All posts by mickeybarb@charter.net

Yara’s Clean Ammonia Demerger/Triangular Merger Completed

Ammonia, Blue Ammonia, Featured, Green Ammonia, News, Norway

Yara International ASA, Oslo, said on Aug. 25 that the demerger and triangular merger of Yara Clean Ammonia (YCA) business have now been completed. Yara’s shareholders will have the same number of shares in the company, and the nominal value of the shares in Yara will be the same as before the demerger and triangular merger.

YCA had been transferred to intermediary company Yara Clean Ammonia NewCo AS, and the intermediary was merged with YCA by way of a triangular merger before opening of the market on the Oslo Stock Exchange on Aug. 25.

YCA was established as a separate segment and business division in February 2021 to focus on green and blue ammonia (GM Feb. 12, 2021). Yara announced in May that it was evaluating the division as an initial public offering (GM May 6, p. 36).

Yara said YCA is uniquely positioned to enable the hydrogen economy in a market expected to grow substantially over the next decades. It said it plans to significantly strengthen its leading global position as the world’s largest ammonia distributor, unlocking the green and blue value chains and driving the development of clean ammonia globally.

Yara said YCA, also headquartered in Oslo, operates the largest global ammonia network with 12 ships, and has access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world through Yara. Revenues and EBITDA for the last 12 months were US$3.64 billion and US$172 million as of second-quarter 2022.

EPA Reaches $1.7 M Settlement over Alleged TRI Violations at The Andersons Marathon Plants

News, News Briefs, U.S.

The U.S. EPA on Aug. 17 announced a $1.7 million settlement with The Andersons Marathon Holdings (Andersons Marathon) LLC to resolve alleged Toxics Release Inventory (TRI) reporting violations of the Emergency Planning and Community Right-to-Know Act (EPCRA) at four ethanol facilities in Logansport, Ind., Denison, Iowa, Albion, Mich., and Greenville, Ohio.

The Andersons Inc., Maumee, Ohio, owns 50.1% of Andersons Marathon (GM Oct. 4, 2019), with Marathon Petroleum Corp. owning. 49.9%. The Andersons operate Andersons Marathon.

The investigations were of Andersons Marathon’s failure to file, failure to file timely, and failure to file accurate annual EPCRA TRI Forms for several chemicals from its fermentation vapor stream.

The company has agreed to pay a total penalty of $1,731,256 between two Consent Agreements and Final Orders (CAFO), the largest EPCRA TRI penalty ever obtained by the agency. In total, EPA found 101 violations.

Andersons Marathon has since filed its 2015-2020 EPCRA Toxic Chemical Release Forms and corrected its 2015-2020 data quality errors for chemicals including benzene, ethylbenzene, toluene, and other chemicals. EPA and Andersons Marathon also agreed as to how Andersons Marathon will report its future manufacture, process, or other use of fermentation chemicals (acetaldehyde, methanol, acrolein, formaldehyde, and formic acid).

As a result of the action and for future reporting, Andersons Marathon has adjusted measurements and releases of n-hexane and ammonia at its facilities.

ICL, Lavie Bio Collaborate on Biostimulants

Israel, News, News Briefs, Specialty

Fertilizer producer ICL, Tel Aviv, and Evogene Ltd., Rehovot, Israel, an agriculture biologicals company, on Aug. 16 announced a multi-year strategic collaboration agreement between ICL and Lavie Bio Ltd., Rehovot, a subsidiary of Evogene. The collaboration will focus on developing biostimulant products to enrich fertilizer efficiency.

Lavie Bio focuses on improving food quality, sustainability, and agriculture productivity through the introduction of microbiome-based products. It uses Evogene’s tech engine MicroBoost AI, leveraging big-data and advanced artificial intelligence (AI) in combination with a deep understanding of biology.

As part of the collaboration, ICL will make a $10 million investment in Lavie Bio under a SAFE (Simple Agreement for Future Equity). The investment will be made via ICL Planet Startup Hub, which is the platform ICL uses to invest in and collaborate with food and agriculture technology domains.

Pivot Bio Expands into Canada

California, News, News Briefs, Saskatchewan, Specialty

Microbial nitrogen provider Pivot Bio, Berkeley, Calif., recently announced its expansion into Canada, including launching the company’s business operations headquartered in Regina, Sask., and appointing its leadership team. Its future plans are to offer sustainable nitrogen to Canadian farmers, pending regulatory approvals. It said product trials are currently underway in both Eastern and Western Canada on corn, wheat, and canola.

