All posts by mickeybarb@charter.net

DAP/MAP

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

Central Florida:

DAP trucks loading from Central Florida continued to be posted at $840/st FOB, steady from the prior report. Sources quoted truck-loaded MAP at $850/st FOB, also flat compared to one week earlier.

MAP trucks were posted at $890/st FOB in the North Florida market, unchanged from week-ago levels.

U.S. Gulf:

Despite hints of softening sentiment voiced by some market players, minimal trades reported for the week left NOLA phosphate barge pricing unmoved from prior levels.

Recent DAP barge import offers continued to be heard in a wide $780-$795/st FOB range, although some speculated that prices would need to soften to $760-$780/st FOB to get volumes moving. Domestically produced tons continued to be indicated at $810/st FOB, unchanged from the prior report.

Domestically produced MAP barge offers continued at $850/st FOB. Some predicted tons slated for upriver distribution would fail to find interest until values dropped to $800-$810/st FOB from the last reported $825/st FOB. Barges trading at $840/st FOB or above were likely targeted for international export, sources said.

With limited trading confirmed for the week, the nearby NOLA barge DAP range rolled over to $780-$810/st FOB, unmoved from the prior report. NOLA MAP pricing remained at the week-ago $825-$850/st FOB level.

U.S. Exports:

The Gulf spot export remained quiet for the week. Players reported current indications in the $980-$1,000/mt FOB range based on available netbacks into the Latin American markets, unmoved from the prior report

Eastern Cornbelt:

DAP was quoted at $820-$840/st FOB in the Eastern Cornbelt, with the Cincinnati market pegged at the $830/st FOB level. MAP pricing ranged from $870-$890/st FOB in the region, with the Cincinnati price quoted at $875/st FOB.

Western Cornbelt:

The DAP market remained 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 reported at $840-$880/st FOB, with St. Louis pricing quoted at $840-$860/st FOB in early July.

California:

MAP was quoted at $900/st FOB or DEL in California, up $30/st from the fill prices offered in mid-June.

Pacific Northwest:

MAP pricing was quoted at $890/st FOB or DEL in the Pacific Northwest, up $30/st from the mid-June fill programs offered in the region.

Western Canada:

MAP fill offers were still on the table at C$1,245-$1,250/mt FOB or DEL in Western Canada for July-August tons.

Saudi Arabia:

Sources quoted the recent Saudi Arabia phosphate export market in the $840-$950/mt FOB range.

China:

Sources said the limited tonnage that is allowed to exit China is now pegged at $930-$950/mt FOB. The softer price reflects not only lower domestic prices, but also what appears to be a softer global market.

Reportedly, the Chinese government is ready to approach phosphate producers to ask them to limit or stop all exports for the next month or two. The request would be similar to that made to the urea producers.

So far during the restrictions on DAP and MAP exports, the government has allowed producers to fulfill older existing contracts while also allowing some limited material to be exported under new deals. Product to satisfy the Bangladesh tender, for example, will most likely be cleared without any major complications.

India:

A DAP tender by NFL closed on June 27. Only two offers were submitted for the two cargoes of 50,000 mt each to be shipped by the end of July.Sources reported prices ranging from the $990s/mt CFR up to $1,030/mt CFR. The tender called for delivery of one cargo each to an East Coast port and a West Coast port. So far, no awards have been made.

Kribhco reportedly closed a deal with Ma’aden for 30,000 mt of DAP at $920/mt CFR. Additional deals with Russian suppliers have been reported at $900/mt CFR. Sources said the lower price for the Russian product was expected as an incentive for the Indians to ignore the U.S. and E.U. sanctions against Russia.

Brazil:

MAP prices softened slightly to $1,000-$1,030/mt CFR. Sources said the lower price came as sellers were looking to push more product out of the warehouses.

Even as prices softened, sources said OCP is rumored to be cutting back on MAP production in an effort to prevent a fall in prices. Sources said the move is also an effort by OCP to stretch out its ammonia reserves. Production of MAP uses less ammonia than DAP. Likewise, OCP is also stepping up TSP production, which does not require ammonia.

Imports of MAP for the first half of the year were reported at 2.16 million mt by Trade Data Monitor. This is up marginally from the 2 million mt imported during the first semester of 2021. Russia was the main supplier so far in 2022 with 1 million mt, followed by Morocco with 583,000 mt.

Second-quarter 2022 imports were reported at 1.6 million mt, a 50% jump from the 1.06 million mt imported during the same period in 2021.

