All posts by mickeybarb@charter.net

Proman Nitrogen Project Advances in Mexico; López Obrador Eyes More Domestic Production

Ammonium Sulfate, Europe, Mexico, News, News Briefs, U.S.

Swiss-based Proman AG’s proposed nitrogen project in Topolobampo, Sinaloa, in Mexico advanced this week with the July 20 announcement by Mexico’s state-owned energy utility Comison Federal de Electricidad (CFE) that two of its subsidiaries have signed a 15-year natural gas contract (81 billion Btu per day) with Gas y Petroquimica de Occidente (GPO), a subsidiary of Proman, to supply the future fertilizer plant.

CFE said the construction and development of the fertilizer plant represents benefits such as a boost to foreign investment of approximately US$5 billion, as well as 800,000 mt/y of fertilizer production to guarantee food self-sufficiency in northwestern Mexico, in accordance with the policy outlined by President Andrés Manuel López Obrador to boost national fertilizer production. It added that the new plant will create 2,500 direct jobs and 7,500 indirect jobs during the construction, and pull in some $2 billion for CFE over the life of the contract.

While Proman had not responded by press time, the company has been working its way through Mexico’s regulatory and legal system for several years (GM Oct. 18, 2019). In the past, initial production was put at 770,000 mt/y of ammonia and 700,000 mt/y of urea.

In a statement on July 15, López Obrador said the legal issues pertaining to the plant had been resolved, and that “we want to do the same thing in the Gulf, promote at least two large plants to produce fertilizers.”

In his July 12 meeting with President Joe Biden, López Obrador said gas and fertilizer plants will be established with U.S. investors, though he provided no details.

López Obrador also said on July 15 that a planned rehabilitation and modernization of fertilizer plants owned by Petroleos Mexicanos (Pemex) will increase fertilizer production by 50%. Mexico plans to spend $530 million to increase production. Soon after leaving Washington, he toured fertilizer plants in Baja California Sur, Michoacan, and Veracruz. He also announced plans that the government would give free fertilizer to some 2 million small farmers in nine states.

As reported last week, López Obrador and Biden announced that the U.S. will supply Mexico with up to 1 million tons of ammonium sulfate (GM July 15, p. 6). Mexico removed several import duties in May, including those on ammonium sulfate. In mid-June, the first vessel of duty-free U.S. ammonium sulfate docked in Mexico.

Illinois Farm Supply Retailer Sustains Major Damage from Fire

Eastern Cornbelt, News, News Briefs

A 4:30 a.m. fire on July 19 destroyed practically all of Tri County Stockdale’s Shorewood, Ill., property, including several pole barns containing fertilizer and other ag inputs and supplies, according to Troy Township Chief Andy Doyle in a July 20 news conference, as reported on the Patch.com news platform. He assessed the damage at $1 million, and said it could top $2 million.

No injuries were reported, and no one was onsite at the time of the fire. Local residents within a two-mile radius were asked to shelter-in-place due to possible toxic fumes. The cause of the fire remains under investigation.

Caudill Seed Sets Up Pelletized Lime Facility

News, News Briefs, South Central, Specialty

Caudill Seed Co., Louisville, Ky., a subsidiary of Kentucky Fertilizer LLC, Winchester, Ky., reported on July 19 that it has set up a pelletized lime operation in Winchester at the former Agro Fertilizer location, which was purchased in 2010.

The pelletized products consist of pelletized lime, gypsum, and a new upcoming product, enhanced fast-acting pelletized lime, which will be available in the fall of 2022.

DOE Selects Raytheon for Hydrogen/Ammonia Projects

Ammonia, Hydrogen, News, News Briefs, U.S.

Raytheon Technologies Corp., East Hartford, Conn., said on July 19 that it has been selected by the U.S. Department of Energy (DOE) for two research and development projects to test the use of hydrogen and ammonia as effective, zero-carbon options for electricity generation.