Pivot Bio’s product has been commercially available in the US since 2019. The company said its microbes provide farmers with a dependable and consistent nitrogen source that adheres to the root of the plants and does not wash away or volatilize into the air.

Pivot Bio estimates that in Canada, nitrogen-hungry canola, corn, and spring wheat account for about 45% of seeded acres, and Canadian farmers use about five billion pounds (2.2 billion kilograms) of synthetic nitrogen every year to grow those crops.

Pivot Bio’s Canada operations launch under the leadership of Chuck Broughton, General Manager. It said Broughton brings more than 30 years of industry experience to Pivot Bio’s Canadian team, including business development, sales, and marketing in the North American and global seed treatment, inoculants, and crop protection markets.

Saskatchewan-based Wade Clarke is Pivot Bio’s Regional Sales Leader for Canada, and professional agrologist Katie Donohue, also from Saskatchewan, has joined Pivot Bio as Commercial Agronomist.

Ammonia

Ammonia, China, Eastern Cornbelt, Indonesia, Market Watch, Northern Plains, Northwestern Europe, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa:

Tampa ammonia for September was concluded at $1,150/mt CFR, up $50/mt from August. Most sources had been expecting an increase as more and more European nitrogen plants went offline due to higher natural gas prices (see related story).

In the meantime, Nutrien confirmed that it has sold a 10,000 mt cargo to Europe from Trinidad for September loading at $1,290/mt CFR, within the recent range of $1,200-$1,300/mt CFR.

Eastern Cornbelt:

The ammonia market remained at $1,025-$1,030/st FOB in Illinois and $1,030-$1,035/st FOB in Indiana for prompt or prepay in late August. The market FOB Lima, Ohio, was steady as well at $1,025/st FOB for prompt and $1,050/st FOB for prepay.

Western Cornbelt:

The ammonia market was steady at $940-$950/st FOB Nebraska terminals and $955/st FOB Port Neal, Iowa, for prompt or prepay. The last confirmed ammonia offers at Palmyra, Mo., were quoted at the $950/st FOB level.

Northern Plains:

Ammonia prepay pricing was pegged at the $930-$955/st FOB level in the Northern Plains, with the high reported at Velva, N.D. No prompt offers were confirmed out of regional terminals in late August. Delivered ammonia pricing in North Dakota ranged from a low of $825-$850/st for prompt fill to a high of $950/st for fall prepay.

Northwest Europe:

Plants in Lithuania, Poland, and the UK all shut down in late August because of ever-rising natural gas prices. Sources had expected these actions, because no relief was in site on gas prices.

European users of ammonia have had arrangements to import ammonia for some time. Even as production costs exceeded $2,000/mt based on the spot natural gas price, the market in Antwerp remains in the $1,200s/mt C&F. The reason prices held was because of the availability of ammonia from other markets for import. Seeing an opportunity, some sellers were pushing for prices above $1,300/mt C&F, but getting no takers.

This week a new sale from Trinidad for 10,000 mt moved the price up to $1,290/mt C&F. Sources said this is indicative of the trend for prices. Finding lower-priced product will now be difficult.

Indonesia:

Ammonia for export is expected to remain in short supply as the ammonia/urea producers make arrangements for domestic ammonia to be diverted to the Kaltim V plant so urea production can restart.

An explosion in late July shut down ammonia and urea production, but did not directly affect the equipment at the urea plant. Because Kaltim V is the newest and most efficient urea producing plant in the country, apparently a decision was made to divert ammonia from the export spot market and from less efficient urea plants.

Sources said at the time of the explosion that the softness of the Southeast Asian market was exposed when the shutdown did not affect regional prices. The decision to divert some ammonia from export to urea production, likewise, seemed to have not created any anxiety from area buyers.

China:

Imports for January-July 2022 were reported at 155,000 mt by Trade Data Monitor, down about 70% from the 519,000 mt imported during the same period in 2021. The main supplier was Indonesia, sending 91,000 mt in the first seven months of the year. Saudi Arabia followed with 39,000 mt, and Malaysia with 18,000 mt.

