PhosAgro PJSC, Moscow, reported on May 23 that shareholder Vladimir Litvinenko has notified the company that his shareholding is changing from 20.98% to 0.39%. At the same time, Litvinenko’s wife, Tatyana Litvinenko’s, interest in the company has increased from 0% to 20.60%, PhosAgro said.
Litvinenko is the rector of St. Petersburg Mining University.
One person was dead after an ammonia leak on Thursday, May 26, at the Arctic Glacier ice-making facility in Kamloops, B.C., according to CBC News. The Interior Health Authority reported that three more were injured and sent to the hospital and released. The local area was temporarily evacuated and roads closed.
A large amount of ammonia was reported to have been released due to a dislodged valve, according to the local fire department, which is investigating the incident, along with RCMP, WorkSafeBC, and the B.C. Coroner’s Service.
U.S. Gulf/Tampa:
Tampa anhydrous ammonia prices sank back to $1,000/mt CFR for June, down $425/mt from May’s $1,425/mt CFR. Sources had been speculating that prices would fall at least $300-$400/mt CFR, if not more, due to weaker prices in the international market.
Eastern Cornbelt:
The ammonia market was quoted at a flat $1,400/st FOB terminals in the Eastern Cornbelt, down from the prior week’s $1,400-$1,475/st FOB range. The posted price at Lima, Ohio, was down $75/st from the previous $1,475/st FOB level, with the $1,400/st price also confirmed at Huntington, Ind., East Dubuque, Ill., and other Illinois terminals.
Western Cornbelt:
Ammonia pricing was reported in the $1,355-$1,400/st FOB range in the Western Cornbelt, with the low at Port Neal, Iowa, and the high at Palmyra, Mo. Most terminals in Iowa and Nebraska remained at the $1,380-$1,400/st FOB level for the last prompt sales, while pricing in the North Dakota market fell to $1,470-$1,500/st FOB and $1,495-$1,520/st DEL.
In the Southern Plains, sources confirmed the Coffeyville, Kan., ammonia market at $1,225/st FOB in late May.
California:
Anhydrous ammonia reference pricing in California was unchanged at $1,610/st DEL, with aqua ammonia posted at $412-$422/st FOB in the state. A downward price correction is expected this summer, sources said.
Pacific Northwest:
Anhydrous ammonia in the Pacific Northwest remained in the $1,495-$1,555/st DEL range in late May, with terminal prices ranging from $1,450-$1,520/st FOB, depending on location.
Aqua ammonia pricing in the region was steady at the $370/st FOB mark for spring tons.
Western Canada:
Spring ammonia pricing in Western Canada was quoted at C$2,230-$2,250/mt DEL for the last offers.
China:
January-April imports of ammonia were reported at 90,000 mt by Trade Data Monitor. This represents a drop of 75% from the 415,000 mt imported during the same period in 2021.
April imports were also down. China only imported 10,700 mt of ammonia during the month, mostly from Indonesia, compared to the 60,000 mt imported in April 2021.
The reduction in ammonia imports is further evidence of the slowdown caused by reduced demand for industrial products, and to COVID-related closures and slowdowns in phosphate plants in China.
Middle East: Sources said there were more tons available for spot business, but because of price disagreements, nothing has been concluded yet.
Reportedly, Ma’aden is holding out for $1,250/mt FOB, while all potential buyers claim the price is definitely under $1,000/mt. One trader noted that the softening markets in East Asia and North Africa indicated the price should be no higher than $900/mt FOB. However, the price range for spot tons at this time is more speculative than actual.
There are reports that Razi Petroleum in Iran issued a selling tender invitation for three cargoes of 25,000 mt each for loading in June, July, and August. One source said the fact that this invitation was issued indicated the market is not that tight.
Exports of ammonia for January-April were reported at 119,000 mt by Trade Data Monitor, down 37% from the 189,000 mt exported during the same period in 2021. The main buyer in the first four months of this year was India, taking 88,000 mt.
April exports were almost nil compared to the 65,000 mt exported in April 2021. Turkey was the only buyer in April, taking 2,275/mt.
