All posts by mickeybarb@charter.net

Urea

Africa, Black Sea, Brazil, China, Eastern Canada, Eastern Cornbelt, Europe, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, Russia, Thailand, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf:

New urea trades were put in the $752-$787/st FOB range, down from the pre-Thanksgiving $805/st FOB. The market started in the $780s/st FOB and fell as the week advanced.

Sources said the drop could have simply been that one large buyer had stepped out of the market. Another player said the dip was just a temporary lack of demand, and he expected the price would soon firm as the U.S. market gets closer to spring and December prepay. He added that the U.S. price is still cheap compared to the international market, which remains in tight supply with strong prices.

Another observer said it could be a reaction to the Yara news that it was bringing European ammonia production back up, which would assure the production and supply of downstream products like urea and nitrates to the European market.

Eastern Cornbelt:

The urea market was pegged at $855-$865/st FOB regional terminals in the Eastern Cornbelt, with Michigan terminal pricing pegged firmly at the $875/st FOB level.

Western Cornbelt:

The urea market was quoted at $855-$875/st FOB in the Western Cornbelt, with the low reported at St. Louis, Mo., and the high in Iowa.

Northern Plains:

Urea pricing was pegged in the $940-$990/st DEL range in North Dakota for new business, up from $885-$945/st in mid-November. The last urea prices confirmed at St. Paul, Minn., were reported at $850-$880/st FOB.

Northeast:

The urea market remained at $850-$875/st FOB in the Northeast, with the low confirmed at Baltimore, Md., and the high reported for the last offers out of Fairless Hills, Pa. The market FOB Savannah, Ga., was steady at the $860/st level for current pricing.

Eastern Canada:

Urea pricing in Eastern Canada remained in a broad range at C$1,200-$1,335/mt FOB in early December, depending on location.

India:

Industry players now talk of a new tender call any day. Sources said it is most likely that NFL will call for a tender to close before the end of the year.

The odds favor an NFL tender, sources said, because the company has a limited time to exercise its license to import urea. Sources said the company has to secure its urea orders before the end of the fiscal year on March 30, 2022.

The need for another tender has been clear, as India is about 2 million mt short of its needs. Some have placed the deficit as high as 2.9 million mt. The situation is so serious that there is a growing number of stories in the Indian news media about complaints from farmers and local distributors regarding the lack of product for the current application season.

The government faces several issues securing enough urea to satisfy local demand. The buying agents face a two-fold problem of limited urea in the global market and record high prices. Sources said when the next tender closes, India will be facing prices in excess of $1,000/mt CFR. While the last tender did feature prices well over that level, in the end IPL was able to buy 1.6 million mt at just under the $1,000/mt mark.

Vessels have been booked for the bulk of the tonnage awarded in the IPL Nov. 11 tender. Sources said ships are booked to handle 987,000 of the 1.6 million mt awarded. About 623,000 mt is headed for West Coast ports, with the remaining 364,000 mt slated for East Coast ports. The shipping deadline is Dec. 31.

Supplier Quantity Vessel Name Origin Discharge
Amber 30,000 KS Grace China Paradip
Ameropa 52,500 Doric Katana Oman Mundra
52,500 Kiran Caribbean Oman Mundra
47,200 Belisland Oman Jaigarh
47,200 Sand Topic Saudi Arabia Adani Dahej
47,200 Elpida GR Oman New Mangalore
47,200 Cape Trafalgar Saudi Arabia Rozy
Dreymoor 45,000 Doric Armour Russia Pipavav
Eurochem 45,000 West Wind Russia Kandla
Fertiglobe 50,000 Strange Attractor Egypt Gangavaram
50,000 Kiran Adriatic Egypt Kakinada
Koch 49,500 La Stella Egypt Krishnapatnam
50,000 IVS Pestwick Russia Mundra
Keytrade 47,500 Georgia M Egypt Kandla
25,000 Occitan Sky Nigeria Kandla
25,000 Bell Bay Nigeria Kandla
MidGulf 47,500 Navios Vega Saudi Arabia Gangavaram
OCI 45,000 Aquatarus Oman Krishnapatnam
Samsung 47,000 Pacific Crown Egypt Karaikal
47,000 Basic Victory Finland Tuna
Swiss Singapore 45,000 Ince Inebolu Bahrain Tuna
Transglobe 45,000 Perth1 Indonesia Kakinada

That still leaves 608,000 mt to be shipped. Sources said several vessels have already reached India with material awarded in the tender. One such vessel is the Daryabar, which was scheduled to reach Paradip on the East Coast on Dec. 2.