Demand for ammonia has waned as exports of phosphates were limited by the government and as the overall industrial output in China slacked off. Sources said China fulfills the bulk of its ammonia needs from its own production, leaving fewer opportunities for imported product.

July 2022 imports were reported at 10,000 mt, with almost all the tonnage coming from Indonesia. This compares with 23,000 mt imported in July 2021.

Urea

Black Sea, Brazil, China, Eastern Canada, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf:

NOLA urea barge prices shot up, with sources attributing the uptick to the new announcements of plant closures in Europe. Trades started the week as low as $560/st, but late Aug. 25 prices were put as high as $695. This compared to the week-ago $542-$578/st FOB range.

Eastern Cornbelt:

With NOLA urea prices climbing rapidly in response to soaring natural gas costs and more nitrogen production outages in Europe, urea terminal prices in the Eastern Cornbelt ramped up as well. Sources said prices FOB Cincinnati, Ohio, moved from $615/st FOB early in the week to $685/st FOB by Aug. 24, with reports of $695-$725/st FOB offers on the table there by late on Aug. 25.

In the Michigan market, urea prices climbed to as high as $760/st FOB as the week progressed. “I am getting reports from some that nitrogen pricing is being put on hold currently due to the gas situation,” said one regional source.

Western Cornbelt:

Urea pricing moved up quickly in the Western Cornbelt during the week, fueled by surging NOLA barge prices. While prices began the week at $610/st FOB St. Louis, Mo., offers there reportedly reached $710-$720/st FOB by Aug. 25. A similar spread was reported at urea terminals in the Iowa market, while pricing at Catoosa/Inola, Okla., reportedly climbed to the $715-$725/st FOB level on Thursday.

Northern Plains:

Urea prices were ramping up in the Northern Plains during the week, fueled by the rapidly firming NOLA barge market. Delivered pricing in the Northern Plains was reported at $645-$670/st at midweek, up $10-$20/st from the prior week. The Carrington, N.D., market was pegged at the $630/st FOB level early in the week, but offers were reportedly pulled on Aug. 24. Levels at St. Paul, Minn., had reportedly jumped to the $700-$725/st FOB level by Aug. 25.

In the Pacific Northwest, the urea price FOB Rivergate, Ore., jumped to $750/st FOB as the week progressed, up significantly from the prior week’s $655/st FOB level.

Northeast:

Firming prices were reported for urea in the Northeast. The market was pegged at $645-$655/st FOB at midweek, with the low confirmed at Fairless Hills, Pa., for August-September tons, and the high at East Liverpool, Ohio. Sources weren’t sure if those prices were still on the table by Aug. 25, however, with one Pennsylvania source quoting a new offer of $690/st DEL on that date.

Urea pricing FOB Baltimore, Md., was pegged in the $645-$660/st FOB range during the week. In the South Central market, new pricing FOB Convent, La., was quoted at the $670/st level, up a full $70/st from last report.

Eastern Canada:

The urea market in Eastern Canada was reported in a broad range at C$1,070-$1,150/mt FOB in late August, depending on location and supplier.

India:

A urea tender is expected to be called any day, but sources said the Indians waited just a little too long. The upsurge in urea prices this week is expected to carry over into the tender, giving the Indian buyers more headaches over pricing.

Ironically, the biggest threat to securing the tonnage needed is if an outlier comes in with prices similar to the last tender. Sources said estimates and quotes of prices from the major urea producers have shown an increase. However, the soft prices in the Chinese domestic market make an export price in the $470s/mt FOB possible. This is against current estimates of prices in the $520s/mt FOB.

If an offer comes in based on the $470/mt FOB price, chances are no other trader will be able to match the price, leaving the Indian buyer with only the low priced tonnage available for purchase. This has happened in the past, causing the buying houses to call another tender within days instead of weeks.

India still needs 1-1.5 million mt of urea to finish this season. Offers priced too low will limit the amount of urea available to traders. Offers priced too high could limit how many tons the Indian government is willing to buy. Offers in the $530-$540s/mt CFR so far are seen as possible. However, the rising prices in the global market may force a more dramatic increase.

Unconfirmed reports of $700/mt FOB sales from the Arab Gulf would represent a major leap in prices. As of Aug. 26, no confirmation of the Arab Gulf deal could be found.