June 2022 imports were reported at 579,000 mt, up from the 557,000 mt imported in June 2021. Russia accounted for 46% of the imports in June with 267,000 mt. Morocco came in second, supplying 38% at 219,000 mt.

Phosphate Rock

Market Watch, Phosphate Rock, Tunisia

Tunisia:

Tunisian phosphate rock output exceeded 2 million mt in the first six months of the year, the first time six-month output has reached that level since the country’s “Arab Spring” in late 2010 to January 2011, Reuters reported, citing state-run phosphate producer Compagnie des phosphates de Gafsa (CPG).

Tunisia produced 1.3 million mt of phosphate rock in the same six months in 2021.CPG aims to produce 5.5 million mt this year, up from 3.7 million mt in 2021, according to the report.

The country resumed phosphate rock exports in May and expects to ship more than 300,000 mt this year, according to CPG (GM May 20, p. 31). The exports were the first appreciable phosphate rock volumes to be shipped from Tunisia in more than seven years.

Phosphoric Acid

California, Eastern Cornbelt, India, Market Watch, Pacific N.W., Phosphoric Acid, Western Cornbelt

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.

California:

July pricing for phos acid dropped to $13.50-$14.00/unit rail-DEL in California, down from $16.25-$17.50/unit rail-DEL in June. MGA was referenced at $14.20/unit FOB Lathrop for July tons.

Pacific Northwest:

Thephos acid market for July was reported at $13.50/st FOB Pocatello, Idaho, and $13.50-$14.00/unit rail-DEL in the Pacific Northwest, depending on supplier, down from June’s $17.00/unit FOB and $17.50/unit rail-DEL.

India:

Based on reported 2Q and 3Q settlements from sellers in Jordan and possibly Tunisia, the India phos acid market moved to $1,715/mt P2O5 CFR, up from $1,530/mt P2O5 CFR reported for the first quarter. Updated settlements were not reported from suppliers in Morocco or North America as of July 7.

Reportedly, OCP is still clinging to its price of $2,000/mt CFR. Nailing down any deals between OCP and its Indian partners became harder following the announcement by OCP that it would no longer provide public pricing and deal only with buyers on an individual basis.

Sources said the stalemate between OCP and its Indian partners over pricing came to a head when the Indian government said it would not accept a price higher than $1,600/mt CFR for the quarterly contract. One trader said the government obviously had some wiggle room because it approved the $1,715/mt CFR deal.

Ammonium Polyphosphate

Ammonium Polyphosphate, California, Eastern Cornbelt, Market Watch, Pacific N.W., Western Canada, Western Cornbelt

Eastern Cornbelt:

The most recent 10-34-0 offers were reported at $800-$850/st FOB in the Eastern Cornbelt.

Western Cornbelt:

10-34-0 prices were steady at $800-$830/st FOB in the Western Cornbelt for the last reported prompt offers.

California:

The 10-34-0 market slipped to $678-$683/st FOB in California, down significantly from the last reported range of $855-$860/st FOB. 11-37-0 pricing fell to $743/st FOB El Centro for July tons, down from $936/st FOB in June.

Pacific Northwest:

Following the July 1 drop in phos acid pricing, ammonium polyphosphate prices also moved lower in the Pacific Northwest. 10-34-0 was confirmed at $675/st FOB Hedges, Wash., down from the previous $846/st level. 11-37-0 dropped in July to $725/st FOB Hedges and $705/st DEL in Idaho, down from $917/st FOB and $892/st DEL.

Western Canada:

No fill offers were reportedly available yet for 10-34-0. The last confirmed prompt spring business was reported in the C$1,150-$1,185/mt DEL range.

Muriate of Potash

Brazil, California, Eastern Cornbelt, Market Watch, Pacific N.W., Potash Muriate, Thailand, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf:

NOLA potash barges were called $735-$745/st FOB, down from the week-ago $740-$770/st FOB.

Nutrien on July 8 reconfirmed current potash prices at $770/st FOB NOLA and $800/st FOB at their Midwest terminals. The company said these prices “are some of the lowest potash prices in the world and represent a significant discount to values that are currently traded in markets like Brazil.”

Eastern Cornbelt:

Potash remained at $770-$785/st FOB in the Eastern Cornbelt, depending on location, with the Cincinnati market pegged at $775-$785/st FOB during the week. No potash fill offers were circulating in early July.

Western Cornbelt:

Potash pricing remained at $765-$780/st FOB in the Western Cornbelt, depending on location, with the low reported at St. Louis.

