U.S. Imports:
July-May ammonium nitrate imports were noted at 313,685 st, up 1.0% from the year-ago 310,437 st. May imports were off 35.8%, however, falling to 32,329 st from the 50,389 st in May 2021.
U.S. Exports:
May ammonium nitrate exports were noted at 34,338 st, down 14.4% from the year-ago 40,103 st. Exports fell slightly to 403,741 st in July-May, down 0.5% from the year-ago 405,603 st.
Western Cornbelt:
Ammonium nitrate was quoted at $600-$610/st FOB terminals in Missouri.
U.S. Gulf:
NOLA ammonium sulfate barges were quoted in the $400-$420/st FOB range, down from the week-ago $420/st FOB. Sources continue to report good movement of product in rice country.
In the meantime, many were reportedly surprised by the July 12 joint statement from President Biden and Mexico President Lopez Obrador that Mexico will buy up to 1 million tons of ammonium sulfate. More details were still being sought at press time. However, sources said such an amount, which is approximately Mexico’s annual consumption of ammonium sulfate, could have an impact on pricing.
U.S. Imports:
July-May ammonium sulfate imports were down 7.4% year-over-year, to 875,182 st from 945,203 st. May imports stood at 94,876 st, however, lifting 22.8% from the year-ago 77,271 st. Imports from Canada were recorded at 436,908 st for July-May, ahead of Belgium’s 251,658 st. South Korea added 80,579 st.
U.S. Exports:
Ammonium sulfate exports for May stood at 62,824 st, up 22.1% from the year-ago 51,468 st. July-May exports were quoted at 562,299 st, however, down 1.7% from last year’s 572,021 st.
Eastern Cornbelt:
Granular ammonium sulfate prices were steady at $480-$495/st FOB for fill program offers in the Eastern Cornbelt. Sources reported no new prompt sales to test the prior week’s higher levels.
Western Cornbelt:
Granular ammonium sulfate pricing was pegged at $475-$495/st FOB in the Western Cornbelt for fill offers at mid-month.
Northern Plains:
More ammonium sulfate fill program offers were circulating at mid-month. After AdvanSix posted a $480/st FOB fill price in Minnesota for granular tons shipped on July 15 or after, other regional suppliers reportedly came out at the $465/st DEL level for fill offers.
New 3Q ammonium sulfate offers in the Pacific Northwest were reported at $450-$580/st DEL, depending on supplier, well below the last prompt business in the $620-$670/st range. Fill pricing in Western Canada was quoted at C$490-$500/mt DEL at mid-month, down significantly from C$900-$925/mt DEL for the last prompt business in June.
Northeast:
Ammonium sulfate was pegged in a broad range at $495-$670/st FOB or DEL in the Northeast, with the low reflecting recent fill pricing offers out of Ohio and the high for the last granular prompt business at Hopewell, Va.
Sources said tons were still moving in sidedress applications in mid-July, and a fill program offer from AdvanSix in the eastern U.S. is not expected until August.
Eastern Canada:
The ammonium sulfate market in Eastern Canada was quoted in a broad range at C$890-$1,075/mt FOB, depending on location and supplier, down a full C$90/mt from last report at the low end of the range.
China:
Ammonium sulfate prices softened to $220-$230/mt FOB as demand from Southeast Asian buyers waned. Sources noted that the prices farmers are getting for their rice do not support fertilizer purchases. The reluctance to buy is combining with lower urea prices to bring down the ammonium sulfate market price.
Traders are said to be looking for some guidance in the market. Ironically, said one trader, buyers were seeking the same guidance from international traders. The softness in the nitrogen market has many in Asia at a loss.
Brazil:
Even with a slight increase in demand, sources said the price for ammonium sulfate in Brazil has dropped to $315-$330/mt CFR. The lack of enthusiasm inland is also shown in the prices. Sources in Rondonópolis said ammonium sulfate dropped about $40/mt, to $430-$500/mt FOB ex-warehouse.
Central Florida:
Central Florida DAP trucks were posted at $840/st FOB, unmoved from the prior report. Truck-loaded MAP postings were steady from the week-ago $850/st FOB. MAP trucks loading from North Florida continued at $890/mt FOB, sources confirmed.
