All posts by mickeybarb@charter.net

Air Products, Mabanaft Plan Germany’s First Green Ammonia Import Terminal

Germany, Green Ammonia, Hydrogen, News, News Briefs

Industrial gas supplier Air Products and Hamburg, Germany-based Mabanaft GmbH & Co. KG, through the latter company’s subsidiary, Oiltanking Deutschland, plan to build Germany’s first large-scale green energy import terminal in the port of Hamburg.

Targeted to provide hydrogen to Germany in 2026, the planned import terminal is to be located at Mabanaft’s existing tank terminal in the port, the German energy group said in a Nov. 17 statement.

Mabanaft said this location offers strategic access to green ammonia from large-scale green hydrogen production facilities operated by Air Products and its partners around the world.

The intention is to convert the ammonia to green hydrogen via Air Products’ facilities in Hamburg before distributing it to buyers locally and across northern Germany.

This latest announcement follows the signing of a Memorandum of Understanding (MOU) between Air Products and the Hamburg Port Authority in February 2022, under which both parties committed to accelerate production, supply chain, and consumption of renewable hydrogen in the North of Germany and the Free Hanseatic State of Hamburg.

According to Air Products’ Chairman, President, and CEO Seifi Ghasemi, Air Products is the largest producer of hydrogen globally.

Potash, Salt Developer Emmerson Strikes Offtake Deals with Keytrade, Hexagon

Featured, Isle of Man, Morocco, News, Potash

Isle of Man-based Emmerson Plc, developer of the potash and salt Khemisset Mine project in northern Morocco, has signed nonbinding offtake Memoranda of Understanding (MOU) with Switzerland-based companies Keytrade AG and Hexagon Group AG.

The offtake deal with Keytrade is for the sale of a minimum of 245,000 mt/y of potash for a period of 10 years. With Hexagon, the offtake deal is also for a minimum of 245,000 mt/y of potash plus a minimum of 500,000 mt/y of salt product, both for a period of 10 years.

The MOUs account for some 65% of targeted annual potash production of 800,000 mt at Khemisset and 50% of the targeted 1 million mt/y of salt production. The operation is expected to have a 19-year mine life.

The MOUs set out the key terms for subsequent formal bankable offtake agreements, and importantly, contemplate “take or pay” provisions, said Emmerson in a Nov. 21 statement announcing the agreements.

The company expects the prices for the potash and salt to be derived from the market or as quoted in independent expert reports, averaged to a monthly price in the month prior to bill of lading, and after deducting a marketing fee.

The MOUs envisage that all the potash and salt products sold with be delivered on an FOB (currently Casablanca) basis, unless otherwise agreed by the parties.

Emmerson said the MOUs are non-exclusive, and it will continue to participate in ongoing offtake talks with other parties for the remaining production capacity from Khemisset.

The company is now funded to complete basic engineering work, remaining permitting, and project financing processes through to a construction decision for the Khemisset project. In September, it said it expected to make the construction decision and to realize the finalization of project financing in second-half 2023 (GM Sept. 30, p. 32).

Final environmental permits have still to be secured for the project.

OCP Launches Partnership for Carbon Farming and Certification Project in Brazil

Brazil, Morocco, News, News Briefs

OCP Group SA has partnered up for an initial carbon farming and certification project across Brazil’s Mato Grosso State with Brazilian  farmers’ cooperative Bioline by Invivo, and agtech company Agrorobótica.

The project initially will cover the areas of cotton, soybeans, and corn, which are representative of Brazilian agriculture, the Moroccan phosphates group said in a Nov. 22 statement, announcing the project partnership.

The partnership will encourage regenerative farming practices to enhance yield and soil quality through personalized digital solutions that are tailored to the area and the crop. To do this, the project will apply Agrorobótica’s AI-led soil analysis tool – Laser Induced Breakdown Spectroscopy (LIBS) – to measure, report, and verify carbon content and sequestration potential.

LIBS is an analytical technique that uses a high-focused laser to create a micro plasma on the surface of the soil sample, in order to determine its elemental composition without generating any harmful chemical residues.

These practices enhance the soil’s capacity to sequester carbon and improve soil health and fertility, which in turn reduces carbon emissions, supports food security, and helps to increase returns for farmers, OCP reported.

