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CF/Mitsui Ammonia Deal Reported

Ammonia, Eastern Cornbelt, Japan, News, News Briefs

Mitsui & Co., Tokyo, will sell fuel ammonia into Japan made by CF Industries Holdings Inc., Deerfield, Ill., beginning in 2024, according to a Bloomberg report citing Yomiuri, a Japanese newspaper. Mitsui would import up to 2 million mt/y produced from a CF Louisiana plant. The amount would make up the bulk of the Japanese government’s 3 million mt/y target for ammonia use by 2030.

CF expects to produce up to 2 million tons per year of blue and green ammonia at its existing facilities beginning in 2024. CF said in May that recognizing the growing demand for blue ammonia in Asia, that it and Mitsui were discussing a commercial expansion of their joint venture to leverage Mitsui’s considerable marketing and distribution capabilities into that market (GM May 6, p. 1). While the marketing of all of the 2 million tons by Mitsui has not been confirmed, the May statement indicated it may have been under consideration.

The two also announced in May that they intend to jointly develop a greenfield blue ammonia facility in the U.S. Gulf Coast region, with the project expected to begin production in 2027 at the earliest. Once the unit is in service and sequestration is initiated, the facility will be able to produce up to 1.7 million tons of blue ammonia per year.

Ammonia

Ammonia, Brazil, California, Eastern Cornbelt, India, Market Watch, Middle East, North Africa, Northwestern Europe, Pacific N.W., South Korea, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Western Canada, Western Cornbelt

U.S. Gulf/Tampa:

Tampa anhydrous ammonia prices were $1,000/mt CFR for June, down $425/mt from May’s $1,425/mt CFR. Sources have been looking for lower numbers in July, but a rebound in European natural gas prices may further crimp margins and pressure ammonia prices.

U.S. Imports:

April ammonia imports totaled 209,145 st, according to U.S. Census Bureau data, down 24.1% from the year-ago 275,401 st. July-April totals were reported at 2.19 million st, a 3.0% increase on the year-ago 2.13 million st.

U.S. Exports:

Ammonia exports moved 89.8% higher in April, to 21,424 st from the prior-year 11,285 st. July-April exports softened 35.6%, however, to 298,844 st from the previous 464,265 st.

Eastern Cornbelt:

Sources reported heavy sidedress applications in the region, as weather and soil conditions allowed, with brisk demand reported for both ammonia and UAN.

The prompt ammonia market remained at $1,300-$1,375/st FOB in the region, with the low confirmed in Illinois and the high at Huntington, Ind., and Lima, Ohio.

Western Cornbelt:

Sources continued to report prompt ammonia pricing in the $1,300-$1,355/st FOB range in the Western Cornbelt, with low sidedress demand.Prompt pricing in the Southern Plains was quoted at $1,100-$1,200/st FOB, with the low reported at Dodge City, Kan., and the high out of production points in Oklahoma.

California:

Effective June 16, anhydrous ammonia postings from Calamco moved to $1,147/st DEL in California, down from the previous $1,610/st DEL reference price. Aqua ammonia postings also dropped, to $301/st FOB Stockton from the prior $412-$422/st level.

Pacific Northwest:

Sources reported the last prompt ammonia business at $1,475/st FOB and $1,500/st DEL in the Pacific Northwest, although some were suggesting deals could be had for as low as $1,275/st FOB and $1,300/st rail-DEL at mid-month. Others rejected those lower numbers, however.

“Resets are coming on ammonia and UAN, but it hasn’t happened yet,” reported one regional contact.

The last confirmed aqua ammonia business remained at the $370/st FOB mark for prompt tons.

Western Canada:

The last prompt ammonia business continued to be reported at C$2,230-$2,250/mt DEL for spring tons. Sources said they were awaiting the imminent release of summer fill pricing. Yara’s plant at Belle Plaine, Sask., is reportedly down for a turnaround.

