All posts by mickeybarb@charter.net

China NDRC Asks Fertilizer Companies to Avoid Hoarding, Exports

China, News, News Briefs, Phosphate, Urea

China’s National Development and Reform Commission (NDRC) has held discussions with chemical fertilizer makers and asked them not to excessively hoard fertilizer and drive up prices, according to Bloomberg, citing a statement on the commission’s website.

NDRC also said it would temporarily stop the arrangement of fertilizer exports to ensure domestic supply.

According to a Reuters report, citing NDRC, some of the country’s largest producers have agreed to a temporary export curb. China is a major urea and phosphate exporter.

Ammonia

Ammonia, Black Sea, Eastern Canada, Eastern Cornbelt, India, Market Watch, Middle East, North Africa, Northern Plains, Northwestern Europe, Tampa, Thailand, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa:

August Tampa ammonia prices shot up $40/mt, firming to $625/mt CFR from July’s $585/mt CFR. Prices had been under pressure to move up to follow other international trades in Southeast Asia and Europe in particular. Some market observers, however, questioned whether the move was really necessary, citing full production at NOLA.

Eastern Cornbelt:

Ammonia prompt and fall prepay prices were steady at $635-$650/st FOB in the Eastern Cornbelt, depending on location and supplier.

Western Cornbelt:

Ammonia pricing was unchanged at $635-$650/st FOB in the Western Cornbelt for prompt or fall prepay offers, with the low confirmed at Palmyra, Mo, and the high at Fort Dodge, Iowa. In the Southern Plains, prepay offers have reportedly edged up to $615-$635/st FOB in Oklahoma and Kansas.

Northern Plains:

Ammonia pricing in the Northern Plains remained at $570-$620/st FOB, with the low for the prompt/fill offers and the high for fall prepay. Delivered ammonia prepay was pegged at the $645/st level in North Dakota for the last offers.

Eastern Canada:

The last offers for anhydrous ammonia were quoted at C$770-$775/mt FOB Courtright, Ont.

Black Sea:

An ammonia deal was made into Turkey for 5,000 mt that showed a netback of $590/mt FOB. The jump in price came on the heels of traders speculating that the market had reached its peak at $560/mt FOB.

One trader said it was difficult getting to the $560/mt mark earlier in July, leading many to believe there was not much room for price increases out of Yuzhnyy. However, sources said everything needed to move the price up again just fell into place.

Sellers are now talking about $605/mt FOB, and few are willing to bet against them.

Middle East:

Supplies of ammonia from the Arab Gulf remain limited. Sources said the tightness in the market is now being demonstrated by an increase in talks among traders and producers involving swapping out orders to ensure contracted orders are fully covered.

The absence of any spot material in the area is not allowing for any changes in the public price of $620-$630/mt FOB.

India:

Sources said FACT still needs ammonia, even though it scrapped its tender last week. The problem facing the buyer is the limited tonnage available and the ever-rising prices. Another tender will be called soon, said one source.

Major contract buyers such as IFFCO and CIL are said to be shopping around for product from any source. The lack of ammonia in the Arab Gulf has led these buyers to send out inquiries around the world. As a result, they are facing ever-higher prices for fewer tons.

Northwest Europe:

Sources reported that Fertiglobe sold a cargo of 10,000 mt to CF in the U.K. that set the new Northwest Europe price at $678/mt C&F. The increase is no surprise, given the rise in prices at Yuzhnyy and Tampa, said one trader. Additional pressure is also coming from Baltic ports.

Sources said some deals for August have been concluded using Yuzhnyy prices as the basis for a Baltic price. Other buyers are ready to close out August price talks right at the end of the month. The tightness of the market has a lot of players holding their pricing levels close to their vests.

North Africa:

Sources said OCP/Morocco appears to still be taking as much ammonia as it can, but instead of using it to produce DAP, MAP, or NPKs, it is generating more phos acid for export.

Sources said talks for third-quarter prices of phos acid between Morocco and India are still ongoing. One trader said a final price will not likely be settled until the end of this quarter.

Producers in Libya, Egypt, and Algeria appear to be running at normal rates, with cargoes being snatched up as soon as they are available for export.

