All posts by mickeybarb@charter.net

Ammonia

Ammonia, Black Sea, Brazil, California, Eastern Cornbelt, India, Market Watch, Middle East, North Africa, Northwestern Europe, Pacific N.W., Southeast Asia, Tampa, U.S. Exports, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf/Tampa:

With recent news that European ammonia plants are returning to production, the Tampa ammonia price for May becomes more of a question mark. April saw a significant jump to $1,625/mt CFR, up from $1,135/mt CFR recorded in March and February.

On April 14, European natural gas prices slumped to the lowest since the start of the war in Ukraine, with the Easter holidays approaching and Russian President Vladimir Putin remaining largely silent on a potential halt to European gas supplies.

Benchmark Dutch front-month gas futures dropped as much as 17 percent, to 87.19 euros per megawatt-hour, the lowest intraday level since Feb. 23, the day before Russia invaded Ukraine, according to Bloomberg. Trading and demand also typically slide ahead of the holidays.

“Energy demand is down, with no seeming rush to bridge the Easter weekend quell of trading,” said Tim Partridge, Head of Energy Trading at DB Group Europe.

U.S. Exports:

Ammonia exports for July-February were down 40.1 percent, to 250,616 st from 418,225 st. Exports were reported at 38,411 st for February, however, up 154.6 percent from 15,088 st in the prior year.

Eastern Cornbelt:

The ammonia market was quoted in a broad $1,450-$1,550/st FOB range in the Eastern Cornbelt, with the low reflecting referencing pricing from Koch and the high reported for CF pricing in Illinois and Indiana. The market FOB Lima, Ohio, remained at the $1,475/st level at mid-month.

Western Cornbelt:

The ammonia market was quoted at $1,425-$1,450/st FOB in the Western Cornbelt, depending on location, with the low reported at Beatrice, Neb., and the high at Palmyra, Mo., and out of most Iowa terminals.

California:

Anhydrous ammonia reference pricing in California jumped to $1,610/st DEL for April tons, up a full $390/st from the last posting. Aqua ammonia prices also firmed in the state, to $412-$422/st FOB, depending on location, up from $315-$325/st FOB in March.

Pacific Northwest:

Spring pricing for anhydrous ammonia in the Pacific Northwest was quoted at the $1,500/st DEL level in mid-April, down from the last reported high of $1,650/st DEL. The aqua ammonia market remained at $405/st FOB in the region for spring tons.

Western Canada:

Spring ammonia offers in Western Canada were quoted at C$2,230-$2,300/mt DEL in mid-April, up C$50/mt at the high end of the range.

Black Sea:

The war in Ukraine is keeping the major ammonia loading ports closed, making price discovery difficult. Sources said any discussion of pricing at this point is mere speculation.

India:

Sources said large buyers are easing back on their contracted tons, leaving them in good shape without a need to scramble for extra material. At the same time, smaller buyers seem to be able to cover their limited needs with small purchases, mostly from Iran.

Ammonia prices remain high, leaving buyers and the government concerned. The price is causing some difficulty securing the necessary credit from banks and is playing havoc with the government budget, which only began on April 1. Reportedly, the government has formed a committee to look at how to deal with the rising costs of fertilizers without breaking the bank.

Middle East:

Arab Gulf producers are now asking $1,450/mt FOB for what limited ammonia is available. So far, no one has taken them up on their offers.

Sources said calculating an appropriate price for the area is difficult. One trader noted that working back from the current price in Southeast Asia, the netback should be around $900/mt FOB. Buyers are pushing for a price closer to $1,000/mt FOB, but the last done spot deal came in at $1,230/mt FOB.

With steady and strong production, sources said producers are under no pressure to sell their product. Demand is steady enough that supplies are matching the buyers’ needs. There is also limited pressure to lower prices, given the absence of Black Sea material in the global market.

Buyers such as OCP in Morocco have been scouring the globe to secure the tons they need. Reportedly, OCP has made more purchases from the Arab Gulf than in previous years.