Sources on June 16 said CF announced a July ammonia fill program FOB Medicine Hat, Alta., but no price was confirmed. The company is reportedly moving to FOB only pricing out of its facilities at Medicine Hat and Rycroft, Alta, Vanscoy, Sask., and Brandon, Man.

India:

Business into the country seems to be limited to contracted tons, rather than any spot business. Sources said the main deals are being handled by larger purchasers rather than the flurry of smaller, spot deals seen a month ago.

The lack of any spot deals also limits the ability to accurately nail down pricing. For now, the last spot price range of $1,100-$1,150/mt CFR holds.

Ammonia purchases by DAP producers are reportedly slacking off because the producers are pushing back against the pricing expectations of OCP for phos acid. The asking price of $2,000/mt CFR and higher is being countered by a directive from the Department of Fertilizer that it does not want to pay much higher than $1,600/mt CFR.

The combination of the high price for the acid, along with the current deadlock, is encouraging India to buy the finished DAP rather than the components – including ammonia – to make its own.

Middle East:

Sources said Ma’aden has a line-up for vessels for June to take away 150,000 mt of ammonia. Some of the deals are thought to be spot deals, but neither side is talking quantity or pricing.

At the same time, they have argued in some cases the transactions are related to older deals that should have occurred if the plant was operating last year as initially planned.Traders are convinced that some of the tons being shipped out of Ma’aden are replacement tons for swap deals made in 2021 while the plant was struggling to come online.

Producers are now reportedly talking about prices below $1,000/mt FOB. Some have reportedly said they would accept $960-$970/mt FOB. However, buyers who once said they could do a deal in the low-$900s/mt FOB are now bidding at sub-$900/mt FOB.Sources point to business in Taiwan in the $980-$990s/mt CFR as evidence that netback prices to the Arab Gulf need to be closer to $900/mt FOB and below to work.

Prices are expected to continue to come off as buyers in Southeast Asia reportedly step away from the market. Sources said the global economic slowdown has a number of factories in Southeast Asia cutting back on production and demand for ammonia.

Iranian exports for January-May 2022 were reported at 197,000 mt by Trade Data Monitor. This is about 21% lower than the 251,000 mt exported during the same period in 2021. The main buyers during the first five months of the year were India with 164,000 mt and Taiwan with 23,000 mt.

May 2022 exports of 32,000 mt were about half of the 62,000 mt exported in May 2021. India took 30,000 mt last month, leaving little for smaller buyers.

North Africa:

Sources said OCP is pushing for lower prices as the rest of the fertilizer markets soften. Reportedly, OCP is now bidding at $900/mt CFR, while offers are over $1,000/mt CFR.

OCP and other North African phosphate producers are reportedly ready to cut back on DAP and MAP production in favor of TSP in order to nurse their ammonia supplies. Because TSP does not carry the ammonia requirements of MAP and DAP, the producers can still turn out a product while guaranteeing fulfillment of their contracts for the other flavors of phosphate products.

Northwest Europe:

There are reports that a cargo from Nutrien was sold to Eurochem for Antwerp. However, no quantity or price was part of the rumors, thus denying industry watchers a way to judge any shifts in the market.

Sources said the most likely price for the region is $1,000-$1,050/mt C&F based on calculations from prices of natural gas. The lack of any confirmable spot business, however, means that this price is just a best guess. The last public price of $1,200/mt C&F is considered no longer viable in the area, but no new prices have been confirmed.

Production in Europe is expected to continue, even with expensive natural gas. Sources said the buyers know that if the few operations in Europe shut down, the price would move even higher because of the immediate shortage that would take place. With threats of shortages, buyers seem reluctantly willing to pay at levels exceeding $1,000/mt C&F to avoid a return to prices well above $1,200/mt C&F.

South Korea:

Imports for January-May 2022 were reported at 634,000 mt by Trade Data Monitor. This is up slightly from the 594,000 mt imported during the same period in 2021. The main two suppliers so far this year were Indonesia with 302,000 mt and Saudi Arabia with 242,000 mt.

May 2022 imports were down to 106,000 mt from the 122,000 mt imported during May 2021.