California:

Potash reference pricing in California was reported at $875-$925/st FOB for 60% MOP and $895-$945/st FOB for 62%.

Pacific Northwest:

Potash pricing was pegged at $855-$880/st FOB and $855-$900/st DEL in the Pacific Northwest, depending on grade and location. The last reference prices from Intrepid FOB Moab and Wendover, Utah, included $850/st for 60% white standard and $855/st for 60% white granular.

Western Canada:

Sources quoted truck pricing for potash in a wide C$1,000-$1,080/mt range FOB Saskatchewan mines, depending on grade and supplier. No potash fill offers were reportedly circulating in early July.

Thailand:

January-May imports of MOP were reported at 411,000 mt by Trade Data Monitor. This is down 6.8% from the 440,000 mt imported during the same period in 2021.

May 2022 imports were reported at 157,000 mt, the same as June 2021. Canada accounted for 45% of the import market with 71,000 mt, followed by Germany with 38,000 mt for 24%, and Israel with 27,000 mt for 17% of MOP imports.

Brazil:

The market tightened downward to $1,000-$1,050/mt CFR as sellers looked to push excess material out of their warehouses.

Rondonópolis also tightened to $1,080-$1,170/mt FOB ex-warehouse. Sources said suppliers throughout the country are looking to move out excess material and are willing to lower prices to move product.

Imports for the first half of the year were reported at 6.9 million mt by Trade Data Monitor. This represented a jump of 37% from the 5 million mt imported during the first semester of 2021. Canadian, Russian, German, and Israeli suppliers all experienced an increase in sales this year. Only Belarus showed a drop, sending 950,000 mt to Brazil in 2022, down from 1.1 million mt in the first six months of 2021.

Second-quarter 2022 imports were reported at 4.3 million mt, an increase of about 74% from the 2.5 million mt imported during the same period in 2021.

June 2022 imports were reported at 1.6 million mt, up from the 994,000 mt imported in June 2021. Canada accounted for 45% of the imports with 717,000 mt. Russia came in with another 414,000 mt to cover 26% of the import market.

Sulfur

ADNOC - Abu Dhabi, Alberta, China, Qatar, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa:

With international sulfur pricing continuing to soften, Tampa sulfur market buyers were reportedly in no hurry to settle third-quarter contracts given the current conditions.

Citing lower numbers out of Brazil and the U.S. Gulf, most players speculated on a likely $100/lt decline from the second-quarter $481/lt CFR contract. An additional $15/mt decline rumored out of the Gulf could drag Tampa $120/lt lower if confirmed, others argued. Buyers and sellers were said to remain far apart in negotiations on July 7.

U.S. refineries operated at 94.5% of total capacity for the week ending July 1, according to the Energy Information Administration (EIA), declining 0.5 points from the prior week’s 95.0%. The current-week rate topped both the year-ago 92.2% and the 91.1% five-year average.

The EIA noted crude inputs softening to an average 16.438 million barrels/d through the period, down 228,000 barrels/d from the previous 16.666 million barrel/d average.

U.S. Gulf:

Genscape noted multiple unit shutdowns at the TotalEnergies refinery in Port Arthur, Texas, on July 1, reportedly due to a loss of steam. Among the units offline were the plant’s 80,000 barrel/d ACU-2 crude distillation unit (CDU), a 52,000 barrel/d vacuum distillation unit (VDU), a 40,000 barrel/d catalytic reformer, and a 46,000 barrel/d hydrotreater. The catalytic reformer and hydrotreater were restarted on July 6, although the other units remained offline.

Motiva shut a 105,000 barrel/d HCU-2 hydrocracker at its Port Arthur facility on July 4. Genscape reported the unit restarting on July 6.

Recent bids and offers on sulfur exported from the U.S. Gulf were reported dropping to at least $370-$375/mt FOB during the week, below the $420/mt FOB level noted previously. Offers rumored as low as $350/mt FOB could not be confirmed on July 7, although players generally believed the numbers to be plausible.

Brazil:

A recent CMOC tender reportedly attracted offers in the $419-$425/mt CFR range. CMOC was claimed to negotiate business down further to $418/mt CFR, although concluded trading at that level could not be confirmed on July 7.

Including other recent trading reported at $435/mt CFR, the recent Brazil spot market price was quoted in the $419-$435/mt CFR range, falling from $435-$460/mt CFR in the prior report.

With no updated contracts concluding as of July 7, Brazil contract levels remained at the second-quarter $480-$485/mt CFR for the week.

