All posts by mickeybarb@charter.net

Ma’aden Strengthens African Presence With New Fertilizer Terminal in Malawi

Africa, News, News Briefs, Saudi Arabia

Saudi Arabian Mining Co. (Ma’aden), Riyadh, and its African subsidiary, Mauritius-based fertilizer distribution group Meridian Group, have opened a fertilizer terminal equipped with blending facilities in Malawi in southeast Africa.

The new terminal at Liwonde in Malawi’s southern region is strategically located on the rail line connecting the country to the deep-sea Indian Ocean port of Nacala in Mozambique, enabling “high access” to Ma’aden’s fertilizer products across central and southern Africa, the Saudi Press Agency reported on Nov. 22, citing Ma’aden’s Senior Vice President of the Phosphate Business Unit Hassan Al-Ali.

The new facility has 40,000 mt of storage capacity and is equipped with 2,400 mt/d of blending capacity, and annual bagging capacity of 10 million bags, and total production capacity of 360,000 mt/y, according to the report.

Ma’aden expects the Liwonde fertilizer terminal to contribute to the growth of its exports to Africa as “it will provide access to a steady supply of high-quality fertilizer to over 5 million small-holder farmers in Malawi and Zambia,” and “subsequently, will improve food security on the African continent.

The Saudi company acquired an 85 percent stake in the Meridian Group in September 2019 for an enterprise value of $140 million in an all-cash deal (GM Sept. 6, 2019). Meridian operates across Malawi, Mozambique, and Zimbabwe, supplying fertilizers, seeds, and grain. In 2019, its fertilizer distribution volume totaled around 500,000 mt/y. The acquisition was Ma’aden’s first international acquisition.

Russia Assures Brazil on Fertilizer Supply; Concerns Remain About Belarus K Supply

Belarus, Brazil, DAP/MAP, News, News Briefs, NPK, Potash Muriate

Russian authorities and the country’s fertilizer companies have assured Brazil’s government that they will meet fertilizer delivery commitments, Bloomberg reported, citing Brazil’s Minister of Agriculture Tereza Cristina Corrêa da Costa, in an emailed statement on Nov. 22. Representatives from the various parties met last week.

Russia accounts for about 20 percent of Brazil’s fertilizer imports, and the commitment means Brazil will have enough fertilizer to deliver good yields in coming seasons, according to the report, citing the Brazilian minister.

The supply concerns follow the Russian government’s move to limit the volume of nitrogen fertilizers and DAP, MAP, and complex fertilizer exports for a period of six months, starting from Dec. 1, 2021, through to May 31, 2022 in a bid to safeguard local supplies and stabilize pricing for the Russian farmers (GM Nov. 5, p. 1).

For the six-month period specified by the government – Dec. 1, 2021- May 31, 2022 – the export quotas for nitrogen fertilizers will be 5.9 million mt, and for phosphate fertilizers, such as MAP/DAP, and for NPKs 5.35 million mt. The non-tariff quotas are half of Russian producers’ export volumes last year, according to PhosAgro Senior Marketing Expert Andrey Ryabinin (GM Nov. 12, p. 30).

Sectoral sanctions against Belarus’ Lukashenko regime, which have included restrictions on the export of certain grades of potash and the prospect of further sanctions by the U.S., also have heightened concerns in Brazil about potash supply disruptions and rising prices.

According to a report last week by Belarusian pro-democracy and pro-human rights newssite Charter 97, citing an interview with Brazil’s Agriculture Minister in the Estado de São Paulo newspaper, Brazil wants to increase the supply of potash from Russia.

Last year, potash imports from Russia accounted for 28 percent of total import volume, and from Belarus 22 percent. To the end of October 2021, imports from the two countries as a proportion of total imports remained at the full-year 2020 levels.

Brazil’s MOP Imports from Russia and Belarus

‘000 mt FY2020 % of total imports Jan.-End-Oct. 2021 Jan.-End-Oct. 2020 % y-on-y change
Total imports 11,236 100 10,410 9,243 +13
           
Russia 3,118 28 3,045 2,544 +20
Belarus 2,448 22 1,962 2,011 +2

Data source: Trade Data Monitor

Russia has also said it will allow imports of some 200,000 mt of beef and 100,000 mt of pork from Brazil tariff-free for six months, according to the report, citing Brazil’s Agriculture Ministry.