Thailand:

Imports of ammonia for the first half of the year are up 21 percent, to 210,000 mt from 173,000 mt during the same period last year, according to Trade Data Monitor.Malaysia supplied the bulk of the material this year at 135,000 mt.

June imports for 2021 totaled 32,000 mt, down slightly from 33,000 mt in June 2020. Second-quarter imports were up 43 percent, to 115,000 mt from 80,000 mt last year. Malaysia was the top supplier at 68,000 mt in the second quarter, followed by Australia at 39,000 mt.

Urea

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

U.S. Gulf:

The NOLA granular urea range was quoted at $420-$432/st FOB, down just a bit from the week-ago $422-$435/st FOB.

Eastern Cornbelt:

Urea pricing slipped to $465-$480/st FOB in the Eastern Cornbelt in late July, down $5/st from last report, with the low confirmed out of spot Illinois River locations. The Cincinnati, Ohio, market was pegged in the $475-$480/st FOB range for current offers, although sources reported little new interest to test the market.

Western Cornbelt:

The urea market was quoted at $465-$480/st FOB in the Western Cornbelt, depending on location, with the low reported at Camanche, Iowa. Pricing at both Port Neal, Iowa, and St. Louis, Mo., was pegged in the $470-$475/st FOB range in late July.

Northern Plains:

The urea market was quoted at $470-$475/st FOB St. Paul, Minn., down slightly from last report. Pricing in North Dakota was pegged at $490/st FOB, with delivered tons in the $490-$510/st range in late July.

Northeast:

The urea market remained at $485-$490/st FOB in the Northeast in late July, with the high at East Liverpool, Ohio, and the low reported at Fairless Hills, Pa., for July-August tons.

Eastern Canada:

The urea market jumped to C$670-$715/mt FOB for new offers in Eastern Canada, up C$75-$80/mt from the last prompt business in June.

India:

Awards in the July 22 RCF tender came in at 1.2 million mt. This marks the first time this year that awards have exceeded the 1 million mt mark. Sources said the large take will help ease the pressure to buy urea for this season, but still leaves the country short. Sources expect to see another tender called around Aug. 15.

The awards lean heavily to the West Coast at $516.95/mt CFR. The buyer issued awards for about 800,000 mt to be shipped to West Coast ports by the end of August.Traders were awarded 400,000 mt for delivery to East Coast ports at $509.50/mt CFR.

Awarded Company Delivery (mt) Source
East Coast West Coast Total
Amber 65,000 65,000 130,000 China
Ameropa 145,000 204,500 349,500 Oman-Black Sea – China
Dreymoor 52,000 50,000 102,000 FSU-China
Gavilon 95,000 47,150 142,150 Oman-China
Koch   46,000 46,000 China
Midgulf   60,000 60,000 China
Samsung 45,000 190,000 235,000 Arab Gulf – China – Indonesia
Swiss Singapore   135,000 135,000 FSU-China

As the week opened, sources estimated Chinese urea would account for 500,000 mt of the awarded tons. By the end of the week, however, that number rose to 700,000 mt.

Sources said the $17/mt difference between the East and West Coast delivery price meant that traders and producers could get a better netback by shipping Chinese product to the West Coast. Estimates are that the total 400,000 mt for the East Coast will be covered by Chinese product. The remaining 300,000 mt from China will loop around the country and fill in some of the West Coast demand.

The large presence of Chinese product lowered the expectation of supplies from the Arab Gulf. The subsequent displacement meant buyers in Australia and Brazil were looking at softer prices as vessels initially slated for India are shifted to other buyers. One trader noted sales to Australia, Brazil, and other locations might also be giving the sellers a better netback.

Additional tonnage from the FSU, Indonesia, and Egypt is expected to add to the deliveries into West Coast ports. About five cargoes from the Black Sea are expected to be shipped as part of the RCF awards. One cargo each from Indonesia and Egypt is also predicted.

Once this tender is fulfilled, India will have purchased 3.9 million mt of urea in tenders. At the same time last year, the country had booked only 2.8 million mt. In 2020, however, it was also receiving tonnage under a long-term contract with OMIFCO. That contract is now over. Sources noted India needed to make an additional 500,000 mt in the first semester of the year to make up for the loss of the OMIFCO tons.