The phosphates group said the carbon credits generated from the project provide a valuable source of income for the farmer and OCP will put the carbon credits that it receives from this partnership toward its own objectives of achieving Net Zero carbon emissions by 2040.

“The project stems from a shared belief that soil health management is essential to improving the environment, achieving food security, and in working towards global net zero goals. This project is just the start of a larger collaboration between OCP Group, Bioline, and Agrorobótica,” said OCP.

Buyer Found for Stranded Russian AN in Estonia’s Muuga Harbor

Ammonium Nitrate, News, News Briefs, Russia, Scandinavia

A buyer has been found for 12,000 mt of Russian ammonium nitrate (AN) that have been stranded in the Estonian port of Tallinn’s Muuga Harbor since earlier this year (GM July 15, p. 29).

According to Estonia’s ERR News, the tons have been sold to agro trading group Scandagra Group AB, which is jointly owned by Sweden’s largest agri cooperative, Lantmännen, and Danish cooperative DLG.

The AN tons, which are part of a total of around 80,000 mt of fertilizers, including urea and compound fertilizers, stuck in Muuga, are owned by the Swiss subsidiary of Russian fertilizer group Acron Group. The tons are stored at the AS DBT terminal, which is 100% owned by the Acron Group.

Acron was unable to sell onwards the AN or other fertilizer tons after European Union (EU) sanctions were introduced following Russia’s invasion of Ukraine in February.

Estonia’s government requested an exemption from its Financial Intelligence Unit to sell the fertilizers.

The ERR News report cited Scandagra’s CEO Margus Venelaine as saying there is not likely to be a shortage of buyers for the AN, which he said was bought with the whole Baltic market in mind.

Scandagra will ship and truck the tons to its Baltic customers once the customs formalities are completed and the tons are bagged.

According to Estonia’s Consumer Protection and Technical Regulatory Authority (TTJA), cited by the report, regular tests have been carried out on the AN and the tons have not become degraded or dangerous.

It is unclear from the report if the remaining fertilizers stranded in Muuga harbor have been sold.

According to the report, there are also fertilizer tons belonging to two Russian fertilizer producers stuck in storage in the Estonian port of Sillamäe.

Ammonia

Ammonia, Black Sea, China, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, South Central, Southern Plains, Tampa, U.S. Gulf, Western Cornbelt

US Gulf/Tampa:

There was no word on the Tampa ammonia price for December as of press time. Sources have been expecting some weakness from November’s $1,150/mt CFR, citing increased production and lower ammonia prices in Europe.

Eastern Cornbelt:

The ammonia market continued to be quoted at $1,250-$1,350/st FOB in the Eastern Cornbelt, with the low reported out of Koch terminals in Illinois and Indiana and the high reflecting the latest terminal offers from CF. The ammonia market FOB Lima, Ohio, remained at $1,300/st FOB during the week.

Western Cornbelt:

Ammonia pricing remained at $1,250-$1,320/st FOB for prompt truck tons in the Western Cornbelt, depending on location and supplier, with the low reported out of Koch terminals in Iowa.

Southern Plains:

The last confirmed offers for ammonia remained at $1,100-$1,175/st FOB production points in Oklahoma and Kansas, depending on location. Truck pricing out of Gulf Coast terminals was steady in the $1,050-$1,080/st FOB range. “Ammonia application is not setting any records,” commented one regional source.

South Central:

Truck pricing for ammonia out of Gulf Coast terminals remained at $1,050-$1,080/st FOB, depending on location. Sources continued to report that no truck prices were being offered at El Dorado, Ark., Midway, Tenn., or Cherokee, Ala.

Black Sea:

Russian and Ukrainian grain and fertilizer are being shipped from the Black Sea under an agreement worked out with Turkey and the United Nations. Russia is still demanding the ammonia pipeline to Odessa be opened so it can export ammonia.

Many international traders call the idea of restarting the pipeline dangerous. One trader noted the power stations needed to maintain the flow of the ammonia are under regular attack by Russian military forces. At the same time, the pipeline also passes through disputed areas that could easily be attacked.

One international trader said there is plenty of ammonia available to the global market, albeit at a higher price than if the Black Sea material had not been shut off because of the war on Ukraine. He noted that even if the Russian ammonia were made available, finding buyers would be difficult. Most buyers have been able to find alternative sources. Still, despite assurances by the US and EU that there are no sanctions on Russian fertilizer-related sales, many banks and insurance firms are hesitant to back the deals.