Poland’s Farmers Could Face Fertilizer Shortages Next Spring, Azoty Chief Warns

News, News Briefs, Poland

Poland’s farmers may face problems with fertilizer purchases in the spring as foreign producers could reduce output and deliveries amid continuing high natural gas prices, Grupa Azoty’s President of the Management Board, Tomasz Hinc, warned at a sitting of Poland’s Parliamentary Committee for Agriculture early this week, according to a report by Poland’s PAP Business.

According to Hinc, foreign suppliers thus far account for some 30 percent of the supply of the Polish market.

He also told the Committee that the share of gas costs in the price of nitrogen fertilizers currently stands at over 80 percent, versus around 30 percent in early 2021.

In contrast to many other European nitrogen producers, Azoty decided not to limit its ammonia and fertilizer production in recent weeks due to Europe’s soaring natural gas prices. But Hinc said late last month (GM Oct. 29, p. 34) that Azoty does not rule out such a decision in the future if gas prices continue to rise significantly.

Azoty has made supplying the domestic market with fertilizers “a priority,” and recently decided to limit exports, with the exception of long-term contracts (GM Oct. 15, p. 28). The group is one of two key fertilizer producers in Poland.

European Gas Prices Gain on Fresh U.S. Sanctions Targeting Nord Stream 2

Europe, News, News Briefs, Russia, U.S.

European gas supply concerns were stoked again early this week after the U.S. imposed its latest sanctions targeting Russia’s Nord Stream 2 gas pipeline. The Kremlin has called the move “illegal,” according to a Bloomberg report.

Benchmark European gas prices – the Dutch TTF front month (currently December) – had risen 8.7 percent to €91.35 a megawatt hour by 4:59 p.m. (GMT) on the day on Nov. 23.

In August, the U.S. sanctioned two Russian entities over their involvement in the Nord Stream 2 pipeline, as well as a ship that was involved in the link’s construction. The move had a limited impact on European gas prices at the time, and analysts said these new penalties probably will not push gas futures higher over the longer-term either, according to the report.

The latest U.S. sanctions are thought in any case to probably have come too late, as construction of the pipeline was finished in September and the first of the two lines already is filled with gas.

But the start of commercial operations of the pipeline suffered a setback last week after the German regulator Bundesnetzagentur suspended the certification process for the pipeline (GM Nov. 19, p. 1).

According to a tweet by Bundesnetzagentur, cited by a bne IntelliNews report, the regulator decided to suspend the process until the Nord Stream 2 holding company has reorganized its legal structure to conform with German law. This will involve the transfer of the assets and people to a subsidiary.

Sri Lanka Relaxes Ban on Imports of Chemical Fertilizers, Other Agrochems

Ammonia, Ammonium Sulfate, News, News Briefs, Sri Lanka, Urea

The Sri Lankan government has ended restrictions on the import of agrochemicals, including fertilizers, according to a report by India’s The Hindu newspaper, relinquishing its ambitions to become the world’s first completely organic food producer.

According to the report, the lifting of the ban, announced Nov. 21, is with immediate effect.

The Sri Lankan authorities in recent weeks already had relaxed restrictions on imports of certain chemical fertilizers, such as ammonium sulfate, for the production of tea, the country’s main export revenue earner (GM Oct. 22, p. 35). The move followed concerns from Sri Lankan tea producers about the falling quality of the tea produced.

Sri Lanka’s President Gotabaya Rajapaksa implemented an immediate ban on chemical fertilizer imports in April, in pursuit of the strategy to see the country become the world’s first 100 percent organic food producer (GM May 7, p. 42). Critics claimed the decision was driven primarily by the need to address the country’s foreign exchange crisis.

On Nov. 21, Agriculture Ministry Secretary Udith Jayasinghe told the private News First television network that the government will now allow chemical inputs “that are urgently needed” and “considering the need to ensure food security, we have taken this decision,” according to the report by The Hindu.

