All posts by mickeybarb@charter.net

DAP/MAP

Brazil, California, Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Pacific N.W., Pakistan, Saudi Arabia, Southeast, U.S. Exports, U.S. Gulf, Western Canada, Western Cornbelt

Central Florida:

Local news outlets reported an August phosphoric acid tank failure at Mosaic’s New Wales, Fla., phosphate production facility. Most of the tank’s 1,700-gallon contents were captured by a secondary holding tank.

A third-quarter production shortfall estimated at 300,000 mt – primarily the result of damage sustained to the company’s Faustina and Uncle Sam facilities during Hurricane Ida – was believed to include expected losses resulting from the New Wales incident.

With no new price points reported for the week, the Central Florida DAP truck market continued to be called $620/st FOB, unchanged from the prior report. MAP trucks remained at $655/st FOB. Truck-loaded MAP loading from North Florida reportedly moved up $15/st, to $655/st FOB, portending possible increases at Central Florida in the next round of business.

U.S. Gulf:

Hurricane Ida’s Aug. 29 landfall at Louisiana effectively cast a shroud of uncertainty over the NOLA phosphate market, sources indicated.

The Category 4 storm’s sustained 150 mph winds damaged Mosaic’s Faustina and Uncle Sam phosphate production facilities, and shut down marine logistics operations in much of the U.S. Gulf and lower Mississippi River.

Players noted most sellers quickly pulling offers from the table in order to reassess market conditions going into the busy fall planting season. A small number of DAP trades were heard concluding prior to the hurricane’s landfall up to a reported $620/st FOB, while post-Ida offers and trades were heard firming to $625/st FOB by Sept. 2.

MAP prices were also seen moving up, with sources calling late-week values up to $668/st FOB, higher than the prior week’s $660/st FOB top end

Hurricane damage at Faustina and Uncle Sam is estimated to require 8-9 weeks of repairs. Mosaic’s third-quarter phosphate production levels are expected to be reduced by 300,000 mt compared to historical norms. Output will improve into the fourth quarter, the company said, but could remain below typical levels.

Considering both the timing of the lost production and ongoing tight supply in the market, players agreed that NOLA phosphates were likely to see firming values headed into fall.

The barge DAP market was noted climbing to $615-$625/st FOB for the week, sources said, rising from $600-$610/st FOB in the prior report. MAP prices firmed to $660-$668/st FOB, up from the week-ago $650-$660/st FOB.

U.S. Exports:

No new movement was reported on the U.S. Gulf phosphate export markets. Last-done spot transactions continued to be reported at $660/mt FOB for DAP and $685/mt FOB for MAP.

Eastern Cornbelt:

The DAP market was quoted at $645-$655/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati in early September. Offers at East Dubuque were confirmed at the $650/st FOB level for August-September tons

MAP prices edged higher during the week, with reports of new prompt MAP offers firming to $705/st FOB at some river terminals in Illinois, up from a high of $695/st FOB the week before. The Cincinnati MAP market was reported at $680-$695/st FOB at midweek.

Western Cornbelt:

DAP pricing was up $5-$10/st, to $645-$655/st FOB in the Western Cornbelt, with the lower end of the range confirmed at St. Louis. MAP was pegged in a broad range at $680-$705/st FOB in early September, with the low reported at St. Louis and the high at Camanche and reflecting a $10/st increase from last report.

Southeast:

Posted prices at Aurora, N.C., firmed $15/st during the week, to $655/st FOB for MAP and $665/st FOB for DAP. The company said no DAP was available in early September, however.

California:

MAP pricing in California moved up $15/st in September, firming from $750/st to $765/st rail-DEL and FOB French Camp, Helm, Richvale, Dixon, and El Centro.

Pacific Northwest:

MAP prices strengthened $15/st in the Pacific Northwest on Sept. 1, with new offers reported at $750-$752/st FOB, $755/st DEL in Washington, Oregon, and Nevada, and $745/st DEL in Idaho, Utah, and Montana.

Western Canada:

MAP prices in early September remained at C$1,005-$1,020/mt FOB and C$1,010-$1,030/mt DEL in Western Canada, depending on location. Some suppliers had reportedly pulled pricing offers as the week progressed, however, with expectations of new offers emerging at the $1,030/mt DEL level or higher.

Saudi Arabia:

Recent pricing on phosphate vessels loading from Saudi Arabia was heard in the $620-$640/mt FOB range, increasing from the prior week’s $620-$635/mt FOB.

India:

Reports of a Ma’aden DAP sale to India at $653/mt CFR were dismissed as an old price that was leaked to prop up the market. Sources said a more current set of deals were two cargoes sold by OCP to India at $564/mt CFR.

International traders said the OCP rate is more in line with what India can afford, even though it is pushing against the maximum retail price allowed for DAP in the country.

