All posts by mickeybarb@charter.net

European Gas Rallies to Record; Phosphate Plant Revival in Jeopardy

Ammonia, Europe, Featured, News

European natural gas futures extended their gains to a record-high settlement on Aug. 18, according to Bloomberg, as an energy-supply crunch continued to batter the region amid signs that the fuel is becoming too costly for industrial use and power generation.

The benchmark contract settled 6.7% higher at 241 euros a megawatt-hour, above the previous record in early March when Russia’s invasion of Ukraine sent shockwaves across markets.

Prices are about 11 times higher than where they usually are for this time of the year, with costs spiraling for households and businesses that are facing the worst inflation in decades.

Even before the new gas spike, market players put the cost of producing ammonia in Europe at $2,000/mt (GM Aug. 12, p. 1). Major producers Yara International ASA, OCI NV, and BASF have already cut ammonia production. CF Industries Holdings Inc., which had to permanently close an ammonia plant in the UK due to high natural gas prices, told analysts on Aug. 10 that the current ammonia outages in Europe were already substantial. It said that while there will not be a complete shutdown of ammonia assets, it could reach 10 million mt.

In the meantime, Lithuanian phosphate fertilizer producer AB Lifosa, a subsidiary of EuroChem Group AG, which restarted in early August (GM July 1, p. 28), may have to go back down due to an ammonia shortage, according to a Tass report citing former chief executive of the plant Jonas Dastikas on Aug. 17. He said it was impossible to get ammonia from a EuroChem plant in Russia due to sanctions. Production was expected to resume at about 70% of capacity. Lifosa’s main product is DAP, with a production capacity of some 1 million mt/y.

Lifosa had initially been forced to halt operations in April after banks froze the company’s accounts the previous month after the European Union (EU) imposed sanctions on EuroChem’s former controlling shareholder and CEO Russian billionaire Andrey Melnichenko on March 9 (GM April 15, p. 1; March 11, p. 1).

While a “nationwide gas shortage does not necessarily have to occur,” Germany expects “there could definitely be gas shortages regionally,” Klaus Mueller, President of the Federal Network Agency BNetzA, said in an interview with news website t-online.

“The restrictions would probably be temporary at first and could end again or occur several times,” the regulatory chief said. “In this case, we have to ensure that the gas is safely transported across the country.”

Europe will likely aggressively tap its stockpiles should curbed flows from Russia continue through the winter, which would mean low inventories at the end of the heating season and a new cycle to refill the facilities in the summer.

“It is all the more important that everyone understands: It’s not just about one winter, but at least two,” Mueller said. “And the following winter could be even harder.”

As the winter supply crunch looms, Europe will have to compete with Asia for available supplies of liquefied natural gas, especially from the US. Tracking with European prices, Asian spot LNG prices were just below $60 per million British thermal units on Aug. 17, the highest level since early March.

“An increase in demand from Asia as buyers prepare for winter could raise the number of US cargoes bound for the region in the coming months,” Lujia Cao, a BloombergNEF analyst, wrote in a note.

Elsewhere, water levels on the Rhine River are expected to rise temporarily in the coming days due to rainfall, which could provide some respite to the crisis that has restricted barge transit on the water. However, the river is still historically low. The situation on the Rhine has exacerbated Europe’s energy crisis.

More Patents Issued for IFWN, “Seed Grind” Technology Revealed

News, News Briefs, Southeast

Innovations for World Nutrition (IFWN), Florence, Ala., announced that three US patents have been issued for its new agronomic technologies (GM Aug. 13, 2021; May 1, 2020; April 5, 2019), and six more have been applied for following extensive greenhouse testing.

The inventor of the technology, Ray Shirley, the long-time industry veteran and Founder and Chairman of Applied Chemical Technology (ACT), Florence, Ala., said the new technologies are a breakthrough in the growth of grain and fiber.

Shirley said the technology results in enhanced early and sustained plant and root growth. He said after years of testing with rice, the technologies demonstrated sustained growth that resulted in extended plant life (up to two weeks) and increased yields of up to 50%. In addition to rice, he said the technology also works for corn, wheat, and cotton.

He said the yield increases do not require application of elevated levels of traditional fertilizer since the technologies improve the efficiency of the fertilizers used. Even more yields and efficiencies are achieved with special formulations when used along with additional fertilization.