Southeast Asia:

Ammonia demand is slacking off as industrial production eases in the face of slower economic growth. Sources said the main industrial buyers in South Korea and Taiwan have backed off on their purchasing demands, and are seeking only the basic amounts required under their contracts.

Northwest Europe:

The ammonia price remained steady at $1,630-$1,650/mt C&F. Softer gas prices and the stronger ammonia price is making it possible for plants to restart. Sources said the break-even price is holding around $1,000/mt, giving enough room in the market to compete against imported tons.

Recent sales into Turkey at $1,200/mt CFR and Greece at $1,700/mt CFR helped industry sources to accept the higher prices of ammonia in Europe.

The main issue facing buyers is not the availability of ammonia, said sources, but rather the ability to get financing to buy the material. Banks are hesitant to provide the credit necessary to buy a cargo or two when the value of those cargoes is at record highs.

North Africa:

Production and purchases of ammonia in the area are running at normal rates. Sources said OCP/Morocco is telling all who will listen that they have enough ammonia to keep up phosphate production through June. At the same time, said sources, OCP is scouring the globe for the tons they will continue to need.

With Black Sea and Baltic sources closed off because of the war in Ukraine and sanctions against Russia, the global market is missing about 250,000 mt each month. Additionally, OCP needs to bring in at least three cargoes each month to maintain its operations. Already OCP has stepped up its inquiries to Trinidad, the Arab Gulf, and Southeast Asia to secure the tons it needs.

Phosphate production in Morocco is expected to pick up, and with it increased demand for ammonia. The lack of phosphate exports from Russia and China has offered OCP opportunities to seize greater market share in countries such as Brazil.

At the same time, OCP has reportedly said it would not be shipping phos acid until a price for the second quarter is settled. Sources said the new asking price is $2,000-$2,200/mt CFR to India. Until a deal is closed, sources said OCP will use the acid to step up its production rates.

Brazil:

Ammonia imports for the first quarter of the year were reported at 106,000 mt by Trade Data Monitor, down roughly 22 percent from the 136,000 mt imported during the same period in 2021.

Trinidad, as usual, dominated the imports. Brazil imported ammonia from Qatar for the first time, however, and also pulled a cargo from Argentina for the first time since 2020.

March 2022 imports were reported at 65,000 mt, more than double the 32,000 mt imported in March 2021. Tons from Trinidad accounted for 53 percent of the March imports, with material from Qatar and Argentina accounting for another 24 percent each.

Urea

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

U.S. Gulf:

NOLA granular urea barges were reported to have traded within the $750-$800/st FOB range, with the higher end concluded at the beginning of the week. This compares to the week-ago $740-$880/st FOB.

Since there have been no new prill trades for a while, players said any new pricing would likely fall somewhere within the current granular range.

U.S. Exports:

Urea exports from the U.S. in February were up 350.2 percent, to 102,364 st from the year-ago 22,737 st. Exports totaled 340,448 st for July-February, however, off 43.8 percent from the prior year’s 605,739 st.

Eastern Cornbelt:

Urea prices in the Eastern Cornbelt appeared to back off even more this week, fueled by low demand and continued softness in the NOLA barge market. Sources quoted the regional market at $835-$865/st FOB, with the low confirmed in Illinois. The Cincinnati, Ohio, market was pegged at $860-$865/st FOB, down from $900-$935/st the week before.

Western Cornbelt:

Sources reported very little fieldwork in the Western Cornbelt, and urea prices continued to fall as “wet conditions prevail.” The market was quoted at $800-$850/st FOB at mid-month, down from the prior week’s $850-$910/st FOB range, with the high confirmed in the Iowa market. St. Louis, Mo., urea pricing was pegged in the $800-$835/st FOB range.

The St. Paul, Minn., urea market was quoted at $845-$855/st FOB during the week, while pricing FOB Catoosa/Inola, Okla., fell in the $835-$845/st FOB range.

California:

The urea market in California was quoted in a broad range at $960-$1,025/st FOB at mid-month, up from $960-$1,010/st FOB at last report. The low end of the range was confirmed at West Sacramento and remained unchanged, while pricing at Stockton had reportedly firmed to $990-$1,025/st FOB. Bagged urea tons remained as high as $1,060/st FOB West Sacramento.

