All posts by mickeybarb@charter.net

California Jury Rules Against SQM

California, Chile, News, News Briefs, Specialty

SQM Inc., Santiago, reported on Sept. 8 that a jury in the U.S. District Court in Los Angeles has returned a verdict against SQM North America for US$48.1 million in a lawsuit initiated in 2010 by the City of Pomona, Calif., seeking damages for alleged contamination from the use of SQMNA’s fertilizer products in the 1930’s and 1940’s.

SQM said the verdict is not final and is subject to post-trial motions that SQMNA and plaintiff may file, as well as appeals to the Ninth Circuit Court of Appeals. SQM said it plans to vigorously pursue its rights to challenge the verdict in both the District Court and Court of Appeals.

The trial was the second retrial ordered by the Ninth Circuit in this lawsuit (GM Aug. 18, 2017). The two prior jury verdicts were in favor of SQMNA.

SQM Offers Green Bonds

Chile, News, News Briefs, Specialty

SQM Inc., Santiago, said on Sept. 8 it plans to offer senior unsecured notes to qualified institutional investors in the U.S., with the net proceeds going to completed, ongoing, and future green projects.

These will include the development, expansion, operation, and maintenance of projects for the extraction and processing of lithium and production of lithium hydroxide and lithium carbonate, primarily dedicated to applications related to clean transportation and energy efficiency, and may include lithium carbonate and hydroxide production expansion in Chile.

Ammonia

Ammonia, Black Sea, Brazil, Eastern Cornbelt, Great Lakes, Market Watch, Middle East, Northern Plains, Northwestern Europe, Southeast Asia, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf/Tampa:

The Tampa market continued at $615/mt CFR for September. Hurricane Ida took major Louisiana plants offline, at least for a while, with restarts expected as power and gas supplies resume.

CF on Sept. 9 said Donaldsonville, La., ammonia production had resumed. In the meantime, inland U.S. prices have moved up and international prices remain strong.

U.S. Imports:

July ammonia imports were up 33.8 percent, according to Department of Commerce (DOC) data, to 194,887 st from the year-ago 145,683 st.

U.S. Exports:

Ammonia exports were down 5.7 percent in July, to 68,289 st from 72,390 st in July 2020.

Eastern Cornbelt:

Ammonia prices inched higher in the Eastern Cornbelt. While most prompt or prepay offers continued to fall in the $665-$670/st FOB range out of Illinois and Indiana terminals, the market FOB Lima, Ohio, reportedly firmed to the $670/st FOB level as well, up from earlier prompt offers at $645/st FOB.

Western Cornbelt:

The ammonia market was pegged in the $655-$665/st FOB range in the Western Cornbelt, depending on location, with the low in Nebraska and the upper end reported at Palmyra, Mo.

Most new offers out of Oklahoma production points fell in the $625-$635/st FOB range, sources said, with demand picking up on winter wheat ground in the Southern Plains.

Northern Plains:

The Ida-related production outages sparked some inland ammonia price increases as the fall application season nears. New delivered pricing in the Northern Plains was quoted in the $655-$695/st FOB range, up from earlier fall offers at $645-$655/st DEL, while fall pricing at terminals in North Dakota and Minnesota had reportedly firmed to $655-$675/st FOB.

Great Lakes:

Ammonia pricing in the Great Lakes region was pegged at $665-$670/st FOB/st FOB terminals in northern Indiana and northern Ohio for fall tons. No current offers were confirmed FOB Courtright, Ont.

Black Sea:

Ammonia prices remained stable at $590/mt FOB, mostly because there was no activity. Sources said the dearth of available material limited shipments to only already contracted tons.

The high cost of natural gas to Ukraine is making production of ammonia difficult. Sources said whatever tons are being turned out will be to cover existing deals and then for domestic use. Most likely, said one source, the plants will close.

There is some Russian material available, sources said, but not enough to begin to rebuild the spot market in the region.