He said permission has been given to import fertilizer for all export crops, such as tea, rubber, and coconut, and also specialist fertilizer for greenhouse cultivations.

However, there is some confusion whether the import ban has been lifted for all fertilizers.

According to an EconomyNext report, citing an unnamed “top official,” the lifting of the ban on chemical fertilizers is “a progressive one,” and the official denied chemical fertilizer imports would be allowed for paddy and vegetables.

But it is understood the government has ended a broader ban on agrochemicals such as on herbicides and pesticides.

In the months since the presidential decree to limit the country’s fertilizer imports to only organic fertilizers and feedstocks to produce organic fertilizers, such as ammonia and other liquid nitrogen, the Sri Lankan authorities have waffled over the ban (GM Aug. 6, p. 38). Last month, for instance, the first shipment of Nano Urea Liquid arrived from India as part of a deal to import a total of 3.1 million liters of the product for use in the cultivation of maize and rice (GM Oct. 22, p. 35).

Sri Lanka imported a total of 659,000 mt of all fertilizers in 2020. Imports for the first half of this year were 197,000 mt, down about 30 percent compared to the same period last year at 279,000 mt, according to Trade Data Monitor.

Urea accounts for the bulk of the country’s fertilizer imports, totaling 540,049 mt in 2020. In the first 10 months of 2021 through end-October, urea imports were almost half those of the same prior-year period, at 161,001 mt versus 318,373 mt, according to Trade Data Monitor data.

Sulvaris Inc. – Management Brief

Canada, Management Briefs, Specialty

Sulvaris Inc., Calgary, a privately held company focused on the development and licensing of its proprietary fertilizer products, announced that it has promoted Jake Underwood as its new President and Chief Operating Officer. He joined Sulvaris in May of 2021 as Executive Vice President of Business Development with a focus on the development of Sulvaris’s licensing strategy for both Micronized Sulfur Technology (MST) and Carbon Control Technology (CCT).

In his new role, Underwood will integrate this licensing strategy and the company’s research and product development efforts as Sulvaris expands the suite of products and reach of its two proprietary technologies in the global marketplace.

“We are excited to promote Jake to this new role within Sulvaris. In a short time period working with Sulvaris, and with Jake’s 20 years of management experience in driving innovation and growth, he has demonstrated success in delivering valuable solutions to customers and maximizing shareholder value,” said Rick Knoll, CEO and Founder of Sulvaris.

“Mr. Underwood spent 16 years in ag retail with the J.R. Simplot Co. and Nutrien (Agrium-CPS-Loveland Products) managing focus around seed, fertilizer, crop protection, and differentiated proprietary products. Most recently, his time has been spent in executive leadership roles with early-stage companies Verdesian Life Sciences and WISErg Corp., leading nutrient efficiency and sustainable platform full circle solution technologies,” Knoll added.

“Jake is a highly regarded senior agriculture executive with experience in specialty products and with innovative agricultural focused companies. The Board of Directors is pleased to announce Jake will now lead these core initiatives at Sulvaris as we continue to commercialize our technologies around the globe,” added Jeff Scott, Chairman of the Board of Directors.

Fertiglobe Consortium Selects Plug Power for Egypt Electrolyzer

Egypt, Green Ammonia, Middle East, News, News Briefs

Fertiglobe, with its partners in a project to build a 100 megawatts (MW) electrolyzer to produce green hydrogen as a feedstock for green ammonia in Egypt, have selected Latham, New York-based Plug Power as the electrolysis technology provider for the project, OCI NV said on Nov. 24.

Fertiglobe, the Middle Eastern joint venture partnership between OCI NV and Abu Dhabi’s state-energy company ADNOC, is partnering with Norway-based renewable power producer Scatec ASA and Egypt’s Sovereign Fund to develop the electrolyzer to produce up to 90,000 mt/y of green ammonia at EBIC in Ain Sokhna (GM Oct. 15 p. 32).

“The 100 MW PEM (Polymer Electrolyte Membrane) electrolyzer will be the largest independently owned facility globally when it comes online and is the first phase in Fertiglobe’s green ammonia strategy,” said OCI, adding that Egypt is an ideal location to produce green hydrogen given its unique renewables profile with strong solar and wind loads, as well as its proximity to markets with a hydrogen deficit.