Pacific Northwest:

The urea market was steady at $990-$995/st FOB in the Pacific Northwest. No current delivered prices were confirmed at mid-month.

Western Canada:

The urea market appeared to be slipping in Western Canada, fueled by softer NOLA and Midwest pricing. Delivered pricing was quoted in the C$1,280-$1,350/mt range, down from C$1,350-$1,400/mt in late March. On an FOB basis, the regional market reportedly fell to C$1,230-$1,345/mt, down from C$1,320-$1,390/mt FOB at last report.

India:

Sources continued to expect that a urea tender could be called any day. Reportedly, part of the delay comes from the Indian government trying to put together a package that will allow for Russian urea to be purchased under a rupee-ruble exchange, independent of the U.S. and European banks. A similar arrangement is how India is getting Russian oil, said sources.

Industry sources, however, said the process is not as easy for fertilizers. Also, finding vessels willing to enter the Black Sea war zone to pick up the product would be difficult, said one trader. Some international traders said the rumor of the exchange system is more posturing by the Indian government than an actual possibility.

In the meantime, the government is reported to have established a special committee to analyze current market conditions and decide if changes to the 2022/23 budget need to be made to cover the higher urea prices and the subsequent higher subsidies for urea.

Black Sea:

Vessel activity in and out of the Black Sea is mostly limited runs to Georgia on the eastern edge of the Black Sea, or stops in Turkey, Bulgaria, or Romania at the entrance. The closure of the Ukrainian ports has cut off any market exploration. In addition, the presence of Russian war ships throughout the northern reaches of the Black Sea has ship owners nervous about sending their vessels into the area.

Sources said traders are talking about different prices, but none of that talk is based on actual deals. One trader said he doubts that anyone is actually talking to possible exporters about their pricing ideas, knowing that the ports are closed.

Indonesia:

The deal last week that moved the price to $945/mt FOB seems to have fallen apart. The price came from a tender offering 30,000-45,000 mt of granular urea from Kaltim. Reportedly the bids were too low, so the tender was scrapped and private talks followed.

So far, this is normal practice in Indonesia. In the private talks, a buyer was reportedly ready to take 45,000 mt at $945/mt FOB. When it came time to finish the deal, however, the buyer scampered. Sources said Kaltim called around to other trading houses that participated in the tender to see if they were interested. No one agreed to take over the deal.

Sources said the reluctance of the traders came as reports circulated that prices were softening, and that $945/mt FOB would be too high for any buyers in the area.While buyers now argue for lower prices under $900/mt FOB, producers are digging in their heels for prices in the $900s/mt FOB.

Middle East:

Details of a spot deal that closed several weeks ago are now being made public. Reportedly, a producer sold a cargo at $950/mt FOB for April loading.

The price was not surprising to global traders. Rumors of softer prices in the Arab Gulf have been circulating for a while. Sensing further price drops, sources reported that some potential buyers are now bidding in the upper-$700s/mt FOB. Producers are rejecting this number, arguing that prices should at least be in the $900s/mt FOB.

No new business was reported from Egyptian producers, leaving the price at $1,130/mt FOB. Reportedly, there is a big push for lower prices. Buyers are now bidding at $900-$950/mt FOB, while producers are digging in their heels at $1,000/mt FOB.

China:

Restrictions on exports are expected to last well into July. Sources said even with the lifting of the official restrictions in May, customs officials will still have final say about how many tons will be allowed to be exported.

These officials will be looking at the estimated demand for urea, as well as current and forecasted stockpiles. Most traders expect only a small portion of the once-robust export trade to happen. Sources said June and July may see a slight easing of the restrictions, but there will not be a fully open export market any time soon.

The only large quantities that have come out of China have been under government-to-government arrangements. Pakistan took about 100,000 mt in February, according to Trade Data Monitor, after such a deal was cut. Total exports in January were only 85,000 mt. December shipments were only 35,000 mt.