Middle East:

Reports circulated of ammonia sold to IFFCO by Muntajat. Reportedly, the tonnage was limited and both sides are keeping mum about the price. Rumors suggest the deal was done on a formula basis.

The Ma’aden situation remains foggy. Sources said they are not sure if the ammonia plant actually has started or if the company is just diverting ammonia from their problematic phosphate operation.

Northwest Europe:

So far, the ammonia price is holding at $700/mt C&F. However, sources said the rising cost of natural gas in Europe could change that.

The increase in gas costs could push plants to the point where it is no longer profitable to produce their own ammonia. At that point, the companies will shift to importing the product in an already tight market. Sources said some inquiries are already making the rounds in the industry to do just that.

Southeast Asia:

Sources said the Southeast Asia ammonia market has gone quiet. The steady demand for product is being handled by long-term contracts, with nothing available for a spot deal.

Brazil:

Ammonia imports for January-August 2021 were up 71 percent, according to Trade Data Monitor, to 436,000 mt from 255,000 mt during the same period in 2020. The bulk of the tonnage came from Trinidad and Tobago at 416,000 mt.

August 2021 imports were up 15 percent, to 51,000 mt from 44,000 mt in August 2020. Trinidad and Tobago supplied 46,000 mt of the tonnage during the period, with the remaining 5,000 mt coming from Colombia. Sources said the Colombian tonnage normally comes from excess material held by Monomeros.

Urea

Black Sea, Brazil, China, Eastern Cornbelt, Great Lakes, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Urea, Western Cornbelt

U.S. Gulf:

NOLA granular urea barges for September were reported to have traded at $518-$552/st FOB, up from the prior week’s $425-$495/st FOB. Sources reported a very thin market, with some saying NOLA barge supplies were already tight before Hurricane Ida.

The storm brought with it the idling of CF’s major Donaldsonville complex and the CF Sept. 3 declaration of force majeure, though by Sept. 9 the company reported it was restarting ammonia production at the complex, with urea and other products to follow.

Other sources cited logistics problems, with reports of some barges damaged and speculation that others may have sunk. There was also a question as to when import vessels could be offloaded as empty barges were hard to find, with many filled with grain and unable to unload at NOLA grain terminals.

In general, sources expected it would take a while for both production and logistics to return to normal. Sources were more hopeful for October. Those barges were reported to be trading in the $465-$490/st FOB range.

U.S. Imports:

Urea imports for July were up 156.6 percent, to 468,526 st from the prior-year 182,562 st. Russian imports totaled 132,541 st for the period, followed by Qatar at 109,306 st, Saudi Arabia at 57,541 st, and Algeria at 57,479 st.

U.S. Exports:

Urea exports were down 93.1 percent in July, to 9,106 st from the year-ago 131,815 st.

Eastern Cornbelt:

The disruptions to fertilizer production and distribution caused by Hurricane Ida continued to impact urea pricing. The week began with sources quoting the Cincinnati, Ohio, urea market in the $490-$505/st FOB range. By Sept. 9, however, several sources reported new urea offers ranging from $520-$560/st FOB in the region, depending on location.

Western Cornbelt:

Most of the new urea quotes fell in the $520-$555/st FOB range in the Western Cornbelt during the week, depending on location. The range out of most South Central terminals was reported at $520-$550/st FOB on Sept. 9.

Sources reported difficulty sourcing new price quotes during the week, with most attributing the hesitancy to Hurricane Ida and the resulting production outages.

“I am not sure there are any ‘real’ markets yet, but everything is a lot higher,” said one contact “It is still going to be days or weeks before the aftermath of Ida and its market implications are truly known. But supply and logistics look grim today.”

Northern Plains:

Urea was quoted at a solid $550-$555/st FOB St. Paul, Minn., at midweek, while delivered offers in the Dakotas ranged broadly, from a low of $515-$535/st FOB early in the week to a high of $575/st on Sept. 9, depending on location and point of origin. Both prices were up dramatically from the last reported $470-$490/st FOB and $490-$510/st DEL ranges.