Raytheon will work with the University of Connecticut School of Engineering on the ammonia project to focus on the use of ammonia as a zero-carbon fuel for power-generating turbines. It noted that using ammonia presents several advantages, including a pre-existing production and transportation infrastructure that requires much less refrigeration in comparison to hydrogen, as well as the ability to easily store it as a liquid.

Under the hydrogen project, Raytheon will validate the capacity to operate the Mitsubishi Power Aero’s FT4000® gas turbine unit using hydrogen and hydrogen blends as fuel sources. The FT4000® is a land-based variant of Pratt & Whitney’s PW4000™ turbofan aircraft engine.

The hydrogen fuel test will complement other work occurring in another development project, the Hydrogen Steam Injected, Inter-Cooled Turbine Engine (HySIITE) project. HySIITE, also supported by the DOE, is a Pratt & Whitney-led effort to develop hydrogen-fueled propulsion technology applicable to single-aisle commercial aircraft.

Brazil Authorizes the Construction of Six Private Port Terminals

Brazil, News, News Briefs

The government of Brazil has authorized the construction of six new port terminals during the first half of 2022. They will be used for the movement of fuels, biofuels, grain, cellulose, and fertilizer, among other products. The investments total R$10.3 billion, according to CNN, citing data from DataPort, a database of ATP (Association of Private Port Terminals).

In the Southeast, two new terminals will be created in Santos: the Logistic Port Terminal (TPL) and the Terminal of the Brazilian Co. of General Warehouses (EBT). TPL will accommodate the operations of solid and liquid bulk products, including soybeans, soybean meal, corn, and fuels. This new terminal is estimated to move over 3 million mt each of fertilizer and cellulose.

In the North, three new terminals will be built: Mallet Terminal of Louis Dreyfus Co.; Terminal Atem’s in Santarém, Pará; and the Terminal of Lajes Logística in Manaus, Amazonas. In the South, the Porto Guará Terminal will be built in Paranaguá (PR).

Some 17 new terminals and expansions are still in the approval process.

Ammonia

Ammonia, Eastern Cornbelt, Indonesia, Market Watch, Middle East, Northwestern Europe, South Central, South Korea, Southern Plains, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa:

Tampa ammonia for July was $960/mt CFR, down from June’s $1,000 mt/CFR. With more ammonia plants going offline in Europe due to high natural gas prices, most are predicting an uptick for Tampa in August.

Sources predict that Europe will source product from the U.S. and Trinidad to make up for any shortfalls, soaking up tons that might have gone to Tampa.

Eastern Cornbelt:

Ammonia fill pricing in the Eastern Cornbelt remained at $950/st FOB terminals in Illinois, Indiana, and Ohio for 3Q delivery. Order books were still reportedly open during the week.

Western Cornbelt:

Ammonia fill offers in the Western Cornbelt remained in a broad range at $825-$950/st FOB, with the low reported at Hoag, Neb., and the high at Palmyra, Mo.

Southern Plains:

Ammonia pricing for 3Q delivery remained posted at $805-$825/st FOB production points in Oklahoma and Kansas, but sources said prices were netting back to as low as $700/st FOB based on delivered offers into the Cornbelt. Prompt truck offers out of Beaumont, Texas, were unchanged at $900/st FOB, but sources said an adjustment is likely.

South Central:

The truck market for ammonia reportedly remained at $900-$910/st FOB Gulf Coast terminals in the region, with the low confirmed at Beaumont, Texas. No truck prices were reportedly being offered at El Dorado, Ark., Cherokee, Ala., or Midway, Tenn.

Northwest Europe:

A Fertiglobe ammonia sale into Southern Europe at $1,120/mt C&F is an indication that even with the Gazprom notice of a force majeure against certain European buyers, the price of ammonia is not on an automatic upward track. The price reflects a slight softening from previous weeks.

Sources reported that under the current estimated spot gas price, the production cost for a ton of ammonia should be $2,000/mt. However, once the average price of gas over the past month or so is considered, that cost drops to $1,200-$1,300/mt. So far, as one source noted, no one is paying up at either level.