The Indian government continues to promote its goal of urea self-sufficiency within four years. The government has promoted and subsidized the building of new urea plants and the restoration and conversion of older plants. Unfortunately for the current treasury, all the plants are based on natural gas.

The older plants are being converted to gas, while the newer ones employ the latest gas-related technology. The estimated openings of several plants come at a time when natural gas prices are hitting record levels and supplies into India are limited.

China:

Sources said expectations for an export price have risen from the existing $470s/mt to the $520s/mt FOB. However, no deals have been done at the higher level. Sources said given the upward movement in the global urea markets, the higher price could be reflected in the offers when India calls its urea tender.

Sources said the $520-$530/mt FOB price is based on the usual reference to the Indonesian price – currently $547/mt FOB – and estimates of where prices might fall in the next Indian tender. All those calculations cold be tossed aside if a reported $700/mt FOB deal is confirmed out of the Arab Gulf.

The China and Arab Gulf prices have long run in tandem with each other, with only slight variations. That changed after China imposed export restrictions on its urea. Buyers flocked to the Arab Gulf to make up for the tons lost from China. The buildup of domestic reserves in China pushed down the domestic price, and with it, pricing expectations for the limited tonnage allowed out.

The heatwave affecting China is expected to have multiple effects on the domestic urea market. Some plants were forced to close because of the extreme heat, and there are now reports that the heat is affecting crops. Some farmers are reportedly reluctant to invest in buying more fertilizer because of fears their crops may be ruined. So far, the limited production and the hesitancy of buyers appear to be canceling each other out, leaving the market in a status quo situation.

January-July 2022 exports of urea were reported at 875,000 mt by Trade Data Monitor. This amount is 67% down from the 2.7 million mt exported during the same time in 2021. India was the largest buyer for the period at 234,000 mt. Close behind was South Korea, taking 214,000 mt. Pakistan bought 101,000 mt, with all other buyers taking less than 100,000 mt.

July 2022 imports were pegged at 151,000 mt, down 38% from the 242,000 mt exported in July 2021. India took 40% of the exports with 60,000 mt. South Korea took the next largest amount at 45,000 mt, for 30% of exports.

Indonesia:

Sources fully expect to see Kaltim V turning out urea in October. The July explosion did not damage any of the equipment in the plant, only the ammonia reformer operation. As a result, Kaltim V will be taking ammonia from other less efficient producers, including some tons that would have been offered on the spot market.

There are some reserves of prilled and granular urea being shopped around, but with no takers. Sources said without any new deals, the price remains at the $547/mt FOB level set back in June and July.

Middle East:

Increased demand for urea from European buyers lit a fire under pricing, with sources reporting a deal done at $700/mt FOB from the Arab Gulf. However, no one could name a buyer or seller, nor could they identify how many tons were sold.

The sale comes just a week after a sale at $560/mt FOB to an African buyer sparked concerns that the market could continue to fall. Even though sources dismissed the African sale as an aberration – reportedly a trader got stuck and needed to liquidate his holdings – sources said the lurch to $700/mt FOB was more than expected.

The closure of urea and ammonia production in Europe due to high natural gas prices led to quick and high-priced sales out of Egypt for late-September shipment. Not far behind were Arab Gulf producers calling for higher prices, but not being specific – at least not in public.

Reportedly, some traders were beginning talks with producers to acquire tons for the upcoming Indian tender. The rumor of this new deal forced both sides to reassess their positions.

Sources said earlier there were possibilities that the Arab Gulf producers would be willing to accept a limited price rise in exchange for large quantities being sold into India. The tender would be a way to relieve the building reserves of urea.

Now, with European buyers looking to import urea instead of making it themselves, Arab Gulf representatives are crowding European airports to nail down some high-netback deals.

The price out of Egypt moved up steadily during the week. After languishing at $765/mt FOB for a couple of weeks, MOPCO reported a deal for small tonnage at $770/mt FOB. By the end of the week, a larger deal for 15,000 mt was signed at $785/mt FOB.

Sources said the motivations for higher prices out of Egypt are the same as those from the Arab Gulf. Buyers are looking to import because the cost of production is too high.

Black Sea:

Sources said Russia is sending as many tons of urea, phosphates, and MOP to Brazil as possible.

Shortly after Russia invaded Ukraine, the presidents of Russia and Brazil met. At that meeting, Brazilian President Jair Bolsonaro declined to condemn the invasion. In turn, Russian President Vladimir Putin promised Brazil all the fertilizer they would need.