The Daryabar is an Iranian-flagged vessel that has made regular runs delivering urea to Brazil in exchange for corn and soybeans. The vessel’s last stop before arriving at Paradip, according to ship tracking data, was Iran.

The rising price of urea is causing some concern in the Indian fertilizer industry. New reports note that to keep the subsidized price of urea stable to the farmers, more funds have to be allocated to the subsidy budget. Officials with the Fertilizer Association of India expressed concern that timely subsidy payments to importers and domestic producers is vital.

In past years, the Indian urea industry has complained of late payments, with some almost two years past due. The high cost of inputs, including energy, has many of the local producers watching the budget process closely, all the while keeping up the pressure to ensure timely payments of their subsidies.

Russia:

If a pending Indian tender was the background to industry conversations this week, the announcement by the Russian government that it was setting allocations for the export of various nitrogen products was front and center.

The government announced that beginning Dec. 1 and lasting through May 31, 2022, urea, UAN, and ammonium nitrate producers will have a strict allocation of product they can export. The urea allocation for the December-May period is 4,004,000 mt.

Once the allocation was released, industry sources relaxed a bit. According to Trade Data Monitor, the allocation exceeds the urea exports during that period in the previous three years.

Russian Exports
  Product December-May Exports (mt)
2018-2019 2019-2020 2020-2021 2021-2022 (allocated)
AN 1,537,988 1,566,957 1,760,826 744,000
UAN 1,226,923 1,148,058 927,336 1,146,000
Urea 3,330,813 3,606,086 3,685,838 4,004,000

Rumors had been circulating for several weeks that Russia would follow China’s lead and limit urea exports. The Russian government announced that it would be limiting some nitrogen exports and would be making allocations to individual producers. The delay in making the final announcement, the government said, was because it wanted to understand the needs of the domestic market as served by the various producers.

The final allocations by commodity and plant were released earlier this week.

Company Allocation (December 2021 – May 2022)
Urea UAN Ammonium Nitrate Sodium Nitrate
Eurochem 890,102 487,566 147,964  
Phosagro 759,632   48,963  
SBU 587,945 67,988 142,981  
Uralchem 551,519 22,905 160,235 4,000
Togliatti Azot 427,954      
Acron 360,215 465,120 161,803  
Salavat 310,828      
Kuibyshev Azot 116,695 99,461 41,490  
Bui Chemical Plant   3,386    
Rossosh     41,404  

The Russian government said limiting exports was necessary to ensure a full supply of nitrogen products for the upcoming domestic application season.

Black Sea:

There are reports that the Azerbaijan company SOCAR sold a 10,000 mt cargo of granular urea to a trader out of the far-eastern port of Polti at $850/mt FOB.

Producers are now looking at $900/mt FOB from that region. Earlier estimated netbacks to Yuzhnyy and other ports on the west side of the Black Sea were put at $930-$932/mt FOB. Sources said the Polti deal widens the range from the Black Sea.

Europe:

Urea buying demand in Europe was described as flat, with supply remaining tight across the region.

Middle East:

Arab Gulf producers continue to claim limited availability through January. Sources said some of the tons tied up are for the November IPL/India urea tender. Some other tons were booked by traders in anticipation of a follow-up tender.

Rumors are now circulating that the producers are not only sold out through January, but are close to being sold out well into February. The quietness of the deals leaves the price out of the Arab Gulf at the same levels settled in the IPL tender from last month.

The paper market for the Arab Gulf puts the December price at $880-$900/mt FOB. Traders noted that this price differs significantly from the actual December price paid by IPL in the $950s/mt FOB.

Iranian output is said to be down about 30 percent as natural gas gets diverted from industrial use to home heating. One trader said he expects to see a further decline in output as the winter intensifies.