The Indian buyer took advantage of the low prices offered by Gavilon and Amber. Going into the tender, many in the industry predicted prices in the $520s and $530s/mt CFR. In fact, the bulk of the offers was in those ranges. The average prices were $531/mt CFR for the East Coast and $533/mt CFR for the West Coast.

The fact that producers were willing to accept the lower prices indicated to industry watchers that there was a surplus of August tons that needed to be moved. The final prices showed netbacks that barely moved the price marker for the producers.

The caller of the next tender, if it comes in mid-August as expected, may not be as lucky, said sources. Shipment for the next tender will take place in September, when Chinese traders and producers will be under intense pressure to avoid exporting tons in order to ensure a plentiful supply for the Chinese market.

China:

The netback from the RCF/India tender kept prilled and granular urea prices at $470-$475/mt FOB. Producers had been hoping to move the price into the upper-$480s/mt FOB going into the tender. Predictions of an Indian East Coast price in the $520s/mt CFR would have at least moved the netback into the $480s/mt FOB.

The impact of the steady price was felt in some small sales in the Southeast Asian region. Sources said small lots of less than 10,000 mt were sold at $468/mt FOB, but these deals could not be confirmed. There was also a confirmed report of a sale to South Korea that showed a netback of $470/mt FOB.

Sources said the acceptance by producers of the Indian numbers, plus the reported smaller sales in the region, indicated they were anxious to sell. That selling interest, however, is not expected to carry over into late September, when tons for the next Indian tender will be shipped.

The National Development and Reform Commission of the central government issued a statement on July 30 that a number of urea producers will stop exporting material in order to ensure plentiful supplies of urea for the domestic season. The move came following talks between the commission and the producers.

Earlier this week, sources reported the government told state-run plants to stop offering tons directly to international traders for export. However, sources said some of these companies did sell product to Chinese traders, who then offered the tons for offshore sales.

Buying for the domestic season is expected to pick up in mid- to late-September. The central government has made it clear that producers are to first ensure a plentiful domestic supply before offering any tons for export.

The government has threatened to impose a duty to make exported urea too expensive for the global market. So far, it has held this threat back, but sources said it is still on the table as a real possibility in September and October.

Sources were unsure if the ban on exports is to take immediate effect. If it does, the decision would adversely affect awards to India. Traders reportedly received awards for about 700,000 mt from China to service the tender.

Middle East:

The netback to Arab Gulf producers from the RCF/India tender knocked a few bucks off the spot price for the region. Sources said the netback is now put at $480-$485/mt FOB, with some arguing it might even be in the upper-$470s/mt FOB.

The paper market backs pricing in the $480s/mt FOB for August, but September pricing is put at $475/mt FOB. Sources said if China limits the amount of urea available for the next Indian tender, that $475/mt FOB will have to be scrapped for a much higher price.

The sole producer offer in the RCF tender was from PIC at $498/mt FOB. Reportedly, RCF countered with $469.50/mt FOB, a bid that was rejected by the producer. Sources now report that at least one of the cargoes going to RCF via a trader will be backed by PIC. The estimated netback in the low-$480s/mt FOB is better than the RCF bid, but dramatically less than the initial offer.

The presence of at least 300,000 mt of Chinese urea into India’s West Coast, along with tons from the FSU, Indonesia, and Egypt, cut into the tons Arab Gulf producers could sell to India. The resulting displacement of tons away from India has shown up as buyers talk of lower prices in Brazil and Australia.

So far, non-Indian buyers are reportedly seeing some softer prices in discussions for August loadings. One international trader noted that depending on what the Chinese government does regarding September exports, the non-Indian buyers may end up seeing this dip in pricing vanish just as quickly as it came.

Reportedly, Iranian suppliers were trying to push their price up to $430/mt FOB, but were unable to break $415/mt FOB. Working against the producers are strong freight rates. Sources said one cargo that was being discussed for either Brazil or Thailand will most likely go to Thailand solely because the freight to Brazil could make the landed price too expensive for that market.

Sources said the one cargo from Egypt expected to be delivered under the RCF/India tender is most likely material purchased more than a month ago. To avoid losing money, the Egyptian product would have to be no more than $460/mt FOB. The current price out of Egypt is $465-$475/mt FOB, with producers arguing for $480/mt FOB.