Most of the sales during the export restriction period have been to countries needing urea more for industrial or environmental reasons than for agricultural use. These small shipments were done in containers, rather than via bulk carriers for ease of handling.

Brazil:

The urea market in Brazil reflected softer prices seen in other major markets. The landed price is now pegged at $880-$930/mt CFR, with most of the deals taking place under $900/mt CFR.

Sources said besides the global push for lower prices, this time of year is usually when Brazilian urea prices soften. The few buyers in the market appear to be picking up tons to position themselves properly for the 2023 corn season. Farmers remain hesitant to buy just yet, expecting further price declines.

Rondonopolis was reported with a tighter price range than in previous weeks, with the market quoted at $1,060-$1,150/mt FOB ex-warehouse.

Urea imports for the first quarter were reported at 1.6 million mt, down about 17.5 percent from the 1.97 million mt imported during the same period in 2021, Trade Data Monitor reported that Nigeria led with 375,000 mt, up 160 percent from its sales in 2021. Oman, Russia, Qatar, and Algeria rounded off the top five suppliers.

March 2022 imports were down 32 percent from March 2021, at 480,000 mt. Nigeria supplied one-third of the urea imported in March at 159,000 mt. Russia and Qatar each had another 13-15 percent of imports, leaving Oman with 10 percent of the import market.

Keras Buys 100 Percent Stake in Diamond Creek Phosphate Project; Processing Resumes

London, News, News Briefs, Pacific N.W., Phosphate, Phosphate Rock, Specialty

London-based organic phosphate producer Keras Resources PLC recently announced that it now owns 100 percent of Falcon Isle Resources LLC and Falcon Isle Holdings LLC (collectively Falcon Isle), having acquired the outstanding 49 percent minority interests of Falcon Isle from the Helda Living Trust (HLT). Falcon Isle owns the Diamond Creek organic phosphate lease and mine and the Spanish Fork processing facility in Utah.

Keras said it now has assumed full management of Falcon Isle, and production has recommenced operations at the processing facility. Processing was temporarily halted in late 2021 due to financial issues (GM Nov. 12, 2021).

“We are delighted to have acquired 100 percent of Falcon Isle, securing the high-grade Diamond Creek phosphate mine and strategically located Spanish Fork processing plant in a very buoyant organic fertilizer market,” said Keras CEO Russell Lamming. “Although processing operations were temporarily suspended whilst we sought this resolution, our management team has been on site regularly to oversee sales from our inventory of processed material and ensure business continuity, specifically retaining our customer base and maintaining relationships with key contractors.”

He said payment terms have been structured to use cash generated from the operation and minimize additional funding. He added that the company has a three-month window to explore financing options before the first tranche is due, and they have already initiated discussions with key customers to look at funding solutions.

Lamming said the company has a total mined inventory of over 10,000 tons, including 4,000 tons of processed, saleable product available, and that it is well placed to convert this to cash flow and increase market share. He added the company will also be consolidating the long-term future through a targeted exploration program to underpin future production.

“The organic phosphate market is on an upward trajectory, with robust long term fundamentals; operations have recommenced, and we look forward to realizing the full and true value inherent within the Diamond Creek asset,” Lamming added.

Keras purchased the outstanding 49 percent equity interest for total consideration of US$3.2 million, including loans repaid to the vendor of Falcon Isle of US$1.81 million.

In related news, Keras said on April 12 Utah mining and environmental officials recently conducted their annual inspection of the mine, and Keras received all ongoing approvals in line with the project’s license obligations.

Keras said its team will now start the annual rehabilitation on the access roads and begin trucking the approximately 5,200 tons of run-of-mine phosphate rock remaining at the lay-down area from last year’s mining campaign to the processing facility. An additional 1,500 tons of blasted ore will similarly be excavated and hauled from the pit to Spanish Fork during the early summer months.

UAN

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

U.S. Gulf:

NOLA UAN barges continued to be reported at $620-$630/st ($19.38-$19.69/unit) FOB.

U.S. Exports:

February UAN exports fell 79.3 percent, to 7,130 st from the prior-year 34,476 st. July-February exports softened 42.8 percent, to 328,366 st from the previous 574,490 st.