Northwest Europe:
Prices remain high but flexible. Still, said one trader, with production costs for ammonia at $950-$1,000/mt, there is little room for price testing. The current price of $1,200/mt C&F is seen as too high for buyers. At the same time, however, there has been no business to change that public listing.
Sources pointed to a deal into Morocco, possibly from Libya, at $900/mt CFR as evidence that the $1,200/mt C&F price is too high. Nailing down the new price, however, will take more than the occasional deal into Morocco or discussions about what prices should be from Europeans.
Southeast Asia:
Reportedly, Kaltim in Indonesia settled a deal with Trammo for an end-May shipment of two cargoes at 15,000 mt and 25,000 mt each. A third deal of 25,000 mt for OCP was also reportedly booked for the end of May. The price for each cargo was reported around $920/mt FOB.
This price matches up with discussion about the landed prices in Taiwan and South Korea. Sources said discussions between buyers and sellers now seem to be focusing around $980-$990/mt CFR, down from the $1,000+/mt CFR of just a month ago.
U.S. Gulf:
NOLA granular urea barges were reported at $570-$585/st FOB in fairly limited trading, down from the week-ago $615-$635/st FOB.
Eastern Cornbelt:
Urea prices remained under pressure in the Eastern Cornbelt, fueled by further weakening in NOLA barge pricing. The urea market was quoted at $665-$695/st FOB in the region, down another $10-$20/st from the previous week, with the low end of the range confirmed in Cincinnati, Ohio.
In the Great Lakes region, new urea offers FOB Toledo, Ohio, were reported at the $730/st level in late May, reflecting a drop of $30/st from the prior week.
Western Cornbelt:
Urea pricing slipped to $665-$695/st FOB in the Western Cornbelt, down $10-$15/st, with the low confirmed at St. Louis, Mo., and the high in Iowa on a spot basis. Delivered urea pricing in the North Dakota market was quoted at $700-$725/st in late May, down considerably from the $760-$780/st DEL level reported at mid-month.
California:
Urea prices were falling in California. While bulk postings remained as high as $950/st FOB at some locations, recent offers FOB Stockton, Calif., had reportedly slipped to $770-$860/st FOB, down significantly from a high of $975/st FOB back in early May. No current rail-DEL urea prices were confirmed in the state.
Pacific Northwest:
Urea pricing in the Pacific Northwest was pegged at the $745-$750/st FOB level, down from $900-$970/st in early May. The low was confirmed at Rivergate, Ore., at midweek, and sources said another pricing drop might occur by the end of the week.
Delivered urea fell in the $728-$750/st range in the region, down from $770-$820/st in early May, with the high confirmed in Montana.
“Supply out of the Midwest is still a problem, logistics of our railroads are still delayed today,” said one regional contact. “The lower-cost products are being offered to us today off the river system, but you still have a risk of taking 30 days to get supply from that region. With markets declining, buyers usually won’t take that long of a gamble, so we are still seeing a steady pull down from unlimited (higher cost) local supplies.”
Western Canada:
Several sources said a delayed application season has pressured some fertilizer prices in Western Canada. “Prices are all over, with many retailers trying to offload product, trying to minimize carryover,” reported one contact. “Suppliers appear to have product availability for all products. With NOLA turbulence, urea and MAP have seen some lower offers.”
Urea was pegged at C$1,105-$1,150/mt DEL in Western Canada in late May, down from C$1,160-$1,250/mt DEL at last report. Sources talked of FOB urea offers in the low-C$1,100s/st during the week.
India:
Another urea tender is not expected until all of the tons awarded in the May 11 RCF tender have assigned vessels. Traders said they expect to see some discussion taking place during the IFA meeting in Vienna May 30-June 1.
Sources said India has traditionally used the Spring IFA meeting to announce a tender. This time, however, the IFA meeting is soon after the closing of the last tender. Preparing and finalizing the paperwork for another tender usually takes much longer. The next tender will most likely not be called until the second week of June, at the earliest.