In its statement last month announcing the project and the partnership deal, OCI put the proposed capacity of the electrolyzer at between 50-100 MW.

Under the partnership agreement, Scatec will build, operate, and majority own the facility, and EBIC will use green hydrogen as a supplementary feedstock for the production of up to 90,000 mt/y of green ammonia under a long term offtake agreement, OCI said.

The final investment decision for the project is expected in 2022, and start-up is targeted for 2024.

Ammonia

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

U.S. Gulf/Tampa:

Tampa anhydrous ammonia for December was reported at $990/mt CFR, up 20 percent from November’s $825/mt CFR. Sources had expected an increase citing recent increases in international, inland, and NOLA pricing.

In the meantime, the latest import to the other side of the U.S. Gulf was put at $925-$940/mt CFR, although any new trades would be hard-pressed not to match Tampa’s $990/mt CFR. However, the last done NOLA barges were recorded at $1,030/st, easily surpassing the new Tampa equivalent of $898/st FOB.

Eastern Cornbelt:

Sources reported a brisk ammonia application pace in the region in late November. “Supply is tight due to strong application, and the weather looks favorable for ammonia to continue to be applied for at least a week,” said one regional contact.

Between supply outages and very tight truck availability, ammonia prices remained firm in the region. Limited sales were reported at the $1,285/st level FOB Mount Vernon, Ind., as the week began, but most CF terminals that were offering tons were firmly at the $1,300/st FOB mark during the week, with most Koch terminals reported at $1,350/st FOB in Illinois and Indiana. The posted price at Lima, Ohio, remained at $1,300/st FOB at midweek.

Western Cornbelt:

A blistering pace for fall ammonia application resulted in supply outages across the region during the week.

Sources quoted the low end of the ammonia range at $1,300/st FOB Garner, Iowa, for “a few loads” early in the week, but tons were reportedly out at Washington, Fort Dodge, and Marshalltown during the week. Nebraska terminals were reported in the $1,300-$1,325/st FOB range where tons were available, while the high end of the regional range remained at $1,350/st FOB Wever, Iowa, although sources said no product was being offered at that location.

In the Southern Plains, the last prices offered for prompt truck tons were quoted at $1,200/st FOB Verdigris, Okla., and $1,275/st FOB Coffeyville, Kan.

California:

The ammonia market in California remained at $710/st DEL for anhydrous and $187/st FOB for aqua ammonia. Sources said prices are slated to increase on Dec. 1, however, to $1,085/st DEL for anhydrous and $281/st FOB for aqua.

Pacific Northwest:

The anhydrous ammonia market was pegged at a solid $1,170/st DEL in the Pacific Northwest for the remaining fall application season, up from $1,100-$1,120/st at last report, with sources describing improved availability in late November. The last aqua ammonia price was referenced at $285/st FOB in the region, up $15/st from early November.

Western Canada:

The last ammonia prices in Western Canada were quoted firmly in the C$1,700-$1,850/mt DEL range for limited offers, depending on supplier, location, and time of shipment.

Black Sea:

In the absence of any spot tons coming out of Yuzhnyy, deals out of North Africa to European buyers are being used by international traders to triangulate the Yuzhnyy equivalent price. In some cases, the price calculations can lead to some wild variations.

Last week, sources reported a deal involving a few thousand tons from the Arab Gulf to a Turkish buyer. Working back the cost of transportation and other costs, the estimated price to Yuzhnyy was reported in the $890s/mt FOB. Industry sources used that price as the basis for discussions if any spot tons could be found from the Black Sea port.

On the heels of the Turkey deal, sources reported a sale of North African ammonia to a buyer in Poland that showed a Yuzhnyy equivalent price at $800-$810/mt FOB. This is now the level where people are discussing prices for any potential spot deals.

Sources said the lower price is more in line with the price in the Baltics in the low-$820s/mt FOB. The lack of any spot tons is expected to continue to lead industry watchers to calculate equivalent prices.