Great Lakes:

Urea prices were up significantly in the region, although several sources said prices had been pulled at some locations in the wake of Hurricane Ida and the disruptions to Gulf Coast production and distribution. The market was reported in a broad range at $525-$565/st FOB Great Lakes terminals at midweek, where available, up from $475-$525/st FOB in mid-August.

Northeast:

The last urea offers in the Northeast were pegged at the $510/st level or higher FOB Fairless Hills, Pa., up from $480-$490/st FOB in late August.

India:

The urea industry is still waiting for the RCF tender to be called. Sources said the tender could be called as early as Saturday, Sept. 11, because Friday is a holiday in Mumbai, the hometown of RCF. Others said the call will most likely come next week.

Industry watchers said the delay seems to be related to securing the proper financing for the tender from the Department of Fertilizers. Traders had been saying RCF would need to clear out the lines of credit related to its past tenders before it could move forward with the next one.

The buyer is facing a rising market. Prices in Egypt have now moved to $470/mt FOB for October shipments, and quotes from China for prilled urea have jumped from $410/mt to about $430/mt FOB. Any further delay in calling the tender will also put the shipping period at the same time Chinese demand for urea is expected to pick up.

Some traders said the trend in pricing could lead to RCF paying more than the $510-$517/mt CFR it paid in the last tender. However, to achieve this level, the netback prices would have to dramatically rise, something many said is not likely.

China:

The month started with an award in the TFC tender for 6,000 mt of prilled urea with a netback of $415-$420/mt FOB. Immediately after that tender, small deals in Southeast Asia pushed the netback to $400-$405/mt FOB.

This week, quotes for prilled urea were being circulated in the $420s/mt FOB, while granular urea was being quoted in the mid-$430s/mt FOB. Some sources are also claiming parity pricing, with prilled and granular both at $425-$435/mt FOB.

Sources said the jump in price ideas came from Egypt securing ever-higher prices, the pending Indian tender, and rumors of the Chinese government stepping in to prevent exports beginning on Oct. 1. While everyone is talking of higher prices out of China, sources were clear that no new deals were concluded this week.

Global demand for urea is on hold until the RCF tender is called and awarded. Sources said one thing the buyers are nervous about is the threat that their product could become unprofitable in a falling market. While few see that scenario playing out, it is a consideration.

The bigger fear, said one trader, is that the Chinese government will see too many tons being offered offshore at a time when domestic demand kicks in. Rumors are circulating that Beijing plans to institute some sort of export duty or export ban as early as Sept. 10, or at least by Oct. 1, to build supplies for the domestic season. Either action could make it difficult to export tons that are booked but not sitting in a bonded warehouse.

Sources are unsure how many tons China will supply to the Indian tender. Last week, traders estimated that if the tender was called in the first week of September, Chinese urea could account for 500,000-600,000 mt in awards. Now, with more pressure from the central government, sources said fewer tons may find their way to India.

Reportedly, the amount of urea in the export warehouses is only about 250,000 mt. One trader estimated that at best the producers could send another 100,000 mt in October. The October deliveries could be reduced or eliminated if the government steps in.

One source said Beijing could take a number of steps to ensure lower prices and plentiful supplies in the domestic market. The most dramatic move would be to declare a ban on exports, likely for a short duration, as the government has done in the past. Another move could be to increase the duty on railway transport for any product headed to a bonded warehouse. And a third option is to impose a duty on exported product, again for a limited time.

Sources said stepping up the production rate, which is currently reported at about 65 percent of rated value, would be difficult. The government is still diverting electricity away from industrial facilities in favor of residential use.

Clarification: The recent Taiwan Fertilizer urea tender for 6,000 mt cited in the issue dated Sept. 3, p. 4, was for prilled urea.

Middle East:

Arab Gulf urea producers remain tight with their product, letting just enough out to cover contracts and other long-term arrangements. Sources said nothing will be offered on the spot market until India calls its tender.