U.S. Gulf:
NOLA DAP barge pricing edged lower for the week, sources said.
DAP barge trades were seen topping out at $800/st FOB, below the week-ago $810/st FOB. Players typically called the market low around the $780/st FOB mark, unchanged from one week earlier, while the bulk of the week’s traded tons was reportedly intended for export.
Offers for domestically produced DAP were noted flat at $810/st FOB, while demand for upriver tons was expected to track closer to the $760-$780/st FOB range.
MAP barge values were noted bending toward the export market as well, with most describing trades up to $845/st FOB, shy of the week-ago $850/st FOB top. Sources cited $840/st FOB as the week’s low, also for exported tons.
Indications for barges heading upriver were expected closer to $810/st FOB, some argued, although no tons were reported changing hands at that level. Domestically produced tons continued to be offered at $850/st FOB, sources said.
Players reiterated that the bulk of the week’s DAP and MAP demand was geared toward the export market. “There is nothing going on in the U.S.,” said one source. “Thank God for export. The rest of the world is way better priced than what we can achieve domestically.”
The NOLA DAP barge market was pegged in the $780-$800/st FOB range for the week, tightening from $780-$810/st FOB in the prior report. Sources called MAP barges in a narrower $840-$845/st FOB range for the period, a shift from $825-$850/st FOB reported previously.
U.S. Imports:
May DAP imports firmed 47.6%, to 28,735 st from 19,470 st in the prior year. Imports shifted 18.5% lower for July-May, however, to 987,608 st from the year-ago 1.21 million st.
Saudi Arabia topped the July-May import list with 377,721 st, followed by Australia’s 251,973 st and Egypt’s 121,293 st. No Australian or Egyptian cargoes were recorded arriving in the U.S. for May.
MAP/Other imports were off 21.2% for the July-May period, moving to 771,868 st from the last year’s 979,197 st. Imports slipped 83.6% in May, to 10,968 st compared to the year-ago 66,758 st. Imports from Saudi Arabia stood pat at 239,937 st in July-May. Russia sent 117,709 st., while Jordan added 94,461 st during the period.
U.S. Exports:
DAP exports were up 101.0% in May, to 62,385 st from the prior-year 31,032 st. July-May exports fell 7.4%, however, to 648,646 st from last year’s 700,625 st.
MAP/Other exports moved 2.8% lower in July-May, to 2.15 million st from the year-ago 2.21 million st. Shipments totaled 181,424 st for May, a 29.5% decrease from 257,500 st recorded in May 2021.
Sources reported a 40,000 mt DAP cargo selling into India during the week. Priced at $960/mt CFR, the tons were destined for India’s West Coast, with loading expected in second-half August. Freight costs were quoted at $50/mt from the Gulf, netting back around $910/mt FOB to the seller.
Sellers also noted a 7,000 mt DAP cargo selling to a single buyer in northern Latin America. The load was priced at $925/mt FOB, with shipping slated for July.
Based on reported trades, the Gulf phosphate export markets softened to $910-$925/mt FOB for the week, falling from $980-$1,000/mt FOB reported previously.
Eastern Cornbelt:
DAP was unchanged at $820-$840/st FOB in the Eastern Cornbelt, with the Cincinnati market reported at the $830/st FOB level. MAP pricing fell in the $870-$890/st FOB range in the region, with the Cincinnati price quoted at $875/st FOB.
Western Cornbelt:
The DAP market was steady at $805-$850/st FOB in the Western Cornbelt, with the St. Louis market pegged at $805-$815/st FOB. The regional MAP market was unchanged at $840-$880/st FOB, with the upper end confirmed in Iowa. The St. Louis MAP market remained at $840-$860/st FOB at mid-month.
Northern Plains:
DAP pricing was reported at $825-$850/st FOB St. Paul, with MAP quoted at the $870-$900/st FOB level at that location. Delivered green MAP in western North Dakota remained at the $920/st level for recent fill offers.
