All posts by mickeybarb@charter.net

DAP/MAP

Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Market Watch, Morocco, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, Western, Western Cornbelt

Central Florida:

Central Florida DAP trucks remained posted at $840/st FOB for the week, unmoved from the prior report. Truck-loaded MAP was quoted at $850/st FOB, also steady from last week. MAP trucks loading from North Florida were priced at $890/st FOB, sources said.

U.S. Gulf:

Players described a quiet week of trading in the NOLA DAP and MAP barge markets.

Pricing for DAP barges loading from NOLA tracked in a mostly sideways direction through the period. Indications from domestic producers were quoted at $810/st FOB, unmoved from the week-ago high, while offers were reported at a floor of $780/st FOB, below the prior $785/st FOB low. Firm bidding reported at $765/st FOB attracted no takers, players said.

MAP barge trading was similarly slow, sources said, with domestic offers holding at the prior week’s high of $850/st FOB, contrasting against recent lows at $825/st FOB. Limited trading was reported concluding within the prior-week range.

With few actual trades confirmed for the week, the NOLA DAP barge market was called $780-$810/st FOB, softening from the week-ago $785-$810/st FOB. MAP barge values remained in the $825-$850/st FOB range, rolling over from the prior report.

U.S. Exports:

No new data points were reported in the U.S. Gulf export phosphate markets, leaving price indications steady at the week-ago $980-$1,000/mt FOB level.

Eastern Cornbelt:

DAP was quoted at $820-$850/st FOB in the Eastern Cornbelt, down slightly at the low end of the range. Terminal prices at midweek included $825/st FOB Ottawa, Ill., and $840-$845/st FOB Cincinnati.

The MAP market was reported at $875-$905/st FOB in the Eastern Cornbelt, with the upper end confirmed at Cincinnati and the low in Illinois on a spot basis.

Western Cornbelt:

The DAP market was quoted at $805-$850/st FOB in the Western Cornbelt, with the St. Louis market pegged at $805-$815/st FOB, down from the prior week’s $810-$830/st FOB range. The regional MAP market was reported at $855-$880/st FOB, with St. Louis pricing quoted at $855-$860/st FOB.

Southern Plains:

DAP pricing slipped to $810-$815/st FOB Catoosa/Inola and $825/st FOB Houston, down from the prior week’s $815-$840/st range. MAP pricing was quoted at $860-$870/st FOB Catoosa/Inola and $880/st FOB Houston. “MAP supply is not excessive, leading to the premium” commented one source.

South Central:

DAP prices were reported at $850-$875/st FOB terminals in the South Central region, with the low quoted at Little Rock and out of spot river terminals in Kentucky, and the high at Shreveport and Memphis.

Southeast:

Nutrien’s DAP posting remained at $840/st FOB Aurora, N.C., with MAP referenced at $890/st FOB Aurora and White Springs, Fla.

Western U.S.:

MAP pricing was reportedly up $30/st from the mid-June fill programs offered in California and the Pacific Northwest. New levels included $890/st FOB or DEL in the Pacific Northwest and $900/st FOB or DEL in California.

Morocco:

Moroccan DAP was reported to be on offer to Europe at up to $1,100/mt FOB. The last confirmed business was reported at $900-$950/mt FOB.

India:

Local media reported that India is expected to have received 350,000 mt of Russian DAP at prices below levels acceptable by Arab and Chinese producers. Reportedly, Indian buyers paid $920-$925/mt CFR for the tonnage. The Indian government has also reportedly announced this will be the most it will pay for DAP.

Purchases from Arab producers have been reported at $1,030/mt CFR. Likewise, neighboring Pakistan and Bangladesh have also been forced to pay prices well above $1,000/mt CFR for the product.

Sources said the Russians have been offering various fertilizers below market prices to entice buyers to ignore the sanctions imposed by the U.S. and the E.U. Even with exemptions for fertilizer and food products, many banks and insurance companies remain nervous about handling deals involving Russian products.

The move to cap the DAP price in the $920s/mt CFR is being seen as pressuring the Arab and Chinese suppliers to lower their prices.

January-April 2022 imports of DAP were reported at 1.9 million mt, dramatically higher than the 466,000 mt imported during the same period in 2021. Trade Data Monitor reported that Morocco, Saudi Arabia, and China were the top suppliers for the first four months of the year at 540,000 mt, 438,000 mt, and 392,000 mt, respectively.

April 2022 imports were reported at 462,000 mt, up 88% from the 246,000 mt imported during April 2021. OCP in Morocco supplied 207,000 mt, or about 45%, of the imports for that month.

China:

Unconfirmed reports are circulating that the Chinese government may impose new export quotas on DAP and other phosphates. There are several possible plans floating around. One has phosphate exports limited to 10% of total production. Another would limit exports to 25% of rated capacity.

Sources said the new rules could be released for immediate effect as early as July 1. However, sources said the most likely time would be in October after the annual meeting of the ruling Communist Party.

Brazil:

MAP was reported at $1,000-$1,050/mt, down from the week-ago $1,030-$1,080/mt. For now, demand for phosphates remains concentrated only in some regions. With high stock levels in ports, slight decreases in MAP prices are not ruled out in the coming weeks.