The lack of any spot deals keeps the public price in the $480s/mt FOB. However, sources reported that most of the discussions for product once the Indian tender is called seem to be in the low-$440s/mt FOB. This price would match with the pricing ideas discussed out of China, leaving traders to think this is where the Indian tender may settle.

The paper market for the Arab Gulf is reported at $475/mt FOB for September and $482/mt FOB for October.

Egyptian producers continue to secure higher prices. By the end of the week, deals for granular urea were secured that nailed down $450/mt FOB for late September shipments and $475/mt FOB for late October shipments.

Reportedly, Kima has set aside 50,000 mt to be sold to Ethiopia under the EABC. The netback for this tonnage was pegged at $440-$450/mt FOB. The deal came through just as Abu Qir closed its Sept. 2 tender for 35,000 mt of granular urea at $462/mt FOB for late September/early October shipment.

Throughout the week, sales by Helwan and Alexfert moved the price to $470/mt FOB in a series of smaller-lot October deals. By the end of the week, Helwan reported one last sale at $475/mt FOB for 10,000 mt of granular to be shipped in October. The sale reportedly leaves Helwan with only 10,000 mt left for sale next month.

Prills for October shipment by Abu Qir were reported at $440/mt FOB.

Egyptian producers now claim they are sold out of granular and prilled urea for September and, like Helwan, claim to have limited tonnage available for October.

The paper market for Egyptian urea exports is put at $472/mt FOB for September and $487/mt FOB for October.

A deal out of Algeria at $470/mt FOB for an October shipment added further confirmation to the Indian business. AOA is now reportedly asking $480/mt FOB.

Black Sea:

Estimates of a sale to Incofe showed a netback to the Black Sea of $405-$415/mt FOB for 10,000-13,000 mt. Sources said that price level sounds about right, despite the lack of any other business in the area.

Supplies out of the Black Sea are limited. Sources said the higher gas prices in Ukraine will most likely remove that country from the supplier side of the market.

Indonesia:

Producers are reportedly ready to call an auction to move out October material. However, they are said to be waiting for the Indian tender so they can get a better feel for where the market is headed.

In the meantime, sources said producers are ready to sell but are in no great rush, and are still processing many of the sales secured last month for September shipments. Plus, said one trader, there is plenty of storage space to hold tons if a deal to export cannot be negotiated in a timely manner.

Brazil:

Urea prices in Paranagua tightened to $460-$480/mt CFR. The increase came as Brazilian buyers try to calculate the impact of Hurricane Ida on New Orleans and what will happen when India finally calls its tender.

The rising prices in North Africa are also getting the attention of traders, with Egyptian and Algerian producers turning out product at ever-higher prices. Brazil imported 573,000 mt from Algeria so far this year, and another 69,000 mt from Egypt. Better prices elsewhere, along with some production issues in Algeria, led Brazil to reduce its take from that country by 31 percent compared with the same period last year.

Rondonopolis also saw a tightening of its price range to $605-$628/mt FOB ex-warehouse.The barter rate for 1 mt of urea is now placed at 80 bags of corn in Sorriso.

Supplies of urea inland are becoming problematic. Sources said a politically motivated strike by truckers has halted all shipments of material. This move comes on the heels of a growing problem finding trucks to move the fertilizer from the ports to the inland distribution centers.

Urea imports for January-August 2021 were up 21.7 percent, according to Trade Data Monitor, to 4.7 million mt from 3.8 million mt during the same period in 2020.

The main suppliers so far this year were Qatar at 1.15 million mt, Russia at 995,000 mt, Oman at 819,000 mt, and Algeria at 573,000 mt. According to trade figures, Brazil did not import any Omani material in 2020. The tonnage is most likely from OMIFCO, once that producer was able to sell its product on the global market via traders.

August 2021 urea imports were marginally down, at 551,000 mt from 565,000 mt in August 2020. Algeria, Russia, and Nigeria were the main suppliers in August.