Northeast:
The phosphate market FOB East Liverpool reportedly slipped to $845/st for DAP and $895/st for MAP, down $15-$25/st from levels reported in late June. In the Southeast, reference prices remained at $840/st FOB Aurora, N.C., for DAP, with MAP posted at $890/st FOB Aurora and White Springs, Fla.
Eastern Canada:
MAP pricing in Eastern Canada narrowed to C$1,325-$1,335/mt FOB, down a full C$140/mt at the high end of the range. The DAP market at Montreal was down C$45/mt from last report, falling to C$1,340/mt FOB in mid-July.
Saudi Arabia:
A 50,000 mt DAP cargo was reported selling into the West Coast of India during the week. Described as loading from Ras Al Khair, the cargo was priced at $960/mt CFR. With freight reported at $17/mt, the tons netted back approximately $943/mt FOB to the seller. The Saudi market was previously reported in the $840-$950/mt FOB range.
China:
Sources reported a large DAP sale from YUC and one other producer of 70,000 mt to India, with an estimated netback of $915-$920/mt FOB.
The large vessel allowed for cheaper freight and set a price range for India. Smaller Chinese producers looking to sell were told by the Indian buyers that they had to match the YUC price. Because of the smaller vessels used by these producers, the freight rate would be higher. They had hoped to keep the netback the same and increase the landed price in India. Reportedly, talks are still taking place.
The YUC deal, along with the subsequent talks between Indian buyers and other Chinese producers, seemed to some traders as an indication that Beijing is willing to ease off on the export restrictions of DAP and MAP.
India:
The purchase of 70,000 mt of DAP engineered by YUC was reported at $950-$955/mt CFR. Offers from other Chinese producers at $960/mt CFR were rebuffed, with Indian buyers claiming they would not pay more than what was done with YUC for Chinese product.
Paying $960/mt CFR for Arab product, however, does seem acceptable. Sources reported that two deals of 40,000 mt and 50,000 mt were done as the week closed at $960/mt CFR.
Brazil:
The price for MAP dropped to $950-$1,000/mt CFR. Sources said even though deals were being closed at sub-$1,000/mt CFR levels, all future talks seem to be focusing on $1,000-$1,030/mt CFR. Reportedly, some suppliers are withholding making offers to avoid adding downward pressure on prices.
Warehouses in Rondonópolis are looking to move out product to make way for replacement tons in the near future. This effort has lowered prices to $1,100-$1,135/mt FOB ex-warehouse.
U.S. Gulf:
Players described softer TSP barge pricing at NOLA, noting values in a wide $715-$735/st FOB range, below the previous week’s $725-$735/st FOB range.
Eastern Cornbelt:
TSP remained at $755-$775/st FOB in the Eastern Cornbelt for the last confirmed offers, with the low reported at Cincinnati.
U.S. Imports:
Phosphate rock imports fell 12.4% in May, to 108,985 st from 124,359 st in May 2021. July-May imports were off 9.4%, at 2.48 million st from 2.74 million st reported for the prior year.
U.S. Exports:
Wet-process phosphoric acid exports firmed 45.1% in July-May, to 239,369 st from the year-ago 164,997 st. Cargoes were noted at 9,375 st for May, up 9.8% from the year-ago 8,541 st.
Eastern Cornbelt:
July phos acid postings in the Eastern Cornbelt remained at $14.00/unit rail-DEL, unchanged from June.
Western Cornbelt:
Phos acid prices were steady at $14.00/unit rail-DEL in the Western Cornbelt for July tons.
Northern Plains:
Phos acid pricing for July shipments remained at $14.00/unit rail-DEL in the Northern Plains, unchanged from June.
India:
Phosphoric acid contracts between buyers in India and sellers in Jordan were reported at $1,715/mt P2O5 CFR for the second and third quarters, a $185/mt increase from $1,530/mt P2O5 CFR in 1Q. As of July 14, no updated contracts were reported from producers located in Morocco or North America.
Eastern Cornbelt:
The most recent 10-34-0 prices were reported at $800-$830/st FOB in the Eastern Cornbelt.