Vancouver:

Based on recent values at China, the week’s Vancouver export sulfur price was pegged in the $370-$375/mt FOB range, down from $410-$425/mt FOB at last report.

Alberta:

Alberta prilled and molten sulfur netbacks combined into a wide $300-$411/mt FOB range for the week. Prilled tons exported through Vancouver were noted at the lower end of the range, while molten material contracted into the U.S. market filled in the middle and high.

Falling contract prices expected in the Tampa molten sulfur market were expected to reduce Alberta pricing in the short term.

West Coast:

Solid sulfur loading from the West Coast was indicated in the $370-$375/mt FOB range for the week, softening from $370-$425/mt FOB reported previously.

Third-quarter molten contracts for tons loaded to trucks from West Coast locations were quoted in the $370-$385/lt FOB range, down from $375-$390/lt FOB in the prior period.

China:

Recent import prill pricing at China softened to at least $420/mt CFR during the week, traders said, a decline from $440-$455/mt CFR one week earlier. Trading rumored down to $385/mt CFR went unconfirmed on July 7, although business was generally expected to push toward a similar level in the next round of business.

ADNOC:

The Abu Dhabi National Oil Co. reportedly posted July solid sulfur offers at $428/mt FOB Ruwais, a $52/mt decline from $480/mt FOB in June. Players reported that some large buyers were able to further negotiate pricing into the low-$420s/mt FOB, although concluded pricing remained unconfirmed on July 7.

Qatar:

Muntajat posted pricing for July stood at $428/mt FOB Ras Laffan, players said, $62/mt below June’s $490/mt FOB offer. Like ADNOC, some buyers were reportedly able to conclude purchases below posted levels, in the low-$420s/mt FOB.

Sulfuric Acid

Brazil, Gulf Coast, Midwest, Sulfuric Acid, U.S. Gulf, West Coast

U.S. Gulf:

Worldwide copper smelter activity declined in June, according to satellite surveillance service SAVANT and reported by Reuters. The declines were spearheaded by the shutdown of Chile state-run Codelco’s Ventanas smelter, which was powered down in early June following an environmental incident that sickened dozens.

Codelco has announced it will permanently shutter the facility, a process that could take years. Codelco’s other smelters at Chuquicamata, El Teniente, and Salvador were also noted running below capacity during the month. Weaker-than-average smelting activity was detected in Europe and China as well.

Alcoa Corp. on July 1 said it had curtailed production from one of three active potlines at its Warrick, Ind., aluminum smelter due to “operational challenges,” removing about 54,000 mt/y from production. The potline’s shutdown was expected to be completed by the end of the day on July 1.

Prior to the stoppage, the Warrick plant operated three potlines with outputs totaling 161,000 mt/y. The plant’s total nameplate capacity stands at 269,000 mt/y, with five total potlines available.

Century Aluminum recently announced plans to power down its 250,000 mt/y Hawesville, Ky., aluminum smelter for at least 9-12 months due to rising energy costs.

Price ideas on sulfuric acid vessels imported to the U.S. Gulf continued to run in the $260-$270/mt CFR range, steady from one week earlier.

Gulf Coast:

Sulfuric acid tons railed to the Gulf Coast were tabbed in a wide $195-$280/st DEL range for 2022 contracts.

Midwest:

Midwest annual contracts were reported even with the Gulf Coast at $195-$280/st DEL.

West Coast:

West Coast sulfuric acid pricing for contract-year 2022 was quoted at $185-$270/st FOB.

Brazil:

Sources described Brazil import pricing in the $270-$280/mt CFR range, softening from $280-$285/mt CFR reported previously.

Ammonium Thiosulfate

Amthio, California, Eastern Cornbelt, Market Watch, Pacific N.W., Specialty, Western Cornbelt

Eastern Cornbelt:

The ammonium thiosulfate market was reported at $600-$625/st FOB in the Eastern Cornbelt, with the low confirmed at Terre Haute, Ind., and the high at Cincinnati.

Western Cornbelt:

Ammonium thiosulfate pricing was pegged at $600-$640/st FOB in the Western Cornbelt, depending on location, with the low confirmed at Waterloo, Iowa, for limited tons.

California:

The ammonium thiosulfate market was steady at $530-$600/st FOB in California, depending on location and supplier.

Pacific Northwest:

The last reported prices for ammonium thiosulfate were quoted at $535-$550/st FOB in the Pacific Northwest, depending on supplier and location. No current delivered offers were confirmed in the region.