The technology multiplies and fortifies the strength of the planted seed by providing the patented “Seed Grind” on the seed, which increases the nutrients provided by the planted seed. In testing, the coating included ground-up rice grains, including the husk, along with nutrients such as carbon, hydrogen, and oxygen, which are needed by the roots prior to leaf formation. Also included are sources of carbon dioxide and energy in the form of bicarbonates and sugars, and nitrogen in the form of urea, which also supplies carbon dioxide.

Alternatively, the coating mix can also be applied next to the seed in the ground. This option allows more flexibility and the addition of more and other ingredients.

The technology is continuing to be enhanced with the assistance of ACT, Shirley, and others. IFWN is actively seeking strategic and financial partners for continued development, marketing, and in spreading this technology worldwide to overcome existing nutrition and fiber needs. For more information contact Ray Shirley or Daniel Lewey at 256.367.5010.

Ammonia

Ammonia, Black Sea, California, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, Pacific N.W., Southeast Asia, Tampa, Turkey, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf/Tampa:

European gas futures hit another record-high settlement on Aug. 18, increasing the pressure on more European ammonia plants to go offline. While this would shrink production, it could pull even more ammonia from other parts of the world such as the US.

As a result, the Tampa price for September may again go up, though if European plants are able to hold on, Tampa could roll over. Tampa ammonia prices were $1,100/mt CFR in August, up from July’s $960/mt CFR.

Nutrien has confirmed an ammonia sale from Trinidad to Northwest Europe, with the vessel to load in early September. The company said the CFR price falls in the current published pricing range. Green Markets is currently showing $1,200-$1,300/mt CFR into Europe. Nutrien says the deal reflects an FOB Trinidad value in the $1,170-$1,180/mt range.

In the meantime, sources report that a two-tiered market has developed for NOLA barges. While exporters may continue to get $1,000/st to serve the European market, that price does not match inland ammonia prices, which are trading in the $940-$1,050/st FOB range. Sources said that barges have been sold and are on offer at much lower numbers. A conservative number is $825/st FOB, with indications that trades may have gone lower.

Eastern Cornbelt:

Sources reported few changes in pricing from the previous week. The ammonia market was quoted at $1,025-$1,030/st FOB in Illinois and $1,030-$1,035/st FOB in Indiana for prompt or prepay. The market FOB Lima, Ohio, was reported at $1,025/st FOB for prompt and $1,050/st FOB for prepay, with the prompt number reflecting a $25/st increase from the previous week.

Western Cornbelt:

The ammonia market remained 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 reported at the $950/st FOB level. Truck pricing for ammonia FOB Gulf Coast terminals in Texas and Louisiana was reported at $1,000-$1,050/st FOB.

California:

Anhydrous ammonia postings from Calamco remained at $1,147/st DEL in California, with aqua ammonia posted at $301/st FOB Stockton.

Pacific Northwest:

Delivered ammonia prices in the Pacific Northwest were quoted at $1,050/st at midweek, up from recent fill offers in the $950-$1,000/st DEL range. The FOB market in Washington was pegged at the $970-$1,000/st level on a spot basis, up from $940/st at last report. Nutrien confirmed that it raised its ammonia price to $1,100/st DEL on Aug. 18, however.

Aqua ammonia pricing firmed to $256-$270/st FOB in the region, with the high reported late in the week.

Western Canada:

The last offers for ammonia in Western Canada were reported at the C$1,320-$1,340/mt DEL level for fall tons.

Northwest Europe:

Despite the high price for natural gas, sources said ammonia prices are not following suit.

Sources estimated that it would cost about $2,700/mt at the current gas price to produce 1 mt of ammonia, and yet prices are remaining relatively stable in Antwerp at $1,200-$1,300/mt C&F. Traders said the Northwest Europe price is affected more by the imports coming in from multiple sources rather than the estimated European production cost. One trader noted there are no markets for ammonia that would accept the estimated European production price.

Demand for ammonia in the area remains low as excessive heat pushes some plants to close and as the higher gas prices affect the ability to operate. Combined with inflation and high interest rates, most manufacturers see little benefit in running at full capacity.

Black Sea:

Even though some grain shipments are now being allowed to leave Ukraine and some dry bulk fertilizers, such as urea, have been coming out of eastern ports in the Black Sea, shipments of ammonia out of the region remain nil.