Egyptian producers are now offering January product at $950-$965/mt FOB. They claim they are sold out for December and most of January. The current price as calculated from the IPL tender comes to $930-$945/mt FOB. Sources said the January price ideas fit in with the general view of how the market will continue to move well into the first quarter of the new year.

The paper market for December Egypt granular urea is reported at $880/mt FOB.

China:

Some small cargoes of about 3,000 mt each are being allowed out of China for South Korea. The shipments all seem to be in containers.

The movement of urea to South Korea seems to be part of an 18,000 mt deal settled in late November to alleviate the urea shortage in South Korea. Urea is needed for the country’s emission control program. A shortage of the so-called liquid urea threatened to shut down the South Korean transportation network.

Ethiopia:

After two failed tenders, the Ethiopian Agricultural Businesses Corporation is looking for 785,000 mt for 2022 beginning in January. Reportedly, EABC is scouting out direct offers including from traders and producers.

The move comes after tenders called in October and November did not receive any support from traders or producers. Sources said the reluctance by traders to participate in the EABC tender came from past delays in issuing awards and securing agreements on shipping.

Ethiopia imports the bulk of its urea during the first semester of each year. The first half of 2020 urea imports was reported by Trade Data Monitor at 529,000 mt, against 50,000 mt for the second half of the year. The first semester of 2021 showed imports of 343,000 mt, well below previous years for that time frame. An additional 187,000 mt were imported in July and October of this year, still leaving the country short of its needs. Normally there are no imports in the last semester of the year.

Indonesia:

Sources said they have still not heard of any movement by the government to issue export permits for the first quarter of 2022. The permits must be secured before any Indonesian tons can be considered in the upcoming Indian tenders.

Sources said the government is most likely hesitant to issue the permits because the first quarter of the year is also the main application season in Indonesia.

Thailand:

January-October urea imports were down slightly, according to Trade Data Monitor, to 2.1 million mt from 2.13 million mt during the same period last year.

October imports were also down, to 211,000 mt from 223,000 mt in October 2020. The main suppliers in October this year were Saudi Arabia at 80,000 mt and Malaysia at 70,000 mt.

Brazil:

International traders described the urea market as right around $880/mt CFR. Local traders, however, had a much larger view. Brazilian traders pegged the market at $850-$920/mt CFR, depending on the port of discharge.

Sources reported continued problems getting a timely berthing at Paranagua and Santos. Reportedly, some of the traders waiting for their product have begun to look to alternative – albeit smaller – ports to unload their material and avoid high demurrage costs.

The talk around the ports is reportedly of softer urea prices. At first there was great consternation when Russia said it would limit urea exports. Once the final number came out to be higher than previous exports during the same period, panic was averted.

While the port price moved up slightly, Rondonopolis took a more dramatic leap, settling at $1,000/mt FOB, up from $960/mt last week. Reportedly, buyers are looking to ensure they have enough urea for their blending operations before higher prices work their way through the supply chain.

The barter rate for 1 mt of urea remained steady at 125 bags of corn in Mato Grosso.

Price Updates:

Six prices that appeared as an NA in the issue dated Nov. 26 have been updated. They include:

16-16-16 Black Sea                $347-$395/mt

AN Black Sea                                 $715-$716/mt

AN Baltic Sea                                 $707-$708

UAN Black Sea                              $650-$670/mt

UAN Baltic Sea                              $593-$643/mt

Urea Baltic Sea                               $803-$850/mt

UAN

Eastern Canada, Eastern Cornbelt, France, Market Watch, Northeast, Northern Plains, Russia, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf:

NOLA barges continued to be quoted in the $545-$550/st ($17.03-$17.19/unit) FOB range. Prior to the dip in this week’s urea prices, sources had been expecting another boost in UAN prices in the near term.

Eastern Cornbelt:

UAN-32 pricing was quoted at $605-$635/st ($18.91-$19.84/unit) FOB regional terminals, depending on location and time of shipment, with the low confirmed for the last prompt offers and the high for Q1 tons. The last UAN-28 business at Cincinnati, Ohio, was reported at the $520/st ($18.57/unit) FOB level for prompt and $550-$555/st ($19.64-$19.82/unit) FOB for Q1.