India still needs at least another 2 million mt of urea to get back on track for its application season. Some of the slack might be taken up before a tender is called if government plans to secure Russian urea work out.
Local media are reporting that the Indian government approached Russia to accept a barter deal of Indian wheat for Russian fertilizers. The plan faced several immediate setbacks after another branch of the Indian government said it would withhold exports of its grains. At the same time, the Russian government dismissed a similar plan with other countries.
India is also said to be moving ahead with strengthening its rupee/ruble exchange program. This system has been in place for more than half a century, but has been used in smaller deals. Sources were not sure if the program can handle the volume necessary to fulfill India’s urea needs.
The high price of fertilizers has forced the Indian government to increase its budget for subsidies. The new budget will hit US$27.7 billion. Just under US$800,000 of that amount is designated for phosphates and potash. The remainder is largely designed to cover the subsidy cost for urea.
While the P and K fertilizers attached to the Nutrient Based Subsidy system are allowed to adjust prices based on market levels, urea is locked in at Rs242/45-kg bag (US$69/mt). The balance between the current price of $716-$721/mt CFR and the $69/mt is taken up with higher subsidies.
The Modi government had hoped to reduce subsidy payments in the current fiscal year. The budget that took effect in April was set at US$13.5 billion, which was a dramatic drop from the 2021/22 subsidy budget of US$21 billion. The rise in fertilizer prices due to higher energy costs, the withdrawal of China from the global market as a supplier, and the imposition of sanctions against Russia have all combined to move prices into record territory.
Black Sea:
Sources said Russian urea is appearing on the market at dramatically low prices. Netbacks to Russia are reported at $550/mt FOB.
Earlier estimates of what the Black Sea price would be if tons were allowed to exit Yuzhnyy put the price in the upper-$660s/mt FOB. This estimate was based on normal freight and handling costs for a delivery to the West Coast of India.
As the new and lower prices were being discussed among traders, there were reports that talks were underway to secure a safe naval passage for the export of food stuffs out of ports from Russian-occupied Ukraine and from the remaining ports under Ukrainian control. Sources said fertilizer shipments would most likely be considered part of the deal.
Talks stalled late in the week, however, as Western European and Ukrainian negotiators doubted the willingness of the Russian government to honor a non-aggression pact for this corridor. At the same time, Russia said it would only agree to the free corridor if the West removed its sanctions on Russia.
Indonesia:
Sources said no new deals were reported from Indonesia, leaving the price at $628/mt FOB for granular urea. A new selling tender is expected soon.
Middle East:
Talks simmered down this week as buyers and sellers prepared for the IFA meeting in Vienna. Traders said the IFA event will provide everyone a better opportunity to judge the temperament of the market and to possibly come to some new pricing arrangements.
The lack of any new business kept the Arab Gulf price in the upper-$680s/mt FOB.
Egyptian producers were able to hold onto the $720/mt FOB achieved last week. Sources said Kima did a small deal at that level at midweek. However, producers had been pushing for $730/mt FOB. Sources said the market seems to be less willing to allow prices to move much higher. Deals out of the IFA conference might help set some new guideposts for pricing.
Freight inquiries this week showed Egypt as the most commonly sought loading location, with requests looking to secure vessels for 782,000 mt. A total of 4 million mt were in play.
The absence of Chinese and Russian urea in the market has led to an opening for Iran. January-April exports were reported at 1.3 million mt by Trade Data Monitor. This is up 33% from the 954,000 mt exported during the same period in 2021.
Turkey dominated the buying, taking 487,000 mt. Nigeria took 132,000 mt, although sources speculated that the tonnage may be designated for re-export. Mozambique and Brazil took 126,000 mt and 114,000 mt, respectively.
April 2022 exports were up dramatically, to 424,000 mt from the 170,000 mt exported during April 2021. Turkey took 43% of the exports with 182,000 mt. The United Arab Emirates accounted for another 18% with 76,000 mt, and Nigeria took 16% of exports at 66,000 mt.