Sources said the ammonia pipeline to Yuzhnyy remains shut, affecting all exports by ship or rail. Ports away from the conflict zone are not equipped to receive or ship ammonia.

Large-scale buyers such as OCP in Morocco have depended on Black Sea product to maintain production. Sources said with adjustments to production and aggressive buying, these companies are able to keep operating. While it is not possible to completely replace the tonnage lost from the Black Sea, sources said these buyers are taking advantage of plentiful supplies from other markets to keep going.

Middle East:

With buyers looking to replace tons no longer available from Russia via the Black Sea or Baltic ports, Arab Gulf producers are reportedly working overtime to push up the price. Sources now said the opening offer from producers is at $1,200/mt FOB. Potential buyers point out that no current market can absorb that price, so talks continue and the price remains in the low-$900s/mt FOB.

Producers are facing several forces working against their efforts for higher prices. Asian buyers are pushing back hard against any price increase. Demand in Asia has softened even as cheaper Chinese material is making its way into the marketplace.

At the same time, some buyers west of the Suez, such as Turkey, are increasing their interest in buying as much ammonia as they can from Iran. And buyers in Europe seem to be getting enough ammonia from the US and North Africa to stabilize prices, leaving no room for the Arab Gulf producers to push harder on pricing.

India:

There are reports of sales into India from China at $825-$850/mt CFR. The possibility of these deals has been the basis for speculation and rumors for several weeks. Sources said the most recent deal appears to have been for 18,000 mt to a phosphate producer.

The availability of Chinese ammonia to India flies in the face of the efforts by the Arab Gulf producers to secure higher prices.

Southeast Asia:

Word is circulating that Kaltim V will be able to run its urea plant sometime in October. Sources said the most likely scenario is that the urea operation will take ammonia from other facilities while the Kaltim V ammonia reformer is repaired.

Getting the ammonia side of the complex running could take longer. Sources said if the assessment of damage is promptly completed and the company can quickly get all the necessary parts, some ammonia production could also begin in October. However, many in the industry still believe that full production may not be achieved until early 2023.

Buyers in Taiwan and Thailand are said to be looking for some spot cargoes with asking prices at $800-$850/mt CFR. These prices would move down the estimated netback to Chinese suppliers, based on the Chinese sale into India at $825-$850/mt CFR. Sources said given the soft nature of the Asia market, lower prices are expected all around.

January-July 2022 imports of ammonia into South Korea were reported at 846,000 mt by Trade Data Monitor. This quantity is only marginally below the 864,000 mt imported during the same period in 2021. The main suppliers so far this year were Saudi Arabia with 380,000 mt and Indonesia with 361,000 mt.

July 2022 imports were pegged at 148,000 mt, up about 11% from the 133,000 mt imported in July 2021. Saudi Arabia supplied about 64% of the ammonia in July, with 95,000 mt. Indonesia came in with an additional 42,000 mt for 28% of the import market.

Turkey:

Ammonia imports in Turkey for the first half of the year were reported at 339,000 mt by Trade Data Monitor. This is down 22% from the 435,000 mt imported during January-June of 2021.

Second-quarter 2022 imports were pegged at 141,000 mt, down 27% from the 192,000 mt imported during the same period of 2021.

June 2022 imports came in at 50,000 mt, marginally up from the 45,000 mt purchased during June 2021. Algeria dominated the June imports with 23,000 mt, for 45% of the import market. Russia supplied another 14,000 mt. Libya and Malaysia each sent 5,000 mt, for 10% each of the imported quantity.

Urea

Black Sea, Brazil, California, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Nepal, Pacific N.W., South Korea, Turkey, U.S. Gulf, Urea, Western Canada, Western Cornbelt

U.S. Gulf:

NOLA urea barges spanned a broad range at $542-$578/st FOB compared to the flat week-ago $563/st FOB. Early-week trades were reported in the $560-$578/st range, but prices retreated and hit the $542/st low on Aug. 18.

Eastern Cornbelt:

The urea market was steady at $610-$630/st FOB in the region, depending on location. In the Great Lakes region, new offers FOB Toledo, Ohio, were reported at the $680/st level for October-November shipment. In the Northeast, urea pricing FOB Fairless Hills, Pa., was pegged at $650/st for August-September and $665/st for October-November.

Western Cornbelt:

The urea market was unchanged at $610-$640/st FOB in the Western Cornbelt, depending on location, with the low confirmed at St. Louis, Mo. In the Northern Plains, delivered urea pricing in the North Dakota market was pegged at $635-$650/st at mid-month.

