stated 5,000 mt export total for the month. The discrepancy was attributed to the time lag between when a product leaves the exporting port, versus when it arrives in the receiving port.

Brazil:

Reports that Unigel has been approaching international traders to handle exports were seen as a stabilizing move. Sources said the company is looking to export 15,000 mt every 90 days.

Unigel has occasionally exported ammonia as it becomes available, sources said. Brazil has shipped 63,000 mt offshore so far this year, according to Trade Data Monitor, with Koch most recently reportedpicking up a cargo for shipment to Morocco. In the past, Trammo and Yara have also handled the Brazilian exported ammonia. Traders said the tonnage will never be enough to move the market, but will be able to provide relief to buyers looking to top off large cargoes.

Urea

Brazil, China, Eastern Cornbelt, India, Malaysia, Market Watch, Middle East, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Urea, Western Cornbelt

US Gulf:

NOLA urea barge prices retreated after a one-week rebound. New business was reported at $445-$475/st FOB, compared to the week-ago $470-$495/st FOB.

US Imports:

Urea imports softened 3.6% in September, to 252,481 st from the year-ago 261,779 st. Imports totaled 572,716 st in July-September, off 41.8% year-over-year from 983,981 st.

Tons loading from Qatar totaled 217,811 st for July-September, ahead of both 144,524 st from Saudi Arabia and 104,283 st from Canada. Russia sent 65,845 st.

US Exports:

Urea exports were up 1,212.6% in September, to 212,080 st from the prior-year 16,158 st. Exports jumped 1,169.7% to 615,399 st in July-September, rising from the year-ago 48,467 st.

Eastern Cornbelt:

Urea prices dropped to $530-$550/st FOB in the Eastern Cornbelt, down from the prior week’s $540-$580/st FOB range, with the low confirmed at Ottawa, Ill. The Cincinnati, Ohio, market was pegged at $530-$540/st FOB during the week.

Western Cornbelt:

Urea continued to weaken. The regional market was quoted at $525-$550/st FOB in the Western Cornbelt, down from the prior week’s $540-$580/st FOB range, with the low confirmed at St. Louis, Mo., at midweek.

Southern Plains:

Urea pricing in the Southern Plains slipped to $520-$550/st FOB Catoosa/Inola, Okla., depending on timing and supplier, with the high reported early in the week and the low confirmed on Dec. 15. The Houston, Texas, urea market as of Dec. 5 was pegged at the $545/st FOB level.

South Central:

Urea was quoted at $530-$560/st FOB terminals in the South Central region, down from the prior $550-$585/st FOB range, with the low confirmed in Arkansas and the high at Memphis, Tenn. Kentucky sources pegged the market at the $540/st FOB level out of Ohio River terminals, while the latest offers FOB Convent, La., were confirmed at $550/st.

Southeast:

The latest urea offers in the Southeast were quoted at $590/st FOB Wilmington, N.C., with no inventory available in Savannah, Ga.

India:

Sources still expect another Indian tender to be called in 2022. Hopes for a Dec. 19 date are fading, as most industry watchers now said the tender will most likely be called in the last week of the month

Prices in the tender are expected to be down from the current $573-$579/mt CFR to at least $500/mt CFR. Some traders are even predicting prices sub-$500/mt CFR.

The week started with meetings in India for all the players involved with calling the tender. The Department of Fertilizers has reportedly signed off on a new tender and has been assured that the funds needed to buy up to 1.5 million mt of urea will be available.

Sources said the government should be anxious to call a tender as soon as possible, as importing urea is quickly becoming cheaper than what domestic producers can supply. Many of the older, less efficient plants are reportedly showing a production cost of $1,000/mt. The Indian government has been slowly replacing these older plants with new or updated facilities, but even with government subsidies, the cost of natural gas to the new plants is making urea production expensive.

January-October urea imports were noted at 7.4 million mt by Trade Data Monitor, a20% year-over-year increase from 6.2 million mt. Oman led suppliers with 1.3 million mt, followed by China with 911,000 mt, and the UAE with 696,000 mt.