Sources said inland supplies of DAP are lower than they should be at this time. Reportedly farmer are getting frustrated at the low DAP reserves and have begun to issue orders for urea and NPKs, pushing up demand for those products.

RCF will close a tender on Sept. 7 for 100,000 mt of DAP in 50 kg bags to be delivered to Kakinada. The order is to be broken into two lots of 50,000 mt each. The first lot must ship by Oct. 15, and the second by Nov. 15.

Another tender, also by RCF, calls for two lots of 20,000 mt each of phosphate rock, DAP, or MAP. The tender closes on Sept. 3. The first lot must ship by the end of October and the second by the end of November.

China:

Reports of a DAP sale by two Chinese producers to Pakistan has moved the netback price into the $630s/mt FOB. Sources put the new range at $630-$635/mt FOB. The deals in Pakistan were reported at $683/mt CFR.The increase in price puts Chinese DAP further out of reach of Indian buyers.

Pakistan:

Reportedly two cargoes from China were sold at $683/mt CFR. The deals moved up the Chinese netback marginally.

Brazil:

The MAP market is reported at $70-$725/mt CFR at Paranagua. Buyers claim they are having difficulty finding the product they need. Some of the portside shortage will be covered as soon as vessels are allowed to dock. Source reported some delays getting to the pier of more than a month.

Inland buyers are also nervous about getting material because of the continued shortage of trucks to move the product from the port cities to the regional distribution centers and blending facilities.

Rondonopolis is reported at $831-$870/mt FOB ex-warehouse, showing some stability in pricing.The barter rate at Sorriso is now pegged at 42 bags of soy for 1 mt MAP.

Phosphoric Acid

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

Eastern Cornbelt:

Phos acid prices firmed $0.20/unit on Sept. 1, moving to $13.35/unit rail-DEL in Illinois, Wisconsin, and Minnesota, and $13.50/unit rail-DEL in Ohio and the Dakotas.

Western Cornbelt:

A $0.20/unit phos acid increase took effect on Sept. 1, with prices strengthening to $13.25/unit rail-DEL in Nebraska, Missouri, Iowa, Colorado, Kansas, and New Mexico, and $13.35/unit rail-DEL in Texas and Louisiana.

California:

The phos acid market remained at $13.75/unit rail-DEL in California for September shipment, unchanged from August, with MGA referenced at the $13.95/unit level FOB Lathrop and El Centro.

Pacific Northwest:

The phos acid market remained at $13.25/unit FOB Pocatello, Idaho, and $13.75/unit rail-DEL in the Pacific Northwest for September tons, unchanged from August.

India:

Phosphoric acid contracts at India for material loading from both Morocco and North America were valued at $1,160/mt P2O5 CFR for the current quarter, an increase of $162/mt from $998/mt P2O5 CFR in the previous quarter.

Ammonium Polyphosphate

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

Eastern Cornbelt:

The 10-34-0 market was steady at $580-$600/st FOB in the Eastern Cornbelt for the last offers, with the low reported at Cincinnati.

Western Cornbelt:

The 10-34-0 market remained at $575-$595/st FOB in the Western Cornbelt in early September.

California:

The10-34-0 market was quoted at $603-$608/st FOB in California, with the 11-37-0 market unchanged at $672-$677/st FOB for September tons.

Pacific Northwest:

The 10-34-0 market was steady at $605-$610/st FOB in the Pacific Northwest, with the posted price FOB Hedges, Wash., remaining at the $609/st level. Delivered 10-34-0 was pegged at the $635/st level in Idaho and Utah. 11-37-0 was reported at $659/st FOB Hedges.

Western Canada:

10-34-0 pricing was up dramatically, with sources quoting new offers at C$990-$1,020/mt DEL in Western Canada, up from some C$835-$830/mt DEL business that was concluded in August.

Muriate of Potash

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

U.S. Gulf:

NOLA potash barge trades were quoted in the $575-$600/st FOB range, up from $550-$580/st FOB. Some players saw the new business as simply speculation that the market will continue to go higher, and feared that upriver buyers will not bite at higher prices.

Eastern Cornbelt:

Potash prices remained in the $600-$610/st FOB range for prompt tons in the Eastern Cornbelt, with the low reported in Illinois and the high out of spot Ohio River warehouses. The low remained at the $570/st FOB level for 4Q offers from Nutrien, although the company confirmed in late August that it is fully allocated through November.

Western Cornbelt:

Sources continued to quote the potash market in a broad range at $570-$600/st FOB in the Western Cornbelt, depending on location, supplier, and time of shipment, with the upper end confirmed at Camanche for August-September tons. The St. Louis market remained at $585-$595/st FOB range for prompt tons in early September, with pricing at St. Paul, Minn., confirmed at the $590-$600/st FOB level.