The material that is flowing out of Yuzhnyy remains Russian and tons ordered under contracts. So far, said sources, the contracted material is moving out without hindrance.

Middle East:

Sources said the buyer of tons from SABIC last week remains unknown. However, most seem convinced that the deal did happen and that it was settled at $900/mt FOB.

Iranian ammonia exports for January-October were reported at 473,000 mt by Trade Data Monitor. This is down 14 percent from the same period in 2020, which was reported at 550,000 mt. The main buyer so far this year has been India at 321,000 mt. October 2021 exports were down about 41 percent, to 42,000 mt from 25,000 mt in October 2020.

India:

Rumors of an ammonia sale from Malaysia to India could not be confirmed. Sources previously said the Malaysians were looking at $700/mt FOB for the deal.

The last spot deal into India was more than a month ago at a price of $670/mt CFR. Contracted tons of ammonia continue to flow into the country at prices below the last spot price. Sources said new prices will be discussed in the first quarter of 2022 as the Indian fiscal year ends.

Northwest Europe:

Talks have not yet begun for a December Baltic ammonia price. However, sources said the large leap in the Tampa price to $990/mt CFR has given the producers an opportunity to argue for a similar leap in prices. If accomplished, the Northwest European price will move off its current $905-$907/mt C&F level.

Sources said the continued high price and limited quantity of natural gas is also pushing up pricing expectations. One trader said the cost of production of ammonia is now around $1,000/mt for European producers. The higher costs to produce, coupled with steady demand, is providing a constant upward push on prices.

Source reported that Baltic producers will most likely be pushing for at least $900/mt FOB. If successful, the Northwest Europe price will come close to, if not hitting, the $1,000/mt C&F mark.

Urea

Africa, Brazil, California, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Pacific N.W., Pakistan, Russia, South Korea, U.S. Gulf, Urea, Western Canada, Western Cornbelt

U.S. Gulf:

It was a relatively quiet week on the NOLA prompt urea barge market, with most sources citing a price of $805/st FOB or thereabouts, compared to the week-ago $800-$815/st FOB. Forward trades were reported to be higher, with February-April trading in the $818-$825/st FOB range.

Eastern Cornbelt:

The urea market remained at $850-$865/st FOB regional terminals in the Eastern Cornbelt, with both the high and low reported at Cincinnati, Ohio.

Western Cornbelt:

The urea market was steady at $850-$875/st FOB in the Western Cornbelt, with the low reported at Caruthersville, Mo., and the high in Iowa. The St. Louis, Mo., urea market remained at $860-$870/st FOB at midweek.

California:

The urea market jumped to $880-$940/st FOB port terminals in California, up from $850-$880/st FOB earlier in November. Sources continued to report no current delivered urea pricing in the state.

Pacific Northwest:

The urea market was quoted at $930-$940/st FOB for prompt tons in the Pacific Northwest, up $100/s from last report, with the low confirmed at Rivergate, Ore. Tons for Q1 shipment were pegged at the $950/st level FOB Rivergate. No current delivered prices were reported in the region in late November.

Western Canada:

The urea market jumped to C$1,280-$1,285/mt FOB in Western Canada, with delivered tons quoted in a broad C$1,280-$1,330/mt range, depending on location and time of shipment, up significantly from the last reported C$1,225-$1,245/mt DEL. Most offers in Saskatchewan for February-March tons fell in the C$1,280-$1,285/mt DEL range in late November.

India:

The industry is taking its time to ensure vessels are booked and tons assembled at ports to cover the 1.6 million mt awards issued in the IPL tender. Few are looking at a quick call of another tender.

Sources said the earliest a tender might pop up would be near the end of December. However, there is a larger view that the tender will be called in early January 2022. Sources speculated the next tender will be called by NFL, which was just recently granted permission to import urea.

While the recent IPL tender did buy the largest single amount of urea in any tender so far this year, the supply of urea in the country still remains low. Local media reports have highlighted disgruntled farmers and local distributors who complain of no urea available. Compared to purchases made last year, the intake of urea is about 2.5 million mt behind.