October imports were counted at 573,000 mt, up dramatically from 149,000 mt received in October 2021. The United Arab Emirates accounted for 35% of the import market with 202,000 mt, followed by Oman with 91,000 mt.

Middle East: 

Producers are focused on sending out product secured under the last Indian tender or under long-term contracts. Sources said no spot deals were possible this month.

The paper market puts the December price at $450/mt FOB. This fits in with estimates of where the market should be based on China-related deals and discussions among traders. Sources said that for any deal out of the Arab Gulf to make sense, the price needs to be no more than $480-$490/mt FOB. Producers are reportedly willing to talk with buyers at this level, but then claim there is no tonnage available.

The week featured another burst of sales out of Egypt, along with an ensuing price rise. Sources reported Kima selling a cargo at $538/mt FOB early in the week, quickly followed by sales from Alexfert at $540/mt FOB, and the Abu Qir and MOPCO at $545/mt FOB by midweek. As the week ended, the price moved up further to $550/mt FOB, followed by $560/mt FOB, and ended at $565/mt FOB. Reportedly, all the deals – about 10,000 mt each – were for European buyers.

In addition to the sales into Europe, Egyptian urea is playing a role in Ethiopia. Sources reported Fertiglobe will be sending three cargoes of urea to the east African country. At least two cargoes of 50,000 mt each will be shipped in January 2023, while the third cargo will most likely load in February. The deal is part of four shipments, totaling 50,000 mt each, awarded to Fertiglobe in the EABC tender that closed in November.

China:

Sources estimated the price out of China is now in the $470s/mt FOB following a small deal into South Korea. The price drop comes after more cargoes than expected will be loaded from China to service the most recent Indian tender.

Traders speculated that only one or two cargoes will be available for the anticipated new Indian tender. Exports of urea during the first quarter of 2023 are expected to be even more restricted than what has been experienced so far.

Malaysia:

Trade Data Monitor reported January-October urea exports at 1.5 million mt, off 11% from the year-ago 1.7 million mt. The market’s primary buyers were Australia, taking 435,000 mt, followed by Thailand with 316,000 mt. Both counties increased their take compared to 2021.

Brazil:

Sources reported prices down to $500-$505/mt CFR. There were also reports of sanctioned material from Iran or Venezuela being dealt at $490/mt CFR.

Buyers continue to push for lower prices. Brazilian and international sources pointed to plentiful supplies on hand combined with limited buying interest as the reason prices keep coming off. Some international traders commented that they would not be surprised to see the bulk of the Brazilian market dip below $490/mt CFR soon.

Rondonopolis was reported down to $650-$680/mt FOB ex-warehouse. Sources said that some of the drop is coming from blenders looking to ammonium sulfate instead of urea.

UAN

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

US Gulf:

NOLA UAN barge prices were put at $500/st ($15.63/unit) FOB, although there was one report of product floated as low as $465/st ($14.53/unit) FOB.

US Imports:

September UAN imports fell 37.6%, to 168,507 st from 270,153 st in the prior year. July-September volumes stood at 450,691 st, off 34.3% from the year-ago 685,658 st.

Russia continued to lead importers in September-July with 312,827 st. Canada sent 112,317 st, followed by Trinidad and Tobago with 16,267 st.

US Exports:

UAN shipments totaled 219,042 st for September, a 111.2% increase from 103,719 st noted in September 2021. July-September exports were reported at 670,243 st, up 154.0% from the prior-year 263,892 st.

Eastern Cornbelt:

UAN-32 pricing continued to erode in the Eastern Cornbelt. River terminal prices fell to $505-$530/st ($15.78-$16.56/unit) FOB, with the low at Cincinnati and the high at Ottawa. New offers FOB Mount Vernon, Ind., were pegged in the $510-$520/st ($15.94-$16.25/unit) FOB range for January-February shipment.

The latest UAN-28 offers FOB Cincinnati were confirmed at $442-$447/st ($15.79-$15.96/unit) FOB.