Traders point out that the European price is being kept in check because buyers are able to secure tons from non-traditional sources outside the region. Suppliers from Indonesia to Trinidad report enough tons on hand to take care of their regular business and the occasional demand for tons from European buyers. The netbacks are low enough that once freight is added in, the landed price, while still higher than the past, does not continually get higher.

Middle East:

Production appears to be running well, with a growing trend to building a slight surplus. The extra material on the supply side is not large enough to move prices down, said one trader. So far, no spot business has been reported as producers take care of their contracts.

Iranian exports for the first half of the year were reported at 241,000 mt by Trade Data Monitor. This is down about 24% from the 316,000 mt exported during the same period in 2021. The main buyer was India, taking 206,000 mt.

Second-quarter exports were also down compared to the previous year. Trade Data Monitor reported that 125,000 mt was shipped out for April-June 2022 compared to 191,000 mt during the same period last year.June 2022 exports were reported at 44,000 mt, compared to 65,000 mt from June 2021.

South Korea:

January-June ammonia imports this year were reported at 698,000 mt by Trade Data Monitor. This reflects a 4.5% drop from the 731,000 mt received during the first half of 2021. The main suppliers were Indonesia with 320,000 mt and Saudi Arabia with 285,000 mt.

Second-quarter 2022 imports were also down. April-June imports were reported at 66,000 mt, a 54% drop from the 142,000 mt imported during the same period in 2021. June 2022 imports, on the other hand, were up dramatically at 45,000 mt against June 2021 imports of 28,000 mt. The material in June 2022 came almost equally from Saudi Arabia and Indonesia, with each sending about 22,000 mt.

Indonesia:

Exports of ammonia from Indonesia for January-May 2022 were reported at 828,000 mt by Trade Data Monitor. This is a marginal increase from the 826,000 mt sent out during the same period of 2021. The top two customers were regional buyers South Korea with 267,000 mt, and Japan with 106,000 mt.

May 2022 exports were reported at 176,000 mt, up about a third from the 131,000 mt shipped out during May 2021. South Korea took 62,000 mt, China took 22,000 mt, and Japan bought 20,000 mt, accounting for 59% of Indonesian exports in May 2022.

Urea

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

U.S. Gulf:

NOLA granular urea prices were reported at $470-$535/st FOB, down from the week-ago $515-$558/st FOB. Some said they saw an immediate drop in the NOLA market after the Indian tender results were released showing a $200/mt drop in that market.

Eastern Cornbelt:

Urea prices broadened to the $550-$590/st FOB range in the Eastern Cornbelt, down from the previous week’s low of $565/st FOB, with the low end of the range confirmed out of river terminals in Illinois and Indiana on a spot basis. The Cincinnati, Ohio, urea market was pegged at $575-$590/st FOB, up $10/st from the prior week.

Western Cornbelt:

Urea prices were reported at $550-$580/st FOB in the Western Cornbelt, with the low confirmed at St. Louis, Mo.

Southern Plains:

Urea pricing slipped to $545-$560/st FOB in the Southern Plains, with both the high and low reported at Catoosa/Inola, Okla., depending on supplier. The Houston, Texas, urea market remained at the $550/st FOB mark in mid-July.

South Central:

Urea prices narrowed to $560-$585/st FOB in the South Central region, with the low confirmed at Convent, La., and the high out of river terminals in Arkansas. The Memphis, Tenn., urea market was quoted at $575-$580/st FOB at midweek.

Southeast:

Urea prices were quoted at $600-$605/st FOB port terminals in the Southeast, up just slightly from last report. No tons were available at Chesapeake, Va., or Savannah, Ga., in mid-July, sources said.

India:

The IPL tender closed on July 20 with 19 companies offering about 1.8 million mt. Sources cautioned that much of that total could be double counting. The lowest price for both coasts came from Gavilon. It offered 55,000 mt for East Coast delivery at $517/mt CFR, and 45,000 mt at $520/mt CFR for West Coast unloading.