UAN

Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, UAN, Western Cornbelt

U.S. Gulf:

The last done NOLA price ideas for UAN-32 barges were at the $325/st ($10.16/unit) FOB mark, up from the previous $315-$325/st ($9.84-$10.16/unit) FOB.

U.S. Imports:

Imports of UAN were up 4.5 percent in July, to 215,043 st from the prior-year 205,794 st.Trinidad and Tobago led the market with 97,696 st, followed by Russia at 81,543 st and Canada at 28,933 st.

U.S. Exports:

UAN exports totaled 81,821 st for July, down 2.7 percent from 84,091 st in July 2020.

Eastern Cornbelt:

The UAN-32 market was quoted at $355-$375/st ($11.09-$11.72/unit) FOB for very limited offers in the Eastern Cornbelt, with the low reported for the last business at Cincinnati and the high reflecting new offers for prompt shipment on a spot basis.

“There is really no market since Hurricane Ida hit as most producers are afraid to quote until we quantify how long plants are impacted,” said one industry contact.

Western Cornbelt:

Prompt UAN-32 pricing, where available, was reported in the $375-$395/st ($11.72-$12.34/unit) FOB range in the Western Cornbelt, up significantly from last report, with the same levels reported in the Kansas market.

Northern Plains:

UAN-32 pricing was quoted at $370/st ($11.56/unit) FOB Winona, Minn., for the last offers, with UAN-28 reported at the $345/st ($12.32/unit) FOB and $355/st ($12.68/unit) DEL levels on a spot basis in North Dakota.

Great Lakes:

The last UAN quotes were reported in the $340-$350/st ($12.14-$12.50/unit) FOB range for UAN-28 in Michigan and $376/st ($11.75/unit) FOB for UAN-32 in Wisconsin, but new offers were hard to come by in early September.

Northeast:

The UAN-32 market in the Northeast was quoted at $355-$360/st ($11.09-$11.25/unit) FOB Baltimore, Md., for the last offers, up another $10-$15/st from last report and $30-$35/st higher than mid-summer pricing levels, although some suppliers had reportedly pulled offers in the wake of the Gulf Coast production outages caused by Hurricane Ida.

UAN-32 pricing out of terminals in upstate New York was pegged at the $416/st ($13.00/unit) FOB level, up $16/st from last report.

Ammonium Nitrate

Ammonium Nitrate, Market Watch, U.S. Exports, U.S. Imports, Western Cornbelt

U.S. Imports:

July ammonium nitrate imports were up 197.7 percent, to 34,177 st from the year-ago 11,481 st.

U.S. Exports:

Ammonium nitrate exports were down 30.4 percent in July, to 38,570 st from 55,377 st in July 2020.

Western Cornbelt:

LSB Industries Inc. reported on Sept. 8 that it completed its fall fill program for fourth-quarter ammonium nitrate with the available product fully allocated. Dealer reference pricing under the program was $390/st FOB Lamar, Mo., and $400/st FOB St. Joseph, Mo.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf:

The last done NOLA ammonium sulfate barges were put in the $330-$340/st FOB range.

U.S. Imports:

July ammonium sulfate imports were up 59.5 percent, to 42,131 st from 26,422 st in the prior year. Shipments loading from Canada totaled 27,417 st, while Spain contributed 14,330 st to the month’s import slate. Belgium’s 148 st represented July’s third largest total.

U.S. Exports:

Ammonium sulfate exports in July were up 19.2 percent, to 54,916 st from the prior-year 46,088 st.

Eastern Cornbelt:

The ammonium sulfate market firmed to $355-$375/st FOB in the Eastern Cornbelt, up $5/st from last report.

Western Cornbelt:

The ammonium sulfate market remained at $350-$370/st FOB in the Western Cornbelt, with the low reported at St. Louis, Mo.

Northern Plains:

Granular ammonium sulfate was quoted at a solid $370/st FOB St. Paul, Minn., and $385/st FOB Sioux City, Iowa, with delivered offers ranging in the $385-$395/st range in the Northern Plains, up $25/st from last report.

