All posts by mickeybarb@charter.net

Urea

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

U.S. Gulf:

New NOLA granular urea business was reported at $470-$515/st FOB for June, compared to the week-ago $500-$550/st FOB. Sources said prices dropped early in the week, but then increased after barges were bought up for an export sale.

July barges were reported to have been sold at $520/st, with forward cargoes into September reported at $536/st FOB.

Nothing new was reported in the prill market, with sources saying the current market would approximate granular.

Eastern Cornbelt:

Urea prices tumbled to $550-$600/st FOB in the Eastern Cornbelt, with both the high and low reported out of spot river terminals in Illinois as the week progressed. The Cincinnati, Ohio, market was pegged at $570-$585/st FOB, down from $640-$645/st FOB the week before.

In the Great Lakes region, new urea offers were reported at $620/st FOB Toledo, Ohio, down significantly from the prior week’s $715/st FOB level.

Western Cornbelt:

Urea prices dropped to a wide $540-$610/st FOB range in the Western Cornbelt, down from $600-$640/st FOB the week before, with the low confirmed at St. Louis, Mo., and the high at Caruthersville, Mo. The St. Paul, Minn., urea market was quoted at a low of $550/st FOB at midweek, down from the prior week’s $600-$615/st FOB range.

Southern Plains:

Urea prices continued to drop in the Southern Plains. In Texas, sources pegged the market at $550-$555/st FOB Houston and $525/st FOB Borger. The Catoosa/Inola, Okla., market was quoted in a broad range at $530-$580/st FOB, depending on supplier, down significantly from the last reported $600-$620/st FOB range.

“Urea is falling out of bed, and phosphates have dropped a good bit as well,” said one contact. Added another: “Urea is living up to its volatile reputation.”

South Central:

Urea prices fell to $580-$630/st FOB in the South Central region, down from the prior week’s $620-$650/st range, with the low confirmed at Convent, La., and the high at Memphis, Tenn. Other terminal prices at midweek included $600/st FOB Little Rock, Ark., $610/st FOB Caruthersville, Mo., and $620/st FOB Shreveport, La.

Southeast:

Urea prices dropped to $675-$695/st FOB port terminals in the Southeast, down significantly from the last reported $750-$775/st range, with the low confirmed at both Savannah, Ga., and Baltimore, Md. The Wilmington, N.C., urea market was pegged at $680-$695/st FOB, depending on supplier and time of the week.

India:

Sources said for now India is set on handling the urea that will be coming in from its last tender. The next tender is not expected until the end of the month at the earliest. Traders said it will most likely not be called until early July.

Estimates are that India will need to repeat the 1.7 million mt purchase made in the May RCF tender. One trader said buyers will actually have to double that amount by August to ensure a successful application season.

There are reports circulating that India continues to find ways to secure Russian tons without bumping up against U.S. and E.U. sanctions. Reportedly, the main way India will pay for the urea from Russia is under a ruble/rupee exchange system.

The Modi government had issued orders that the country will refrain from any exports of urea. However, exceptions were made for Sri Lanka and Nepal.

The new Sri Lankan government pleaded for fertilizers after it rescinded the policy of the previous administration that limited imports to only organic fertilizers. The Modi government is sending 65,000 mt of urea to Sri Lanka, as well as providing a loan through the Ex-Im Bank of India for additional purchases.

The Indian government also closed a government-to-government deal with Nepal to supply 50,000 mt in July. The arrangement calls for India to send a total of 565,000 mt to Nepal over the next five years.

Sri Lanka:

The move by the Indian government to immediately send 65,000 mt of urea and to provide a loan to allow for additional purchases was praised by the Sri Lankan government.

The previous government banned imports of all but organic fertilizer. The result was a 50% drop in agricultural output. The new administration lifted the ban and sought help from its neighbor.

Besides the immediate shipment of 65,000 mt of urea, India will also provide a loan of US$55 million from its Export-Import Bank to allow Sri Lanka to buy more urea.

Nepal:

After frustration over long delays in securing urea in public tenders, the Nepal government closed a deal with its neighbor for delivery of 50,000 mt in July and 565,000 mt over five years.The government had earlier closed a deal with Bangladesh for 50,000 mt in a similar transaction.