California:

Urea pricing was steady at $710-$760/st FOB port terminals in California for bulk tons, with reference prices remaining as high as $900/st FOB Stockton for bagged product. The last rail-DEL urea offers were confirmed at the $700/st level in early August.

Pacific Northwest:

The urea market was pegged at $655-$660/st FOB in the Pacific Northwest, with the low confirmed at Rivergate, Ore. Rail-DEL pricing reportedly firmed to $650-$670/st in the region, with the low in Montana and the high in Washington.

Western Canada:

Urea prices were up in Western Canada, with August-October offers now quoted at C$960-$980/mt FOB and C$945-$980/mt DEL, up from C$855-$880/mt DEL at last report.

India:

While many in the industry said the next tender could come as early as next week, fewer are saying it with conviction. Sources are now speculating that a new urea tender call could be pushed back into the first half of September.

Sources said the Indian government is playing a very delicate balancing act. If they wait too long to call the tender, the urea will be shipped during an expected spike in energy costs as the northern hemisphere enters winter. This spike could push urea prices dramatically higher, depending on the severity of the weather.

Reportedly, the powers that be are considering making a limited call for product in the next tender. Just as in the previous tender, sources said the buyer might ask for only 500,000 mt. If the price is right, said one trader, the buyer might take more.

Local media reported that the Indian government is moving ahead with a plan to make it easier to enforce the subsidy program for urea by using debit transfers instead of cash disbursements. The plan has been in testing mode for about six years. The goal, said government ministers, is to eliminate the corruption that sprung up under the previous system.

At the same time, rumors of potential adjustments to the maximum price of urea to match the increases paid for the imported product were quashed by the government. Urea subsidies take up the single largest portion of the budget allocated for fertilizer support to the farmers.

China:

Bloomberg reported that extreme heat and higher fuel costs have forced some urea producers in Sichuan to shut down. Sources told Green Markets that the producers were small compared to the major companies, but serve as indicators of how dire the situation in China has become for producers.

Traders said even if the plants did not close down because of the reasons given, they would have been forced to do so eventually. The domestic price for urea has been sliding. Sources said for many of the smaller producers, the selling price of urea is already below their production costs.

The soft domestic price is directly tied to the export restrictions imposed by the central government, sources reported. Expectations were growing that as the slack use season approached in China, the government might be willing to make urea more readily available for export. However, no changes in the export regulations have come through. Sources now report that producers have been approached by government officials saying the restrictions are expected to remain in place through 2023.

Local sources reported that about 193,000 mt is stored at portside warehouses. International traders speculated the amount is actually less. Sources also said it is possible that not all the tons have been cleared for export. Some Chinese traders may have moved the tons to the ports in anticipation of the Indian tender or other deal.

Positioning material at the ports is important, said one trader. Once approval is given to export the product, the seller has about 60 days to get the urea on a vessel. If the urea is already at the port, then the only delay would be securing a vessel.

Indonesia:

Reports are circulating that Kaltim V may be able to resume urea production as early as October. Sources said the company will most likely be bringing in ammonia from other Indonesian plants to get its granular line working again.

One international trader said it makes sense for Kaltim and the Indonesian government to expedite the restarting of the Kaltim V plant. Sources said it is the most efficient of the urea production facilities in the country. Once it gets the ammonia it needs to produce urea, the plant should be able to service domestic and international buyers.

Reportedly, the government is also looking at trying to convince farmers that prilled urea works just as well for them as granular. If the switch can be made, sources said that would free up the much-desired granular for export.

Sources said a selling tender for 30,000 mt of granular and 12,000 mt of prilled urea closes on Aug. 18. Traders speculated that if asked, more prilled urea might be made available.

Middle East:

Rumors abounded about multiple urea sales from Arab Gulf producers and Iran.Reportedly, two cargoes of Arab Gulf material were sold at $556-$560/mt FOB for shipment by the end of August. Sources could not confirm the seller, the trader, the buyer, or the tonnage. The only part that all could agree on was that the holder of the material had to liquidate his holdings and move quickly at a less-than-market price.

At the same time, reportedly two cargoes of Iranian material were sold at $500/mt FOB for buyers in Africa. A third cargo, at the same price, was reportedly sent to Brazil.