The Indian buying house announced it was interested in buying only 500,000 mt. Sources said they expect IPL to move quickly to secure the tonnage they want and move on to another tender soon. Awards in the tender are expected to be made as early as Friday, July 22. The shipping deadline is Aug. 31.

Offering Company Quantity(mt) US$/mt CFR Delivery Coast
Gavilon 55,000 517.00 ECI – L1
45,000 520.00 WCI – L1
AgriCommodities 25,000 570.81 WCI
Agri Field 45,000 615.00 ECI
Alcagesca 30,000 700.00 WCI
Ameropa 99,500 593.50 ECI
99,500 598.50 WCI
Aries Fert 45,000 599.97 ECI
45,000 584.97 WCI
Dreymoor 72,000 577.77 ECI
50,000 555.00 WCI
Fertiglobe 45,000 605.00 WCI
Fertcom 48,000 559.74 WCI
48,000 605.00 ECI
Keytrade 45,000 585.00 WCI
Koch 50,000 600.00 ECI
50,000 600.00 WCI
Midgulf 55,000 593.00 ECI
55,000 572.00 WCI
Medallion 50,000 599.00 WCI
OQ Trading 50,000 572.25 ECI
90,000 555.50 WCI
SABIC 100,000 590.00 WCI
Samsung 100,000 530.00 ECI
45,000 547.00 WCI
Swiss Singapore 100,000 538.88 WCI
100,000 551.00 ECI
Sun International 29,800 539.90 ECI & WCI
FOB Offers
Offering Company Quantity (mt) US$/mt FOB
Fertiglobe 45,000 580.00
PIC 45,000 560.00

Going into the tender, industry sources were unanimous in their views that India needed 1.5 million mt of urea just to stay even with demand. When IPL announced it would only be taking 500,000 mt, sources noted a dramatic drop in pricing expectations. Just days before the tender closed, sources were speculating a low price of $590-$600/mt CFR might be possible.

The netback for the East Coast offers to China – the most likely source for these ports – was pegged at $490-$492/mt FOB. The netback to the Arab Gulf for the West Coast orders was calculated at $495-$500/mt FOB.

If Russian material does indeed make an appearance, sources said it would most likely come from the Baltic ports for discharge at a West Coast port. The estimated netback for these cargoes was put at $470/mt FOB. If anything comes out of the Black Sea, the netback would be $470-$475/mt FOB.

The offers from the two producers at $560/mt and $580/mt FOB seemed to some to be an attempt to hold the line on prices. Going into the tender, there were reports of deals at $580-$585/mt FOB with a softening trend at hand. The producers seemed to be ready to draw the line at $560/mt FOB. With an average West Coast price of $580/mt CFR for a netback to the Arab Gulf in the mid-$550s/mt FOB, however, it was clear the price was going to come down more than producers seemed to want.

The Gavilon offer, said one trader, could make it difficult for some of the offering companies to match their prices. Sources estimated that Samsung and Swiss Singapore might be able to match the Gavilon price of $517/mt CFR for the East Coast, giving IPL a total of 255,000 mt. The same two companies might also stretch to meet the West Coast price of $520/mt CFR for an additional 190,000 mt. That would give IPL 445,000 mt.

One trader said Dreymoor, with the fourth-lowest offer for the West Coast, might be able to drop its price from $555/mt CFR to meet the Gavilon price. That would bring IPL to 495,000 mt, close to its half-million mark.

The bulk of the tonnage is expected to come from the Arab Gulf, up to three cargoes from China, and possibly a load or two from Russia. Once the awards are issued, sources expect the winners to quickly nominate vessels for their allotted tons. Urea from China especially will need to be carefully planned so that the ships arrive in time to load the limited urea available for export under the strict rules set by the Chinese government.

Sources said once the vessels are nominated and the tonnage is committed for each ship, another tender may be called. In the past, Indian companies have called quick, back-to-back tenders when their need was evident. Traders said the country will still need another 1 million mt for this application season, so rapid-fire tenders would make sense.