Pakistan:
Sources said the Pakistan government is continuing its efforts to secure a government-to-government deal for 200,000 mt of urea. Traders said the government has no choice, because its foreign reserves are considered too low to handle a public tender, especially with urea prices at their current levels.
The Pakistan government had earlier authorized the importation of 200,000 mt. Trade Pakistan Corp. was authorized to look into ways to secure the tonnage. Initial plans discussed the possibility of a tender and a G-2-G deal. In the end, sources said the government settled on only seeking deals directly with urea-producing countries.
Brazil:
Prices have come off to $680-$700/mt FOB, with buyers pushing for $650/mt FOB. A reported deal involving Nigerian tons is said to be ready to close at $660/mt FOB. International traders said they do not see anything in Brazil topping $700/mt CFR.
The inland market has tightened, with sources quoting the Rondonopolis market at $840-$890/mt FOB ex-warehouse. Sources said 30% of farmers have secured their urea needs. The rest are waiting to see if rumors of a downward trend in prices prove true.
U.S. Gulf:
NOLA UAN barge price ideas softened to $600/st ($18.75/unit) FOB from the longstanding $620-$630/st ($19.38-$19.69/unit) FOB.
Eastern Cornbelt:
The UAN-32 market was quoted at $640-$660/st ($20.00-$20.63/unit) FOB regional terminals in the Eastern Cornbelt, down $10-$20/st, with the low confirmed at Cincinnati and Mount Vernon, Ind. The UAN-28 market fell to $560-$565/st ($20.00-$20.19/unit) FOB Cincinnati, down a full $30/st from levels reported in early May.
“I truly believe after conversations with CF that you can make offers on UAN,” said one regional contact. “It seems like they want to move and might be long on product.”
Western Cornbelt:
The UAN-32 market was quoted at $630-$650/st ($19.69-$20.31/unit) FOB in the Western Cornbelt, with the low at Port Neal and the high reported in Nebraska. Pricing at St. Louis remained at the $640/st ($20.00/unit) FOB level for the last offers.
One Iowa source said growers are “looking for a big sidedress” run after Memorial Day. “Crops look good, but spring tonnage was cut short this spring,” he added.
California:
UAN-32 pricing in California slipped to a low of $680-$690/st ($21.25-$21.56/unit) FOB Stockton, roughly $10/st under the last reported range, with reference prices remaining at the $700/st ($21.88/unit) FOB level. The last confirmed rail-DEL offers were unchanged at $710-$722/st ($22.19-$22.56/unit) in the state, depending on location.
Pacific Northwest:
The UAN-32 market was pegged at$650-$660/st ($20.31-$20.63/unit) FOB terminals in the Pacific Northwest, down $10-$25/st. The price FOB Kennewick, Wash., was quoted at the $655/st ($20.47/unit) level in late May, reflecting a $30/st drop.
Delivered UAN-32 offers fell to the $650-$680/st ($20.31-$21.25/unit) range in the region, down $30-$40/st from last report.
Western Canada:
UAN-28 prices reportedly dropped to C$760/mt (C$27.14/unit) DEL in Western Canada, down from the last reported C$860/mt (C$30.71/unit) DEL level.
U.S. Gulf:
The most recent NOLA barge price ideas for ammonium nitrate were reported in the $600-$625/st FOB range.
Western Cornbelt:
The last ammonium nitrate spot offers were reported at $765-$780/st FOB in the Western Cornbelt.
U.S. Gulf:
The NOLA barge market was reported as quiet during this pre-holiday week, and was still called $630-$665/st FOB for the last done business.
Eastern Cornbelt:
Granular ammonium sulfate prices reportedly slipped to $675-$705/st FOB in the Eastern Cornbelt, down another $5-$15/st, with the low confirmed in Illinois and the high in Ohio on a spot basis. The Cincinnati market was pegged at the $690/st FOB level in late May.
Western Cornbelt:
The ammonium sulfate market was pegged at $675-$690/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and the high in Iowa. In the Northern Plains, sources reported delivered pricing in the $690-$720/st range in North Dakota.