Western Cornbelt:
10-34-0 prices were reported at $800-$810/st FOB in the Western Cornbelt for the last reported prompt offers.
Northern Plains:
10-34-0 pricing was unchanged at $800-810/st FOB in the Northern Plains, with the low confirmed in North Dakota.
Northeast:
10-34-0 pricing in the Northeast fell to $825/st FOB in New York, down $25/st from last report.
U.S. Gulf:
NOLA potash barges continued to be called $735-$745/st FOB.
U.S. Imports:
July-May potash imports softened 5.1% year-over-year, to 12.47 million st from 13.14 million st. May imports fell 10.9%, to 1.10 million st from the year-ago 1.23 million st.
Canadian imports for the July-May year-to-date firmed to 10.77 million st. Russian tons totaled 688,307 st, off 49.7% from the year-ago 1.37 million st. Despite registering zero new cargoes since February, tons originating from Belarus totaled 565,355 st, down 20.8% from the year-ago 713,953 st.
U.S. Exports:
MOP exports rose 47.1% in July-May, to 3.67 million st from the year-ago 2.50 million st. Shipments totaled 390,362 st for May, lifting 17.1% from the year-ago 333,223 st.
Eastern Cornbelt:
The potash market remained at $770-$785/st FOB in the Eastern Cornbelt, depending on location, with Cincinnati pricing pegged at $775-$785/st FOB for the last offers.
Western Cornbelt:
Potash pricing fell in a broad $765-$795/st FOB range in the Western Cornbelt, depending on location, with the low reported at St. Louis and the high in Iowa.
“There is a lot of carryover phosphate and potash in the system,” said one regional contact. “The producers are only just now starting to realize that. But they still have the export option on the table.”
Northern Plains:
Sources quoted potash pricing at $780-$790/st FOB St. Paul for the last prompt offers. The latest prices FOB Saskatchewan mines remained at $728-$740/st after netbacks, depending on grade and destination.
Northeast:
Potash pricing was quoted at $790-$805/st FOB in the Northeast, depending on location, with the high confirmed at East Liverpool.
Eastern Canada:
The potash market in Eastern Canada remained at C$1,050-$1,056/mt FOB warehouses, unchanged from last report.
India:
RCF issued a tender for the purchase of 105,000 mt of white/pink potash, all firm tons, closing July 18. Shipment is required in three 35,000 mt lots to MBPT HB port, the first by August 2022, the second by September 2022, and the third by October 2022. Offers are to be valid for a period of 30 days from the due date of the tender opening.
Brazil:
Suppliers holding product in warehouses are looking to clear out space for incoming shipments. This push has lowered the potash price to $980-$1,050/mt CFR. Sources said deals at the low end of the range are for immediate shipment, while anyone looking for a more forward position is being forced into the upper end of the price range.
A similar situation was reported in Rondonópolis. Buyers looking to take advantage of the lower end of the $1,060-$1,170/mt FOB ex-warehouse range are being told to take their tons right away. Reportedly, warehouse space in Rondonópolis is getting tight. Holders of MOP are looking to clear out as much space as possible.
Tampa:
Major Tampa molten sulfur market buyers and sellers on July 11 announced the conclusion of third-quarter contract negotiations, quoting updated contract values at $352/lt CFR, a $129/lt decline from $481/lt CFR in the second quarter.
The settlements came amid a flurry of tumbling prices reported in the international markets, as fears surrounding supply uncertainty stemming from the Russian invasion of Ukraine appeared to abate.
Significantly lower spot prices were reported out of key markets such as Brazil and China in the weeks leading up the settlement, with key supply markets Vancouver and the U.S. Gulf posting correspondingly lower pricing.
Strong refinery runs both nationwide and along the Gulf Coast added further downside pressure, sources said.
Following Tampa lower, contract indications for U.S. Gulf molten deliveries softened to $341/lt CFR from $470/lt CFR in the second quarter, while Houston contract values were indicated falling to $337/lt CFR, down from 2Q’s $466/lt CFR.