Turkey is one of the buyers who found steady supplies once its Black Sea sources were shut down. Sources said Turkey has been taking ammonia from North Africa, Trinidad, Indonesia, and Iran. The current price into Turkey has been coming down as global supply outstrips demand.

Sources reported deals done last week showed prices at $980-$990/mt CFR. This is down about $100/mt from earlier in October. The Arab Gulf equivalent price for these Turkish deals is around $900/mt FOB.

Reportedly, Turkey is fully booked for its ammonia needs through the first half of December. It is still short a few tons for the second half of December, but, said sources, should have no problem covering their needs. No deals for January have been reported yet.

India:

Buyers continue to look for inexpensive spot deals and are taking advantage of offers from China. According to Chinese export numbers supplied by Trade Data Monitor, India has imported 62,000 mt from China since July 2022 out of 109,000 mt exported by China during the same time period.

Besides China, Indian buyers have also picked up ammonia on the spot market from Indonesia, Malaysia, and Trinidad. The prices offered by these ammonia producers have been lower than what the Arab Gulf producers have been offering.

Middle East:

Arab Gulf producers continue to claim they will not sell on the spot market for less than $1,000/mt FOB. The last spot deal from the area showed prices estimated at $1,015-$1,030/mt FOB. Buyers consider these prices too high and are asking for prices closer to $900/mt FOB.

Buyers have been watching the price into Turkey drop to use as leverage against the AG producers. The recent spot sales into Turkey are showing an Arab Gulf-equivalent price in the low-$900s/mt FOB.

The producers appear satisfied fulfilling their contracted orders with buyers around the world. Sources said, however, that producers are getting pushback from their customers in Southeast Asia. The buyers are asking the producers to reduce the amount of tonnage sent as well as the frequency of cargoes. Sources said the cutback in industrial output in the area has led to a reduced demand for inputs such as ammonia.

The Arab Gulf producers are also facing competition in the spot market from the cheaper ammonia offered by China, Indonesia, and Malaysia. International traders said it will not be long before the tanks holding the excess tons being produced in the Arab Gulf begin to reach their storage limits. When that happens, said one trader, the producers will have to re-think their pricing ideas.

Northwest Europe:

No new spot business in the area leaves the price at $1,150/mt CFR. Sources said buyers are becoming more aggressive in demanding lower prices. The latest set of bids top off at $1,000/mt CFR.

The buyers said the recent slide in natural gas prices and ready material from international sources justify the lower Northwest Europe price. Sources said, however, the gas price decline may be just a blip. With winter approaching, demand for gas to heat homes instead of industries may force prices up again.

One trader noted that if imported ammonia continues to soften, producers in Europe may have to reconsider their decisions to restart ammonia production. If gas prices go up and imports remain on a downward slope, there would be little incentive to keep their plants operating.

For now, European ammonia players are watching to see what happens in the United States. They are looking for reports on the ammonia application season, as well as the December Tampa price.

China:

Imports of ammonia into China were practically nil in October. Trade Data Monitor reported Chinese buyers imported only 123 mt of ammonia in October, compared to 89,000 mt imported during October 2021.

Sources said the near-zero tonnage imported, along with exports in October of 21,000 mt, indicates how much the Chinese industrial sector has slowed down. Major chemical companies in China have reportedly cut back on their operations. Some have slowed down output because of the zero-COVID-19 policy of Beijing that mandates shutdowns when a case of COVID-19 is confirmed in the plant or neighborhood. So even if a plant is COVID-19 free, there have been cases where workers could not get to work because their neighborhood was in complete lockdown.

Even without the COVID-19 policy, the economic slowdown in the global economy has forced many industrial plants to cut back on production as demand for their finished products declines.

In contrast to imports, Chinese exports of ammonia have been steadily increasing. China has exported 109,000 mt of ammonia since July 2022. India has imported 62,000 mt from China since July 2022 out of 109,000 mt exported by China during the same time period. The shift to becoming an ammonia exporter has benefited buyers such as India, which has taken 62,000 mt from China since July, who are looking for a cheaper alternative to the Arab Gulf and North African suppliers.

