All posts by mickeybarb@charter.net

NPK/NPS

India, Market Watch, NPK, NPS

India:

NFL closes a tender on March 28 for 60,000 mt of NPS (16-20-0-13 and 20-20-0-13), and another 60,000 mt of NPK (12-32-16). The tender also included a call for 100,000 mt of DAP to be divided between East and West Coast deliveries.

The NPS call wants cargoes of 30,000 mt each to be shipped to East Coast ports. One cargo of each version of NPS is to be delivered by the end of April, with the remaining two cargoes to arrive by the end of May.

The NPK order of 60,000 mt is only for West Coast delivery. The deadline for this shipment is April 3, 2022.

Phosphoric Acid

California, Eastern Cornbelt, India, Market Watch, Pacific N.W., Phosphoric Acid, Western Cornbelt

Eastern Cornbelt:

March postings for phos acid remained at $16.50/unit rail-DEL in the Eastern Cornbelt.

Western Cornbelt:

Phos acid prices were steady at $16.50/unit rail-DEL in Iowa, Nebraska, and Missouri for March tons.

California:

March pricing for phos acid remained at $16.50/unit rail-DEL in California, with MGA referenced at $16.70/unit FOB Lathrop.

Pacific Northwest:

Thephos acid market for March remained at $16.00/unit FOB Pocatello, Idaho, and $16.50/unit rail-DEL in the Pacific Northwest.

India:

Phosphoric acid cargoes shipped to buyers in India were contracted at $1,530/mt P2O5 CFR for the first quarter, an increase of $200/mt from $1,330/mt CFR in the prior period.

Ammonium Polyphosphate

Ammonium Polyphosphate, California, Eastern Cornbelt, Market Watch, Pacific N.W., Western Canada, Western Cornbelt

Eastern Cornbelt:

Sources confirmed new spring 10-34-0 pricing at the $900/st FOB level on a spot basis in the Eastern Cornbelt.

Western Cornbelt:

Sources continued to report limited 10-34-0 offers in the $890-$900/st FOB range in the Western Cornbelt.

California:

The 10-34-0 market in California was steady at $774/st FOB Helm for March tons, with 11-37-0 pricing remaining at $837-$842/st FOB El Centro.

Pacific Northwest:

The 10-34-0 market in the Pacific Northwest was steady at $774/st FOB Hedges, Wash., with 11-37-0 unchanged at $839/st FOB Hedges and $814/st DEL in Idaho and Utah.

Western Canada:

The 10-34-0 market was pegged at C$1,150-$1,175/mt DEL for limited April-May tons in Western Canada, up slightly from last report at the high end of the range.

Muriate of Potash

Brazil, California, China, Eastern Cornbelt, India, Market Watch, Potash Muriate, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf:

New NOLA potash trades were reported in the $750-$815/st FOB range, up from the week-ago $730-$805/st FOB, with the latest trades pegged at the higher end of the range.

Eastern Cornbelt:

Potash prices in the Eastern Cornbelt moved to $790-$835/st FOB during the week, up from the prior week’s $785-$820/st FOB, with the lower end of the range confirmed at Cincinnati.

Western Cornbelt:

Potash pricing was quoted at $790-$835/st FOB in the Western Cornbelt, up $10/st at the high end of the range. Sources said offers in St. Louis were confirmed at both the low and high ends of the range during the week, with the upper level reported on March 24.

California:

Potash remained at $875-$895/st FOB in California for 2Q tons, with the low reported for 60 percent MOP and the high for 62 percent.

Pacific Northwest:

Potash pricing in the Pacific Northwest firmed again for 2Q shipment, moving to $880/st FOB or DEL for 60 percent MOP and $900/st FOB or DEL for 62 percent MOP, up $50/st from last report. The last mine postings from Intrepid at Moab and Wendover, Utah, included $800/st for 60 percent white standard and $805/st for 60 percent white granular.

Western Canada:

Sources quoted truck pricing for potash in the C$990-$1,015/mt range FOB Saskatchewan mines, depending on grade, up C$25/mt from last report.

India:

Israel’s ICL Ltd. confirmed on March 21 that it has signed a new long-term supply agreement with Indian Potash Ltd. (IPL), India’s biggest potash importer, for 600,000-650,000 mt of potash annually from 2022-2027.

ICL said the new agreement replaces the previous framework deal between the two parties that was signed in 2019.

Under the new deal, ICL will supply IPL with 600,000 mt of potash in 2022, and 600,000 mt, plus options for 50,000 mt, in 2023. In each of the following years, ICL will supply IPL with 650,000 mt of potash, plus options for 50,000 mt per year.