Great Lakes:

Ammonium sulfate pricing in the Great Lakes region had reportedly strengthened to $370-$390/st FOB, up $20/st from mid-summer levels.

Northeast:

Granular ammonium sulfate remained at $315/st FOB Hopewell, Va., and $350/st FOB East Liverpool, Ohio, with delivered tons pegged in the $350-$370/st range in the Northeast.

China:

The price for caprolactam grade amsul remains steady at $200-$205/mt FOB. A deal this week of 6,000 mt to a Philippine buyer at $240/mt CFR confirmed the pricing level.

Sources said supply and demand are running about parallel. Shutdowns in Southeast Asia related to COVID-19 are impacting demand at the same time that similar shutdowns in China limit supply.

Brazil:

Sources said the holiday break led to a quiet market. The only quotes reported were for standard amsul at $270/mt CFR. No deals were reported for granular amsul, leaving the price at $320-$345/mt CFR.

Ammonium sulfate imports for January-August 2021 were up 44 percent, according to Trade Data Monitor, to 2.2 million mt from 1.53 million mt during the same period in 2020. China supplied more than half of the imports so far this year at 1.75 million mt, followed by Belgium at 213,000 mt.

August imports were up 91 percent, to 298,000 mt from 156,000 mt in August 2020. China supplied 262,000 mt in August, followed by the U.S. at 15,000 mt.

DAP/MAP

Brazil, Central Florida, China, DAP/MAP, Eastern Cornbelt, Great Lakes, India, Market Watch, Northeast, Northern Plains, Saudi Arabia, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

Central Florida:

With no new price postings released for the week, the Central Florida DAP truck market remained at the last-reported $620/st FOB. MAP postings were also unchanged from their prior $655/st FOB level. North Florida MAP trucks were noted at $655/st FOB, also steady from the prior report.

U.S. Gulf:

Rising prices were reported in the NOLA barge phosphate market, reflecting a growing awareness of the market’s evolving supply expectations for September and October.

With Mosaic’s Uncle Sam and Faustina plants damaged for an estimated 8-9 weeks by Hurricane Ida, sources described tightening availability for DAP and MAP. Combined output from the two facilities, along with a production hiccup at the company’s plant in New Wales, Fla., was expected to fall by roughly 300,000 mt from historical third-quarter levels.

The effect was an immediate jump in DAP barge pricing, with trading quoted at a $640/st FOB low for the period, up $25/st from the week-ago $615/st FOB bottom. Players noted prices firming to a $652/st FOB on Sept. 9, up from the previous week’s high of $625/st FOB.

MAP was also higher. Sources called MAP bids up to $685/st FOB, lifting from the prior week’s $668/st FOB ceiling, while players pointed to a Sept. 3 trade at $670/mt FOB as setting the trading week’s floor.

DAP barges were quoted in the $640-$652/st FOB range for the period, up from $615-$625/st FOB at last report. MAP pricing was noted in the $670-$685/st FOB range, up from $660-$668/st FOB last week.

U.S. Imports:

July DAP imports were up 594.4 percent, to 191,402 st from the prior year’s 27,564 st. Saudi Arabia topped the DAP import slate for July at 60,625 st, followed by Australia at 49,280, Turkey at 49,038 st, and Russia at 24,997 st.

July MAP/Other imports totaled 144,223 st, up 294.7 percent from the year-ago 36,543 st. Loadings from Tunisia totaled 80,999 st in July, followed by Russia at 24,725 st, Jordan at 19,842 st, and Saudi Arabia at 11,743 st.

U.S. Exports:

DAP exports were off 58.2 percent in July, to 37,385 st from 89,530 st in July 2020. July exports of MAP/Other phosphates softened 1.7 percent, to 234,666 st from the year-ago 238,675 st.

With primary Gulf phosphate production facilities projected to remain at reduced capacity for September and October, no new export trades or offers were reported for the week. Last-done continued to be heard at $660/mt FOB for DAP and $685/mt FOB for MAP.