Western Cornbelt:

The UAN-32 market was quoted at $520-$550/st ($16.25-$17.19/unit) FOB in the region, down another $30/st from the previous week, with the low confirmed at St. Louis, Port Neal, Iowa, and Muscatine, Iowa.

In the Northern Plains, UAN-32 pricing FOB Winona, Minn., was pegged at the $580/st ($18.13/unit) FOB level.

Southern Plains:

UAN-32 offers were quoted at $445-$450/st ($13.91-$14.06/unit) FOB Woodward and Verdigris on Dec. 15, down from reports earlier in the week in the $460-$470/st ($14.38-$14.69/unit) FOB range. Those prices were well below the $530-$580/st ($16.56-$18.13/unit) FOB Southern Plains levels reported in mid- to late-November.

South Central:

UAN-32 prices fell to $510-$520/st ($15.94-$16.25/unit) FOB South Central terminals for December-February shipment, down significantly from prompt offers in the $555-$585/st ($17.34-$18.28/unit) FOB range in November.

Southeast:

UAN-32 pricing out of port terminals slipped to $554/st ($17.31/unit) FOB Wilmington and $580/st ($18.13/unit) FOB Savannah, down from $586-$595/st FOB at last report. The low end of the Southeast UAN market remained at the $540-$550/st ($16.88-$17.19/unit) FOB level out of inland terminals in Georgia.

Ammonium Nitrate

Market Watch, South Central, Southern Plains, U.S. Exports, U.S. Imports, Western Cornbelt

US Imports:

Ammonium nitrate imports for September firmed 19.3%, to 14,702 st from the prior-year 12,326 st. July-September totals were reported at 46,065 st, however, down 28.5% from the year-ago 64,447 st.

US Exports:

Ammonium nitrate shipments stood at 36,707 st for September, a 4.2% decrease from the year-ago 38,310 st. July-September exports moved up 10.0%, however, to 132,123 st from the prior 120,100 st.

Western Cornbelt:

The ammonium nitrate market reportedly slipped to $590-$610/st FOB Missouri terminals, down from the previous $640-$650/st FOB range.

Southern Plains:

The ammonium nitrate market was pegged at $580-$590/st FOB terminals in Oklahoma, down from the prior $650-$660/st FOB level.

South Central:

The latest ammonium nitrate pricing was indicated at $575/st FOB Yazoo City, Miss., down $50/st from last report.

Ammonium Sulfate

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

US Gulf:

Sources put barge price ideas a bit tighter at $349-$365/st FOB, compared to the week-ago $345-$365/st FOB.

US Imports:

September ammonium sulfate imports were noted at 67,500 st, 26.0% down from the year-ago 91,206 st. July-September totals rang in at 146,958 st, off 35.9 % from the year-ago 229,154 st.

Tonnage loading from Canada totaled 84,048 st for the July-September fertilizer year to-date, while Belgium added 44,129 st. South Korea was reported sending 17,141 st during the period.

US Exports:

Ammonium sulfate exports moved 34.8% higher in July-September, to 236,055 st from the year-ago 175,139 st. Cargoes shipped in September totaled 121,478 st, up 106.6% from the prior-year 58,794 st.

Eastern Cornbelt:

Granular ammonium sulfate pricing was quoted at $400-$450/st FOB in the Eastern Cornbelt, with the Cincinnati market pegged at $400-$420/st FOB. Ottawa pricing was confirmed at the $425/st FOB level at midweek.

Western Cornbelt:

Granular ammonium sulfate pricing was pegged in a broad range at $420-$480/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and the high in Iowa.

Southern Plains:

Granular ammonium sulfate was pegged at $415-$440/st FOB Catoosa/Inola and Houston, depending on supplier, down from $440-$450/st FOB at last report.

South Central:

Ammonium sulfate pricing was pegged at $440-$450/st FOB in the South Central region, with the low at Memphis and the high in Arkansas.