California:
Although dealer reference prices for ammonium sulfate remained above the $700/st FOB level in the state, sources said the actual market had slipped to $670-$700/st FOB in California, down some $15-$30/st, depending on location. “Looks like ammonium sulfate will be long at the end of the season,” said one contact.
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 $670-$755/st FOB and $685-$760/st DEL, depending on supplier.
Western Canada:
The Western Canada ammonium sulfate market was unchanged at C$925-$950/mt DEL in late May.
China:
Prices of caprolactam grade amsul remain steady, but seem to be under pressure. Sources said the softening of urea prices is beginning to have an impact on what buyers are willing to pay.
January-April exports of ammonium sulfate showed a slight uptick, according to Trade Data Monitor. Exports for the first four months of the year were reported at 3.2 million mt, against 3.1 million mt for the same period in 2021.
Turkey stepped up its purchases of Chinese amsul during this period. Turkey bought 512,000 mt so far this year, compared to 230,000 mt during the same four months last year. At the same time, Brazilian imports showed a decrease. January-April 2022 exports to Brazil were reported at 456,000 mt against 555,000 mt during the same period in 2021.
April 2022 exports of 816,000 were off slightly from the 920,000 mt exported in April 2021. Vietnam bought 106,000 mt in April, accounting for 13% of the exports, with Brazil taking 93,000 mt for 11% of the market. The remaining 76% was divided among 40 buyers, with none topping 10% of the export market.
Brazil:
Ammonium sulfate prices softened to $390-$400/mt CFR in Brazil. Sources said the drop is most likely a reaction to the softening urea market. International traders said demand and supply have not changed enough to justify a price shift.
Aggressive buyers in Rondonópolis pushed the bottom of the price range lower. Sources now put the inland market price at $525-$605/mt FOB ex-warehouse.
Central Florida:
Central Florida DAP trucks continued to be posted at $945/st FOB, unchanged from the prior report. MAP loaded to trucks was quoted even with DAP at $945/st FOB.
Players described truck-loaded North Florida MAP at $940/st FOB, unmoved from one week earlier.
U.S. Gulf:
DAP and MAP barges loading from NOLA were reported moving down for the week.
DAP barges loading in a 30-day window were heard offered down to $820/st FOB, unchanged from last week, while players reportedly offered up to $830/st FOB, a decline from the week-ago $860/st FOB top. Players described few, if any, transactions concluding during the week, however.
MAP barge pricing proved more contentious, with players noting offers down to at least $840/st FOB, declining from the previous $850/st FOB level. Offers tracked as high as $880/st FOB through the period, falling from the prior $895/st FOB high. Rumored $830/st FOB offers went unconfirmed on May 26. Like DAP, few if any barge MAP trades were concluded during the May 20-26 period.
Some noted an uptick in upriver product movements for the week due to accelerated planting progress in some regions, although that demand was not heard extending to NOLA.
Nearby NOLA DAP barge offers were reported at $820-$830/st FOB, softening from $820-$860/st FOB in the prior report. Players reported MAP offers at a wide $840-$880/st FOB, falling from $850-$895/st FOB one week earlier.
U.S. Exports:
With no new pricing reported, the Gulf phosphate export market continued to be indicated in the $1,080-$1,100/mt FOB range, steady from the prior report.
Eastern Cornbelt:
DAP pricing covered a wide range at $895-$960/st FOB in the Eastern Cornbelt, down another $5-$15/st from last week, with the low confirmed in southern Illinois on a spot basis and the high at Cincinnati.
MAP was reported at $900-$960/st FOB in the region, also reflecting a $15/st drop from the previous week, with the high again confirmed at Cincinnati.
In the Great Lakes region, new DAP offers were reported as low as $930/st FOB Toledo in late May.
Western Cornbelt:
DAP pricing was reported at $890-$940/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and the high in Iowa. MAP fell in the $900-$950/st FOB range in the region, down from the prior week’s $915-$960/st FOB, with the St. Louis market pegged at $900-$930/st FOB.
California:
MAP was quoted at $1,060-$1,070/st FOB or DEL in California. “We are seeing reduction in P and K rates, with some reporting as high as 20-30%,” noted one source in late May. “Most are working to sell out of existing commitments.”