The Nepalese government said the delays receiving urea under public tenders – often as long as five to six months – prompted it to look for a faster way to ensure a timely supply of product.

According to local media, the government has also dusted off plans to build its own urea plant in the country. How the plant will be powered has been the key issue because of rising energy costs.

China:

Figures received by Bloomberg showed port inventories at 219,000 mt for the first week of June. This represents a 40% increase in tonnage from the same time in the previous month. If past practices hold, this could represent 200,000-250,000 mt for export.

Sources said there are already at least five vessels booked to pick up product from China, all to cover sales into India from the May RCF tender. Shipment for this tender can be pushed back to July 11.

At the same time, Pakistan is also slated to get 200,000 mt from China under a government-to-government deal.

Sources reported the price out of the factories at $473-$478/mt. After adding another $25-$30/mt for transportation to portside warehouses for export, the estimated export price could be right around $500/mt FOB. However, the netback from the RCF tender showed a price of $685-$690/mt FOB.

Indonesia:

Sources expect to see a selling tender called soon. Reportedly, producers should have about four cargos available for July exports.

After a failed tender last month because bids were too low, producers entered into private talks with traders and end users. Earlier reports indicated deals were done in the upper-$620s/mt FOB. This week, however, sources said some new sales came in at $688/mt FOB for granular and $605 for prilled.

Expectations are for higher prices in the next tender, with at least a couple of the cargoes being offered into the next Indian tender.

Middle East:

The market remains quiet as producers work to fulfill orders booked under the last Indian tender and their long-term clients. Sources said there is no reason for producers to be actively seeking buyers or to discuss prices at this time.

Traders said the producers are biding their time for now, and will most likely only discuss prices once the next Indian tender is called.

Turnarounds by Abu Qir and Helwan, combined with a slow market, have Egyptian producers remaining quiet about availability and pricing. Sources said even traders are not asking around about prices.

Brazil:

Urea prices have softened in Brazil to $620-$640/mt CFR. Sources said there were reports of a deal in the $590s/mt CFR, but the lack of any details led them to believe it was either a rumor or just a one-off deal not to be repeated.

Even without the rumor of a sub-$600/mt CFR sale, sources said buyers are pushing hard to break into the $590s/mt CFR and below. The pressure for lower prices comes as global urea prices soften and as warehouses owners in Brazil appear to be anxious to rotate material out of their facilities. At the same time, buyers are only stepping up when they need product, putting the holders of the urea under pressure to lower their prices.

Rondonópolis showed a slight dip in pricing to $780-$820/mt FOB ex-warehouse. Even with the drop, however, farmers still see the barter ratio as too unfavorable for them, so they are holding back from placing any large orders.

Sources said demand will eventually have to kick in for the second semester applications. At that time, prices are expected to firm up.

Black Sea:

Reports of Russian material making its way into the market continue. Sources have reported that the estimated price for the product has dropped as an incentive for buyers to find ways to work around the American and European sanctions.

The estimated price out of the Black Sea is now around $500/mt FOB. This rate is well below even the discounted price offered by Iranian material. The deals are quiet with little transparency, leading to traders to consider the pricing to be more talk than fact.

Reports of India taking urea and DAP from Russia continue, with sources saying the deals appear to be handled under an expanded version of the ruble/rupee exchange system set up for smaller deals in the past. The reported urea purchases could help ease the pressure on Indian buying houses to make large purchases in upcoming public tenders.

UAN

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

U.S. Gulf:

Nothing new was reported in the NOLA UAN barge market, with prices remaining in the $575-$590/st ($17.97-$18.43/unit) FOB range.

Eastern Cornbelt:

UAN-32 prices dropped to $580-$600/st ($18.13-$18.75/unit) in Illinois and Indiana, down significantly from the previous week’s $640-$660/st ($20.00-$20.63/unit) FOB range. The upper end of the regional market was reported at Mount Vernon, Ind., and Seneca, Ill., at midweek.