The downside for repeated tenders, said one trader, is that each succeeding one will be more expensive than the previous one. Additionally, the further in the third and fourth quarter the tenders go, India will begin competing with other major buyers such as the U.S. and Brazil.

Pakistan:

TCP secured 200,000 mt from China, as instructed by the Pakistan government in late June. The deal was a government-to-government arrangement that came out to Pakistan paying $500/mt CFR with 90 days credit.

Reduced output by the Pakistan urea manufacturers due to limited natural gas resources led the government to authorize importing urea. The government panel tasked with deciding what steps to take initially wanted a combination of a public tender and government negotiations with China. In the end, they opted for government relations to bring in the urea they needed. Sources said had TCP called a tender at the time the option was under discussion, they would have paid much more than what they are paying now.

Sri Lanka:

India continues to send Sri Lanka urea under a loan guarantee program. Earlier in July 44,000 mt of urea was sent to the impoverished country. Another 22,000 mt is set for delivery later this month.

Bangladesh:

A gas shortage in Bangladesh has caused a curtailment of urea production. Chittagong Urea Fertilizer Ltd. was forced to close its 561,000 mt/y facility because of a lack of natural gas. At least one other plant was also forced to close for the same reason earlier this month.

China:

Exports from China remain limited due to government restrictions. The buildup of reserves as a result of the government action has played out in lower domestic prices. Sources said the ex-factory price was quoted at $375-$380/mt against a global market closer to $500/mt FOB.

Sources said no more than three tons of urea will be available to service the Indian tender. The estimated netback from the lowest East Coast offer in the tender put the price at $492-$495/mt FOB. Prior to the closing of the Indian tender, sources had been speculating the export price might be closer to $520-$530/mt FOB.

Urea exports from China for the first half of 2022 were reported at 724,000 mt by Trade Data Monitor, down 70% from the 2.4 million mt exported during the same period in 2021. The main buyers were India with 174,000 mt, South Korea with 169,000 mt, and Pakistan with 100,000 mt. The Pakistan tons were from a purchase agreement done before the more recent deal of 200,000 mt.

Second-quarter sales were also way down at 421,000 mt, a 74% drop from the 1.6 million exported in April-June 2021. June 2022 exports were reported at 186,000 mt, down from the 482,000 mt sent in June 2021. India accounted for almost half of the purchases at 87,000 mt. South Korea took 31,000 mt and Mozambique took 25,000 mt, rounding off the top three buyers. These three countries accounted for 77% of China’s June 2022 export sales.

Black Sea:

There are expectations that at least one cargo of Russian material will be included in the IPL/India tender awards. If so, sources said it would most likely come out of a Baltic port rather than any of the Black Sea facilities.

Using the East Coast India tender price of $517/mt CFR, sources calculated that the Black Sea price would be $470-$475/mt FOB, if any product could come out of the war torn area. Some urea could come out of Georgia, allowing the vessel to remain in the southern reaches of the Black Sea, away from the war zone.

Middle East:

Producers offered prices of $560/mt FOB and $580/mt FOB in the IPL tender after deals were reported the previous week at $585/mt FOB and as the paper market called the Arab Gulf price for July at $570-$580/mt FOB.

However, the netback from the lowest West Coast offered price in the Indian tender was calculated back to $495-$500/mt FOB. If this price holds, it would be the first time since September 2021 that the Middle East granular price was below $500/mt.

Egyptian producers are remaining quiet while the impact of the Indian tender gets worked out. Sources said it is unlikely that any Egyptian material was offered into the Indian tender. The last public business out of Egypt was at $730/mt FOB for early July shipment. Even the paper market is still holding to this level, quoting July shipments at $720-$740/mt FOB and $685-$695/mt FOB for August deals.

A source calculated what the netback would be if tons were offered for delivery to India’s West Coast. He estimated the price in the $480s/mt FOB, a level everyone agrees has not been done out of Egypt for some time.

