All posts by mickeybarb@charter.net

Ammonium Nitrate

Ammonium Nitrate, Brazil, Market Watch, South Central, Southern Plains, Western Cornbelt

Western Cornbelt:

The ammonium nitrate market jumped to $700/st FOB Caruthersville in early December, up from $640-$680/st FOB for the last reported offers.

Southern Plains:

Ammonium nitrate prices reportedly jumped to $700-$720/st FOB in the Southern Plains, up some $70/st from last report, with the high reported at Muskogee, Okla.

South Central:

The ammonium nitrate market was quoted firmly at the $700/st level FOB Shreveport, up a full $70/st from last report. Sources said there are no pricing offers available out of Yazoo City, Miss., at the moment.

Brazil:

January-November imports of ammonium nitrate were reported at 1.5 million mt, up from the 1 million mt imported during the same period in 2020. Russia was responsible for 1.45 million mt of the product purchased by Brazil this year, according to Trade Data Monitor.

November imports were up 14.6 percent, to 122,000 mt from 107,000 mt in November 2020. Again, Russia was the main supplier with 121,700 mt.

Buyers in Brazil remain concerned about what will happen now through May 2022. Russia announced it would limit ammonium nitrate exports during that period to 744,000 mt. From December 2020 to May 2021, Brazil imported 511,000 mt against total exports at the time of 1.8 million mt.

Ammonium Sulfate

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

U.S. Gulf:

Barge prices were reported to have moved up to $525-$550/st FOB from the week-ago $500-$525/st FOB. AdvanSix has now posted product at NOLA at $550/st FOB.

Eastern Cornbelt:

Granular ammonium sulfate pricing reportedly firmed to $585-$600/st FOB Eastern Cornbelt terminals, up some $30-$40/st, with the high confirmed at Ottawa, Ill.

Effective Dec. 8, AdvanSix raised its price for granular ammonium sulfate to $585-590/st FOB terminals on the upper river system, with inland warehouse prices at traditional premiums to river warehouses. The company said availability is limited, with deliveries at the shipper’s option in Q1 of 2022.

Western Cornbelt:

Ammonium sulfate pricing was reported in a broad range at $545-$575/st FOB in the Western Cornbelt, up $5-$15/st from last report, with the low in Missouri and the high in Iowa. The St. Louis market remained at $545-$550/st FOB in early December.

Southern Plains:

The granular ammonium sulfate market remained at $500-$560/st FOB in the Southern Plains, with the low at Houston and the high at Catoosa/Inola.

South Central:

The ammonium sulfate market firmed to $540-$550/st FOB in the South Central region, up $15-$20/st from last report, depending on location.

Southeast:

AdvanSix on Dec. 8 raised its ammonium sulfate prices FOB Hopewell, Va., to $520/st for granular, $490/st for mid-grade, and $470/st for standard. Those levels were up from the company’s Nov. 22 postings of $470/st FOB for granular, $450/st FOB for mid-grade, and $430/st FOB for standard.

China:

Southeast Asian buyers slowed down their buying demand as the fear of export restriction on ammonium sulfate eased. Sources said a sale to the Philippines at $420-$430/mt CFR showed a netback to China of $370-$380/mt FOB.

Some other small deals in the $380s/mt FOB were also reporting, dropping the price of caprolactam-grade ammonium sulfate out of China to $370-$380/mt FOB.

The softening prices have not deterred producers from asking for more. They cite continued strong demand from Brazil and steady interest from Southeast Asia. Reportedly, producers are asking $400-$410/mt FOB for January shipments.

Brazil:

Reports that ammonium sulfate will not be restricted out of China lead to an easing of pricing pressures in Brazil. Sources now place the granular landed price at $500-$525/mt CFR. Rondonopolis is reported steady at $640-$660/mt FOB ex-warehouse.