The Cincinnati market was pegged at $595/st ($18.59/unit) FOB for UAN-32 and $520/st ($18.57/unit) or less for UAN-28, down from the prior week’s $535-$540/st FOB range. UAN-32 pricing out of Great Lakes terminals was quoted at a low of $605-$615/st ($18.91-$19.22/unit) FOB during the week.

Western Cornbelt:

The UAN-32 market fell to $555-$595/st ($17.34-$18.58/unit) FOB in the Western Cornbelt, reflecting a significant drop from the previous week’s $630-$650/st ($19.69-$20.31/unit) FOB. The low end of the range was confirmed at Port Neal, Iowa, while the high was reported at St. Louis.

UAN-32 pricing also plunged in the Northern Plains, with the Winona, Minn., market falling to $605/st ($18.91/unit) FOB from the previous week’s $675/st ($21.09/unit) FOB level.

Southern Plains:

UAN-32 pricing out of regional production points in Oklahoma and Kansas dropped from $595/st ($18.59/unit) to $565/st ($17.66/unit) FOB during the week, well below the $620-$645/st ($19.38-$20.16/unit) FOB range reported in mid-May.

South Central:

The UAN-32 market was pegged at $565-$600/st ($17.66-$18.75/unit) FOB in the South Central region, down sharply from last report, with the low confirmed in Louisiana and the high out of river terminals in Kentucky. NOLA UAN barges remained at $575-$590/st ($17.97-$18.43/unit) FOB.

Southeast:

The UAN-32 market in the Southeast was reported at $640/st ($20.00/unit) FOB Savannah and $660/st ($20.63/unit) FOB Wilmington and Norfolk, Va. Prices were down at inland Georgia terminals, however, to a reported $600-$614/st ($18.75-$19.19/unit) FOB range in early June.

Ammonium Sulfate

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

U.S. Gulf:

NOLA ammonium sulfate price ideas dropped to $570-$620/st FOB from the week-ago $610-$630/st FOB range.

Eastern Cornbelt:

Granular ammonium sulfate pricing was reported at $635-$660/st FOB in the Eastern Cornbelt, depending on location, with the Cincinnati market pegged at the $650-$655/st FOB level during the week.

Western Cornbelt:

The granular ammonium sulfate market was pegged at $620-$670/st FOB in the Western Cornbelt, down from $640-$675/st FOB at last report, with the low confirmed at St. Louis.

Southern Plains:

Terminal prices for granular ammonium sulfate were also sliding at mid-month. The Houston market was reported at $550-$580/st FOB, down from a recent high of $600/st FOB. Offers at Catoosa/Inola were quoted at the $630/st FOB level, down from $680/st at last report.

NeuAG LLC on June 1 announced expanded availability of spray-grade ammonium sulfate at Levelland, Texas. The new source location is priced at $715/st FOB for 51 pound bags. Pricing for spray-grade ammonium sulfate at Clute, Texas, is $750/st FOB for 51 pound bags and $650/st FOB for bulk product.

South Central:

Ammonium sulfate pricing was quoted at $650-$670/st FOB in the South Central region, down another $10/st from the previous week and some $30/st or more below late-May levels. The low end was confirmed at Memphis, with the high out of spot Arkansas River terminals. The Shreveport market was pegged at the $660/st FOB level at midweek.

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 was steady at $635/st DEL for standard and $735/st FOB for granular.

China:

The price of standard caprolactam grade amsul continues to soften. Sources now peg the market at $270-$280/mt FOB for export.The softer price, said traders, reflects the downward movement in the global urea market.

Brazil:

The landed price for standard granular amsul tightened as buyers were able to push prices down to $350-$380/mt CFR.The Rondonópolis price widened as demand remained steady. Sources now report the price at $480-$550/mt FOB ex-warehouse.

CF, Major Players Prepare for ITC Hearing; Soaring Fertilizer Prices, Profits Cited

Caribbean, Featured, News, Russia, U.S., UAN

Major players have filed prehearing briefs as the U.S. International Trade Commission (ITC) plans a June 16 hearing on CF Industries Holdings Inc.’s antidumping (AD) and countervailing duty (CVD) case on imports of UAN from Russia and Trinidad and Tobago. The case was initially filed on June 30, 2021 (GM July 2, 2021).