Brazil:

Imports of ammonia into Brazil for January-May 2022 were reported at 197,000 mt by Trade Data Monitor. This is about 16% down from the 236,000 mt imported during the same period in 2021. The main supplier was Trinidad, sending 167,000 mt. The remaining 30,000 mt was about equally split between sellers in Qatar and Argentina.

May 2022 imports were pegged at 74,000 mt, a significant jump from the 27,000 mt imported during May 2021. All the tons last month came from Trinidad.

Urea

Africa, Black Sea, Brazil, California, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Pacific N.W., Pakistan, South Korea, U.S. Exports, U.S. Gulf, U.S. Imports, Urea, Western Canada, Western Cornbelt

U.S. Gulf:

NOLA granular urea barge prices sank to $410-$470/st FOB early in the week and held within that range, versus the week-ago $470-$515/st FOB. Sources said several barges were sold for June in the new range, and some said barges were being snapped up for the export market.

U.S. Imports:

April urea imports were reported at 1.22 million st, up 15.9% from 1.05 million st in the prior year. July-April totals stood at 5.62 million st, rising 36.8% from the year-ago 4.11 million st.

July-April imports from Qatar were pegged at 1.47 million st, followed by Oman’s 806,311 st, and 790,808 st from Saudi Arabia. Russia followed with 716,905 st, a 7.0% decline from that country’s year-ago 770,563 st total.

Analysts questioned the accuracy of Qatar’s 600,207 st reported import total for April, as some expected a significantly lower number for the month. The Fertilizer Institute (TFI) announced that it had queried the Census Bureau to confirm the veracity of the Qatar numbers, although no response was reported as of June 16.

U.S. Exports:

Urea exports were up 362.3% in April, to 137,066 st from the year-ago 29,647 st. July-April exports softened 5.9%, however, to 642,701 st from the year-ago 682,669 st.

Eastern Cornbelt:

Urea terminal prices dropped again in the Eastern Cornbelt, fueled by softer NOLA barge values. Urea prices fell to $500-$550/st FOB in the region, down $50/st from the prior week, with the low confirmed out of spot river terminals in Illinois. The Cincinnati, Ohio, market was pegged $545/st FOB at midweek, below last week’s $570-$585/st FOB.

In the Great Lakes region, new urea offers were reported at $550/st FOB Toledo, Ohio, down sharply from the prior week’s $620/st FOB level.

Western Cornbelt:

Urea prices in the Western Cornbelt dropped to a wide $480-$540/st FOB range, down from the previous week’s $540-$610/st FOB. The St. Louis, Mo., market was quoted at $480-$510/st FOB at midweek, below the last reported $540-$570/st range, with the Catoosa/Inola, Okla., market pegged at $485-$505/st FOB.

In the Northern Plains, sources reported new delivered pricing at $540-$600/st in North Dakota, down from the last reported range of $670-$720/st DEL.

California:

Urea pricing was quoted at $760-$840/st FOB in California, down slightly from last report, with the low confirmed at Stockton and the high at West Sacramento. No current delivered prices were confirmed for urea in the state.

Pacific Northwest:

The urea market was pegged at $605-$625/st FOB terminals in the Pacific Northwest, down from $685-$690/st FOB at last report. Rail-delivered pricing was under even more pressure, with reports of $575-$600/st deals available from brokers in mid-June, down from the previous $728-$750/st rail-DEL range.

Western Canada:

With planting now complete across the Prairies, the first summer fill programs were announced for urea at significantly lower prices than the last prompt spring business.

“Prices were under pressure from brokers trying to liquidate their long position and we did end up with leftover inventory at the end of May,” said one regional contact. “This is partly due to the late spring and wet conditions, but also lower usage rates overall. This will be determined more clearly when the inventory and shipment reports come out. Overall, farmers used less nitrogen though.”

Urea fill offers were reportedly circulating in Western Canada at C$785-$825/mt FOB and C$785-$820/mt DEL, depending on supplier and time of shipment, down a full C$320-$330/mt from the last confirmed spring business at C$1,105-$1,150/mt DEL.