DAP/MAP

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

Central Florida:

Sources continued to quote Central Florida DAP trucks at $785/st FOB, steady from the prior report. MAP trucks were reported even with DAP at $785/st FOB, also unmoved from one week earlier.

Truck-loaded MAP was posted at $780/st FOB out of North Florida, unchanged from week-ago levels.

U.S. Gulf:

NOLA DAP barge pricing moved higher early in the trading period before slipping back to week-ago levels on Dec. 9, sources said.

An early-week rise to the $744-$745/st range from the week-ago $740/st FOB floor proved short-lived, with import sales and offers for loading in the December to first-half January window softening to the $740-$742/st FOB range by the end of the trading week. Most players quoted the top of the range unmoved from the prior $750/st FOB level early in the period, with overall sentiment shifting closer to a $740-$750/st FOB spread by Dec. 9.

MAP values move lower, however, driven by a combination of increasing barge supply and uncertainty surrounding forward demand potential.

Most players quoted domestically-produced barge sales at $765/st FOB at the top of the week’s range, but below the market’s week-ago $770/st FOB high. Imports were indicated as low as $755/st FOB for the period, $5/st shy of the prior $760/st FOB floor.

Sources pegged the DAP barge market at $740-$750/st FOB for the week, unchanged from the prior report. MAP barges moved lower, to $755-$765/st FOB from the previous $760-$770/st FOB.

U.S. Exports:

Nothing new was heard out of the week’s Gulf export phosphate markets. Pricing was last reported at $810/mt FOB.

Eastern Cornbelt:

DAP pricing was quoted at $760-$790/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati and the high at Ottawa. MAP remained at $800-$820/st FOB in the region, with the Cincinnati market reported in the $800-$810/st FOB range.

Western Cornbelt:

The DAP market climbed to $780-$790/st FOB in the Western Cornbelt, up another $5-$10/st from the prior week, with the low confirmed at St. Louis. MAP remained at $800-$820/st FOB in the region, depending on location, with the low at St. Louis and the high in Iowa on a spot basis.

Southern Plains:

The DAP market had reportedly firmed to $785-$790/st FOB Catoosa/Inola and Houston. MAP was pegged at $820-$830/st FOB, with the low at Catoosa/Inola and the high at Houston.

South Central:

DAP pricing reportedly jumped to $780-$795/st FOB terminals in the South Central region for new offers, up $10-$15/st, with the low reported at Memphis and the high in Kentucky and at Little Rock, Ark. The Shreveport DAP market was pegged at the $790/st FOB level in early December.

Southeast:

The last MAP price FOB Aurora, N.C., and White Springs, Fla., was reported at the $780/st FOB level.

Saudi Arabia:

Phosphates loading from Saudi Arabia were heard firming to the $800-$900/mt FOB range, up from $795-$875/mt FOB at last report.

China:

Despite the hopes and wishes of buyers, the Chinese government does not seem to be willing to budge on amending its export restriction on DAP.

India:

Sources said Indian producers are buying a lot of phos acid in an apparent desire to make their own DAP. However, traders noted that the ammonia purchases do not seem to be matching the acid buys. Eventually, said one trader, the companies will have to enter the ammonia spot market. When that happens, sources said the cost to the producers will move up dramatically.

Most ammonia currently entering India is under long-term contracts and is well below the current global ammonia price range. The lower price for ammonia is a help to DAP producers and to the Indian government looking to limit its subsidy payments. Any new spot tons will be significantly higher, causing producers to demand more support from an already cash-strapped government.

Brazil:

The price of MAP seems to be softening as buyers step away from the market in protest over higher prices. Sources reported port prices at $820-$900/mt CFR with limited deals in hand. Rondonopolis is relatively stable at $970-$1,028/mt FOB ex-warehouse.

January-November MAP imports were up about 4 percent, to 4.7 million mt from 4.5 million imported during the same period in 2020, according to Trade Data Monitor.