While the parties reiterated arguments advanced last year after the case was filed (GM July 23, 2021; July 16, 2021), they also added new items on the case record, including research and industry questionnaires, as well as soaring fertilizer prices and producer profits. Higher prices have caused farm groups and their bipartisan representatives in Congress to call for a withdrawal of fertilizer tariffs (GM March 25, p. 1; Dec. 31, 2021).

Gavilon Fertilizer LLC, Savannah, said in its latest brief that the domestic UAN industry is not injured. “The domestic industry, led by CF, is experiencing record profits and is unafraid to celebrate – loudly and publicly – its massively successful 2021 to its investors and the market,” said Gavilon, which cited a February 2022 earnings call by CF President and CEO Tony Will in which he said 2021 was a “fantastic year,” and that CF is “very bullish” and the “party is just beginning.”

Gavilon noted that CF celebrated a record year by buying back billions of dollars of shares and that CF’s stock prices skyrocketed during the period of investigation, from $22 per share to over $100.

Despite its more recent performance, CF reiterated that from 2019-2020, the domestic industry suffered significant declines in net sales values, net sales average unit values, gross profits, operating income, and net income. CF said the bulk of improvements did not occur until after CF filed its petitions.

CF said that the relevant evidence demonstrates that further dumped and subsidized Russian and Trinidadian imports are indeed imminent, and that cumulated and Trinidad imports will continue to materially injure the domestic industry unless orders are issued.

CF noted that the Department of Commerce (DOC) found that the Russia and Trinidad governments subsidize UAN producers’ natural gas, the predominant material input for UAN. It also found that “particular market situations” exist with respect to Trinidad’s natural gas and electricity markets.

It said DOC is also conducting a changed circumstances review to assess whether Russia should be designated as a nonmarket (NME) country for purposes of U.S. antidumping law “in light of the recent developments within its economy that have, to a large degree, been associated with Russia’s 2022 invasion of Ukraine.”

Russian producer Acron Group, Moscow, said DOC only found one Russian program that incentivized exports, and that it contributed a tiny 0.14% to Acron’s countervailable subsidy rate and 0.0% to EuroChem’s. Acron said this program is not likely to increase UAN exports to the U.S., was in place during the period of investigation, and that UAN exports from Russia declined during the period and pose even less threat in the future due to Acron’s shifts in product mix away from UAN.

Gavilon said all of the positive market indicators were occurring “before” CF filed the case. “Indeed, CF filed these petitions on June 30, 2021, just months after proclaiming that ‘global nitrogen dynamics today with low-cost producers like CF are the most positive they have been since 2014.’” Gavilon noted that before the case was filed, domestic prices for UAN and all fertilizers had already shot up and domestic producers, led by CF, were enjoying improved performance.

Gavilon said if the domestic industry experienced problems in 2020, it was a function of CF’s reaction to the imposition of dumping duties by the European Union, as it pumped its exports to the E.U. back to the U.S., and that CF is the “undisputed price leader.”

“Almost every purchaser that submitted a questionnaire response – 31 of 32 – pointed to CF as the price leader,” said Gavilon, citing ITC’s prehearing report.

“Most of the industry will wait until CF announced a price, and then other suppliers sell at the same price as CF,” said one purchaser. “When CF exits the market and is unwilling to price for a given period of time, the industry is unsure what to do and prices move higher because there are fewer alternatives.”

“I would call CF the UAN price leader 99% of the time,” said another purchaser. “They establish the UAN summer fill value along with new offers, both up and down; everyone else falls in line.”

CF’s response is that importers will offer CF’s price minus $5/st.

However, Gavilon said that the accumulated record demonstrates a predominance of overselling by subject imports in 65 instances (3.6 million st), and underselling in 43 (2.9 million st), with overselling margins averaging 12% and underselling 7%.

“Plainly,” said Gavilon, “subject imports materially oversold, not undersold, domestic product. This is because CF is the price leader. Imports do not lead, they follow.”