ICL said prices for the quantities supplied will be determined in accordance with the prevailing market prices in India at the relevant date of supply. It said a new annual supply contract for 2022 deliveries was signed between ICL and IPL in February.

Arab Potash Co. (APC) reported on March 24 that it also has agreed to a new annual contract with IPL for the supply of potash from Jordan to India for March to December this year, according to a company filing to the Amman Stock Exchange. It said that the terms and conditions are in line with potash contracts in place in the Indian market. APC said the contract with IPL covers the supply of firm and optional tons totaling 375,000 mt.

India imported 470,701 mt of potash from Jordan in calendar year 2021 and 82,545 mt in January 2022, according to Trade Data Monitor.

Canadian potash marketing and export organization Canpotex was the first supplier to reach a new supply contract with India this year (GM Feb. 18, p. 14). It announced on Feb. 14 that it had agreed to a new supply deal with IPL for potash shipments from April through December at a price of US$590/mt CFR. The new price reflects an increase of $145-$310/mt over the 2021 Indian contract price.

Canpotex did not comment on the delivery volumes. According to an unnamed Indian senior ministry official cited by Reuters, however, IPL will buy 1.2 million mt of potash from Canada in 2022.

Meanwhile, National Fertilizers Ltd. (NFL) has extended its Request for Proposals (RFP) for entering into a long-term agreement/MOU with producers for the supply of potash during FY2022/23. The RFP, issued on Feb. 17 (GM Feb. 18, p. 15), had been due to close on March 21.

NFL also included a new clause in the RFP, stating that while the preferred currency of the purchase order (PO) will be U.S. dollars, as is normally the case, if sellers requested for the issue of the PO in euros, rubles, or Indian rupees, NFL would issue the PO in one of those currencies, considering the exchange rate of the European Central Bank, the Central Bank of Russia, or the Reserve Bank of India, respectively, for those currencies.

The buyer is looking for firm quantities of 200,000 mt of standard pink/red potash. The original shipment schedule was for 125,000 mt to be shipped from the load port between March 15 and June 15, with the balance of 75,000 mt to be shipped between Aug. 1 and Sept. 30. The tons are to be delivered to East and West Coast ports.

RCF has yet to award its tender for 105,000 mt of standard white/pink potash. The original tender closed on Jan. 28 and had requested four shipments to be made in February and March. The buyer subsequently extended and re-issued the tender, looking for shipments in March and May to MBPT and East Coast ports. Sources report that there have been few offers into the tenders, however.

China:

Arab Potash Co. (APC) said it has agreed to a new potash supply contract with Sinochem Macao. In a filing to the Amman Stock Exchange this week, APC said the terms and conditions of the new deal are in line with current market prices for volumes of about 600,000 mt, including optional quantities, which will be shipped from March to December this year.

Canpotex was the first supplier this year to reach a new contract with China’s potash buying committee for standard grade potash shipments. The supplier concluded the new deal at $590/mt CFR in mid-February for shipments through December 2022, marking a $343/mt increase on the 2021 China contract price (GM Feb.18, p. 14).

ICL subsequently announced later that week that it had also concluded a new supply contract with its customers in China for deliveries to the end of 2022, at the prevailing market price (GM Feb. 18, p. 15).

Earlier this month, K+S said it has not yet concluded new supply contracts with China and India, with volumes to the former country currently under negotiation (GM March 18, p. 16).

Imports of MOP in China during January and February 2022 were reported at 1.47 million mt by Trade Data Monitor. This amount is only marginally up from the 1.46 million mt imported during the same period in 2021. The main supplies in the first two months of the year were Russia with 450,000 mt, Belarus with 370,000 mt, and Canada with 318,000 mt.

February 2022 imports were at 771,000 mt, up 28 percent from February 2021 imports of 602,000 mt. The February 2022 imports were almost evenly split between Belarus, Russia, and Canada, with each having a 29-30 percent share of the imports.

Brazil:

Concern among buyers continues as supplies from Russia and Belarus remain in question due to sanctions imposed on these countries by the U.S. and E.U. While concern grows, prices remained relatively stable. Sources said an unwillingness by farmers to make long-term commitments for product resulted in few new sales to record.

The landed price widened slightly to $1,000-$1,100/mt CFR. At the same time, the Rondonopolis market tightened to $1,000-$1,200/mt FOB ex-warehouse.

Sulfur

ADNOC - Abu Dhabi, Alberta, Brazil, China, Kuwait, Market Watch, Qatar, Russia, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa:

Increasing price ideas in a number of international sulfur markets precipitated a sharp increase in speculation surrounding the Tampa molten market’s next contract.

With Brazil imports tentatively expected to see a 15-20 percent jump in the next round of business, players said Tampa could rise $130-$150/lt from the market’s current $282/lt CFR contract, rising from week-ago expectations of a $70-$100/lt increase.