India:

Most bets are still on a urea tender to be called sometime during the first two weeks of July. However, there is a growing chorus of voices that claim demand in India is better than expected and global prices are coming off faster than expected. This combination could move the tender call up to the last week of June – or sooner.

Nailing down actual deals with lower prices is difficult because of the lack of any large-scale business. While some sales are made, such as recent sales out of Indonesia, the quantities are small. The market is looking for the kind of comfort and confirmation that only a large Indian purchase can give.

Pakistan:

Even as TCP pursues handling the approved government-to-government deal with China for 200,000 mt, local media reports indicate that some domestic urea plants may have to close.

Reportedly, the government is behind in its payments to local urea producers meant to cover the high price of natural gas. Without the payments, the producers told the media, the urea plants would be uneconomical to run and would have to be shut down.

The loss of any domestic production would require the government to return to the international market beyond the current 200,000 mt being handled by TCP. According to local media reports, the government limited its call for imports with the idea that the rest of the domestic demand could be produced in Pakistan.

The producers, at the same time, assured the government they could meet the demand, but only if they had some support to cover the ever-rising natural gas costs.

Black Sea:

Urea prices remain speculative because of the restrictions on Black Sea shipping due to the war in Ukraine. Prices around $500/mt FOB remain the center of discussion, but without any actual deals to test those levels. Discussions include taking prices even lower, with talk of the price dropping to $450/mt FOB.

The head of the Russian Association of Fertilizer Producers told Interfax he hoped exports of Russian fertilizers could be restored to previous levels by the end of the year. He noted that exports from Russia have dipped by 20% because of the war in Ukraine and the subsequent sanctions imposed on Russia by the U.S. and the E.U.

He noted that the absence of Russia in the global market is just part of the problem. Sanctions against Belarus have affected potash availability. At the same time, China has withdrawn from the global market, causing shortages in urea and phosphates in the marketplace. The impact of these three major fertilizer producers has caused concern around the globe.

Bloomberg also reported that the U.S. is quietly pressuring shippers, banks, and insurance companies to handle deals for Russian fertilizer. Exemptions to the sanctions against Russia allow for fertilizers and grain exports. Sources have told Green Markets the main concern is that if the bank or insurance company is not careful, they could run afoul of the sanctions.

For these companies, the traders said, it is easier to stay away from any deals involving Russian material. For ship owners, moving product out of the Black Sea – a war zone – is also problematic.

Middle East:

Sources said no spot deals out of the area have taken place, leaving the price at the $685-$690/mt FOB level set from the last Indian tender. However, sources said the likely price is closer to $650/mt FOB for June and $500/mt FOB for July.

The paper markets for urea in the area indicated a serious drop in pricing. The June price was pegged at $635-$650/mt FOB. July pricing was put at $490-$510/mt FOB.

Ever since the last Indian tender, the Arab Gulf producers have been tight-lipped about pricing. Sources said with a quiet market and prices in flux, the producers seem to be hesitant to get out ahead, lest they encourage a large price drop or get left behind with pricing ideas too expensive for the market.

Even now, with more discussion of ever-lower prices, producers reportedly are not engaging with traders about potential prices once a new Indian tender is called. They seem to be waiting for the actual tender call before committing to support a price level.

Iranian exports for January-May 2022 were reported at 1.7 million mt by Trade Data Monitor. This is up 38% from the 1.3 million mt exported during the same period in 2021. Sources had been reporting that more Iranian tons were being made available to help make up for the losses incurred with the withdrawal of China from the market and the sanctions against Russia.

Of the top five buyers so far this year, three – UAE, Oman, and Nigeria – are also major urea producers. Sources speculated that the purchases of Iranian material into these countries is a way to wash the tons through a third country to avoid penalties that could come from the U.S. sanctions against Iran.

The top buyer was Turkey with 632,000 mt. Turkey has long been a direct buyer of Iranian material.May 2022 exports were reported at 461,000 mt, up 34% from the 300,000 mt exported during May 2021. Turkey took 32% of the exports in May with 145,000 mt.