And unlike The Mosaic Co.’s case against Russian and Moroccan phosphate imports, in which much of the product was imported into New Orleans to compete head-to-head with the domestic market, UAN imports served coastal regions, which had been traditionally underserved by domestic production.

“Today, prices are at a record high, and have been consistently increasing since the beginning of 2021,” said Gavilon. “CF has been just as aggressive in increasing prices in 2021 as it was keeping prices low in 2020, in both cases to serve its business interest. There are serious concerns regarding fertilizer pricing, suggesting unfair tactics in the domestic market.” Gavilon noted that the high prices are attracting government scrutiny from the USDA and the Iowa Attorney General.

Gavilon said that U.S. UAN consumption increased from 2019 to 2020, which is a period of time that CF focused on as the alleged source of injury. However, Gavilon said that during that time, domestic UAN shipments increased 818,000 st, outpacing the total increase in apparent consumption, and gained market share of 3.7%, from 78.6% to 82.3%. The company said that during 2021, CF sold out and enjoyed record profits.

However, CF maintains that subject imports increased by 32.7% from 2018 to 2019. CF said the U.S. distribution system was saturated with UAN beginning in mid-2019 and this continued throughout 2020, and that the price-depressing effects of this oversupply impacted the market in both 2020 and the first quarter of 2021.

International Raw Materials (IRM), Philadelphia, which put forth many of the same arguments as Gavilon, told the ITC that the Commission has previously found no material injury to a domestic industry where that industry has gained market share over the period of investigation. IRM, like Gavilon, attested that CF has refused to sell to it in the past.

“This loud chorus of American purchaser voices is clear – they largely buy imports because the domestic industry, led by CF, will not serve their needs,” said Gavilon, citing results from purchaser questionnaires, which said 25 of 28 purchasers reported that availability differed by region and “typically reported that on the coasts, there was little availability of U.S.-produced UAN.”

The Agricultural Retailer Association was also quoted as saying that coastal markets are “typically supplied by 75%, maybe even 85% imported product for UAN in a normal year.” Gavilon reiterated that CF’s production facilities are in the U.S. heartland, far from the coastal regions, and that CF’s Donaldsonville, La., UAN expansion was aimed at the export market.

Methanol Holdings (Trinidad) Ltd. (MTHL) and Helm Fertilizer Corp. added to Gavilon and IRM’s many arguments, noting CF’s “staggering 66% gross profit on sales of UAN” during first-quarter 2022. “While MTHL recognizes that even a profitable industry can in theory be suffering material injury, it is difficult to understand how the Commission could reach an affirmative determination with respect to the domestic UAN industry in view of this current performance.

“As the Commission’s reviewing courts have repeatedly recognized, the AD and CVD duties are not penal, retaliatory, or compensatory,” said MTHL. “Instead, they are intended to equalize particular aspects of “future” competitive conditions between foreign exporters to the United States and the domestic industry.”

On another point, MTHL said the ITC’s Office of Industries concluded that Trinidad and Tobago actually exported “more” UAN to the E.U. in 2019 and captured a greater share of the remaining market. “Petitioner’s claims that imports from Trinidad and Tobago flooded the U.S. market after the imposition of this order are belied by the Commission’s own data showing Trinidad & Tobago’s consistent import volumes year over year.”

Borealis Plans to Launch Squeeze-Out Offer for Belgium’s Rosier

Europe, News, News Briefs

Polyolefins and fertilizers major Borealis AG has launched a squeeze-out for Belgian fertilizer producer Rosier SA at a price of €20 per share (approximately $21.4 at current exchange rates), in accordance with the Belgian Royal Decree on Public Squeeze-Out Offers, the Vienna-based company said on June 10.

The launch of the squeeze-out offer will be subject to obtaining the report of the independent expert stating the elements referred to in Article 6 of the Royal Decree, and to the actual completion of the capital increase, said Borealis. Approval of the latter is on the agenda of the extraordinary shareholders’ meeting on June 16, 2022.

After the envisaged capital increase, Borealis, which already is a majority shareholder in the company, would hold a stake of approximately 98% in Rosier.

Moustier-based Rosier earlier this year sought investor approval for a debt-for-equity swap, aimed at raising €55 million, from Borealis after its assets fell to less than a quarter of its statutory share capital (GM Feb. 11, p. 33).