Nationwide refining capacity ticked higher for the week ending June 8, according to the U.S. Energy Information Administration (EIA). Utilization was reported at 94.9% of capacity through the period, a 0.4 point increase from 94.5% in the prior week. The current week’s rate outpaced both the year-ago 91.8% and the 91.2% five-year average.
Crude inputs were observed at an average 16.640 million barrels/d for the week, a 202,000 barrel/d increase from the prior week’s 16.438 million barrels/d.
U.S. Imports:
Imported sulfur totals were off 13.9% in May, falling to 242,720 st from the year-ago 281,865 st. July-May import totals stood at 2.93 million st, off 11.3% from the year-ago 3.30 million st.
U.S. Exports:
Sulfur exports for July-May firmed 45.0%, to 1.44 million st from last year’s 992,631 st. Totals were noted at 102,056 st for May, however, down 8.3% from 111,243 st in May 2021.
U.S. Gulf:
Based on reported trades and offers, U.S. Gulf sulfur pricing was noted in the $350-$375/mt FOB range through the week. Rumored additional international softening could drag the Gulf lower in the short-term, players suggested.
Brazil:
Recent Brazil spot levels were quoted in the $418-$425/mt CFR range, below the $419-$435/mt CFR range reported previously. Players noted a rumored trade concluding at $399-$400/mt CFR, but were unable to confirm that pricing.
Limited third-quarter contract numbers were understood to land in the $418-$425/mt CFR range. Due to the market’s prevailing weak conditions, some consumers were reported to forego entering into updated 3Q contracts for now. Contracts were reported at $480-$485/mt CFR in the second quarter.
Vancouver:
Falling values at China pressured the Vancouver export market into at least a $340-$350/mt FOB range, players said. A rumored price drop out of China would signal further declines in Vancouver if confirmed.
Alberta:
Based both on falling Vancouver prices and the softer third-quarter Tampa molten sulfur contract, combined netbacks on prilled and molten sulfur loading from Alberta dropped to the $237-$282/mt FOB range, down from $300-$411/mt FOB in the prior report.
West Coast:
West Coast prills trailed Vancouver to the $340-$350/mt FOB range, below the prior week’s $370-$375/mt FOB. Molten sulfur trucks loading from the West Coast were contracted in the $370-$385/lt FOB range for the third quarter, players said, below $375-$390/lt FOB reported for 2Q.
China:
Sources quoted the recent China import market lower at $370-$385/mt CFR, falling from the prior week’s $420/mt CFR. A trade rumored at $280/mt CFR went unconfirmed on July 14.
The quick price decline has reportedly deterred some from entering the market as players wait for the dust to settle. “[There is] very little [price] discovery right now, as buyers are hiding,” one market watcher said.
ADNOC:
Solid sulfur offers from the Abu Dhabi National Oil Co. were heard at $428/mt FOB Ruwais for loading in July, down $52/mt from June’s reported $480/mt FOB level.
Qatar:
Posted sulfur pricing from Qatar stood at $428/mt FOB Ras Laffan for July. Offers were posted at $490/st FOB in June, players said, a $62/mt difference.
U.S. Gulf:
No new pricing was reported into the U.S. Gulf during the week, leaving the market flat in the $260-$270/mt CFR range.
U.S. Imports:
Sulfuric acid imports for July-May were off 10.3% from the prior year, to 3.32 million st from 3.69 million st. May imports were 13.0% lower, to 274,300 st from the prior 315,420 st.
U.S. Exports:
Sulfuric acid exported from the U.S. in May softened 4.1%, to 32,049 st from the prior year’s 33,417 st. Exports were counted at 306,918 st for July-May, down 9.8% from the year-ago 340,343 st.
Gulf Coast:
Gulf Coast contracts were pegged in a wide $195-$280/st DEL range for 2022 agreements, unchanged from the prior report.
Midwest:
Annual contracts for sulacid delivered to Midwest buyers were noted even with the Gulf Coast at $195-$280/st DEL.
West Coast:
The West Coast market was quoted steady at $185-$270/st FOB for contract-year 2022.
Brazil:
Nothing new was reported on the Brazil import sulfuric acid market, leaving price ideas steady in the $270-$280/mt CFR range.