U.S. refinery utilization ticked upward for the week ending March 18, the U.S. Energy Information Administration (EIA) reported. Refiners operated at a combined 91.1 percent capacity for the period, a 0.7 point increase from the prior week’s 90.4 percent rate. The current rate remained ahead of both the year-ago 81.6 percent and the 88.1 percent five-year average.

Daily crude inputs also moved up, to an average 15.878 million barrels/d, a 277,000 barrel/d increase from the week-ago 15.601 million barrels/d.

U.S. Gulf:

Prices on sulfur loading from the U.S. Gulf continued to be heard in the $365-$375/mt FOB range. Should the Brazil market rise as expected, sources expect significant near-term increases in the Gulf.

Brazil:

With the Brazil import market continuing to be heard in the $410-$415/mt CFR range, players expected a pending CMOC purchase tender to lift the market into the $480s/mt CFR in the next round of business.

Vancouver:

A March 20 train derailment in North Vancouver caused solid sulfur to leak onto Canadian National Railway (CN) property, local news outlets reported. At least two railcars containing solid sulfur were involved in the accident, CN told CTV News. The cause of the derailment remained under investigation on March 21.

Vancouver prill values were seen lifting to the $390-$400/mt FOB range, rising from $380-$390/mt FOB at last report.

Alberta:

Alberta netbacks climbed to $167-$330/mt FOB based on rising Vancouver prices. Alberta was previously noted in the $167-$320/mt FOB range.

West Coast:

A breakdown in contract negotiations and a resulting plan to strike by employees at the Chevron Corp. refinery in Richmond, Calif., prompted the company to preemptively remove approximately 500 United Steelworkers (USW) Local 5 union members from the premises on March 20, Reuters reported.

The 245,000 barrel/d plant’s previous employee contract expired on Feb. 1. Two offers for an updated contract were voted down by union members, leading to a planned work stoppage.

Prilled sulfur loading from the West Coast was indicated in the $390-$400/mt FOB range. The first-quarter molten sulfur price was contracted at $230-$245/lt FOB, players said.

China:

Spot pricing at China continued to be noted at $430-$435/mt CFR, players said. Ongoing turmoil in the international markets was expected to push values higher in the short-term.

ADNOC:

March prill offers were heard at $335/mt FOB Ruwais from the Abu Dhabi National Oil Co. (ADNOC), a $15/mt increase from February’s $320/mt FOB level.

Qatar:

Muntajat offers for March were reported at $333/mt FOB Ras Laffan, up $18/mt from $315/mt FOB in February.

Kuwait:

Solid sulfur cargoes loading from Kuwait were described at $343/mt FOB for March. Sources put prices at $315/mt FOB for February, a $28/mt difference.

Russia:

A multiyear plan to modernize Russia’s Soviet-era oil refinery system could be delayed due to international sanctions, Platts reported.

The delay proposal from Russia’s energy minister was made in response to export controls levied by both the U.S. and Japan in response to Russia’s invasion of Ukraine. Both countries banned the export of refining technology to Russia in early March. Similar sanctions proposed by the EU were granted preliminary approval.

Russia’s refinery modernization project began in 2007 and has completed its first phase. The effort’s final phase was due to be completed in 2026, but is now likely to be delayed to at least 2028.

Sulfuric Acid

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

U.S. Gulf:

Recent Gulf import pricing was noted at $260-$265/mt CFR, firming from $255-$260/mt CFR at last report.

Gulf Coast:

Gulf Coast tonnage was contracted at $195-$230/st DEL for 2022, players said.

Midwest:

The 2022 Midwest sulacid market was noted even with the Gulf Coast at $195-$230/st DEL.

West Coast:

West Coast 2022 prices were reported in the $185-$220/st DEL range, players said.

Brazil:

Recent Brazil import values were unchanged at $270-$275/mt CFR.

Ammonium Thiosulfate

Amthio, California, Eastern Cornbelt, Market Watch, Specialty, Western Canada, Western Cornbelt

Eastern Cornbelt:

The ammonium thiosulfate market in late March remained at $675-$700/st FOB in the Eastern Cornbelt, with inventories described as very tight.

Western Cornbelt:

Ammonium thiosulfate pricing was pegged at a firm $675-$725/st FOB in the Western Cornbelt, with the high reported in the Iowa market on a spot basis.

California:

Ammonium thiosulfate pricing in California jumped another $100/st during the week, climbing from $500/st to the $600/st FOB level for limited new offers.

Western Canada:

The ammonium thiosulfate market in Western Canada had reportedly firmed to C$885/mt DEL for March-May tons, up from C$825-$840/mt DEL in early March, and some C$80-90/mt above February pricing levels.