Reportedly, European buyers have been looking for more material. The current price of natural gas puts the cost of producing 1 mt of urea at $1,900/mt. At that level, the industry sees more benefit in importing than producing. Arab Gulf and Egyptian producers have also seen the desire for more material and are digging in their heels to prevent any slide in pricing.

Bloomberg reported that the Thai and Saudi governments are in talks to ensure a steady supply of low cost urea to Thailand. Reportedly, the Thai government is looking for 800,000 mt of urea for next year.

According to Trade Data Monitor, Thailand imported 828,000 mt of urea from Saudi Arabia in 2021 and 1 million mt in 2020. The Saudis have long been a major supplier to Thai buyers. The value the Saudis put on the Thai market has been seen in the prices paid for the product. Often the landed CFR price paid by Thailand is about the same as the FOB price the Saudis quote to other buyers. By taking a lower netback, the Saudis have locked in the Thai market.

Egyptian producers have gone quiet as talk circulates of softer prices. Sources said offers are now closer to $720/mt FOB on the heels of late-July business of $765/mt FOB.

Egyptian producers are also watching to see what happens in Europe. If the EU changes some of its import duties, Nigerian urea might become more attractive to European buyers. This challenge could force Egyptian producers to face competition in a market they have dominated for several years.

Nepal:

A urea tender for 27,500 mt closed this week. No details have been released of offering companies nor prices.

Black Sea:

Bloomberg reported that the EU has clarified its sanctions on handling Russian products.

New restrictions against importing Russian coal and some fertilizers into the EU took effect on Aug. 10. In its clarification, the EU said that even if the sanctioned materials are not heading to European buyers, companies operating within the trade pact boundaries are also not allowed to facilitate the sale or handling of the product. Sources said this means that EU-based companies cannot finance or insure the goods.

Exceptions are available for some fertilizers and food stuffs. However, the latest EU statement underscored what many international traders have been saying ever since sanctions were imposed on Russia for its invasion of Ukraine.

The traders noted that fertilizers were never on the sanction list. However, all the finances around purchasing, shipping, and delivering the product could be governed by the sanction’s protocols. One trader noted that even the smallest error in the paperwork could leave a bank or insurance company open to an investigation by the EU or US government over potential sanctions violations.

The transport of Russia urea out of the Black Sea remains opaque. Sources estimate netbacks based on speculation of cargo size, potential destination, and possible freight rates. The current estimate for the netback to a port on the east side of the Black Sea – the only ones operating outside the war zone – is $490-$530/mt FOB.

Turkey:

Urea imports for the first half of 2022 were reported at 1 million mt by Trade Data Monitor. This amount is about 30% down from the 1.4 million mt imported during the first semester of 2021. Urea from Oman dominated the imports at 531,000 mt. Egyptian material came in a distant second at 148,000 mt.

Second-quarter imports were reported at 477,000 mt, down 29% from the 675,000 mt imported during the same period of 2021. June 2022 imports of 181,000 mt were down 12% from the 206,000 mt imported during June 2021.

South Korea:

Urea imports for January-July were reported at 610,000 mt, up slightly from the 575,000 mt imported during the same period of 2021. Trade Data Monitor reported that China was the single largest supplier with 206,000 mt, followed by Qatar with 157,000 mt.

July 2022 imports were down nearly a half, dropping to 49,000 mt from the 87,000 mt imported during July 2021. China once again dominated the supply with 38,000 mt, accounting for 78% of the import market in July.

Brazil:

Prices began sliding early in the week and settled down to $600-$620/mt CFR. Even with the price slide, Brazilian and international traders said prices will go lower. The week closed with buyers quoting $570/mt CFR as their starting point.

Sources said price corrections are not unexpected during the current slow season. The buying that is taking place seems to be small quantities in a hand-to-mouth pattern.

Rondonopolis is reported at $800-$815/mt FOB ex-warehouse. Sources said buying appears to be put on hold until the fourth quarter. Reportedly, buyers are looking at the forecasts for the 2023 corn season before making any purchasing plans.

UAN

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

U.S. Gulf:

Anticipation mounted concerning the next level of NOLA UAN price offers. Price ideas moved up to $410-$425/st ($12.81-$13.28/unit) FOB from the week-ago $400-$425/st ($12.50-$13.28/unit) FOB.