During January through October, Chinese ammonia exports were reported at 126,000 mt by Trade Data Monitor. By comparison, China exported 2,200 mt in all of 2021 and 2,300 mt in 2020. October exports were reported at 20,700 mt, with India taking 20,500 mt.

Ammonia imports for January through October were reported at 195,000 mt by Trade Data Monitor. This is dramatically down from the 750,000 mt imported during the same period in 2021. Indonesia was the main supplier with 110,000 mt.

October 2022 imports were the lowest figures seen for any month in the past three years at 123 mt. October 2021 imports were reported at 90,000 mt.

Urea

Bangladesh, Brazil, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Pakistan, South Central, Southeast, Southern Plains, U.S. Gulf, Urea, Western Cornbelt

US Gulf:

Most saw a fairly quiet NOLA barge market during the short week, however, prices were reported to have dropped to $490-$520/st FOB compared to the week-ago $505-$530/st FOB.

Eastern Cornbelt:

The urea market slipped slightly to $585-$610/st FOB in the Eastern Cornbelt, with the low confirmed out of spot Ohio River terminals and reflecting a $5/st drop from last week. The Cincinnati, Ohio, urea market was pegged at $590-$600/st FOB at midweek.

Western Cornbelt:

Urea continued to be reported in the $575-$600/st FOB range in the Western Cornbelt, with the low confirmed at St. Louis, Mo., and the high in Iowa.

Southern Plains:

Urea pricing covered a wide range at $575-$600/st FOB Catoosa/Inola, Okla., during the week, depending on supplier, down from the previous $590-$605/st FOB range. The Houston, Texas, urea market was pegged at the $605/st FOB level at midweek, down from $615/st FOB earlier in November.

South Central:

The urea market slipped to a broad $585-$625/st FOB range in the South Central region, with the low confirmed by Kentucky sources out of spot Ohio River terminals and the high reported at Memphis, Tenn. Most Arkansas River terminals were quoted at the $610-$615/st FOB level.

Southeast:

Urea pricing in the Southeast was quoted at $620-$640/st FOB port terminals, down $30-$40/st from earlier in November.

India:

National Fertilizers Ltd. issued letters of intent to buy 1.47 million mt of urea from its recently closed tender. The company booked 873,000 mt for West Coast deliveries at $573/mt CFR and 597,150 at $578.77/mt CFR for East Coast arrivals.

When the tender was first called, the buyer had indicated it was ready to take 800,000-1 million mt if the price was right. At the time, the industry was expected only a slight dip from the $649-$655/mt CFR set in the IPL October tender. Once the new prices were seen, the Department of Fertilizers ensured that NFL had the funds necessary to buy as many tons as possible of the 2 million mt offered.

Awards for East Coast India – $578.77/mt CFR
Offering Company Quantity (mt) Discharge Port
Ameropa 182,150 ECI – L1
Fertiglobe 45,000 ECI
Dreymoor 45,000 Kakinada
Aries 90,000 Vizag-Kakinada
Samsung 50,000 Kakinada
Swiss Singapore 50,000 ECI
Midgulf 90,000 Gangavaram-Kakinada
Koch 45,000 Krishnapatnam-Gangavaram
Total ECI 597,150  
   
Awards for West Coast India – $573/mt CFR
Offering Company Quantity (mt) Discharge Port
Fertiglobe 45,000 WCI – L1
OQ Trade 105,000 Mundra-Kandla
Ameropa 90,000 WCI
Dreymoor 93,000 Pipavav
Swiss Singapore 170,000 WCI
Indagro 100,000 Mundra-Tuna
Midgulf 45,000 Mundra
Keytrade 45,000 Kandla
Samsung 90,000 Mundra
Koch 45,000 Mundra-Kandla
Fertcom 45,000 WCI
Total WCI 873,000
Total Awards 1,470,150

Sourcing for the awards is widespread. Arab Gulf producers are expected to provide the single largest amount, about 390,000 mt. China is expected to show up with a surprising 250,000–300,000 mt. Sources had estimated Chinese product would be about half the current number.

Other sources estimated by industry watchers include Helwan and MOPCO of Egypt each supplying 50,000 mt; a cargo from Nigeria; about four cargoes from the Baltic; Indonesia or Malaysian with two cargoes; Algeria providing four cargoes; and Georgia sending one cargo.