The Helwan plant in Egypt is reportedly slowly coming back online. That leaves the Abu Qir plant down for a routine maintenance turnaround.

Like their Arab Gulf counterparts, Egyptian producers have been hesitant to talk with traders about pricing ideas for June and July. However, the paper market is showing $665-$675/mt FOB for June and bids for later in the third quarter at $550/mt FOB, against potential offers of $600/mt FOB.

The lack of any new spot deals, however, leaves the public price at $720/mt FOB. This is a level that is not possible in the current market, traders reported.

The Libyan Fertilizer Company announced that its second urea line is back up and running. The company said it has a rated production value of 1,487 mt/day.

Indonesia:

A new tender confirmed softer urea prices, but only for limited tonnage. A deal was closed at $547/mt FOB for 6,000 mt of granular urea and at $546/mt FOB for 10,000 mt of prilled urea.

The quantities sold are far below what was available, said sources. The prices, however, are in line with traders’ discussions. More tonnage could be found to back an offer into the upcoming Indian tender. In the meantime, sources said the market is taking whatever signals it can to discover a price trend.

South Korea:

Imports of urea for January-May 2022 were reported at 525,000 mt by Trade Data Monitor. This is up from the 431,000 mt imported during the same period in 2021. The main suppliers were Qatar with 157,000 mt and China with 135,000 mt.

The imports from China were dramatically lower than the 332,000 mt imported during January-May of 2021. The decline is from the decision by the Chinese to limit exports in favor of ensuring lower prices and full inventories for its domestic market.

May 2022 imports were reported at 93,000 mt, up 20 % from the 78,000 mt imported in May 2021.

Ethiopia:

Urea imports are primarily handled through large-scale tenders. Delivery is often based on funding to cover the tenders and global availability. The January-May 2022 imports of urea were reported at 151,000 mt by Trade Data Monitor. This is about half of the 301,000 mt imported during the same period in 2021. Egyptian urea dominated the imports this year, with 105,000 mt.

May 2022 imports were reported at 96,000 mt, with Egypt sending 50,000 mt and the balance from the UAE. This is down about 15% from the 112,000 mt imported during May 2021.

Brazil:

Import prices reflect the general global decline. Sources put the landed price at $570-$590/mt CFR. Growing inventories in Brazilian warehouses are putting downward pressure on prices. Sources said the talk at the end of the week is already at $550/mt CFR, with $500/mt CFR expected to be achieved soon.

The issue of plentiful supplies reaches into the country to local distributors. The Rondonópolis prices came off to $730-$760/mt FOB ex-warehouse, a drop of $60/mt.

Imports of urea for January-May 2022 were reported at 2.6 million mt by Trade Data Monitor. This is about 10% down from the 2.9 million mt imported during the same period in 2021.

The top-five suppliers accounted for 1.7 million mt of the material sent. Imports from Nigeria have stepped up in recent years as other suppliers waned. Material from Oman came as a result of the fractured relationship between OMIFCO and its Indian partners. Last year OMIFCO was able to offer its product on the open market, instead of selling exclusively to India.

Supplying Country Quantity (mt)
2022 2021 2020
Nigeria 546,000 205,000 309,000
Oman 493,000 419,000 0
Qatar 482,000 783,000 698,000
Russia 413,000 682,000 363,000
Algeria 289,000 336,000 555,000

May 2022 imports were reported at 571,000 mt, up from the 488,000 mt imported during May 2021. A bit more than half of the May imports came from Oman with 167,000 mt, and Qatar with 131,000 mt.

UAN

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

U.S. Gulf:

The NOLA UAN barge market is not currently being tested, as the inland markets are in a major drop. In light of inland trades, NOLA would be put in the $480-$520/st ($15.00-$16.25/unit) FOB range, if not lower, according to sources. At this point, most buyers will await news of a summer fill program before pulling the trigger.