Pacific Northwest:
MAP prices were down to $960-$990/st DEL in the Pacific Northwest, depending on location, well below the last confirmed range of $1,050-$1,060/st DEL in early May.
“This has been a slow season,” commented one regional source. “When we are done, I expect most will be saying that demand destruction will amount to about 10-20% on the dry P and K. Nitrogen hasn’t showed its hand as of yet.”
“Spring demand has been lackluster throughout the season,” added another contact. “Cool, wet weather and price avoidance, if possible, have been top-of-mind for most growers.”
Western Canada:
MAP prices were under pressure in Western Canada. Sources pegged the current market at C$1,360-$1,450/mt FOB, down from C$1,450-$1,535/mt FOB at last report. No current delivered MAP prices were confirmed during the week.
India:
The 66% rise in DAP prices has forced the government to authorize more funds for the Nutrient Based Subsidy (NBS) program. While the NBS system does allow for some movement of prices to reflect market forces, the government has established a ceiling on prices to farmers. Anything beyond that is covered by subsidies.
The government has approved an increase in total subsidy allotments to US$27.7 billion from the earlier allocated US$13.5 billion. The new allotment for DAP and MOP subsidies for the April-September application season will be US$786,000, compared to the US$737,000 spent for the whole 2021/22 fiscal year.
The lack of any new spot business has prices holding at $1,030/mt CFR.
China:
The combination of export restrictions and the traditional drifting pattern that precedes most IFA annual meetings is keeping prices in the $990s/mt FOB.
Exports of DAP for the January-April period were down to 938,000 mt, according to Trade Data Monitor. This is a 32% drop from the 1.4 million mt exported during the same period in 2021.
India with 309,000 mt, Bangladesh with 160,000 mt, and Thailand with 136,000 mt were the main DAP buyers in the first four months of the year.
April 2022 exports were also off compared to April 2021. Trade Data Monitor reported April 2022 exports at 195,000 mt, down 57% from the 455,000 mt exported in April 2021. India took about 62% of the exports with 120,000 mt. Indonesia was second with 27,000 mt, taking a 14% share of the export market.
January-April exports of MAP were reported at 381,000 mt by Trade Data Monitor. This is about 60% down from the 960,000 mt exported during the same period in 2021.Australia dominated the buyers in the first four months of the year, taking 139,000 mt.
April 2022 exports were down about 52%, to 179,000 mt from the 373,000 mt exported in April 2021. Argentina led the way, buying 70,000 mt for 39% of China’s MAP exports. Brazil was second, taking 55,000 mt in April for 31% of the exports.
Brazil:
The landed price of MAP is under pressure as importers of Chinese, Russian, and Moroccan product compete for new negotiations. Sources reported a slight softening to $1,100-$1,200/mt CFR.
There are reports that a small cargo of Russian material was sold at $1,000/mt CFR, but without solid confirmation. Sources said it could be possible, however. The news came as sources reported that Russia was dumping urea on the market in an effort to entice buyers to bypass or ignore the sanctions imposed on it because of the invasion of Ukraine.
Sources said the Chinese MAP being offered represents the lower end of the existing price range. Moroccan material represents the upper end.
The range in Rondonópolis expanded as prices softened on the lower end. Sources put the price at $1,260-$1,290/mt FOB ex-warehouse. Sources said the shift reflects the situation at the ports.
U.S. Gulf:
TSP barge offers were heard in the $775-$800/st FOB range for the week, falling from $800-$810/st FOB at last report.
Eastern Cornbelt:
TSP pricing at Cincinnati was reported at the $830/st FOB level in late May, down from $840-$855/st the week before.
Western Cornbelt:
The TSP market was quoted at $830-$850/st FOB in the Western Cornbelt, depending on location.
California:
The 16-20-0 market was steady at $750-$757/st FOB in California in late May.
Pacific Northwest:
16-20-0 prices were pegged at $700/st FOB or DEL in the Pacific Northwest.