California:

Potash pricing in California remained at a firm $695-$705/st FOB for Q4 shipment, with the low for 60 percent and the high for 62 percent MOP.

Pacific Northwest:

The potash market remained at a firm $642-$652/st FOB warehouses in Washington, Oregon, and northern Idaho for Q4 shipment, with the low for 60 percent and the high for 62 percent MOP. The last posted prices from Intrepid FOB Moab and Wendover, Utah, included $620/st for 60 percent white granular and $615/st for 60 percent white standard.

Western Canada:

The potash market in Western Canada remained at a firm C$755-$765/mt FOB Saskatchewan mines for Q4 truck tons.

India:

RCF closed a tender on Aug. 27 for the supply of 105,000 mt of white/pink standard potash for delivery to Hay Bunder in three lots of 35,000 mt, with the first shipment to arrive on or before Oct. 15, the second on or before Nov. 15, and the third lot by Dec. 21.

Indonesia:

Sources reported that PT Pupuk Indonesia is set to award up to 250,000 mt of standard potash to various international suppliers, including Belarus Potash Co. and Uralkali, at around $550/mt CFR under a recent tender. This price could not be confirmed with either buyer or awardees by press time, however.

Deliveries are to take place from September 2021 through March 2022.

Thailand:

January-July MOP imports were up 45 percent, according to Trade Data Monitor, to 496,000 mt from 412,000 mt during the same period in 2020. Canada supplied 210,000 mt this year, followed by Belarus at 191,000 mt and Israel at 62,000 mt.

July 2021 imports were reported at 82,000 mt, down from the 86,000 mt imported in July 2020. Belarus supplied 36,000 mt, followed by Israel at 21,000 mt and Canada at 16,000 mt.

Brazil:

The price for MOP moved up at Paranagua to $700-$750/mt CFR. Sources said demand remains strong, not only from buyers at the ports but also from inland customers. The backlog of ships with MOP in their holds waiting to dock, plus reports of truck shortages to move the product inland, is keeping upward pressure on pricing.

The Rondonopolis MOP price moved up to $810-$920/mt FOB ex-warehouse. The steady rise in prices has some buyers concerned. Sources reported some are considering going to the national government to limit how far and how fast prices can rise.

The barter rate for 1 mt of MOP at Sorriso is now pegged at 42 bags of soy or 100 bags of corn.

Sulfur

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

Tampa:

Dillon Transport (Burr Ridge, Ill.), a primary carrier of both dry and liquid sulfur from terminals located at the Port of Tampa to inland locations, permanently shut down as of midnight on Aug. 31, FreightWaves reported.

Sources believed the shutdown was unexpected, and that a replacement carrier had not yet been named on Sept. 2. Dillon maintained nine terminals in the U.S., including locations in Tampa and Mulberry, Fla.

The third-quarter price of molten sulfur delivered to Tampa was contracted at $195/lt CFR, a $3/lt increase from $192/lt CFR in the prior period.

Refinery utilization slipped lower for the week ending Aug. 27, the U.S. Energy Information Administration (EIA) reported, to 91.3 percent from the week-ago 92.4 percent. The rate tracked above both the year-ago 76.7 percent and the 91.1 percent five-year average, however.

Daily crude inputs softened to an average 15.938 million barrels/d, a 134,000 barrel/d decline from the previous week’s 16.072 million barrels/d rate.

U.S. Gulf:

Hurricane Ida resulted in extensive energy industry shutdowns throughout the region. Up to 95 percent of Gulf oil production was reportedly taken offline ahead of the storm’s arrival, while Genscape noted preemptive operational shutdowns at numerous Louisiana refineries starting on Aug. 28, including Shell’s Norco facility; the Valero plants at St. Charles and Meraux; the Placid Port Allen facility; Phillips 66’s Alliance refinery; the PBF Energy facility at Chalmette; and Marathon’s 578,000 barrel/d Garyville plant.

The PBF facility at Chalmette was reported successfully restarting a 99,000 barrel/d crude distillation unit (CDU) ahead of Ida’s arrival on Aug. 26.

ExxonMobil’s partial shutdown of the 520,000 barrel/d Baton Rouge site on Aug. 28 included powering down the facility’s 120,000 barrel/d Pipestill 9 and 97,000 barrel/d Pipestill 7 crude sections, as well as one of two 116,000 barrel/d fluidic catalytic cracking units (FCCs). Ida’s arrival forced the plant to completely shut down on Aug. 29-30, Genscape noted.

Approximately 75 percent of Louisiana’s 2.95 million barrel/d refining capacity was impacted by the storm, Platts reported. Most of the impact was concentrated toward the eastern and central parts of the state, with reduced effects noted from the Lake Charles and Port Arthur, Texas, areas.