With many other markets closed off to them, the Russian fertilizer producers have been shipping more product to Brazil. Reports from Brazil indicate that some of the urea coming in is priced below market levels, lowering the overall price in the country.

Brazil:

While the rest of the world is watching urea prices rise, the landed price in Brazil was stable at $600-$650/mt CFR. Sources said imports from Russia and Iran appear to have stepped up and are being offered at discounts to urea from other producers.

The bulk of the business, said sources, was done at the lower end of the price range, with only a few small orders at the higher end.

Rondonopolis prices are reported at $760-$790/mt FOB ex-warehouse. With rumors of higher prices coming out of the Arab Gulf, some distributors withdrew their public price lists to better be able to adjust prices if the rumors were true. The confirmed higher prices out of Egypt convinced them that they did the right thing, said sources.

UAN

Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf:

Market players put the NOLA UAN barge market in the $420-$430/st ($13.13-$13.44/unit) FOB range, compared to the week-ago $410-$425/st ($12.81-$13.28/unit) FOB. Expectations are that prices will continue to move up.

Eastern Cornbelt:

Many UAN prices in the Eastern Cornbelt were reportedly withdrawn during the week, with the last offers reported at $470-$485/st ($14.69-$15.16/unit) FOB for UAN-32 and $412-$433/st ($14.71-$15.46/unit) FOB for UAN-28, depending on location. Those levels were up from the previously reported $455-$460/st ($14.22-$14.38/unit) FOB range for UAN-32 and $390-$392/st ($13.93-$14.00/unit) FOB for UAN-28.

Western Cornbelt:

UAN-32 continued to be quoted in the $450-$475/st ($14.06-$14.84/unit) FOB range for the latest August-September offers in the region, depending on location.

Northern Plains:

UAN pricing in the Northern Plains in late August was described as “not well defined” until more offers are available. The last confirmed UAN-32 business remained at $460-$465/st ($14.38-$14.53/unit) FOB Minnesota terminals, with UAN-28 at $440/st ($15.71/unit) FOB in North Dakota. Sources said UAN-28 offers were withdrawn during the week, however.

Northeast:

New UAN-32 offers in the Northeast were confirmed at $470/st ($14.69/unit) FOB Fairless Hills and $470-$480/st ($14.69-$15.00/unit) FOB Baltimore, Md., up from the last confirmed fill business at $430-$432/st ($13.44-$13.50/unit) FOB Baltimore. UAN-32 offers out of terminals in upstate New York remained at $550/st ($17.19/unit) FOB in late August.

Eastern Canada:

The UAN-28 market remained at C$695-$850/mt (C$24.82-$30.36/unit) FOB in the region, with the last reported UAN-32 pricing at the C$795/mt (C$24.84/unit) FOB level in Ontario.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf:

New NOLA ammonium sulfate barge trades were reported in the $390-$405/st FOB range, up from the week-ago $385-$400/st FOB.

Eastern Cornbelt:

The granular ammonium sulfate market was pegged at $460-$480/st FOB in the Eastern Cornbelt, depending on location.

Western Cornbelt:

Granular ammonium sulfate pricing remained at $445-$480/st FOB in the Western Cornbelt, with the low confirmed at St. Louis.

Northern Plains:

Ammonium sulfate remained at $465-$495/st FOB in the region, with the low in Minnesota and the high at Sioux City, Iowa. The latest delivered fill pricing slipped to $430-$445/st DEL in North Dakota, down from the previous $440-$445/st DEL level.

Northeast:

Delivered granular ammonium sulfate pricing in the Northeast remained at $490-$515/st in late August. Terminal prices were steady at $455-$485/st FOB in the region.

Eastern Canada:

Ammonium sulfate fill pricing was steady at C$685-$790/mt FOB in Eastern Canada, although sources said they expect fill offers to be pulled soon.

China:

The trend is up on pricing, but no new deals were reported to confirm a shift from the current $190-$195/mt FOB for caprolactam-grade ammonium sulfate.

Sources said the upward trend is coming from the closure of European plants due to high natural gas costs. Suddenly, buyers from Europe were contacting Chinese suppliers to discuss cargoes, which started what sources said will be a battle between European and Brazilian buyers for the product.