Michigan sources said they expect spring UAN-28 pricing in the $570-$580/st ($20.36-$20.71/unit) FOB range when new offers are released.

Western Cornbelt:

The UAN-32 market was quoted at $590-$620/st ($18.44-$19.38/unit) FOB in the Western Cornbelt for the last prompt tons, with Q1 offers pegged in the $610-$635/st ($19.06-$19.84/unit) range, depending on location.

Northern Plains:

UAN-32 pricing remained at $595/st ($18.59/unit) FOB Winona, Minn., and $615/st ($19.22/unit) FOB Pine Bend, Minn, for the last reported offers, while the UAN-28 market continued to be reported at $540-$550/st ($19.29-$19.64/unit) FOB in North Dakota.

Northeast:

UAN-32 pricing in the Northeast continued to inch higher in some locations, with new offers quoted at $685/st ($21.41/unit) FOB terminals in upstate New York, up $10/st from last report.

The market FOB Baltimore was pegged at $605-$620/st ($18.91-$19.38/unit) FOB, with the low reported for spot tons from a “secondary supplier.” No current offers were reported at Fairless Hills during the week.

Eastern Canada:

The UAN-28 market was quoted at C$775-$798/mt (C$27.68-$28.50/unit) in Eastern Canada, up from C$735-$775/mt (C$26.25-$27.68/unit) FOB in mid-November. UAN-32 pricing firmed to C$912/mt (C$28.50/unit) FOB on a spot basis in Ontario, up a full C$73/mt from last report.

“There are some rumblings about spring prepay programs,” said one regional source. “I am not aware of anyone out yet, but I suspect they will be shortly.”

France:

UAN prices in France are reported to have dipped a tad for prompt tons, despite continuing tight supply fundamentals. Prices for prompt UAN-30 were heard at just below €600/mt FCA at Rouen. This week’s price range has accordingly been adjusted to €598-€610/mt FCA.

Russia:

The Russian government is limited exports of UAN to 1.1 million mt from December 2021 through May 2022. The allocation is not far off from the exports of UAN during the same period in the past three years.

Ammonium Nitrate

Ammonium Nitrate, Market Watch, Russia, Western Cornbelt

Western Cornbelt:

The ammonium nitrate market remained at $640-$680/st FOB in the Western Cornbelt for the last reported offers.

Russia:

The Russian government severely cut back on the amount of ammonium nitrate allowed to be exported from December 2021 through May 2022. The government edict will allow only 744,000 mt to be shipped during that period.

During the same period last year, Russia exported 1.76 million mt of ammonium nitrate. Its largest customer was Brazil, which, according to Trade Data Monitor, took 511,000 mt.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Canada, Eastern Cornbelt, Indonesia, Market Watch, Northeast, Northern Plains, Thailand, U.S. Gulf, Western Cornbelt

U.S. Gulf:

The NOLA ammonium sulfate market was put in the $500-$525/st FOB range, with the high representing reports of last done business and the low representing late week offers to sell. The week-ago range was $515-$520/st FOB.

New lower ammonium sulfate price ideas could be a reaction to lower urea prices, sources said.

Eastern Cornbelt:

The granular ammonium sulfate market was quoted at $545-$570/st FOB in the Eastern Cornbelt, depending on location, with the low reported at Cincinnati and out of spot Illinois River terminals, and the high at inland warehouses.

Western Cornbelt:

Ammonium sulfate pricing remained at $540-$560/st FOB in the Western Cornbelt, with the St. Louis market quoted at $545-$550/st FOB in early December.

Northern Plains:

Granular ammonium sulfate prices were quoted at $540-$550/st FOB St. Paul for the last offers. No current delivered pricing was reported in North Dakota, but sources said they expect new offers soon in the $600s/st DEL.

Northeast:

Granular ammonium sulfate pricing was quoted at $470-$500/st FOB in the Northeast and Mid-Atlantic regions, with the high reported at Lancaster, Pa., and the low reflecting the Nov. 22 reference price from AdvanSix at Hopewell, Va.