Iranian urea exports for the first half of the year were reported at 2.2 million mt by Trade Data Monitor. This is up 29% from the 1.7 million mt exported during the same period in 2021. The top five buyers in the first semester were Turkey with 741,000 mt, South Africa with 267,000 mt, Nigeria with 194,000 mt, the United Arab Emirates with 191,000 mt, and Oman with 130,000 mt.

Sources have questioned why major urea producers such as Nigeria, the UAE, and Oman are such big buyers of Iranian urea. The most commonly heard consideration is that the urea was placed in warehouses in those countries by traders who then re-exported the product.

Second-quarter 2022 exports were reported at 1.3 million mt, up 48% from the 886,000 mt exported in April-June 2021. June 2022 exports were reported at 437,000 mt, up marginally from the 417,000 mt exported during June 2021.

South Korea:

Urea imports for the first half of the year were reported at 561,000 mt by Trade Data Monitor. This is a 15% increase from the 489,000 mt imported during the first semester of 2021.

April-June 2022 imports were reported at 234,000 mt, up marginally from the 226,000 mt imported during the second quarter of 2021. June 2022 imports were reported at 36,000 mt – with 33,000 mt coming from China – compared to the 58,000 mt imported during June 2021.

Indonesia:

Sources expect to see a selling tender any day. Reportedly, the paperwork to allow exports in the second half of the year is still winding its way through the Indonesian government bureaucracy. Once the tender is called, sources expect to see a softening of prices as a result of the low numbers in the Indian tender.

January-May 2022 exports were reported at 617,000 mt by Trade Data Monitor, down 22% from the 759,000 mt exported during the first five months of 2021.

May 2022 exports were reported at 146,000 mt, down from the 187,000 mt exported during May 2021. The top two buyers were China and Peru, which received slightly more than half of exported urea during May 2022. Neither country appeared on the buying list in May 2021 nor in May 2020. Australia came in for the first time in 2022 with a purchase of 30,000 mt in May, representing about 20% of the exported Indonesian urea for that month.

Brazil:

Talk of softer prices continued through the week. Sources reported deals done at $590-$630/mt CFR, but with a lot more interest being expressed at $580/mt CFR. What was clear to sources, however, was that no matter the price, no one was talking about large quantities. The limited demand for major purchases continues to put downward pressure on pricing.

Rondonópolis saw a slight tightening in its price to $730-$770/mt FOB ex-warehouse.

UAN

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

U.S. Gulf:

NOLA UAN barges were reported at $400/st ($12.50/unit FOB) FOB based on CF’s fill program announced on July 19. Shipment was for July-August.

The program was released soon after the U.S. International Trade Commission’s (ITC) July 18 decision rejected antidumping and countervailing duty claims brought by CF against imports from Russia and Trinidad and Tobago.

Eastern Cornbelt:

A long-awaited UAN fill program was announced on July 19, just one day after the U.S. ITC’s unanimous vote to reject CF’s antidumping and countervailing duty petitions against UAN imports from Russia and Trinidad and Tobago.

CF’s UAN-32 fill program included $435/st ($13.59/unit) FOB Mount Vernon, Ind., and $443/st ($13.84/unit) FOB Cincinnati, Ohio, for July-August shipment. UAN-28 fill offers in Ohio were confirmed at $389-$395/st ($13.89-$14.11/unit) FOB at midweek. Industry sources said tons were limited and orders subject to confirmation.

Western Cornbelt:

UAN-32 fill program offers were launched on July 19, with pricing confirmed at $420/st ($13.13/unit) FOB Port Neal, Iowa, and $435/st ($13.59/unit) FOB St. Louis for July-August tons.

Southern Plains:

CF’s July 19 UAN-32 fill program included $415/st ($12.97/unit) FOB Woodward and Verdigris, Okla., for July-August tons, with reports of some competitors matching or offering limited tons at a $5/st discount to CF’s posting.