Morocco with 1.8 million mt and Russia with 1.4 million mt were the two largest suppliers to Brazil in the first 11 months of the year. Exports from the U.S. dropped 60 percent during the period, to 187,000 mt from 463,000 mt the previous year.

November MAP imports of 491,000 mt represented a 25 percent increase from November 2020 imports of 391,000 mt.

TSP

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

U.S. Gulf:

Sources quoted NOLA TSP barges in the $680-$685/st FOB range, with much of the market focused at $682-$685/st FOB.

Western Cornbelt:

TSP pricing remained at a firm $720-$725/st FOB for limited tons in the Western Cornbelt, with the low reported at St. Louis and the high at Caruthersville.

South Central:

TSP pricing out of South Central terminals was reported at $720-$725/st FOB, up $10/st at the low end of the range.

Phosphoric Acid

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

Eastern Cornbelt:

December pricing for phos acid was up $0.75/unit, to $16.15/unit rail-DEL in Illinois and $16.30/unit rail-DEL in Ohio.

Western Cornbelt:

Phos acid pricing for December was reported at $16.05/unit rail-DEL in Iowa, Nebraska, and Missouri, up $0.75/unit from November.

Southern Plains:

December pricing for phos acid was up $0.75/unit from November, with new postings reported at $16.05/unit rail-DEL in Kansas, Colorado, and Wyoming; $16.15/unit rail-DEL in Oklahoma, and Texas; and $16.30/unit rail-DEL in Louisiana.

India:

Contracts for phosphoric acid selling into India were quoted at $1,330/mt CFR for the fourth quarter, a $170/mt jump from $1,160/mt CFR in the prior period.

Bangladesh:

A tender by BCIC closed on Dec. 8 for phos acid with 52-54 percent P2O5 content. Sources said an offer from Morocco was at $918/mt FOB, for a price into Bangladesh at $1,700-1,765/mt CFR. One trader noted that this could lead to another price rise in the Morocco-India talks.

Ammonium Polyphosphate

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

Eastern Cornbelt:

The 10-34-0 market was quoted at $800-$825/st FOB in the Eastern Cornbelt for limited offers.

Western Cornbelt:

The 10-34-0 market was pegged at a firm $800-$825/st FOB for limit offers in the Western Cornbelt.

Southern Plains:

The 10-34-0 market was pegged at $780-$790/st FOB in the Southern Plains, with the low in Texas and the high in Kansas. The 11-37-0 market in Texas was quoted at a firm $840-$850/st FOB in early December.

Anglo American – Management Brief

Management Briefs, Peru, Polyhalite, Specialty, United Kingdom

Anglo American is making a change to the leadership of the Woodsmith polyhalite project in the U.K. following its integration into Anglo American and ahead of the full project execution phase.

Tom McCulley, who has led the development of the Anglo American’s Quellaveco copper project in Peru, will take over from Chris Fraser as CEO of Crop Nutrients. After 12 years of driving the project from inception to its position today, Fraser will step aside and take on a strategic projects role for Anglo American.

The changes to McCulley’s and Fraser’s roles are effective Jan. 1, 2022. Anglo American has appointed Adolfo Heeren as CEO of Anglo American in Peru, effective Jan. 1, 2022. He will work together with McCulley during the first half of 2022 to ensure a smooth transition from the construction and commissioning phase of Quellaveco into operations, expecting first copper production in mid-2022.

Anglo to Make Woodsmith Modifications; More Conservative Schedule Expected

News, News Briefs, Polyhalite, United Kingdom

Anglo American said on Dec. 10 that after conducting a detailed technical review of the Woodsmith polyhalite project in the U.K. to ensure the technical and commercial integrity of the full scope of its design, it has decided that a number of elements of the project’s design would benefit from modification to bring it up to Anglo American’s safety and operating integrity standards and to optimize the value of the asset for the long term.