Eastern Cornbelt:

UAN-32 was quoted at $455-$460/st ($14.22-$14.38/unit) FOB regional terminals, with the last UAN-28 offers reported at the $390-$392/st ($13.93-$14.00/unit) level FOB Cincinnati, Ohio.

Western Cornbelt:

UAN-32 pricing continued to be quoted in the $450-$470/st ($14.06-$14.69/unit) FOB range for the latest August-September offers in the Western Cornbelt, with the low confirmed for new business at Port Neal and the high reported at St. Joseph, Mo.

California:

UAN-32 ranged broadly at $470-$505/st ($14.69-$15.78/unit) FOB in California, depending on location and supplier, with the low reflecting the Aug. 10 posting from IRM at Stockton.

Pacific Northwest:

The UAN-32 market was quoted in a broad range at $475-$510/st ($14.84-$15.94/unit) FOB in the Pacific Northwest, with the low confirmed at Kennewick, Wash. Rail-DEL offers were reported at the $514/st ($16.06/unit) level in Washington in mid-August.

Western Canada:

The UAN-28 market in Western Canada had reportedly strengthened to C$595-$605/mt (C$21.25-$21.61/unit) DEL, up from C$545-$575/mt (C$19.46-$20.54/unit) DEL in late July.

Ammonium Sulfate

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

U.S. Gulf:

NOLA ammonium sulfate barges continued to be called $385-$400/st FOB.

Eastern Cornbelt:

The granular ammonium sulfate market was pegged at $445-$475/st FOB in the Eastern Cornbelt, down $5/st from last report, depending on location. Pricing FOB Toledo was reported at the $475/st FOB mark for August-September tons and $490/st FOB for October-November.

Western Cornbelt:

Granular ammonium sulfate pricing was pegged at $445-$480/st FOB in the Western Cornbelt, with the lower end of the range confirmed at St. Louis.

California:

The granular ammonium sulfate market was pegged at the $525/st FOB level for fill offers, with reports of limited rail-DEL tons also offered at $525/st at mid-month.

Pacific Northwest:

Ammonium sulfate was reported at $400-$470/st FOB in the region, with the low reflecting standard grade and the high granular. Delivered pricing was pegged at $400/st for standard and $445-$475/st for granular, depending on supplier and location.

Western Canada:

Ammonium sulfate prices in Western Canada were confirmed in a broad range at C$570-$685/mt DEL, up significantly from recent fill offers in the C$485-$515/mt DEL range. Sources described supplies as “very tight” through 4Q.

China:

A softer Southeast Asia market is pushing down the ammonium sulfate netback to China. Sources reported that the price for most deals is around $190/mt FOB. Some smaller deals, however, may have pushed the price even lower.

Reportedly, Atlas in the Philippines closed an 8,000 mt tender at $225/mt CFR. If the product came from China – sources also said it could be Japanese – then the netback would be $175/mt FOB. International traders said they have heard of regional buyers quoting this price in their talks with Chinese vendors.

Brazil:

As the nitrogen market softens, ammonium sulfate follows. Sources reported prices into Brazil at $255-$275/mt CFR. Buyers are looking for even lower prices as reports mount of a softer urea market. Rondonopolis was reported at $390-$415/mt FOB ex-warehouse.

South Korea:

Exports of ammonium sulfate for January-July 2022 were dramatically down, according to Trade Data Monitor. South Korea shipped out 144,000 mt of amsul in the first seven months of the year, compared with 350,000 mt during the same period in 2021.

July 2022 exports were reported at 18,000 mt, all to New Zealand, compared with the 30,000 mt exported during July 2021.

Turkey:

Imports of ammonium sulfate for the first half of the year were reported at 693,000 mt by Trade Data Monitor. This is up about 33% from the 520,000 mt imported during the first semester of 2021. The main supplier was China with 559,000 mt.

Second-quarter 2022 imports of 184,000 mt were down from the April-June 2021 total of 255,000 mt.

June 2022 imports of 41,000 mt were marginally up from the 37,000 mt imported during June 2021. China dominated the sourcing with 24,000 mt, for 58% of the import market. Belgium was second with 17,000 mt, for 41% of the June market.

PhosAgro Bond Amendment Fails

News, News Briefs, Russia

PhosAgro, Moscow, has been unable to obtain the consent of bondholders to amend the terms of international bond issues, including direct payment to holders and payments in alternative currencies such as rubles and yen, according to an Interfax report.