Eastern Cornbelt:

The UAN-32 market remained at $660-$670/st ($20.63-$20.94/unit) FOB in the region, with the low at Mount Vernon, Ind., and the high at Peru, Ill., and Terre Haute, Ind. Sources pegged the Cincinnati market at $665/st ($20.78/unit) FOB for UAN-32 and $590-$595/st ($21.07-$21.25/unit) FOB for UAN-28.

UAN-28 pricing out of some Michigan terminals had reportedly edged up to $605-$615/st ($21.61-$21.96/unit) FOB in mid-April.

Western Cornbelt:

The UAN-32 market was pegged at $650-$675/st ($20.31-$21.07/unit) FOB regional terminals in the Western Cornbelt, with the low confirmed at St. Louis. Pricing out of Iowa terminals was generally reported in the $665-$675/st ($20.78-$21.07/unit) FOB range, depending on location.

California:

The UAN-32 market in California was quoted at $690-$700/st ($21.56-$21.88/unit) FOB, with the high reflecting reference pricing at Stockton. Sources reported limited rail offers at $700-$710/st ($21.88-$22.19/unit) DEL in mid-April.

Pacific Northwest:

The UAN-32 market remained at $660-$685/st ($20.63-$21.41/unit) FOB in the Pacific Northwest, with the high reflecting reference pricing at Kennewick, Wash. Delivered UAN-32 offers in eastern Oregon and Washington were pegged at the $680/st ($21.25/unit) level.

Western Canada:

The UAN-28 market in Western Canada was pegged at a solid C$860/mt (C$30.71/unit) DEL by multiple sources in early April.

Ammonium Sulfate

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

U.S. Gulf:

NOLA ammonium sulfate barges were reportedly stable at $675-$695/st FOB.

U.S. Exports:

February ammonium sulfate exports were down 71.9 percent year-over-year, to 16,358 st from 58,236 st. July-February exports fell 5.7 percent, to 419,358 st from the prior year’s 444,472 st total.

Eastern Cornbelt:

The granular ammonium sulfate market firmed to $720-$760/st FOB in the Eastern Cornbelt, up another $5-$10/st, depending on location, with the low end of the range reported at Cincinnati. Postings from AdvanSix in Illinois remained at $740-$745/st FOB and $750/st DEL for granular, with mid-grade referenced at $680/st FOB and $690/st DEL.

Western Cornbelt:

The ammonium sulfate market was pegged at $705-$740/st FOB in the Western Cornbelt, with the low reported at St. Louis and the high in Iowa. AdvanSix’s April 1 granular ammonium sulfate postings included $755/st FOB Sioux City, Iowa, with rail-DEL tons in Iowa posted at $750/st for granular and $690/st for mid-grade.

California:

The ammonium sulfate market was quoted at $670-$700/st FOB in California, up $15/st at the top of the range, with the low reported at Lathrop and the high reflecting new granular postings from some suppliers.

Pacific Northwest:

Standard ammonium sulfate pricing remained at $620/st FOB in the Pacific Northwest, based on the last postings from IRM on March 15. Granular pricing ranged broadly at $670-$755/st FOB and $670-$760/st DEL, depending on supplier, with the high end of both ranges reflecting a $50/st increase from last report.

Western Canada:

The Western Canada ammonium sulfate market was edging higher, with reports of new offers climbing to C$950/mt DEL for limited tons, up from a range of C$875-$925/mt DEL in late March.

China:

Sources said prices were all over the place for standard caprolactam-grade amsul. Some deals were reported close to $400/mt FOB, while others were quoted at $350/mt FOB. A couple of traders said there was also talk of $320/mt FOB.

Limited buying interest in Southeast Asia put downward pressure on prices for small lots. At the same time, demand from Brazil helped fill larger vessels with mixed varieties of amsul at higher prices.

Sources are comfortable with the $350-$400/mt FOB range, but many noted that the trend is to even lower prices.