The amsul market had gone quiet as urea prices softened, leaving little incentive to use it as a substitute. With urea prices once again on the rise, sellers are looking to reconnect with their customers to see if any new deals are possible.

With a rebound in amsul prices likely because of increased demand from Europe and higher urea prices, sources said the supply from China remains tentative. The cutback in industrial output in China has also caused a reduction in amsul availability.

January-July 2022 exports of ammonium sulfate were reported at 5.7 million mt by Trade Data Monitor. Exports during the same period in 2021 were reported at roughly the same level, with only a 0.37% increase in 2022.

Brazil dominated the purchases of Chinese amsul, taking 1.2 million mt during the first seven months of the year. The next closest was Vietnam, taking 572,000 mt, followed by Turkey, which took 550,000 mt.

July 2022 exports were reported at 917,000 mt, down 16% from the 1.1 million mt exported in July 2021. Brazil took 381,000 mt, accounting for 41% of China’s exports. No other buyer exceeded 9% of ammonium sulfate exports.

Brazil:

Ammonium sulfate buyers may soon be facing more competition for Chinese tons. European buyers have reportedly made overtures to Chinese suppliers for tons as higher natural gas costs in Europe affect the ability to produce material at a viable level.

Pricing so far has come off only slightly, to $250-$270/mt CFR. International sources are not sure how prices in Brazil will shift. With European demand stepping up, Brazil could potentially get into a bidding war with them.

At the same time, however, demand for amsul as a substitute for urea is down due to the dip in urea prices in August. If urea prices recover – as indicated by rumors out of the Arab Gulf and by deals out of Egypt – then demand might pick up again, providing another incentive to move up prices.

Rondonopolis ammonium sulfate pricing was reported at $370-$385/mt FOB ex-warehouse. This represents a significant drop from the previous week, when the top of the range touched $415/mt FOB.

DAP/MAP

Brazil, Central Florida, China, DAP/MAP, Eastern Canada, Eastern Cornbelt, India, Market Watch, Northeast, Northern Plains, Pakistan, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

DAP trucks were posted at $800/st FOB in the Central Florida market, steady from the prior week. Truck-loaded MAP continued to run at a premium to DAP at $830/st FOB, also unchanged from one week earlier.

MAP loaded to trucks from North Florida was posted at $820/st FOB, sources said, unmoved from the prior week.

U.S. Gulf:

The NOLA DAP and MAP barge markets continued to search for direction during the week, with sources noting declining DAP values contrasted against a rise in MAP pricing.

DAP barges were reported bottoming at $735/st FOB at the start of the trading week, declining from the prior $738/st FOB floor. Players reported multiple trades in the $740-$745/st FOB range, indicating the bulk of the market focused at that level. Domestically produced DAP was offered at $770/st FOB, unchanged from the week before.

Early-week pricing was heard even with last week’s $760/st FOB low for MAP barges, while players reported most volume falling in the $765-$779/st FOB range, building on the market’s prior $765/st FOB top. Players reported offers for domestically produced MAP at $800/st FOB, steady from one week earlier.

NOLA DAP barges were quoted trading in the $735-$745/st FOB range, falling from $738-$760/st FOB at last report. MAP pricing was reported at $760-$779/st FOB, however, above the week-ago $760-$765/st FOB.

U.S. Exports:

Nothing new was heard transacting during the week on the Gulf export market. The last reported spot business included pricing in the $910-$925/mt FOB range

Eastern Cornbelt:

DAP pricing slipped to $790-$810/st FOB in the Eastern Cornbelt, down another $10/st from last report, with MAP pegged in the $815-$835/st FOB range, down from the prior week’s $840-$850/st FOB range. The Cincinnati market was reported at $800-$810/st FOB for DAP and $815-$830/st FOB for MAP.

Western Cornbelt:

DAP dropped to $790-$810/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and the high in Iowa. MAP pricing was quoted at $810-$830/st FOB in the region, with the St. Louis market pegged at $815-$825/st FOB.

Northern Plains:

DAP pricing reportedly fell to $795-$810/st FOB St. Paul in late August, with MAP reported at $835-$850/st FOB at that location. Delivered green MAP in western North Dakota remained at the $890/st level for recent fill offers.

Northeast:

Phosphate prices were down, with the MAP market quoted at $840/st FOB East Liverpool and $855/st FOB Fairless Hills. DAP was pegged at $820/st FOB East Liverpool, down $25/st from last report.