Even as the industry was absorbing the size of the order and getting ready to settle down, rumors began circling the globe that another tender will be called soon. Sources in India said RCF is getting the paperwork ready for a tender to be called sometime in the first half of December.

While some traders dismissed the rumors as just talk, others looked more seriously at the situation. One trader said the country most likely needs the tender because domestic production was not hitting the levels earlier estimated by government planners. The reduced tonnage available from local producers will have to be made up with imports to avert complaints of inadequate supplies.

Some areas have reported less urea than requested, leading local politicians to complain loudly to the national government to rectify the situation. One source said urea stockpiles remain a sensitive political issue, as well as one of importance to crop output.

If a December tender is called, sources speculated prices will be marginally lower than the NFL results, largely because there will be no other major buyer in the market at that time. The US and Brazil, two major urea players, are not expected to get serious about 2023 imports until the first quarter of the new year.

Sourcing for the December tender may end up not including a strong showing from the Arab Gulf. Many of the producers have long-term contracts that will need to be filled during the January shipping period expected from the tender. Sources suggested the main suppliers will be Nigeria, North Africa, FSU states, and possibly Iran.

Pakistan:

The government authorized TCP to secure a government-to-government deal with China for 125,000 mt of granular urea. The deal was favorable to Pakistan, with a netback of about $480/mt FOB to China.

Another similar deal with Azerbaijan was closed for 35,000 mt. Sources said shipment on this cargo is slated for early December.

Pakistan moved on trying to secure government-to-government deals after a couple of attempts to secure 300,000 mt through the normal tender process. In the first effort, the only participant was disqualified. In the second attempt, the price was so low that if an award was made, sources said there was no way the winning firm could fulfill the contract.

Indonesia:

Pupuk called a selling tender to close on Tuesday for 6,000-15,000 mt of prilled urea for end-November/early December shipment.

The last bit of prilled business from Indonesia was 25,000 mt for Sri Lanka at $620/mt FOB. No new deals for granular urea have been done in a while, leaving the posted price at $675/mt FOB. However, estimates based on the last prilled urea levels put the granular price around $630/mt FOB.

Middle East:

Arab Gulf material is expected to be used to cover about 390,000 mt of the 1.47 million mt awarded in the NFL tender. Sources said these orders, combined with the contract tons already booked with producers, will leave the producers in good shape for the rest of the year.

Exports under contacts for first quarter 2023 could mean Arab Gulf producers might play a lesser role in the rumored December RCF tender.

Helwan and MOPCO will each supply 50,000 mt to India under the awards issued in the NFL tender. The MOPCO cargo was earlier reported at $570/mt FOB. The Helwan tonnage was revealed after the tender closed. Sources said the price for this lot was about $550/mt FOB.

The two deals now leave a wider range than normal for the Egyptian market at $550-$570/mt FOB.

China:

Sources estimated 250,000-300,000 mt of Chinese urea will be sent to India under the NFL tender. Earlier estimates of how many Chinese tons would be involved were about half that amount.

Exports of urea from China for January through October were reported at 1.9 million mt by Trade Data Monitor. This is a 60% drop from the 4.8 million mt exported during the same period in 2021. The main buyers so far this year were India, taking 746,000 mt, South Korea buying 326,000 mt, and Pakistan receiving 255,000 mt.

October 2022 exports were reported at 351,000 mt, a bit more than half of the 740,000 mt exported during October 2021. India took 62% of the urea shipped in October with 217,000 mt.

Bangladesh:

Local media report a fire at Chittagong Urea Fertilizer Ltd. forced suspension of production Tuesday, Nov. 22. The fire reportedly broke out at the ammonia plant in a reformer pipe. The fire was put out in about half an hour, according to the company.

The plant was built in 1987 with a rated urea production capacity of 1,200 mt/day and 1,000 mt/day of ammonia. There is no word when the plant will be back in operation.

Brazil:

Buyers and sellers in Brazil kept a wary eye on the Indian tender. The initial reaction after reports India would take 1.4 million mt, and then later 1.47 million mt, was of concern, because India was seen as taking up the excess tons in the market and possibly forcing prices up.

Almost immediately after the awards in the Indian tender were announced, rumors swept through Brazilian traders that another Indian tender might be called soon. This rumor raised concerns that India will be taking large quantities of urea in January 2023, just as Brazilian buyers will be entering the market.