Phosphoric Acid

Eastern Cornbelt, Market Watch, Phosphoric Acid, Southern Plains, Western, Western Cornbelt

Eastern Cornbelt:

June phos acid postings in the Eastern Cornbelt remained at $14.00/unit rail-DEL. Sources said no pricing changes are scheduled for July.

Western Cornbelt:

Phos acid prices were steady at $14.00/unit rail-DEL in the Western Cornbelt for June tons, with no pricing change taking place in July.

Southern Plains:

June pricing for phos acid remained at $14.00/unit rail-DEL level in the Southern Plains, with no change scheduled for July.

Western U.S.:

Phosphoric acid postings in California and the Pacific Northwest dropped to $14.00/unit rail-DEL on July 1, down from June’s $17.50/unit rail-DEL level.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Southern Plains, Western, 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 pegged at $800-$830/st FOB in the Western Cornbelt for the last reported offers.

Southern Plains:

The 10-34-0 market was pegged at $730-$750/st FOB for the last reported offers in the Southern Plains, with the low confirmed in Texas. 11-37-0 pricing in Texas was pegged at the $800/st FOB level, down from $825/st at last report.

Western U.S.:

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

Muriate of Potash

Brazil, Eastern Cornbelt, India, Market Watch, Potash Muriate, South Central, Southeast, Southeast Asia, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf:

NOLA potash barges continued to be called $740-$770/st FOB.

Eastern Cornbelt:

Potash was quoted 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.

Western Cornbelt:

Potash pricing was reported at $765-$780/st FOB in the Western Cornbelt, down $5-$10/st, depending in location, with the low reported at St. Louis.

Southern Plains:

Potash pricing was quoted at $760-$770/st FOB Catoosa/Inola and $770/st FOB Houston. Potash postings from Intrepid FOB Carlsbad, N.M., remained at $855/st for 60% white granular and $875/st FOB for 62% white standard.

South Central:

The potash market was quoted at $770-$785/st FOB in the South Central region, with the low confirmed at Memphis and in Kentucky and the high reported at Shreveport. Pricing out of most Arkansas River terminals was pegged at the $780/st FOB level.

Southeast:

The latest potash offers in the Southeast were confirmed at $790-$800/st FOB port terminals, with rail-DEL Canadian tons pegged at the $812/st level in the region, below the last reported $830/st DEL price.

Southeast Asia:

The standard potash price has softened at the lower end of the range on reports of cheaper tons offered from Laos in the region.

Brazil:

MOP prices in Brazil dropped as sellers were looking to clear out high portside inventories. Sources put the landed price at $1,000-$1,100/mt CFR.

Sources said the lower prices and the push to clear out warehouses have been happening even as buyer and traders remain nervous about replacement tonnage. With sanctions against major supplying countries Belarus and Russia, buyers have expressed concern that when the need for MOP steps up later in the year, the necessary tonnage may not be available.

Some of the concern was eased after a conversation between Russian President Vladimir Putin and Brazilian President Jair Bolsonaro reportedly included a pledge from the Russian leader that Brazil would not be wanting for fertilizers. A statement issued by the Kremlin said Russia would fulfill its obligations of fertilizers to the Brazilian farmers.

Brazil took 1.5 million mt of MOP from Russia in January-May 2022, an increase of almost 25% from the 1.225 million mt imported during the same period in 2021. Belarus sent 828,000 mt during the same period. For the whole of 2021, Russia sent 3.6 million mt, making it the second largest supplier to Brazil, exceeded only by Canada, which sent 4.2 million mt in 2021.

Rondonópolis prices also dropped a bit. Sources now call the market $1,150-$1,180/mt FOB ex-warehouse.

India:

January-April 2022 MOP imports were reported at 941,000 mt by Trade Data Monitor. This is down about 15% from the 1.1 million mt imported during the same period in 2021. The bulk of the imports – 845,000 mt – came from Belarus, Israel, Jordan, and Canada.

April 2022 imports were reported at 245,000 mt, up from the 173,000 mt imported during April 2021. Canada accounted for more than half of the imports with 135,000 mt.

Sulfur

Alberta, China, Market Watch, Qatar, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa:

Brief outages of the 76,000 barrel/d crude distillation unit (CDU) and the 25,000 barrel/d vacuum distillation unit (VDU) were observed at the CVR Coffeyville, Kan., refinery on June 26, according to Genscape.

Sources continued to expect softer third-quarter contract values in the Tampa molten sulfur market, citing recent and rapid price erosion in a number of international markets, as well as steady supply in the U.S. domestic market.

Speculation surrounding a $20-$50/lt decline from the second-quarter $481/lt CFR contract voiced last week sharpened to a possible $80-$100/lt decline in the current week, players said, based primarily on recent softening in the Gulf and Brazil. Contract talks were said to have “not really even started” on June 30.

Refinery utilization moved up for the week ending June 24, the U.S. Energy Information Administration (EIA) reported. Operable nationwide refining capacity stood at 95.0% for the period, a 1.0 point increase from the previous week’s 94.0% rate and ahead of both the year-ago 92.9% and the 91.0% five-year average.