Southeast:

Ammonium sulfate pricing FOB Hopewell, Va., was steady at $490/st FOB for granular, $450/st FOB for mid-grade, and $430/st FOB for standard. Pricing in the Florida market remained at $395/st FOB/DEL for standard and $505/st FOB/DEL for granular.

China:

Sources said the China market is depressed because of limited demand, not only in the domestic market, but also in the Southeast Asian market. Limited deals were reported, all in the low-$170s/mt FOB.

International buyers are reportedly hearing of building stockpiles of amsul in China. These reports are giving strength to buyers from Southeast Asia to Brazil to push for ever-lower prices. Sources attributed the limited demand for product in Southeast Asia to the general global slowdown, while the push from Brazil comes from lower urea prices, leaving only the benefit of added sulfur to the application as the main benefit of buying amsul.

Brazil:

Prices dropped marginally to $265/mt CFR. Sources said the decline came as demand for amsul in blending dropped in line with the softening urea price.

The Rondonopolis price tightened to a single point on weak demand, to $410/mt FOB ex-warehouse. Now that urea prices are softening, sources said that only a few blenders are interested in amsul over urea, due to its sulfur content.

DAP/MAP

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

Central Florida:

Truck-loaded DAP was posted at $660/st FOB for Central Florida loading, unmoved from prior report. MAP trucks were also noted at $660/st FOB, steady from one week earlier. 

MAP trucks loading from North Florida were posted at $700/st FOB, steady from week-ago levels.

Domestic producers reported selling more than 300,000 st of phosphate products in the previous two weeks. The tons consisted of rail, barge, and terminal-originating product, with shipping in the December-February window. Pricing was reported at a $630-$650/st FOB Central Florida equivalent.

US Gulf:

NOLA players reported DAP prices coming down at NOLA during the week, while MAP barges were seen bouncing from week-ago levels.

Sources called nearby DAP barges down to $615/st FOB, edging below the prior $620/st FOB floor, while most described trades topping out around the $625/st FOB mark, shy of the week-ago $640/st FOB high.

Players reported MAP barges shifting gears, however, with domestic producers reported moving volumes as high as $640/st FOB for shipping December through February, above $620/st FOB reported as the week-ago top. Players generally called the low side in a $595-$605/st FOB range.

Based on reported pricing, DAP barges were called $615-$625/st FOB, off from the prior-week $620-$640/st FOB. NOLA MAP barges were higher, however, at $595-$640/st FOB compared to $595-$620/st FOB seen one week earlier.

US Imports:

July-September DAP imports were counted at 188,717 st, off 61.6% from the year-ago 491,591 st. Imports totaled 98,270 st for September, however, a 33.9% increase from the year-ago 73,388 st.

Saudi Arabia topped the July-September import slate with 157,797 st. Australia followed with 26,168 st, while tons from China totaled 2,084 st.

July-September MAP/Other phosphate imports fell 40.3% year-over-year, to 161,649 st from 270,974 st. September imports were clocked at 121,341 st, however, a 513.4% increase from 19,781 st in the prior-year period.

MAP/Other imports from Russia totaled 43,795 st for July-September. Material shipping from Mexico stood at 42,098 st, followed by 35,926 st from Saudi Arabia and 27,503 st from Australia.

US Exports:

DAP exports firmed 175.6% in July-September, to 264,371 st from the year-ago 95,938 st. September totals were shown at 95,250 st, up 310.8% from 23,188 st noted one year earlier.

MAP/Other exports fell 17.8% in July-September, to 469,053 st from the year-ago 570,747 st. September exports climbed 58.7%, however, to 215,072 st from 135,493 st in the prior-year period.

Sources noted two separate DAP cargoes totaling 12,000 mt selling into Northern Latin America during the week. Prices were pegged in a $640-$650/mt FOB range, falling from $692/st FOB reported previously.

Eastern Cornbelt:

New DAP offers were reported at $685-$735/st FOB in the Eastern Cornbelt, below the previous $760-$780/st FOB level, with the Cincinnati market pegged at $690-$705/st FOB. MAP pricing fell in the same range as DAP, with the low confirmed at Ottawa.