Pakistan:

The TCP tender for 100,000 mt in two lots closed on Nov. 22 with only one company offering material. Two other companies – Ameropa and Swiss Singapore – sent regrets. The buying company scrapped the tender.

The lack of participation in the tender came for a variety of reasons, said sources. One overriding issue was the potential quick delivery time. Under the tender, shipment was to take place within 20 days of the issuance of the letter of credit. However, obtaining the LC and securing all the other financial requirements has often taken longer than expected. A trader could be caught holding onto a cargo longer than expected at great expense.

Sources said the lack of serious participation in the tender also indicated how short the market was of December urea. Traders said if the paperwork moved through at a normal pace, shipment would have to take place before the end of December, at the same time everyone else is shipping material to India, making securing tons and a vessel difficult.

Sources said Pakistan needs the product to build up its reserves, but the issue will be how much they actually need. Any new tender call will include the usual one-month waiting period between the call and the closing of the tender. If TCP waits too long, it will once again have its tender closing at or near the same time when a major Indian tender closes.

The center of gravity for the market will shift to India, leaving Pakistan on the sidelines.

Ethiopia:

A second shot at buying 800,000 mt failed. The EABC tender needed a second call after only one trader offered tons in the initial call and was later disqualified.The tender is an annual event when Ethiopia looks to book its tons for the coming year. The 800,000 mt was to be spread out from December 2021 through March 2022.

Sources said most traders stayed away from the tender because of previous issues with financing and the timing of deliveries. Adding to the problem, sources said, was the absence of urea in the spot market, plus the Indian and Pakistan tenders. In the end, the absence of China and the Russian restrictions on exports dried up the market for the Ethiopians.

January-October imports this year were reported at 531,000 mt by Trade Data Monitor, up less than 1 percent increase from the 529,000 mt imported during the same period last year. The main suppliers so far this year have been Egypt at 241,000 mt, Saudi Arabi at 125,000 mt, and the United Arab Emirates at 120,000 mt.

October imports were reported at 100,000 mt, compared with only 1 mt in October 2020. Few to no tons were imported during several months so far this year, with February, August, and September showing no urea imports, and April recording only 132,000 mt.

January 2021 was the big month for imports at 141,000 mt. March saw 47,000 mt, May 112,000 mt, June 43,000 mt, and July 88,000 mt.

Indonesia:

Reports of 15,000 mt of Indonesian urea being sold to South Korea as a re-export were noted in the industry. The deal reportedly was handled by a Chinese trader, implying the re-export was from a Chinese port. Sources said it would have made more sense for the product to be stored almost any place other than China for shipment to South Korea, however.

One trader noted that the last sales out of Indonesia were at $502/mt FOB from tenders held a couple of months ago. No new sales were reported. Indonesian product had to have been purchased for no more than $502/mt FOB. With a landed price reported in the $990s/mt CFR, sources said the cost of shipping to a Chinese port, storing the tons, and then shipping to South Korea could still garner a healthy profit of about $300/mt. One trader noted, however, that in a normal market this deal would never have happened.

Reportedly, the producers are anxious to start exporting because of the high prices in the global market. However, the government is firstly concerned with the domestic market and is reluctant to issue the necessary export permits.

Estimates of where the Indonesia market should be, based on the IPL/India tender price, were in the low-$950s/mt FOB. Some sources said an even higher price might be possible if the tons become available because of reports out of Malaysia that a deal for 1,000 mt in a container for South Korea showed a netback for Petronas at $1,000/mt FOB.

China:

Sources reported that about 50,000 mt remains in bonded warehouses but cannot be released for export because of the Chinese ban on exports that took effect on Oct. 15.

Sources said Chinese traders are reportedly lobbying the government to release the material, arguing that because the product is already in a bonded warehouse, it is essentially already outside the country and should not be counted as part of the domestic reserves. Port authorities, however, appear to be adhering to the letter of the edict and are refusing to discharge the tons because all the paperwork was not done by the Oct. 15 deadline.

The recent sales into South Korea show a China-equivalent price of $960-$970/mt FOB. This price matches up with the estimated China price from sales in the IPL/India tender.