Despite concerns about a potentially tighter market, prices slumped to $548-$580/mt CFR.

Demonstrations by truck drivers related to the results of the October presidential election are raising concerns in the interior of the country that the blockages may raise insecurities about urea supplies for the 2023 second crop. For now, however, the demand is low enough that higher prices are not expected.

Sources put the Rondonopolis price at $720-$750/mt FOB ex-warehouse. This level represents a tightening of the market in the area and not a major price shift.

UAN

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

US Gulf:

While some continued to call NOLA UAN barges $550/st FOB ($17.19/unit), others suggested that deals could be struck at lower numbers – assuming river conditions allowed barges to be unloaded.

Eastern Cornbelt:

UAN-32 pricing remained under pressure in the Eastern Cornbelt, with the low falling to $570/st ($17.81/unit) FOB Cincinnati for November-December offers. The Mount Vernon, Ind., market was steady at $585/st ($18.28/unit) FOB, while the upper end of the regional range was reported in the $590-$600/st ($18.44-$18.75/unit) FOB range on a spot basis.

UAN-28 offers from some suppliers were confirmed at the $498.75/st ($17.81/unit) level FOB Cincinnati at midweek.

Western Cornbelt:

The UAN-32 market was pegged at $580-$610/st ($18.13-$19.06/unit) FOB in the region, with the low reported at Port Neal, Iowa, for November-December offers. The St. Louis market was pegged at the $585/st ($18.28/unit) FOB level.

Southern Plains:

UAN-32 prices fell in a broad range at $530-$580/st ($16.56-$18.13/unit) FOB in the Southern Plains, with the low confirmed at Verdigris and Woodward, Okla., and the high at Enid, Okla.

South Central:

UAN-32 prices were reported at $555-$585/st ($17.34-$18.28/unit) FOB for limited offers in the South Central region, depending on location.

Southeast:

The UAN-32 market was quoted at $586-$595/st ($18.31-$18.59/unit) FOB port terminals in early November, with the low at Wilmington, N.C., and the high at Savannah, Ga. The low end of the Southeast UAN market remained at the $550/st ($17.19/unit) FOB level out of inland terminals in Georgia on a spot basis.

Ammonium Sulfate

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

US Gulf:

The NOLA ammonium sulfate barges continued to be called $365-$370/st FOB.

Eastern Cornbelt:

The granular ammonium sulfate market remained at $425-$455/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati.

Western Cornbelt:

Granular ammonium sulfate pricing was quoted at $425-$450/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 $440-$450/st FOB Catoosa/Inola and Houston, with reports of delivered tons at the $475/st level in central Texas.

South Central:

Ammonium sulfate pricing was pegged at $445-$450/st FOB in the South Central region.

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:

An Indonesian tender for caprolactam-grade amsul showed a netback to China of $175-$180/mt FOB. The drop in the price is greater than expected, but not unsurprising. Sources had been talking about how amsul prices have been falling off as demand softened, especially in Asia.

Exports of ammonium sulfate were reported at 10.2 million mt by Trade Data Monitor. This is up from the 8.2 million mt shipped during the same period in 2021. The main buyers were Brazil with 3 million mt, Turkey with 834,000 mt, and Vietnam buying 820,000 mt.

October 2022 exports were also up, to 1.4 million mt from the 1.1 million mt shipped during October 2021.

Brazil:

Prices softened, following a global trend, to $260-$275/mt CFR. Sources said buyers looking for product in time for the next application season will have to pay at the upper end of the range.

The Rondonopolis price for amsul has come down as urea prices tighten and even soften in some areas. Sources now peg the price for ammonium sulfate at $390-$415/mt FOB ex-warehouse.

DAP/MAP

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

Central Florida:

Truck-loaded DAP was posted at $770/st FOB Central Florida for the week, steady from the prior report. MAP maintained a premium to DAP at $790/st FOB, also unchanged from the week-ago. Central Florida phosphate producers were reported as sold out of DAP and MAP for loading through the first half of December.

MAP trucks loading from North Florida continued at $820/st FOB for the week, unmoved from one week earlier. Prices were expected to soften in the next round of business.