Daily crude inputs were also higher, moving to an average 16.666 million barrels/d through the week, a 403,000 barrel/d increase from the prior week’s 16.263 million barrel/d average.

U.S. Gulf:

ExxonMobil Corp. on June 25 experienced the shutdown of a 76,000 barrel/d catalytic reformer at its Baton Rouge, La., refinery, Genscape noted. The unit successfully restarted on the morning of June 29.

Last-done on the Gulf sulfur market was noted at $420/mt FOB. Falling values at Brazil and other applicable international markets were likely to push the Gulf near $400/mt FOB in the next round of business, some players argued.

Brazil:

Sources reported a Brazil-bound $435/mt CFR cargo concluding on June 30. Consisting of 35,000 mt and slated for loading at the end of July, the sale was described as originating from the “West Coast of North America.”

Including other recent business noted at $458-$460/mt CFR, players labeled the recent Brazil import price in a wide $435-$460/mt CFR range, down from $458-$600/mt CFR in the prior report. A CMOC import tender expected to conclude imminently will clarify the near-term market further, sources indicated.

Second-quarter contract pricing was quoted in the $480-$485/mt CFR range. Values were expected to move lower in the third quarter.

Vancouver:

Softer pricing out of China pulled the Vancouver export market down to $410-$425/mt FOB, falling from $440-$450/mt FOB at last report.

Alberta:

Combined molten and prilled sulfur pricing was indicated netting back $340-$411/mt FOB to sellers, softening from $366-$411/mt FOB one week earlier. Prilled tons trading out of Vancouver set the low of the range, while molten material contracted into the U.S. market established the high.

West Coast:

West Coast solid sulfur indications were noted in the $370-$425/mt FOB range, below the previous $440-$450/mt FOB level, and included a vessel reportedly bound for Brazil.

Players announced the settlement of third-quarter West Coast molten sulfur contracts during the week, reporting agreements at $370-$385/lt FOB, $5/lt below the prior $375-$390/lt FOB range. Individual contracts were noted softening $0-$10/lt compared to the second quarter, with average values landing at $377/lt FOB.

China:

The China import market reportedly fell below the last reported $480-$490/mt CFR level, slipping to the $440-$455/mt CFR range in recent trading, with the lower end of the range coming later in the week. Some players predicted the next round of business moving as low as $400-$420/mt CFR.

Qatar:

Posted Muntajat prices were noted at $428/mt FOB Ras Laffan for July loading, a $62/mt decline from $490/mt FOB reported for June.

Sulfuric Acid

Brazil, Chile, Gulf Coast, Market Watch, Midwest, Sulfuric Acid, U.S. Gulf, West Coast

U.S. Gulf:

Century Aluminum announced plans to idle production at its 250,000 mt/y Hawesville, Ky., aluminum smelter due to rising production costs, the Associated Press reported.

The plant is expected to power down in August and remain offline for a minimum 9-12 months. Century cited rising power costs as a primary reason for the shutdown. More than 600 workers will be laid off.

Sulfuric acid vessels imported to the U.S. Gulf saw price ideas in the $260-$270/mt CFR range, unmoved from the prior report.

Gulf Coast:

U.S. Gulf Coast rail-DEL tons were noted in a wide $195-$280/st range for 2022 contracts.

Midwest:

Players quoted Midwest pricing on par with the Gulf Coast at $195-$280/st DEL for the full 2022 contract year.

West Coast:

Sulacid tons slated for West Coast delivery were pegged at $185-$270/st DEL for annual agreements.

Brazil:

With nothing new reported, Brazil import sulfuric acid cargoes continued to see price ideas in the $280-$285/mt CFR range, unmoved from week-ago levels.

Chile:

The Federation of Copper Workers (FTC) and state-run copper producer Codelco on June 23 announced a deal to end a nationwide strike that began on June 22, Reuters reported. The FTC initiated the strike in response to a Codelco plan to close the troubled Ventanas smelter to avoid investing in costly environmental upgrades.

Codelco made the decision to close the facility after an environmental event sickened dozens in the surrounding community. Workers demanded Codelco install gas-capturing capsules at the facility, while Codelco argued the cost of such upgrades would equal the price of a new smelter.

The announced agreement does not include the environmental investments sought by the FTC, and the Ventanas smelter remains slated to permanently shut down, a process expected to take years. Codelco is the world’s largest copper producer.

Ammonium Thiosulfate

Amthio, Eastern Cornbelt, Market Watch, South Central, Southern Plains, Specialty

Eastern Cornbelt:

The ammonium thiosulfate market was reported at a flat $625/st FOB Cincinnati and other Eastern Cornbelt terminals in late June.

Western Cornbelt:

Ammonium thiosulfate pricing was pegged at $625-$640/st FOB in the Western Cornbelt, depending on location.

Southern Plains:

Ammonium thiosulfate pricing was confirmed at $500/st FOB Houston and Lubbock, Texas, down from the last reported $525-$550/st FOB range.

South Central:

New ammonium thiosulfate pricing was confirmed at $560-$565/st FOB Memphis, down from $585-$590/st FOB earlier in June.