Eastern Canada:

MAP pricing in Eastern Canada remained at C$1,325-$1,335/mt FOB in late August. The DAP market at Montreal was unchanged at the C$1,315/mt FOB level.

India:

 Sources reported another deal that further dropped the landed price of DAP into India. Reportedly, a sale was made at $870/mt CFR for 40,000 mt.

The pressure for lower prices is expected to continue. Sources said so far, the game plan laid out by India to be aggressive on pricing during a slow period in the global market appears to be working. Producers, on the other hand, are now saying they will be digging in their heels and demanding prices closer to $880/mt CFR.

Most of the deals appear to be made directly between the buyers and producers, leaving international traders in the wings. Even though they are not in the game, traders said there is still more room for the price to drop. Once that level is achieved, they figure the price will stabilize.

China:

The netback to China from the latest DAP deal into India is put at $840-$850/mt FOB.

Availability of DAP for export remains limited. Producers still need to prove to customs officials that any sale to another country will not hurt domestic supplies or raise prices in the local market. In addition to the restrictions, sources reported some DAP output is being affected by plants cutting back or closing due to excessive heat.

January-July 2022 exports of DAP were reported at 1.6 million mt by Trade Data Monitor, down 61% from the 4.2 million mt exported during the same period in 2021.The main customers so far this year were India at 554,000 mt, Thailand at 198,000 mt, and Bangladesh at 162,000 mt.

July exports of DAP were reported at 336,000 mt, down about two-thirds from the 984,000 mt exported in July 2021.

January-July 2022 exports of MAP were reported at 1 million mt by Trade Data Monitor, down 60% from the 2.6 million mt exported during the same period in 2021.Brazil topped the list of buyers, taking 450,000 mt. Argentina bought 196,000 mt, and rounding off the top three buyers was Australia with 146,000 mt.

July 2022 exports were reported at 161,000 mt, down from 677,000 mt in July 2021.

Pakistan:

An effort by the Trading Corp. of Pakistan to control DAP imports was widely condemned by the private sector.

Local media reported that the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) said regulating the unregulated phosphate sector in Pakistan could damage the supply of DAP to the market. In a letter to the Ministry of Commerce, FMPAC said not only could the move limit the amount of DAP available, but it could also raise the price to already cash strapped farmers.

In the past, TCP was the sole importer of urea for Pakistan. Even as the urea market opened to allow some imports by the private sector, TCP was still the go-to organization for importing urea. It was recently tasked with handling a government-to-government deal with Saudi Arabia for much-needed urea. International traders said on the heels of that deal, some in TCP believed they should make a move on DAP imports.

While FMPAC is concerned with availability and price, international traders were concerned about corruption. About a dozen years ago a former chairman and a former board member of TCP were arrested on corruption charges involving wheat purchases for the country. Even two years ago, Transparency International raised concerns about the wheat procurement procedures.

Sources said the current reserves of DAP are at 900,000 mt, more than enough for the season. FMPAC also told the government that the private sector has provided adequate supplies of DAP for the past 10 years.

Pakistan imports an average of 1.4 million mt of DAP, based on import date for 2017-2021 from Trade Data Monitor. China has been supplier the bulk of the phosphate fertilizer in each of those years, with Morocco and Australia coming in a distant second and third.

Partner Country Pakistan DAP Imports 2017-2021
2017 2018 2019 2020 2021 Total
World 1,729,809 1,928,895 1,249,146 1,064,940 1,277,021 7,249,811
China 1,210,824 1,494,640 819,320 664,180 991,866 5,180,830
Morocco 247,695 270,896 210,087 108,624 837,302
Australia 244,838 183,295 158,930 27,660 55,371 670,094
Saudi Arabia 245,564 105,721 121,160 472,445
Other 28,583 3,265   57,292   89,140

Brazil:

Supplies of MAP remain strong even as demand slips. The result has been a further drop in prices to $800-$860/mt CFR. Sources said higher production costs and reduced output could mean Brazil has seen the floor on pricing.

Inland holders of MAP are looking to clear out their warehouses in preparation for the arrival of grains for export and for replacement fertilizer shipments. This desire is allowing aggressive buyers to push down the price. Sources peg the current Rondonopolis price at $920-$985/mt FOB ex-warehouse.