The Woodsmith team is further developing the engineering to optimize the configuration of the project, recognizing the multi-decade life of the mine. Particular attention is on those aspects identified at the outset of Anglo American’s ownership – namely, the sinking of the two main shafts, the development of the underground mining area, and the changes required to accommodate both increased production capacity and the more efficient and scalable mining method of using only continuous miners. Such improvements will also require the installation of additional ventilation earlier in the development of the underground mining area.

Anglo American expects that these changes to the design of the mine infrastructure, which will result in a different, enhanced configuration, and therefore a different construction and production ramp-up schedule – will ensure that its exacting standards are met and the full commercial value of the asset is realized.

“We are very happy with the high quality and exciting potential of Woodsmith, with the scale and quality of the polyhalite orebody pointing to a Q1 operating cost position and strong margins,” said Mark Cutifani, Anglo American CEO. “This is a very long-life asset, and we are going to take the necessary time to get every aspect of the design right to match our long term vision and value aspirations.

“We have said from the outset that we expect to make improvements and that we will execute certain elements of the construction differently and with a more conservative schedule,” he continued. “We expect to have completed our design engineering, capital budget, and schedule at the end of 2022, with a fully optimized value case that recognizes the upside potential we see in Woodsmith, and we will then submit the full project to the Board.”

In the meantime, construction of the major critical path elements of the project, principally the two main shafts and the mineral transport tunnel, is progressing, with approximately $0.7 billion of capital expected to be invested in 2022.

Muriate of Potash

Brazil, Eastern Cornbelt, Market Watch, Potash Muriate, South Central, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf:

The potash barge market was quoted at $675-$685/st FOB, edging down from the week-ago $680-$690/st FOB range.

Eastern Cornbelt:

The potash market was quoted at $720-$730/st FOB in the Eastern Cornbelt, with Q1 rail-DEL offers reported in the same range. Some sources talked of spring pricing offers at the $740/st FOB level on a spot basis, but that price was not confirmed.

Western Cornbelt:

Potash remained at $710-$725/st FOB and $715-$730/st rail-DEL in the Western Cornbelt, with the low reported at St. Louis in early December. The Caruthersville market was quoted at $725/st FOB for new offers.

Southern Plains:

Potash pricing was pegged at $730/st FOB Catoosa/Inola and $730-$745/st FOB Houston. The last postings from Intrepid FOB Carlsbad, N.M., included $675/st FOB for 60 percent white granular and $695/st FOB for 62 percent white standard.

South Central:

The potash market remained at $725-$745/st FOB in the South Central region, with the lower end of the range confirmed out of Arkansas terminals and the high at Memphis. Pricing FOB Shreveport was pegged at the $730/st FOB level in early December.

Southeast:

Potash pricing was quoted at $750/st FOB Wilmington for the last Q4 business and for Q1 tons, with reports of Q1 rail-DEL offers in the $738-$750/st range from Canadian suppliers.

Brazil:

Buying was limited as end users pushed back against higher prices. The price at the ports is now pegged at $790-$830/mt CFR. This represents a tightening of the price range with a downward edge.

Even as buyers argued against higher prices, everyone was wary of the impact the U.S. sanctions against Belarus might have on prices and availability. The sanctions against Belarusian Potash Company will go into full effect on April 1, 2022.

The U.S. government has given traders until they to untangle themselves from trader agreements. Reportedly there might be some possibility to engage in barter arrangements similar to the deals that brings in Iranian urea in exchange for Brazilian corn and soybeans.

Rondonopolis reported prices down to $890-$932/mt FOB ex-warehouse.

January-November MOP imports were reported by Trade Data Monitor at 11.8 million mt, up 14.5 percent from 10.3 million mt during the same period in 2020. Belarus was responsible for 2.2 million mt so far this year, representing about 19 percent of MOP imports. Only Canada with 3.8 million mt and Russia with 3.5 million mt topped Belarus so far this year.

November imports were up about 30 percent, to 1.4 million mt from 1.1 million mt in November 2020.