U.S. Imports:

July-April UAN imports were noted at 1.54 million st, off 26.4% from the year-ago 2.10 million st. April imports were off 64.7%, falling to 81,026 st from the prior-year 229,393 st.

Despite no new import cargoes on record for March or April, Trinidad and Tobago continued to lead July-April imports with 542,614 st, off 31.6% from the year-ago 792,817. Russia followed with 497,169 st while registering no new U.S. imports in April. Canada added 383,372 st in the fertilizer year-to-date.

U.S. Exports:

April UAN exports moved 313.6% higher year-over-year, to 72,460 st from 17,520st. July-April totals were off 28.2%, however, to 436,668 st from 608,174 st one year earlier.

Eastern Cornbelt:

With urea falling, UAN-32 prices remained under pressure as well. The market was pegged at $570-$590/st ($17.81-$18.43/unit) FOB terminals in the Eastern Cornbelt, down another $10/st, with the low reported at Mount Vernon, Ind., and the upper end at Cincinnati. UAN-28 prices at Cincinnati were quoted at $515-$517/st ($18.39-$18.46/unit) FOB, down from the prior week’s $520/st ($18.57/unit) FOB level.

Western Cornbelt:

The UAN-32 market fell once again to $520-$575/st ($16.25-$17.97/unit) FOB in the Western Cornbelt, down from the previous week’s $555-$595/st ($17.34-$18.58/unit) FOB range, with the low reported at Port Neal, Iowa, and the high at St. Louis.

UAN-32 pricing also dropped in the Northern Plains, with the Winona and Pine Bend, Minn., markets falling to $595/st ($18.59/unit) FOB for new prompt business. In the Southern Plains, new offers were quoted at $530/st ($16.56/unit) FOB Woodward and Verdigris, Okla., down from $565/st ($17.66/unit) the week before.

California:

UAN-32 pricing in California remained at $680-$700/st ($21.25-$21.88/unit) FOB Stockton, but sources reported minimal sales and demand at mid-month. The last confirmed rail-DEL offers were $710-$722/st ($22.19-$22.56/unit) in the state, depending on location.

Pacific Northwest:

The UAN-32 market was pegged at $645-$655/st ($20.16-$20.47/unit) FOB terminals in the Pacific Northwest, down $5/st from last report, with the upper end reflecting the posted price FOB Kennewick, Wash. Delivered UAN-32 offers were quoted in the $620-$660/st ($19.38-$20.63/unit) range at mid-month.

Western Canada:

The most recent prompt offers for UAN-28 were pegged at C$590-$595/mt (C$21.07-$21.25/unit) DEL in Western Canada, reflecting a steep drop from the last C$760/mt level confirmed in late May.

Ammonium Nitrate

Ammonium Nitrate, Brazil, Market Watch, U.S. Exports, U.S. Imports, Western Cornbelt

U.S. Imports:

July-April ammonium nitrate imports were up 8.2% year-over-year, to 281,357 st from 260,048 st. April imports stood at 23,415 st, however, falling 71.1% from the year-ago 81,005 st.

U.S. Exports:

Ammonium nitrate exports for April firmed 5.0% year-over-year, to 45,730 st from 43,536 st. July-April shipments moved 0.3% higher, to 366,553 st from 365,500 st in the prior year.

Western Cornbelt:

The last reference prices for ammonium nitrate remained at the $700/st FOB level in Missouri, but sources reported no demand in mid-June.

Brazil:

The impact of the Russian restrictions on ammonium nitrate exports are being felt by Brazil. January-May 2022 imports were reported at 135,000 mt by Trade Data Monitor. This is a two-thirds drop compared to the 400,000 mt imported for the same period in 2021. Of the 2022 imports, Russia was responsible for 127,000 mt.

May 2022 imports were reported at 63,000 mt, down 34% from the 96,000 mt imported in May 2021. Russia accounted for 57,000 mt of the imported product, with the Netherlands supplying another 6,000 mt.