Sources said producers remain hesitant to be too aggressive in offering tons for export. The government still has a decree in place that mandates producers first ensure a plentiful supply of urea for the domestic market. This decree stays in effect through August.

The paper market for Egyptian material is at $472.50/mt FOB for August and $465/mt FOB for September.

Black Sea:

Sources said about five urea cargoes are expected out of the Black Sea for the RCF/India tender. At least four cargoes are to come from Ukraine and one from Russia. The netback to Yuzhnyy is pegged at $450-$455/mt FOB.

A shipment to Brazil out of the region from Turkmenistan reportedly has a netback closer to $415/mt FOB. Sources said that price is most likely being quoted from the factory rather than the export port, however. Traders said while there is often a slight discount for Brazil from Turkmenistan, the gap between this price and the netbacks from the RCF tender indicates to some unequal comparisons.

AGT in Turkey closed a 6,000 mt urea tender on July 28. The small cargo is to be delivered by the end of August. As Green Markets went to press, no information on the tender was released.

Indonesia:

As soon as the letters of intent were sent out by RCF/India, closing off the tender process, Kaltim called a tender to sell 3,000-90,000 mt with a reserve price of $479/mt FOB to close July 30. The reserve price is the same level paid in early July after Kaltim scrapped a tender and went into private talks with the bidding traders.

The highest bid of about $455/mt FOB came from Ameropa and Samsung. Other bids from four other traders came in at $449-$451/mt FOB. Even the highest bids are below the reserve price. Sources said Kaltim will most likely scrap the tender and enter into private talks.

Sources provided conflicting information in the wake of the tender announcement. Some traders argued that the tender was called to empty out existing stockpiles as Kaltim shuts down parts of its operations for a routine maintenance turnaround. Others said Kaltim is putting off the turnaround to take advantage of the current market out of fears that lower prices are coming.

Sources said a cargo earlier purchased from Indonesia will be part of the RCF/India awards. Only Samsung has publicly identified offering Indonesian material.

Bangladesh:

BCIC bought 30,000 mt of granular urea from SABIC with a netback of $481/mt FOB to the Arab Gulf. The price fits in with the range set under the Indian tender.

Brazil:

As soon as the RCF/India tender closed, traders in Brazil began arguing for lower prices. In the end, they got their wish. The upper end of the price range in Paranagua dropped $20/mt, to tighten the range at $490-$500/mt CFR.

The large amount of Chinese urea going into India is expected to release more material from the Arab Gulf for other buyers, including Brazil. Sources said this respite from higher prices could end in September, however, if the Chinese government takes steps to restrict exports. If that happens, Brazilian buyers will once again find themselves competing with their Indian counterparts for tons in September and October.

There are reports of traders looking for vessels to ship material from the Black Sea to Brazil. One deal from Turkmenistan for August arrival is pegged at $481/mt CFR, which is significantly below the range traders were discussing this week.

There are also reports of a possible cargo being loaded out of Iran. Sources said the current Iranian price, coupled with higher freight rates, could make this deal difficult to pull off, however.

So far, reports of limited truck availability have not seemed to hurt supplies or prices in Rondonopolis. While the entire fertilizer industry is keeping a close eye on strike threats from independent truck drivers and on the dearth of available trucks to move product inland, some softening has occurred in prices.

Sources put the Rondonopolis market at $600-$658/mt FOB ex-warehouse, bringing the upper end of the price range down a few bucks. The barter rates for one mt of urea are now pegged at 41 bags of corn or 17 bags of soy.

Thailand:

Urea imports for the first half of the year were up about 4 percent, to 1.2 million mt from 1.15 million mt during the same period last year, according to Trade Data Monitor.

While Saudi Arabia was the main supplier at 310,000 mt, its exports to Thailand were down about 43 percent compared to the first semester of 2020. Filling in the gap was Oman, which sent 278,000 mt after sending nothing in 2020. Sources said the tonnage most likely came from the OMIFCO plant, which used to send product exclusively to India.

Rounding out the top three suppliers for the first half of the year was Malaysia at 263,000 mt, which is about the same amount it sent in the same period last year.

June 2021 imports were up 27 percent, to 302,000 mt from 238,000 mt in June 2020. Malaysia was the top supplier at 70,000 mt, followed by Qatar at 61,000 mt, Oman at 60,000 mt, and Saudi Arabia at 59,000 mt.