South Central:

UAN-32 pricing slipped to $435-$450/st ($13.59-$14.06/unit) FOB terminals in the South Central region, down significantly from the last reported prompt June business in the $550-$565/st ($17.19-$17.66/unit) FOB range. The low end of the range was confirmed by Kentucky sources for fill program offers out of Ohio River terminals at midweek.

Southeast:

UAN-32 prices were dropping in the Southeast. Sources pegged the market FOB Wilmington, N.C., and Norfolk, Va., at $550-$575/st ($17.19-$17.97), down from $600-$610/st ($18.75-$19.06/unit) FOB in late June. New prompt offers at Augusta, Ga., were confirmed for as low as $480/st ($15.00/unit) FOB in mid-July.

Ammonium Sulfate

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

U.S. Gulf:

NOLA ammonium sulfate barges remained in the $400-$420/st FOB range, though there were unconfirmed reports of a trade at the $395/st FOB level. Some sources saw that as a guidepost for the next round of business.

Eastern Cornbelt:

Granular ammonium sulfate prices were pegged at $460-$495/st FOB in the Eastern Cornbelt, with the low confirmed at Ottawa, Ill. The Cincinnati market was reported at $480-$495/st FOB at midweek.

Western Cornbelt:

Granular ammonium sulfate pricing was reported at $470-$485/st FOB in the Western Cornbelt, with the low confirmed at St. Louis. In the Northern Plains, the Sioux City, Iowa, market was pegged at $495/st FOB, down from $615/st FOB in June.

Southern Plains:

Ammonium sulfate pricing FOB Houston was reported at $450-$460/st FOB, down $100/st from prompt offers in late June. New pricing levels FOB Catoosa/Inola, Okla., slipped to $475-$485/st FOB at mid-month.

South Central:

Ammonium sulfate pricing was quoted in a broad range at $455-$575/st FOB in the South Central region, with the low confirmed at Memphis and the high out of Arkansas terminals.

Southeast:

Ammonium sulfate postings from AdvanSix FOB Hopewell, Va., remained at $670/st for granular, $630/st for mid-grade, and $610/st for standard. Pricing in the Florida market dropped to $600/st FOB or DEL for standard and $650/st FOB or DEL for granular.

China:

Prices remained steady, but with lots of talk of lower levels to come. Buyers are keeping an eye on amsul because its export is not restricted by the Chinese government as is urea. For blenders, having ready access to a major nitrogen product at relatively reasonable rates is very welcomed. So far, only the economic slowdown with its accompanying drop in industrial output is a point of concern for regional buyers.

Rumors keep circulating that Beijing may soon move to include ammonium sulfate on its list of restricted exports. However, sources said nothing specific has come from the government confirming these rumors.

Exports of ammonium sulfate during the first half of the year were reported at 4.8 million mt by Trade Data Monitor. This is up about 4% from the 4.6 million mt exported during the first semester of 2021. Brazil, Turkey, and Vietnam accounted for 1.8 million mt of the total.

Second-quarter 2022 exports matched the 2021 exports for the same time period at 2.4 million mt. June 2022 exports were reported at 825,000 mt, up from the 694,000 mt exported during June 2021. Of the 50 buying countries, Brazil alone accounted for 27% of the export market with 226,000 mt.

South Korea:

Ammonium sulfate exports for the first half of the year were reported at 126,000 mt by Trade Data Monitor, down 61% from the 320,000 mt exported during the same period in 2021. Mexico received 83,000 mt of the South Korean amsul during the first semester of 2022, followed by the U.S. with 27,500 mt.

Second-quarter 2022 exports were reported at 45,000 mt, down dramatically from the 138,000 mt exported in April-June 2021. June 2022 exports were reported at 28,000 mt, down from the June 2021 exports of 45,000 mt.

Brazil:

The landed ammonium sulfate price in Brazil shifted slightly to $310-$320/mt CFR, with the upper end of the range coming down as prices soften. The Rondonópolis price was reported unchanged at $430-$500/mt FOB ex-warehouse.