The PhosAgro request comes after a Russian presidential decree in July that requires Russian borrowers with outstanding Eurobonds to ensure fulfillment of obligations on them to bondholders who hold the bonds through Russian depositories.

PhosAgro was reported to be considering “the best course of action” with respect to the bonds, which includes a number of alternatives, including the potential convening of a meeting of bondholders.

In the meantime, on Aug. 18 PhosAgro said that despite the withdrawal of credit ratings from all Russian companies by international rating agencies, it continues to service its debt obligations, taking all necessary steps to ensure that they are paid on time.

DAP/MAP

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

Central Florida:

DAP trucks loading from Central Florida were posted at $800/st FOB, sources said, steady from the prior report. Sources reported MAP trucks unchanged at $830/st FOB.

Posted pricing for MAP trucks loading from North Florida softened to $820/st FOB from the $890/st FOB level reported previously.

U.S. Gulf:

Price levels ticked higher for NOLA DAP barges in a slow trading week, while MAP barges pushed down.

Most players cited the bulk of the week’s sales and offers at a $738-$745/st FOB floor for DAP, a slight move up from the week-ago $737/st FOB low. Limited volumes of domestically produced DAP were reported selling at $760/st FOB, a $5/st increase over the market’s prior $755/st FOB high.

MAP levels slipped to a maximum $765/st FOB for the current period, however, $10/st below the last-reported $775/st FOB ceiling. Pricing held steady at the prior $760/st FOB floor.

Players reported NOLA DAP barge pricing moving to $738-$760/st FOB for the trading week, above the week-ago $737-$755/st FOB. NOLA MAP barges were quoted at $760-$765/st FOB, falling from $760-$775/st FOB at last report.

U.S. Exports:

No new sales were reported in the Gulf export phosphate market during the week, leaving recent business unchanged at the last reported $910-$925/mt FOB range.

Eastern Cornbelt:

DAP pricing slipped to $800-$820/st FOB in the Eastern Cornbelt, down $10/st at the low end of the range, with MAP pegged in the $840-$850/st FOB range, down from the prior week’s $850-$860/st FOB range.

DAP pricing in the Great Lakes region was confirmed at $850/st FOB Toledo for August-September tons, while new MAP offers in the Northeast were quoted at $850/st FOB Fairless Hills for August pull, down $50/st from last report.

In the Southeast, MAP pricing from Nutrien reportedly dropped to the $820/st level FOB Aurora, N.C., and White Springs, Fla., down a full $70/st from the last $890/st FOB posting.

Western Cornbelt:

DAP slipped to $795-$825/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and the high in Iowa. MAP pricing was quoted at $830-$850/st FOB in the region, with the low again reported at St. Louis.

California:

MAP pricing was steady at $900/st FOB or DEL in California, unchanged from last report.

Pacific Northwest:

MAP pricing was pegged at $870-$890/st FOB or DEL in the Pacific Northwest, depending on location.

Western Canada:

MAP was pegged at C$1,210-$1,235/mt FOB in Western Canada, depending on location and supplier, with reports of delivered tons ranging broadly at C$1,220-$1,270/mt at mid-month.

India:

Sources reported more DAP deals that moved prices. Reportedly, a handful of trades took place at $880-$890/mt CFR. The purchases showed continued price softness as Indian buyers move to take advantage of what seems to be a surplus of DAP in the market.

China:

Limited DAP availability from Chinese producers continues to plague traders looking for product. Sources said the export restrictions make it difficult for traders to offer Chinese product to Indian buyers. At the same time, these same Indian buyers are reportedly in private talks with major DAP producers.

The lack of any spot deals out of China makes nailing down an export price difficult. Sources estimated the netback to China of the recent Indian deal at $850-$860/mt FOB.

Brazil:

Prices for MAP came off at the end of the week, falling to $840-$890/mt CFR. The deals at the close of the week capped off a series of rumors, speculation, and expectations of softer prices that dominated discussion throughout the week.

Sources said low demand for MAP was bumping up against a steady flow of new product into the ports. At the same time, some buyers shifted from being loyal to one brand or another and decided instead to shop prices alone, leaving some holders of MAP looking for new customers in a down market.

Rondonopolis is now pegged at $960-$1,035/mt FOB ex-warehouse. The drift downward follows events at the Brazilian ports and with Indian buyers.