In the Northeast, the market reportedly fell to $720/st FOB East Liverpool, Ohio, for both DAP and MAP, well below the prior week’s $815/st FOB level.

Western Cornbelt:

With fall demand now over, DAP pricing slumped to $685-$705/st FOB in the Western Cornbelt, well below the recent $750-$790/st FOB range. The St. Louis DAP market was pegged at the $695/st FOB level at midweek. MAP was reported at similar levels to DAP during the week.

Southern Plains:

DAP was quoted at $680-$700/st FOB Catoosa/Inola for December-January tons, with Houston reportedly matching that level, down significantly from the $785/st FOB Houston level reported on Dec. 5. MAP was down sharply as well, to $670-$690/st FOB Catoosa/Inola for new offers.

South Central:

DAP pricing in the South Central region was quoted at $710-$745/st FOB, depending on location, down sharply from the prior week’s $760-$780/st FOB range and the $780-$805/st FOB values reported in late November. The low was confirmed in Kentucky and the high at Memphis. DAP pricing at Little Rock, Ark., was pegged at the $715/st FOB level at midweek.

Southeast:

MAP pricing from Nutrien was down to $700/st FOB Aurora, N.C., and White Springs, Fla., below the $750/st FOB level posted on Nov. 28.

China:

Sources said that the DAP currently moving out is all under some form of contract. In some cases, producers have worked directly with major buyers, such as those in India. In other cases, such as with Pakistan, the deal is a government-to-government arrangement.

Expectations are for limited exports during first-quarter 2023, as sources said only about 120,000-150,000 mt might be available for sale. One trader noted these tons will most likely be leftover tons from 2022 export permits.

The lack of new spot deals leaves the estimated price at $720/mt FOB. Based on Indian deals with other DAP suppliers, however, sources said the equivalent price should be closer to $700/mt FOB.

India:

The spot price of DAP remains at $720-$730/mt FOB only because there have been no new spot deals into India. The previous purchases from sources other than China have allowed some spot buyers to get what they need without paying a premium to China.

Imports of DAP for January-October were reported at 5.6 million mt by Trade Data Monitor, anincrease of 66% from 3.4 million mt imported in the prior-year period.

Chinese DAP imported through the first 10 months of the year was counted at 1 million mt, down 329,000 mt from the same period in 2021. Purchases from other sources more than made up for the drop in Chinese material.

Source Quantity (‘000 mt)
2021 2022
Morocco 1,200 593
Saudi Arabia 1,500 1,300
Russia 0 684

October DAP imports totaled 1.3 million mt, up significantly from the year-ago 485,000 mt. Morocco accounted for 55% of imports with 729,000 mt. China’s 192,000 mt represented 14.5% of the market, followed by Saudi Arabia with 160,000 mt. The US, a new player in the Indian market, sent 50,000 mt in October.

Brazil:

Prices of MAP moved up to $630-$640/mt CFR. Sources said demand for the soybean season began pushing up the price even though stockpiles remain high. Sources saw the move as a positive step to bring Brazil more in line with the other MAP markets in the world.

The Rondonopolis price tightened to $770-$780/mt FOB ex-warehouse, however. Reports that some buyers are looking to SSP as a replacement for MAP where possible remain a downside to the inland market.

TSP

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

US Gulf:

Players reported NOLA TSP barges inching down to $575-$585/st FOB, below $575-$590/st FOB at last check.

Eastern Cornbelt:

With fall demand now over, TSP prices continued to tumble. New offers FOB Cincinnati fell to as low as $625-$635/st FOB, well below the previous week’s $680-$740/st FOB.

Western Cornbelt:

Sources reported no TSP availability in the St. Louis or Caruthersville, Mo., markets during the week.

South Central:

TSP warehouse pricing slipped to $685-$705/st FOB in the South Central region, down from the previous $750-$760/st FOB range, with the low at Little Rock and the high at Memphis.