The beleaguered company produces and distributes a range of granulated fertilizer, liquid fertilizer, NPKs, and hydrosoluble fertilizer. In FY2021, it reported an unaudited net loss of -€36.9 million.

Rosier is not part of Borealis’ parent company Austrian oil and gas multinational OMV AG’s plans to sell Borealis’ Nitrogen business, according to OMV’s FY 2021 annual report statement, published in February.

Borealis last week received a binding offer from the Czech Republic’s chemicals and fertilizer company Agrofert for the acquisition of its Nitrogen business, which includes fertilizer, melamine, and technical nitrogen products (GM June 3, p. 1). The offer values the business on an enterprise value basis at €810 million (approximately $867 million at current exchange rates).

DAP/MAP

Bangladesh, Brazil, Central Florida, China, DAP/MAP, Eastern Cornbelt, Europe, India, Market Watch, Nepal, Saudi Arabia, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

DAP trucks loading from Central Florida were posted at $945/st FOB, unmoved from one week earlier. MAP postings remained at $945/st FOB as well, also steady from the prior report.

MAP trucks loading from North Florida were posted at $890/st FOB, below the prior $890-$940/st FOB full-week range.

U.S. Gulf:

NOLA barge phosphate values bounced up from week-ago levels.

MAP barges led the charge, building on the prior $840/st FOB top with an $845/st FOB early-week low, players said, driven by the wide price variance between NOLA-loading tons and netbacks available to sellers with export capacity. Most cited prompt trades up to $885/st FOB, while a rumored $890/st FOB trade went unconfirmed on June 9.

Players also noted a rise in DAP barge values. Sources described the market’s weekly low even with the prior $750/st FOB bottom, registered on June 3 trades. Barge sales charted up to $795/st FOB on June 7-8, however, a $15/st week-over-week increase on the prior $780/st FOB top.

Traders typically termed the price rebound as a natural response to the market’s recent declines. The current $750/st FOB DAP low marked a 25.7% tumble from DAP’s recent $1,010/st FOB top on April 1.

DAP barges were seen pushing higher during the week, to $750-$795/st FOB from the prior week’s $750-$780/st FOB. MAP pricing was reported firming to the $845-$885/st FOB range, above the week-ago $780-$840/st FOB.

U.S. Exports:

Falling values in the Latin American markets were noted reducing available netbacks on DAP and MAP exported from the U.S. Gulf.

Sellers described current market indications in the $980-$1,070/mt FOB range, below $1,080-$1,100/mt FOB at last report, with most calling the market closer to $980-$1,000/mt FOB.

Eastern Cornbelt:

DAP pricing slipped again to $850-$890/st FOB in the Eastern Cornbelt, down another $20-$30/st from the prior week, with the low confirmed in Illinois. The MAP market increased to $900-$950/st FOB amid reports of tightening supply, with the low confirmed at Ottawa.

Cincinnati pricing was pegged at $870-$880/st FOB for DAP and $905-$925/st FOB for MAP.

Western Cornbelt:

The DAP market fell to $820-$875/st FOB in the Western Cornbelt, down from the previous week’s $875-$910/st FOB range. The St. Louis DAP market was pegged at $820-$850/st FOB, with Caruthersville pricing confirmed at the $850/st FOB level at midweek.

The regional MAP market was reported at $875-$950/st FOB, with St. Louis pricing quoted at $875-$900/st FOB.

Southern Plains:

DAP pricing was quoted in a broad range at $835-$890/st FOB Catoosa/Inola, depending on supplier, with Houston pricing pegged at the $815/st FOB level at midweek. MAP was pegged at $870-$910/st FOB Catoosa/Inola and $880/st FOB Houston.

South Central:

DAP prices were reported at $870-$900/st FOB terminals in the South Central region, with the low quoted out of spot river warehouses in Kentucky and the high at Little Rock. The Memphis DAP market was pegged at $880-$885/st FOB, with the Shreveport price reported at $890/st FOB at midweek.