Eastern Canada:

Ammonium sulfate prices were quoted at C$690-$770/mt FOB in Eastern Canada in early December, up from C$685-$690/mt FOB in November.

China:

Sales from the north and south of China moved the price to $370-$400/mt FOB for standard caprolactam grade ammonium sulfate. The price for all types of amsul moved up as well. Sources reported cargoes of compacted and granular sold at $460-$480/mt FOB, with sellers now looking at $490-$500/mt FOB.

The limited supply from China is combining with steady and strong demand from Southeast Asia and Brazil to move up prices.

Indonesia:

A tender for Gresik closed on Nov. 24 for what will be a total of 360,000 mt of caprolactam-grade ammonium sulfate. The tender was the first round, which called for lots of 20,000 mt to be delivered each month next year.Information about who participated and prices offered was not released.

Thailand:

Imports of ammonium sulfate for January-October were up 38 percent, to 380,000 mt from 275,000 mt during the same period in 2020. China was the main supplier this year at 306,000 mt.

October 2021 imports of 28,000 mt were marginally up from October 2020 imports of 23,000 mt, with China supplying all the tonnage for October 2021.

Brazil:

Granular amsul supplies tightened because of reduced availability from China. Sources put the landed price at $510-$520/mt CFR.

Rondonopolis remained steady at $640-$660/mt FOB ex-warehouse. Sources said the stability in pricing came more from a lack of interest in buying at high prices than from in a lack of interest in the product. As urea prices climb, blenders look increasingly to amsul as a nitrogen substitute, but only when the price is no more than half the price of urea.

DAP/MAP

Brazil, Central Florida, China, DAP/MAP, Eastern Canada, Eastern Cornbelt, India, Market Watch, Morocco, Northeast, Russia, Saudi Arabia, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

DAP trucks loading from Central Florida were firmed to $785/st FOB, an increase from $780/st FOB in the prior report. Truck-loaded MAP values moved up accordingly, to $785/st FOB from the week-ago $780/st FOB.

MAP trucks were quoted holding steady at $780/st FOB when loaded from North Florida.

U.S. Gulf:

DAP barges at NOLA pushed higher for the week, players indicated, notching $750/st FOB highs, a $5/st increase over the prior week’s $745/st FOB top. Early-week offers of domestically-produced material lifted from $740/st to $745/st FOB on Nov. 29, sources said.

MAP barges continued to be heard at a $770/st FOB top, steady from week-ago levels. Domestic tons offered at $760/st FOB at the start of the trading week reportedly strengthened to $765/st FOB on Nov. 29, signaling likely firming in the next round of business.

The NOLA barge DAP market was quoted at $740-$750/st FOB for the week, up from $740-$745/st FOB in the prior report. Sources called MAP barges steady from prior-week levels at $760-$770/st FOB.

U.S. Exports:

No new spot sales were reported on the U.S. Gulf phosphate export market. Recent trading included a 10,000 mt DAP cargo sold into northern Latin America. Priced at $810/mt FOB, the tons were projected to load in January 2022. A small amount of MAP included with the trade was valued at $830/mt FOB.

With no new business reported, the Gulf DAP and MAP export markets continued to hold at $810/mt FOB, unchanged from the prior report.

Eastern Cornbelt:

Sources continued to report fall spreading of dry tons in the Illinois market. DAP pricing strengthened to $775-$785/st FOB in the Eastern Cornbelt, up another $10-$15/st, with the upper end confirmed at Cincinnati. MAP firmed to $800-$820/st FOB in the region, with the Cincinnati market pegged solidly at the $810/st FOB level.

Michigan warehouse pricing was up $20-$25/st, sources said, to $800/st FOB for DAP and $845/st FOB for MAP.

Western Cornbelt:

Phosphate prices inched higher in the region, with reports of new DAP offers firming to $770-$775/st FOB St. Louis, up from the prior week’s low of $760/st FOB. The upper end of the regional DAP range was reported at the $780-$785/st FOB level at midweek. MAP remained at a solid $800-$820/st FOB in the region, depending on location.