US Gulf:

Players described continued erosion in the NOLA barge phosphate markets during the holiday-shortened week. Price disparities between DAP and MAP were also noted easing on Nov. 22.

Nearby DAP barges were seen tracking down to $635/st FOB during the period, below the prior $640/st FOB floor, while players noted the top of the weekly market at $640/st FOB, down from $665/st FOB in the prior report.

Players pegged MAP barges at a general $640/st FOB high during the week, slipping from $650/st FOB reported previously, while the product’s low continued to ping closer to $630/st FOB, unmoved from last check.

Due both to the upper Mississippi River’s seasonal navigation shutdown and ongoing logistics hurdles resulting from low water levels on the lower river, material stationed upriver was understood to maintain a premium over tons loading from NOLA.

US domestic producer availability was previously reported as sold out through the first half of December.

NOLA DAP barges were noted softening to a $635-$640/st FOB range, below $640-$665/st FOB in the prior report. Players called MAP barges $630-$640/st FOB, off from the week-ago $630-$650/st FOB.

US Exports:

No new business was described for the week on the US Gulf phosphate export market. Recent reported spot trading included a 25,000 mt DAP load sold into a single destination in Latin America, with pricing pegged at $692/st FOB.

Eastern Cornbelt:

DAP was steady at $795-$810/st FOB in the Eastern Cornbelt, with the Cincinnati market reported at $800-$810/st FOB. MAP pricing was pegged at $800-$820/st FOB in the region.

Western Cornbelt:

DAP was quoted at $795-$810/st FOB in the Western Cornbelt. MAP remained at a recent discount to DAP, with the market reported at $780-$810/st FOB, depending on location. St. Louis pricing was unchanged at $795-$800/st FOB for DAP and $780-$785/st FOB for MAP.

Southern Plains:

DAP was quoted at $780-$790/st FOB Catoosa/Inola and $800/st FOB Houston, with MAP pegged at $765-$790/st FOB Catoosa/Inola and up to $810/st FOB Houston. Both markets reflected a significant drop from early November.

South Central:

DAP pricing in the South Central region was quoted at $780-$805/st FOB, with the low confirmed at Memphis and reflecting a $10/st drop from last report. The upper end of the range was reported out of Arkansas and Kentucky terminals.

Southeast:

MAP pricing from Nutrien is slated to drop to $750/st FOB Aurora, N.C., and White Springs, Fla., on Nov. 28, down from the current $820/st FOB level.

China:

The DAP market remained steady with no new spot deals. Sources said fewer sales are being handled by traders because some countries seek government-to-government deals or major buyers deal directly with producers.

One trader said because the major DAP producers are state-owned, they find it easier to ensure clearance of their product through the customs procedures designed to limit exports. Buyers face fewer possibilities of delays in shipments by dealing directly with the producers.

Exports of DAP for January through October 2022 were reported at 3.1 million mt by Trade Data Monitor. This is almost half of the 6.1 million mt exported during the same period in 2021.India took about one-third of the exports, with 1.1 million mt. Bangladesh was the second largest buyer with 605,000 mt.

October 2022 exports were reported at 504,000 mt, down 36% from the 790,000 mt shipped during October 2021. India took 239,000 mt for 47% of the exports, followed by Bangladesh with 87,000 mt for 17% of the exports.

Exports of MAP for January through October were reported at 1.6 million mt by Trade Data Monitor. This is more than half of the 3.7 million mt exported during the same period in 2021. Brazil dominated the buyers, taking 626,000 mt.

October 2022 MAP exports were reported at 177,000 mt, down about a quarter from the 233,000 mt exported during October 2021. Brazil received 48,000 mt of the MAP shipped. India was second with 35,000 mt.

India:

Buying of DAP is coming to an end for the season. Sources said some buyers are still talking directly to Chinese producers for extra tons to close out the season and prepare for the next.

Brazil:

The MAP market was steady on the low end and getting softer on the upper end. Sources call the current market at $590-$615/mt CFR.

Reportedly, some international sellers are pulling away from Brazil, citing better netbacks in other markets. Some Brazilian buyers are beginning to wonder if the market will ever recover.

The price for MAP in Rondonopolis tightened to $740-$770/mt FOB ex-warehouse. Buyers are concerned that the trucker demonstrations blocking shipment of most goods inside the country could delay arrival of MAP to local distributors.