Southeast:

Nutrien dropped its phosphate prices $50/st on June 2, with DAP moving to $840/st FOB Aurora, N.C., and MAP to $890/st FOB Aurora and White Springs, Fla.

Saudi Arabia:

Saudi Arabia phosphate values were noted in the $700-$1,000/mt FOB range for the week, softening from $700-$1,070/st FOB in the prior report.

China:

The DAP market remains quiet and steady. Sources said producers are still able to honor older contracts as well as some smaller deals, such as the offers made into the Bangladesh DAP tender.

India:

There are reports that some Russian DAP has made its way into China at $920/mt CFR. This is much lower than the $1,030/mt CFR reported earlier. Sources said the lower price could be a combination of discounts necessary to deal with the sanctions against Russia and what appears to be a general trend in softer phosphate prices.

Even Arab producers are said to have been offering material for June deliveries closer to $1,000/mt CFR.

Bangladesh:

A DAP tender for 700,000 mt closed on June 9. Sources said the country will most likely only buy half that amount. The reduced purchase, it is said, is a result of prices still too high to the buyer’s liking, and to limited tonnage being allowed out of China.

However many tons are finally awarded, sources said the publication of the results of the final amount will help lift some of the mist over DAP prices out of China.

Nepal:

The Nepalese and Indian governments signed an agreement that will send 30,000 mt of DAP to Nepal in July. The agreement also calls for 370,000 mt of DAP to be shipped from India during the next five years.

Brazil:

The landed price of MAP has softened to $1,030-$1,120/mt CFR. Sources said the lower price has made the product more attractive to farmers with a better barter rate. The potential increased demand for MAP could soon provide a floor to the pricing.

The Rondonópolis price tightened slightly to $1,190-$1,250/mt FOB ex-warehouse. Sales are still not fast enough for holders of MAP, however. Sources said some of the warehouse operators seem anxious to move out the product to make way for future incoming tons.

Lithuania:

Kėdainiai-based phosphate fertilizer producer and EuroChem Group AG subsidiary AB Lifosa is reported to be restarting production shortly after halting operations on April 10 after banks froze the company’s accounts (GM April 15, p. 1). Lifosa has a DAP production capacity of 1 million mt/y, and exported 398,881 mt of DAP last year.

TSP

Eastern Cornbelt, Market Watch, South Central, Triple Superphosphate, U.S. Gulf

U.S. Gulf:

Price ideas for NOLA TSP barges were called flat at $700-$750/st FOB, unchanged from the previous week.

Eastern Cornbelt:

TSP pricing at Cincinnati was reported at $795-$825/st FOB during the week, reflecting an increase of $35/st.

South Central:

The TSP market was quoted at $875-$885/st FOB in the South Central region, down slightly from the last reported $885-$900/st FOB range.

Phosphoric Acid

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

Eastern Cornbelt:

June phos acid postings in the Eastern Cornbelt were reported at $14.00/unit rail-DEL, down from $17.50/unit rail-DEL in May.

Western Cornbelt:

Phos acid prices fell to $14.00/unit rail-DEL in the region for June tons, down from $17.50/unit in May.

Southern Plains:

June pricing for phos acid dropped to $14.00/unit rail-DEL level in the Southern Plains, down from $17.50/unit in May.

India:

With nothing new reported on the India phosphoric acid market, first-quarter contracts remained at $1,530/mt P2O5 CFR, up $200/mt from $1,330/mt P2O5 CFR reported for fourth-quarter 2021.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Southern Plains, Western Cornbelt

Eastern Cornbelt:

There were reports of summer fill pricing for 10-34-0 circulating in the $700s/st FOB, but actual program offers were not confirmed. The last prompt spring business remained in the $850-$860/st FOB range in the Eastern Cornbelt and $900/st FOB in the Great Lakes region.

Western Cornbelt:

10-34-0 prices were pegged at $840-$860/st FOB in the Western Cornbelt for the last prompt spring offers.

Southern Plains:

The 10-34-0 market was quoted at $770-$800/st FOB for the last reported offers in the Southern Plains. 11-37-0 pricing in Texas was pegged at the $825/st FOB level, down from $870-$890/st at last report.