Northern Plains:

DAP had reportedly firmed to $780-$795/st FOB St. Paul, with MAP quoted at the $810-$830/st FOB level. The last delivered green MAP offers were pegged at the $870/st level or higher in central North Dakota.

Northeast:

Phosphate pricing FOB East Liverpool, Ohio, was quoted at $800/st for DAP and $825/st for MAP, with the DAP price up $15/st from last report. Sources also confirmed MAP pricing at $825/st FOB Lancaster in early December, with the last MAP offers FOB Fairless Hills reported at the $835/st FOB level.

Eastern Canada:

The MAP market firmed to C$1,160-$1,285/mt FOB in the region, depending on location, up from C$1,100-$1,180/mt FOB at last report. DAP pricing was higher as well, to C$1,180/mt FOB Montreal, up from C$1,120/mt level FOB in mid-November.

Morocco:

The Moroccan FOB price range has moved up to reflect the Nov. 23 award in the BCIC, Bangladesh, DAP tender (GM Nov. 26, p. 11), with the top end of the range reflecting the estimated FOB net back for the tons awarded and also prices reported for small volume sales in Europe (see also this week’s Bangladesh DAP section).

Saudi Arabia:

Recent phosphate cargoes loading from Saudi Arabia were heard firming to the $795-$875/mt FOB range, increasing from $770-$785/mt FOB in the prior report.

China:

Reports circulated that two DAP cargoes of 5,000-6,000 mt each were cleared for shipment to Japan and Thailand. The offered price reported for the Thai cargo showed a netback of $900-$920/mt FOB.

Sources said the price is not out of the range of discussion, given the restrictions the government has placed on wholesale DAP exports.

Russia:

Reports are circulating that Russia will soon raise the tax on phosphate rock. No further details were available at press time.

International traders were also dealing with rumors that DAP and MAP may face export limitations similar to what happed to nitrogen fertilizers. So far there has been no comment on these rumors from the Russian government.

India:

Buyers stand ready to buy DAP, even with prices constantly on the rise. The lack of new spot deals into India has traders estimating the current price. The most recent price of $900/mt CFR is based on a sale to Pakistan. Local media are reporting the price is closer to $870/mt CFR.

Brazil:

The delivered price of MAP has shifted upward to $850-$935/mt CFR, depending on the discharge port.

Delays getting into the ports in Brazil have led some buyers to look at alternative – but smaller – ports to avoid demurrage costs and to get the MAP into the supply pipeline sooner.

The price range in Rondonopolis spread out a bit from last week. Sources now peg the market at $970-$1,021/mt FOB ex-warehouse. Sources said some of the softness in pricing came because some buyers are holding off in the hope that prices will soon drop.

The barter rate in Mato Grosso is still pegged at 120 bags of corn for 1 mt of MAP.

Phosphoric Acid

Eastern Cornbelt, India, Market Watch, Northern Plains, Phosphoric Acid, Western, 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:

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

Nutrien’s super phosphoric acid price firmed to $1,600/st P205 DEL in the Midwest, effective Dec. 1.

Northern Plains:

Phos acid pricing for December was reported at $16.15/unit rail-DEL in Minnesota and Wisconsin and $16.30/unit rail-DEL in the Dakotas, reflecting a $0.75/unit increase from November levels.

Western U.S.:

December pricing for phos acid was up $0.75/unit in the Western U.S., with new postings reported at $16.30/unit rail-DEL in California and the Pacific Northwest. MGA was referenced at $16.50/unit FOB Lathrop, Calif., for December.

India:

Fourth-quarter phosphoric acid contracts at India stood at $1,330/mt P2O5 CFR, an increase of $170/mt from $1,160/mt CFR in the third quarter.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Pacific N.W., Western Cornbelt

Eastern Cornbelt:

The 10-34-0 market was pegged at $800-$825/st FOB in the Eastern Cornbelt for very limited offers, with additional increases expected due to the higher phos acid and ammonia prices.

Western Cornbelt:

The 10-34-0 market was pegged at a firm $800-$825/st FOB for the last reported offers in the Iowa market.

Northern Plains:

No current prices were reported for 10-34-0 in the Northern Plains.

Northeast:

The 10-34-0 market in upstate New York was quoted at $850/st FOB at midweek, up $50/st from mid-November.