Eastern Cornbelt:

Phosphate prices were firming in the Eastern Cornbelt as the week progressed. The Cincinnati market was quoted at $655-$670/st FOB for DAP at midweek, up from a recent low of $645-$650/st FOB, while MAP reportedly jumped to $700-$720/st FOB, up from $680-$695/st FOB.

By Sept. 7, however, some sources were claiming an additional $10/st increase at some locations, pushing the upper end of the regional market to $680/st FOB for DAP and $730/st FOB for MAP.

Western Cornbelt:

DAP pricing was up $20-$30/st, to $665-$685/st FOB in the Western Cornbelt, with the MAP market pegged at $705-$725/st FOB. The lower end of both ranges was reported in St. Louis at midweek.

Northern Plains:

Phosphate prices were up considerably in the Northern Plains, fueled by supply uncertainties in the wake of Ida. Sources pegged the DAP market at $670-$685/st FOB St. Paul, up $25-$30/st from the prior week, with MAP quoted at $715-$735/st FOB St. Paul and $755/st DEL in the North Dakota market.

Great Lakes:

MAP prices had reportedly firmed to $715-$735/st FOB terminals in the Great Lakes region, up $20/st from last report, with reports of few tons being offered in the wake of Ida. The DAP market was pegged at $675-$690/st FOB, depending on location and availability.

Northeast:

The phosphate market FOB East Liverpool had reportedly firmed to $690/st for DAP and $735/st for MAP, up $25-$30/st from late August levels. The last MAP offers out of Fairless Hills were pegged at the $715/st FOB level.

Saudi Arabia:

The Saudi Arabian phosphate market was heard firming $5/mt, to the $625-$645/mt FOB range.

China:

Threats of government interference with exports continue to make DAP offshore sales problematic, but deals are being discussed.

Sources said a producer sold 20,000 mt to an Indian buyer in the low-$650s/mt CFR. The netback would be $610-$620/mt FOB. Some traders said that deal was a bit old, however, and has been overtaken by later sales that moved the price back closer to $630/mt FOB.

India:

Reports of a recent DAP deal in the $560s/mt FOB appear to be based on old data. Confirmed sales this week from OCP to Indian buyers were in the mid-$660s/mt CFR.

Additional earlier purchases in the upper-$650s/mt CFR indicated that Indian buyers appear willing to buy DAP to satisfy the growing demand for tons from inland distributors. Sources said the purchases also show how desperate Indian farmers are for DAP, because the government has yet to lift the maximum retail price of $570/mt.

Brazil:

The price for MAP shifted downward to $690-$720/mt CFR, despite reports that sources are finding it difficult to secure the tons they want. Reportedly, some of the vessels waiting at anchorage have the MAP that buyers desire.

Once the product gets to the ports, however, sources said there will be difficulties getting the product to the local distributors and blenders. The ongoing shortage of trucks to move the product inland got worse this week when some truckers called a strike.

Supplies at Rondonopolis remain an issue, with sources reporting that the price has tightened to $832-$850/mt FOB ex-warehouse.The barter rate for 1 mt of MAP at Sorriso is pegged at 42 bags of soy or 100 bags of corn.

Imports of MAP for January-August totaled 3 million mt, compared with 2.9 million mt during the same period last year, according to Trade Data Monitor. The main suppliers were Morocco at 1.2 million mt and Russia at 1 million mt. Both countries showed an increase in sales compared to the first eight months of 2020.

August MAP imports were reported at 541,000 mt, against August 2020 imports of 362,000 mt. The top two suppliers in August were Morocco at 304,000 mt and Russia at 102,000 mt.

TSP

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

U.S. Gulf:

Last-done on the NOLA TSP barge market was reported holding at the prior $555-$565/st FOB level. New offers have moved up in conjunction with the broader NOLA barge markets, however, with sources predicting the next round of business likely firming into the $580s/st FOB.

Western Cornbelt:

The TSP market had reportedly firmed to a solid $595/st FOB in the Western Cornbelt, with higher numbers expected in the near-term.