Second-quarter 2021 imports were up 13 percent, to 844,000 mt from 745,000 mt last year. Oman topped the list at 253,000 mt for the period. The tonnage sent by Oman almost completely matches the losses faced by Saudi Arabia and Qatar in their sales to Thailand from the 2020 second quarter.

Turkmenistan:

Turkmenhimiya’s Garabogaz urea plant in Turkmenistan’s Balkan province on the Caspian Sea has produced 481,600 mt of granular urea since the start of the year, according to Azerbaijan’s Trend News Agency, citing Turkmenistan’s official media.

The plant was commissioned in September 2018 and has a design production capacity of 1.155 million mt/y of urea and 660,000 mt of ammonia (GM Sept. 21, 2018).

UAN

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

U.S. Gulf:

Industry players put the NOLA UAN market in the $295-$310/st ($9.22-$9.69/unit) FOB range, up from the previous $285-$290/st ($8.91-$9.06 unit) FOB. Nutrien is posted at a firm $310/st for fourth-quarter product.

With the CF antidumping and CVD case advancing, it was increasingly difficult to find sources willing to talk about the East Coast vessel market, which was last reported at $305-$320/mt CFR.

Eastern Cornbelt:

Sources quoted the UAN-32 market at $325-$345/st ($10.16-$10.78/unit) FOB in the Eastern Cornbelt for limited post-fill pricing, although sources said there were few new offers circulating since the mid-July fill programs. There were also reports of some “point to point” rail-DEL offers in late July at levels slightly higher than the fill program tons, but actual prices were not confirmed.

Western Cornbelt:

Very few UAN offers were circulating in the Western Cornbelt since the mid-July fill offers were pulled, but sources reported a limited number of new offers in the $325-$345/st ($10.16-$10.78/unit) FOB range for prompt tons in late July.

Northern Plains:

UAN-32 pricing remained at $370/st ($11.56/unit) FOB Winona, Minn., with the UAN-28 market in North Dakota pegged at $320/st ($11.43/unit) FOB for recent spot business.

Northeast:

The UAN-32 market remained at $325/st ($10.16/unit) FOB Baltimore, Md., in late July, while offers remained on hold out of Fairless Hills. “The market is in flux,” said one regional contact, who noted uncertainties about replacement values amid the anti-dumping case pending against UAN imports from Russia and Trinidad.

UAN-32 pricing out of terminals in upstate New York had reportedly inched up to $400/st ($12.50/unit) FOB, up $10/st from last report.

Eastern Canada:

The UAN-28 market remained at C$390-$445/st (C$13.93-$15.89/unit) FOB in Eastern Canada, depending on location and supplier, with the UAN-32 market pegged at the C$445/mt (C$13.91/unit) FOB level on a spot basis.

Ammonium Sulfate

Ammonium Sulfate, Brazil, Eastern Canada, Israel, Thailand

U.S. Gulf:

Most sources put the NOLA ammonium sulfate barge market back at a firm $300/st FOB, up from $295-$300/st FOB, and were awaiting news if prices would move up in light of the recent NOLA posting of $340/st FOB.

Eastern Cornbelt:

Sources said the ammonium sulfate market in the Eastern Cornbelt was inching higher on the back of recent posting increases. While the low end of the range continued to be reported at $330-$340/st FOB river terminals on a spot basis, sources also confirmed a few new sales as high as $370/st FOB Illinois River terminals in the wake of IOC’s posted increase on July 22.

Western Cornbelt:

Ammonium sulfate prices were quoted at $325-$365/st FOB in the Western Cornbelt, with the low reported at St. Louis. IOC’s July 22 postings for granular ammonium sulfate included $365/st FOB St. Louis and $370/st FOB Upper Mississippi River terminals.

Northern Plains:

Granular ammonium sulfate was quoted at $325-$330/st FOB St. Paul, Minn., and moving up, while delivered offers ranged from $350-$390/st DEL in the region, up from earlier fill offers in the $315-$325/st DEL range. IOC’s new postings on July 22 included $370/st FOB Upper Mississippi River terminals, $390/st FOB Sioux City, Iowa, and $390/st rail-DEL in the Northern Plains.