South Korea:

The South Korean government and business agents have been sweeping the globe looking for urea to replenish the supply of liquid urea necessary for their emissions abatement program.Reportedly, the South Korean government approached Moscow to ask for an exemption to the Russian restrictions on urea exports.

A cargo of 18,500 mt that cleared a Chinese port last week reportedly arrived in a South Korea port this week. The urea was already in a bonded warehouse when the Chinese export limitations were put in place. The buyer argued that the urea was already cleared for export but required a few more papers to be processed, and so should not be included in the export ban.

Additional efforts to secure tons from Vietnam and Australia were also put into play.

South Korea has largely depended on China for its urea. China sent 607,000 mt to South Korea in the first 10 months of the year out of total imports of 751,000 mt. The next highest supplier was Qatar at 52,000 mt.

Russia:

The Russian government is being lobbied by urea buyers from around the world.

Bloomberg reported that Moscow has assured Brazil that it will fulfill its urea contracts. So far this year, according to Brazilian import numbers assembled by Trade Data Monitor, Brazil took 1.2 million mt of urea from Russia out of a total of 6.2 million mt imported. This makes Russia the second largest supplier to the Latin American country, with Qatar supplying 1.5 million mt.

The South Korean government also approached Russia to see if it could clear more urea for export. According to Trade Data Monitor, the last time Russia exported urea to South Korea was in 2018 for a total of only 1,365 mt.

Middle East:

Arab Gulf producers are reportedly sold out through December with either sales to India from the IPL tender or under contracts for other buyers. The scarcity of product is expected to last into January, with tightness anticipated though the whole first quarter of 2022.

The lack of any new spot deals leaves the price set from the Indian tender at $950-$959/mt FOB.Sources reported no new business out of Egypt following the sales last week at $930/mt FOB and $945/mt FOB. Reportedly December is sold out.

Iranian exports for January-October were reported by Trade Data Monitor at 3.2 million mt, down 2.7 percent from the 3.4 million mt exported during the same period in 2020.The main buyer so far this year was Turkey at 1.2 million mt. The rest of the buyers took less than 300,000 mt each.

October 2021 exports were reported at 292,000 mt, down 31.7 percent from October 2020 exports of 427,000 mt. Turkey took 215,000 mt of the month’s product.

Brazil:

Urea prices shifted up in Brazil, reflecting the bullish global market. Sources put the port-side price at $880-$950/mt CFR.

Inland, buyers seemed relieved that Russia agreed to supply the urea promised under existing contracts. At the same time, farmers and local blenders seem to be taking the advice of local farmers associations in Mato Grosso to postpone their purchases until next year in hopes of lower prices.

A softer price in the area could also be the result of the government announcement that it was working on a long-term plan to increase domestic production and reduce imports. For now, sources put the Rondonopolis price at $960-$1,000/mt FOB ex-warehouse.

UAN

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

U.S. Gulf:

NOLA UAN barges continued to be quoted in the $545-$550/st ($17.03-$17.19/unit) FOB range.

Eastern Cornbelt:

UAN-32 pricing was pegged at a firm $600-$630/st ($18.75-$19.69/unit) FOB regional terminals, depending on location, with the low for prompt tons and the high for spring offers. UAN-28 at Cincinnati was steady at $520/st ($18.57/unit) FOB for prompt and $550-$555/st ($19.64-$19.82/unit) FOB spring prepay.

Western Cornbelt:

The UAN-32 market was quoted at $590-$620/st ($18.44-$19.38/unit) FOB in the Western Cornbelt, depending on location and time of shipment.

California:

UAN-32 prices were quoted at $650-$660/st ($20.31-$20.63/unit) FOB terminals in California, up from $620-$650/st ($19.38-$20.31/unit) FOB at last report. No delivered pricing was reported in the state in late November.

Pacific Northwest:

UAN-32 pricing increased to $685/st ($21.41/unit) FOB Kennewick, Wash., for the last reported business, up $65/st from pricing levels in early November. No current rail-DEL prices were reported in the Pacific Northwest in late November.

Western Canada:

UAN-28 pricing firmed to C$775-$780/mt (C$27.68-$27.86/unit) DEL in Western Canada, up C$20-$55/mt from last report.