Following the storm, Platts reported minor damage at Marathon’s Garyville plant, while a Reuters report described building damage at Shell’s Norco facility. The Phillips Alliance plant, located near Belle Chasse, was partially flooded following a levee break, NOLA.com reported.

Widespread power outages were considered the primary hurdles to a timely return to production, with a number of refineries projected to require weeks before restarts can be attempted. More than 1 million Louisiana and Mississippi households were without power on Aug. 31, according to Reuters.

With both refinery production and NOLA-area phosphate production offline for the week, Ida was noted minimally impacting the domestic sulfur market, at least through the short-term. “No real change on the sulfur market since Ida,” one source said. “It is kind of a wash on supply and consumption in the area.”

No new sulfur business was reported out the U.S. Gulf for the week. Last-done continued to be heard in the $173-$181/mt FOB range, steady from the prior report.

Brazil:

Last-done Brazil imports remained in the $210-$216/mt CFR range. Third-quarter contracts were noted at $221-$223/mt CFR, increasing from $213-$214mt CFR in the prior quarter.

Vancouver:

Recent firming in the China import sulfur market was seen trickling down to Vancouver, with reports indicating concluded pricing at $180-$190/mt FOB for tons loading in September. The market was previously reported at $173-$176/mt FOB.

Alberta:

Alberta netbacks firmed to $68-$120/mt FOB based on firming values out of Vancouver, up from $68-$106/mt FOB at last report.

West Coast:

West Coast price ideas were heard lifting to $180-$190/mt FOB from $173-$176/mt FOB in the prior report. Molten sulfur contracts were reported at $150-$155/lt FOB for loading in the third quarter, an increase from $140-$155/lt in the prior period.

China:

Last-done at China continued to be heard in the $230-$233/mt CFR range, with new offers reported in the $240s/mt CFR.

ADNOC:

Abu Dhabi National Oil Co. prill offers were last noted at $175/mt FOB Ruwais.

Qatar:

Muntajat solid sulfur offers for September loading were heard climbing to $178/mt FOB Ras Laffan, up $14/mt from $164/mt FOB in August.

Sulfuric Acid

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

U.S. Gulf:

Price ideas on Gulf spot vessel imports continued at $220-$225/mt CFR for the week, steady from the prior report.

Gulf Coast:

Gulf Coast domestic contracts were heard at $120-$150/st DEL for the third quarter. Deals covering the 2021 calendar year continued in the $85-$110/st DEL range.

Midwest:

Midwest contracts were noted even with the Gulf Coast at $120-$150/st DEL for Q3 and $85-$110/st DEL for annual agreements.

West Coast:

West Coast contracts were valued at $100-$130/st DEL for 2021. Third-quarter contracts were reported in the $140-$170/st DEL range, sources said.

Brazil:

Players continued to call the recent Brazil market in the $245-$250/mt CFR range.

Ammonium Thiosulfate

Amthio, California, Eastern Cornbelt, Market Watch, Pacific N.W., Specialty, Western Canada, Western Cornbelt

Eastern Cornbelt:

The ammonium thiosulfate market remained in a broad range $375-$455/st FOB in the Eastern Cornbelt, with the low confirmed for the latest prompt/fill pricing at Terre Haute, Ind., and the high out of inland tanks in Ohio.

Western Cornbelt:

The ammonium thiosulfate market was steady at $375-$400/st FOB in early September, with the low reported for prompt/fill offers at Waterloo, Iowa.

California:

Sources continued to report limited ammonium thiosulfate offers at the $327/st FOB level in California in early September.

Pacific Northwest:

Ammonium thiosulfate pricing remained at $325-$335/st DEL in the Pacific Northwest.

Western Canada:

The latest offers for ammonium thiosulfate were quoted at the C$505/mt DEL level in Western Canada.

Calcium Ammonium Nitrate

Benelux, Calcium Ammonium Nitrate, California, CAN-17, Germany, Market Watch, Pacific N.W., Specialty

California:

The CAN-17 market was unchanged at $310-$320/st FOB Stockton.

Pacific Northwest:

CAN-17 pricing was quoted at $300/st FOB Kennewick, Wash., unchanged from last report

Germany/Benelux:

Yara on Sept. 3 posted a new list price for October deliveries of CAN-27 (YaraBelaNitromag) in Germany and Benelux, setting the new price at €313/mt bulk CIF for both destinations, effective immediately. The new price marks a €6/mt increase on Yara’s last posting for October deliveries, announced in mid-August (GM Aug. 20, p. 18).

Yara also announced new list prices for October deliveries of its YaraBelaSulfan product for Germany and Benelux. It set the new levels at €323.50/mt bulk CIF for Germany €325/mt bulk CIF for Benelux.