Pacific Northwest:

Following the higher phos acid pricing for December, the 10-34-0 market in the Pacific Northwest firmed on Dec. 1 to $750/st FOB Hedges, Wash., up $39/st from November. New 11-37-0 pricing was reported at $818/st FOB Hedges and $793/st DEL in Idaho and Utah, up from November levels of $770/st FOB Hedges and $750/st DEL.

Muriate of Potash

Brazil, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Potash Muriate, Thailand, U.S. Gulf, Western Cornbelt

U.S. Gulf:

The last done potash barge sales were put in the $680-$690/st FOB range, up from the week-ago $670-$685/st FOB.

While prices are up, this week’s new postings by Nutrien and Mosaic for $690/st FOB NOLA equivalent barges may put a lid on the NOLA market, at least as long as those prices remain on the table. With the news that BPC may be out of the market due to sanctions, one observer speculated those postings may not last too long.

Eastern Cornbelt:

The potash market remained at $715-$725/st FOB in the Eastern Cornbelt, depending on location.

Nutrien came out with January potash prices early in the week, which included $725/st FOB in the Midwest and a NOLA equivalent price of $690/st FOB. Mosaic followed at midweek with Q1 pricing offers for red potash at $690/st FOB NOLA, $720/st FOB river, and $725/st FOB inland terminals in the Midwest.

Western Cornbelt:

Potash was pegged 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. New postings from producers for Q1 tons ranged from $720-$725/st FOB in the region.

Northern Plains:

Potash FOB St. Paul was quoted at $720-$725/st FOB for Q1 tons. The last prices FOB Saskatchewan mines were reported at $690-$700/st FOB after netbacks, depending on grade and destination.

Northeast:

Potash pricing was reported in the $740-$760/st FOB range in the Northeast for Q1 tons, with the Lancaster market quoted firmly at the $750/st FOB level.

Eastern Canada:

Potash pricing for Q1 ton reportedly firmed to C$1,030/mt FOB regional warehouses earlier in the week before dropping to a reported C$990/mt FOB on Dec. 2. These prices were up from the last reported Q4 business at C$985/mt FOB.

Brazil:

Demand for MOP by blenders remains keen even as prices soften to $760-$840/mt CFR, depending on the port of discharge.

Rondonopolis was pegged at $920-$940/mt FOB ex-warehouse. The price showed some upward movement from previous weeks. Sources said concern over potential U.S. sanctions against Belarus potash companies led to the price increase.

By the end of the week, the U.S. government announced that Belarusian Potash Company is now on the sanctions list, as well as its subsidiary Agrorozkvit LLC. The U.S. government has given traders and buyers until April 1, 2022, to wind down their relations with the two companies.

From January-October 2021, Belarus exported 1.96 million mt to Brazil, making it the third largest supplier after Russia and Canada.

The barter rate for MOP remained at 112 bags of corn for 1 mt of MOP.

Thailand:

January-October 2021 MOP imports were up 22.8 percent, to 819,000 mt from 667,000 mt during the same period in 2020. The main suppliers this year were Canada at 318,000 mt and Belarus at 258,000 mt.

October 2020 imports were reported at 36,000 mt, down from the 75,000 mt received in October 2021. The latest number is the lowest amount of MOP imported so far this year.

Sulfur

Alberta, Brazil, China, Market Watch, Qatar, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa:

Tampa molten contracts were valued at $183/lt CFR for fourth-quarter delivery, a $12/lt fall from $195/lt CFR in the third quarter. Rising international values were expected to lift Tampa higher in first-quarter 2022.

Operable U.S. refining capacity inched higher for the week, the Energy Information Administration (EIA) reported. Nationwide utilization ran at a total 88.8 percent for the period ending Nov. 26, up from the previous 88.6 percent rate and also leading last year’s 78.2 percent, while trailing the 88.9 percent five-year average.

Crude inputs slipped to an average 15.631 million barrels/d for the week, the EIA indicated, falling 9,000 barrels/d from 15.640 million barrels/d noted in the prior report.