Brazil:

Prices came down, and the range widened to $430-$480/mt CFR for granular amsul in Brazil. The price move came in tandem with lower urea prices.Rondonopolis dropped to $575/mt FOB ex-warehouse as buyers look to take advantage of falling urea prices to push amsul prices even lower.

Ammonium sulfate imports for the first quarter were reported by Trade Data Monitor at 869,000 mt, up 14 percent from the 762,000 mt imported during the first three months of 2021.China, as usual, dominated the market, sending 703,000 mt in January-March.

March 2022 imports were up slightly at 438,000 mt, compared with March 2021 imports of 406,000 mt.

DAP/MAP

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

Central Florida:

DAP trucks loading from Central Florida continued to be posted at $945/st FOB, steady from one week earlier. Truck-loaded MAP was even with DAP at $945/st FOB, also flat compared with the previous week.

U.S. Gulf:

Sources reported a slow market heading into the Easter weekend, with DAP barge pricing remaining steady and MAP weakening slightly.

Most players noted the bulk of the week’s DAP barge pricing landing in the upper half of the prior week’s $940-$970/st FOB range, although limited early-week trading was reported near the week-ago $940/st FOB floor.

Traders generally pegged the MAP high unmoved from the previous week’s $990/st FOB, while business reported in the $950-$960/st FOB range stretched the market $20/st below the previous $970/st FOB floor. Players were divided on whether the lower pricing represented declining sentiment or was simply due to the slow holiday week.

Offer levels from domestic phosphate producers were quoted steady at the week-ago $970/st FOB level for both DAP and MAP.

The NOLA barge DAP market was reported rolling over from week-ago levels in the $940-$970/st FOB range. MAP barges loading from NOLA softened to the $950-$990/st FOB range, down from $970-$990/st FOB the week before.

U.S. Exports:

DAP exports for February fell 43.1 percent, to 34,313 st from 60,300 st. July-February exports were 23.8 percent lower, to 416,369 st from 546,427 st in the prior year.

February MAP/Other exports were noted at 201,089 st, rising 9.9 percent from the year-ago 182,954 st. July-February exports were counted at 1.42 million st, however, down 4.1 percent from the year-ago 1.48 million st.

Players reported no new spot business in the Gulf export phosphate markets, leaving the market at the last reported $1,240/mt FOB level for both DAP and MAP.

Eastern Cornbelt:

DAP pricing remained at $1,000-$1,030/st FOB regional terminals, with the Cincinnati market pegged at $1,020-$1,025/st FOB. MAP was reported in a broad $995-$1,040/st FOB range in mid-April, with the Cincinnati market quoted at $995-$1,010/st FOB.

Western Cornbelt:

The DAP market was quoted at $990-$1,025/st FOB in the Western Cornbelt, with the St. Louis market pegged in the $990-$1,010/st FOB range. MAP pricing moved to a broad $1,025-$1,060/st FOB range, with the low at St. Louis and the high in Iowa on a spot basis.

California:

MAP remained at $1,070/st FOB or DEL in California. Some sources reported drastic cutbacks in 1Q application volumes this year due to retail price resistance, the worsening drought, and low nut prices.

Pacific Northwest:

The MAP market in the Pacific Northwest was unchanged at $1,060/st FOB Aurora, Ore., $1,060/st DEL in Idaho, Utah, and Montana, and $1,050/st DEL in Washington, Oregon, and Nevada.

Western Canada:

Phosphate prices were moving higher in Western Canada. New MAP offers were quoted in a broad C$1,470-$1,570/mt FOB range in mid-April, up another C$70/mt from the last confirmed business. No current delivered MAP prices were confirmed during the week.

Saudi Arabia:

Saudi Arabia phosphate pricing was heard in the $1,025-$1,200/mt FOB range, sources said, a shift from $1,035-$1,190/mt FOB in the prior report.

China:

The DAP exports taking place are mostly from old contracts signed before the restrictions took effect in October 2021.Some smaller quantities are being allowed out, but only after customs officials are satisfied that the existing reserves will be able to handle any estimated demand.

The restrictions against exports were slated to end in May. Sources said they expect to continue to see limitations on exports through July, however.