Ammonium Sulfate

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

U.S. Gulf:

NOLA ammonium sulfate prices continued to erode, with sources now calling the market $530-$550/st FOB, down from the week-ago $570-$620/st FOB.

U.S. Imports:

April ammonium sulfate imports softened 8.1%, to 124,629 st from 135,623st in the prior year. Imports moved 10.1% lower for July-April, to 780,402 st from the year-ago 867,934 st.

Canadian imports were counted at 395,576 st for July-April, ahead of Belgium at 220,814 st. South Korea followed with 80,579 st. Egypt added 36,367 st in April, that country’s first U.S. import logged during either the current or previous fertilizer year.

U.S. Exports:

April ammonium sulfate exports were noted at 30,520 st, a 39.4% decrease on the year-ago 50,392 st. Exports slipped to 500,604 st in July-April, down 3.7% from the year-ago 520,004 st.

Eastern Cornbelt:

Granular ammonium sulfate pricing was reported at $625-$655/st FOB in the region, down $5-$10/st, depending on location, with the Cincinnati market pegged at the $655/st FOB level during the week.

Western Cornbelt:

Granular ammonium sulfate pricing was pegged at $595-$640/st FOB in the Western Cornbelt at midweek, down from the prior week’s $620-$670/st FOB.

California:

Ammonium sulfate was quoted at $670-$715/st FOB in California. As with UAN, sources reported few new transactions to test the market.

Pacific Northwest:

Standard ammonium sulfate pricing remained referenced at the $620/st FOB or DEL level in the Pacific Northwest. Granular pricing ranged broadly at $660-$755/st FOB and $685-$760/st DEL, depending on supplier.

Western Canada:

The Western Canada ammonium sulfate market was quoted at C$900-$925/mt DEL for the last prompt offers. No summer fill program has been announced in the region yet.

“There is some trading of product between retailers,” commented one regional source. “Not much demand for ammonium sulfate fill yet, partially because many retailers have carryover and they want to turn that first.”

China:

Sources said the price for caprolactam-grade amsul remains under pressure as urea prices soften. Buyers are finding it less necessary to look to ammonium sulfate purchases as a replacement for urea.

South Korea:

Exports of ammonium sulfate for January-May 2022 were down significantly, according to Trade Data Monitor. Exports so far this year were reported at 98,000 mt, down 64% from the 275,000 mt exported during the same period of 2021.The main buyers of South Korea amsul were Mexico with 55,000 mt and the U.S. with 27,500 mt.

May 2022 exports were barely visible at 142 mt, compared to the 85,000 mt exported in May 2021. Japan took the limited tons sold.

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, U.S. Imports, Western Canada, Western Cornbelt

Central Florida:

Central Florida DAP trucks continued to be posted at $945/st FOB for the week, unmoved from the prior report. MAP loaded to trucks ran even with DAP at $945/st FOB, also steady from the prior report. MAP loading from North Florida continued to see pricing at $890/mt FOB, players said.

U.S. Gulf:

Market players noted rising values in the week’s NOLA barge DAP market. Multiple June-loaded DAP barges were reported changing hands at $810/st FOB during the early week, an increase from the week-ago $795/st FOB top, while offers were reported at a $790/st FOB floor. Sources described relative quiet in the market following the $810/st FOB trades, with players waiting to see whether the firmer numbers would be repeated.

Sources described low MAP trade volumes during the week, with sales and offers heard moving to an $825/st FOB low, below the prior $845/st FOB floor. Most reported the market topping out around $850/st FOB.

The nearby NOLA DAP barge market was reported at $790-$810/st FOB for the week, rising from $750-$795/st FOB in the prior report. MAP barges were quoted at $825-$850/st FOB, softening from $845-$885/st FOB in the prior report.

U.S. Imports:

DAP imports were off 19.6% for the July-April period, to 958,872 st from the prior-year 1.19 million st. Imports moved down 98.3% in April, to 2,973 st compared to the year-ago 171,600 st.

Saudi Arabia continued to lead July-April imports with 353,470 st, followed by Australia at 251,973 st, and Egypt at 121,293 st. None of the market’s top three importers registered U.S.-bound cargoes in April.