U.S. Gulf:

Genscape reported a Nov. 26 shutdown of the 105,000 barrel/d HCU-2 hydrocracker at the Motiva refinery in Port Arthur, Texas. The unit was previously offline on Nov. 20-21 due to a process upset.

Marathon on Nov. 29 suffered an outage of the 66,000 barrel/d Ultraformer 4 catalytic reforming unit at the company’s Galveston Bay, Texas, facility. The shutdown was accompanied by significant decreases in furnace activity. The unit was reported restarting early on Nov. 30.

The TotalEnergies plant at Port Arthur restarted its 80,000 barrel/d ACU-2 crude section on Dec. 1. The unit, along with a 66,000 barrel/d hydrotreater and 10,000 barrel/d coking unit, were reported going offline for maintenance on Nov. 14.

Price ideas on material loading from the U.S. Gulf were noted firming to the $230-$240/mt FOB range, with many players predicting prices above $240/st FOB should a new sale conclude today. The market was previously reported at $200-$210/mt FOB.

Brazil:

New spot transactions at Brazil lifted pricing to the $284.50-$295/mt CFR range, up from $279-$290/mt CFR in the prior report. Rumored trading up to $299/mt CFR was not able to be confirmed on Dec. 2.

Contracts for sulfur delivered in the fourth quarter were noted at $234/mt CFR, up from $221-$223/mt CFR in Q3.

Vancouver:

Recent Vancouver values were noted in the $205-$210/mt FOB range. Ongoing logistics constraints stemming from recent flooding and mudslides in British Columbia were reported blunting current price potential, effectively preventing new vessels from loading.

“All of (Vancouver’s) tons are stranded in Alberta these days,” said one player. “Vancouver hasn’t been done at (higher levels) because it is out of product due to weather/logistics issues,” a second source agreed. Most players expected an increase to the $230s/mt FOB in the next round of business.

Alberta:

Alberta sulfur netbacks were indicated in the $68-$140/mt FOB range, sources said.

West Coast:

Chevron Corp. restarted the 40,000 barrel/d Rheniformer 4 catalytic reforming unit at the company’s Richmond, Calif., plant on Nov. 27, Genscape reported. The unit, shut since Nov. 11, was previously reported offline from Oct. 24 through early November during a refinery-wide outage.

PBF Energy successfully restarted a hydrogen plant at its Martinez, Calif., refinery on the evening of Nov. 26. The unit was taken offline on Nov. 2, but was running below normal operational levels on Nov. 29.

Phillips 66 reportedly halting operation of a 50,000 barrel/d diesel hydrotreater at its Wilmington, Calif., facility on Nov. 29. A hydrogen plant at the facility was subsequently noted going offline on Dec. 1. Activity increases were observed from a 32,000 barrel/d crude distillation unit at the Phillips Rodeo, Calif., plant during the week. The unit, offline since Feb. 10, was observed operating “well below” normal activity levels on Nov. 30.

Indications for West Coast prills followed Vancouver higher to $205-$210/mt FOB.

Contracts for molten tons were noted in the $160-$170/lt FOB range for Q4, rising from $150-$155/lt FOB in the prior quarter.

China:

Increases in fertilizer production rates have combined with a reduction in sulfur imports to create a fundamentally imbalanced sulfur market in China, China News Service reported.

Sulfur import volumes were down approximately 20 percent year-over-year, leading state-owned refiners such as Sinopec to prioritize run rates in an effort to fill sulfur supply gaps. Sinopec on Nov. 25 was reported offering sulfur volumes from terminals at prices 130-140 yuan ($20.39-$21.95) below available import values.

Sources previously noted China’s fading importance in the international sulfur market. Traditionally a world-leading sulfur destination, a reduced import appetite – driven in part by steadily rising international market pricing throughout 2021 – has shifted importance to alternative destinations like North Africa, some market players argued.

Last-done imports at China were heard firming to at least a $265-$275/mt CFR range, up from $263-$265/mt CFR at last report. Increasing international values were broadly predicted to push China into the $280s/mt CFR in the next round of business.

Qatar:

Sources described Muntajat offers for December loading at $265/mt FOB Ras Laffan, a $39/mt increase from $226/mt FOB in November.