The lack of any tons tied to new deals makes price determination difficult. While some traders will talk about where they think prices should be, no one can point to an actual piece of business to confirm or refute these positions.

India:

Based on an early April DAP sale from Saudi Arabia to Pakistan at $1,025/mt CFR, sources now said the equivalent price in India would be about $1,000/mt CFR. This would move the price up from the last spot deal in the $920s/mt CFR. The lack of any new deals into India, however, makes verifying this level difficult.

Phosphate producers may be facing a shortage of phos acid after OCP reportedly decided it would not ship any acid until the second quarter price is settled. The Moroccan company reportedly is looking for $2,000-$2,200/mt CFR for its new price.

Indonesia:

Gresik will close a tender on April 18 for 80,000 mt of either DAP (18-46-0) or DAP lite (16-44-0). The company is looking for a series of deliveries from May through August.

The small lots expected for each shipment might make it possible for offers to come backed by Chinese product. Sources said as long as the tonnage is small – 10,000 mt or so – the Chinese customs officials may not take much notice of the deal.

Brazil:

Port MAP prices have held even at $1,300-$1,350/mt CFR. Sources said lack of offers has led to a malaise in pricing. The already high prices are keeping buyers away from making new offers, even as industry watchers express concern about the limited amount of MAP in upcoming vessel line-ups.

A move in Rondonopolis pricing to $1,460-$1,520/mt FOB ex-warehouse seems to be more of a mild shift than a major correction in regional pricing. Concerns about how many tons will be imported due to sanctions against Russia and China’s export restrictions continue to haunt buyers. In addition, sources said there are growing concerns about logistics issues moving the product from the ports to the regional distribution centers, including higher fuel costs for trucks.

Imports of MAP for the first quarter of this year were reported at 567,000 mt, down about 40 percent from the 942,000 mt imported during the same period last year. Trade Data Monitor reported that the main supplier for the first three months of the year was Russia with 341,000 mt.

March 2022 imports fell to 246,000 mt from the 302,000 mt imported in March 2021. Russian MAP accounted for 65.5 percent of the March imports at 168,000 mt, with Moroccan product representing 15 percent of imports at 39,000 mt.

The March imports are expected to be the tail end of material loaded and shipped before sanctions were imposed on Russia.

Phosphoric Acid

California, Eastern Cornbelt, Market Watch, Morocco, Pacific N.W., Phosphoric Acid, U.S. Exports, Western Cornbelt

U.S. Exports:

Wet-process phosphoric acid exports for February totaled 5,932 st, up 89.0 percent from the year-ago 3,138 st. July-February exports were quoted at 181,720 st, up 65.4 percent from the previous year’s 109,854 st total.

Eastern Cornbelt:

April postings for phos acid were quoted at the $17.50/unit rail-DEL level in the Eastern Cornbelt, up $1.00/unit from March.

Western Cornbelt:

Phos acid prices remained at $17.50/unit rail-DEL in the Western Cornbelt for April tons.

California:

April pricing for phos acid was quoted at $17.50/unit rail-DEL in California, up $1.00/unit from March, with MGA referenced at $17.70/unit FOB Lathrop.

Pacific Northwest:

Thephos acid market for April was quoted at $17.00/unit FOB Pocatello, Idaho, and $17.50/unit rail-DEL in the Pacific Northwest, up $1.00/unit from March.

India:

First-quarter phosphoric acid contracts were settled at $1,530/mt P2O5 CFR, up $200/mt from the $1,330/mt P2O5 CFR level reported for 4Q 2021.

Morocco:

Sources said OCP is now offering second quarter phos acid at $2,000-$2,200/mt CFR. To add to the stunning proposed price increase, sources said OCP is also refusing to sell its product until an arrangement has been made on the pricing.

In the past, OCP would ship the acid while quarterly talks took place. Once a deal was sealed, the buyer would pay the new price for all product shipped in that quarter. Now, OCP wants pricing set before product is shipped.

One trader noted that the phos acid would not be wasted, nor would there be a cutback in acid production. Reportedly, OCP is ready and willing to step up DAP and MAP production until the acid deal is signed.