MAP/Other imports fell 47.5% in April, to 56,223 st compared to 107,046 st. July-April imports were off 16.5%, to 760,899 st from 911,628 st reported for the prior year. Imports from Saudi Arabia lifted to 239,937 st in July-April. Russia added 116,898 st, while Jordan followed with 94,460 st.

U.S. Exports:

DAP exports for April stood at 67,479 st, off 9.9% from the year-ago 74,904 st. July-April exports were quoted at 582,511 st, down 11.6% from the prior-year 659,126 st.

April MAP/Other exports were off 11.4%, to 231,223 st from the prior-year 260,992 st. July-April exports ticked up 0.6%, however, to 1.96 million st from the prior 1.95 million st.

Netback potential on Gulf export sales was understood to taper during the week due to softer reported CFR pricing in the Latin American markets. Gulf values were generally expected in the $980-$1,030/mt FOB range, declining from $980-$1,070/mt FOB in the prior report.

Eastern Cornbelt:

DAP was quoted in a broad range at $835-$870/st FOB in the Eastern Cornbelt, below the prior week’s $850-$890/st range, with the low reported out of spot river locations in Illinois. The Cincinnati market was pegged at $855-$860/st FOB, down from $870-$880/st FOB.

MAP was quoted at $870-$920/st FOB in the region, with the upper end confirmed at Cincinnati.

Western Cornbelt:

The DAP market fell to $810-$850/st FOB in the Western Cornbelt, down from the previous week’s $820-$875/st FOB range, with the St. Louis market pegged at $810-$830/st FOB. The regional MAP market was reported at $835-$900/st FOB, with St. Louis pricing quoted at $835-$870/st FOB.

California:

MAP was quoted at $870/st FOB or DEL for fill program offers launched on June 10 in California, down a full $200/st from the last prompt spring price. Although one major supplier reportedly closed the program on June 13, another was matching that pricing level for additional fill commitments during the week.

Pacific Northwest:

Fill prices for MAP dropped to $860-$870/st FOB or DEL in the Pacific Northwest at mid-month, down from the last confirmed prompt business in the $960-$990/st range, with the low confirmed for limited offers from one producer on June 10-13.

Western Canada:

Recent MAP fill offers fell to a low of C$1,215-$1,250/mt DEL and C$1,220-$1,270/mt FOB in Western Canada, down from the last confirmed prompt business at C$1,360-$1,450/mt FOB.

Saudi Arabia:

Saudi Arabia phosphate values were unchanged in the $700-$1,000/mt FOB range.

China:

Sources reported no change in DAP prices due to the lack of an active market. Some product is available for export, but only on a limited basis.

India:

The cost of inputs for domestic production of DAP continues to force India to look for imports of the final product to cover its needs.

The current problem facing domestic producers is the deadlock on phos acid prices. OCP/Morocco is said to be holding firm that it wants at least $2,000/mt CFR for its acid. Equally firm is the Indian Department of Fertilizers, which told acid buyers the government is unwilling to pay anything over $1,600/mt CFR.

With the country having to look for product, sources said the buyers are focusing more on the Arab DAP producers because of the limited tons available from China.

Brazil:

A strong MAP supply situation with limited demand is pushing the landed price down. Sources said the current price of $1,030-$1,080/mt CFR reflects a softening and a tightening of the market. By week’s end, sources were reporting that prices below $1,000/mt CFR will come soon.

Prices from local distributors remained relatively stable. Sources called the Rondonópolis market at $1,190-$1,245/mt FOB ex-warehouse.

January-May 2022 imports of MAP were reported at 1.6 million mt by Trade Data Monitor. This reflects a 10% increase from the 1.4 million mt imported during the same period in 2021.

May 2022 imports were reported at 64,000 mt, up from the 321,000 mt of May 2021. The three top suppliers were Russia with 254,000 mt, Morocco with 200,000 mt, and Saudi Arabia with 113,000 mt.