Northeast:

Granular ammonium sulfate was unchanged at $300-$330/st FOB in the Northeast, with the low confirmed at Hopewell, Va., and the high at East Liverpool. Delivered pricing ranged from $345-$355/st in the Northeast.

Eastern Canada:

Granular ammonium sulfate pricing in Eastern Canada was quoted at C$485-$515/mt FOB in the region for limited supply, up C$26/mt at the low end of the range. Sources said they expect a fill program in early August.

China:

Prices remained stable for caprolactam-grade ammonium sulfate at just under $200/mt FOB, even as producers argue for $210/mt FOB.

A deal this week to Atlas in the Philippines showed a netback of $195/mt FOB. Other deals were discussed in the area, but none topped $198/mt FOB. There were rumors of deals hitting $200/mt FOB, but these could not be confirmed.

Brazil:

The price for granular ammonium sulfate at Paranagua has moved up to $325-$345/mt CFR. Sources said there is a growing tension as supply struggles to meet demand. Reportedly, every buyer can still find material, but it is now taking more work to find the tons. Sources said the issue with supply appears to be connected to COVID-related supply chain disruptions.

The Rondonopolis price is steady at $410-$454/mt FOB ex-warehouse. Sources said they expect to see more interest in the product at the end of August, when demand for more NPKs picks up. The barter rates for 1 mt of amsul are pegged at 26 bags of corn or 11 bags of soy.

Thailand:

Ammonium sulfate imports in Thailand for the first half of the year were up 97 percent, to 279,000 mt from 124,000 mt during the same period last year, according to Trade Data Monitor. China was the main supplier at 217,000 mt, followed by South Korea at 55,000 mt.

June imports also surged higher, to 88,000 mt from 29,000 mt in June 2020. Second-quarter imports more than doubled, to 220,000 mt from 108,000 mt last year. China supplied 162,000 mt of the second-quarter imports this year.

Investors Closely Eye New Peruvian President

News, News Briefs, Peru

Peru’s new President, Pedro Castillo, took office on Wednesday, July 28, calling for a new constitution, a crackdown on monopolies in financial services and utilities, and a dramatic increase in health and education spending.

He said Peru needs to recover sovereignty over its vast mineral wealth, but also pledged to respect the nation’s economic model and private property, adding that the economy needs order and responsibility to prosper, according to Bloomberg, which noted concern over how far to the left Castillo and his Marxist political party will take the nation.

Investors sent Peruvian bonds sliding in the aftermath of Castillo’s inaugural speech. Peru’s dollar bonds due in a century were the second-worst performers in the world on July 29, beating only serial-defaulter Belize, according to data compiled by Bloomberg.

The Mosaic Co., Tampa, which owns a majority stake in the Miski Mayo phosphate mine in Peru, had no comment on the new president on July 29.

DAP/MAP

Brazil, Central Florida, China, DAP/MAP, Eastern Canada, Eastern Cornbelt, India, Market Watch, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

Central Florida DAP trucks were posted at $620/st FOB, steady from the prior report. MAP trucks were quoted at $655/st FOB, also flat compared to one week earlier.

U.S. Gulf:

Sources described a slow week on the NOLA barge phosphate markets, noting mild softening in MAP values.

MAP pricing was noted as low as $645/st FOB for the period, slipping from the week-ago $648/st FOB floor, although most trading was reported around the $647/st FOB level. Pricing for domestic material was pegged even with the $650/st FOB prior-week high.

DAP barges were largely noted trading in a sideways direction for the period, with limited sales of domestically produced tons reported at the week’s $615/st FOB high. Most players indicated pricing at a $610/st FOB low, while import business rumored at $602-$605/st FOB went unconfirmed on July 29.

The NOLA DAP market was generally quoted in the $610-$615/st FOB range for the week, unmoved from the prior report. MAP values softened to $645-$650/st FOB from the week-ago $648-$650/st FOB.

U.S. Exports:

Sources reported a slow week for phosphate exports, noting a lack of new spot transactions. Recent DAP cargoes included a 10,000 mt load priced at $660/mt FOB, while the last reported MAP business included a 5,000 mt trade valued at $685/mt FOB. Both volumes were slated to load no later than early August, with final destinations reported as Latin America.

With no new business recorded, the Gulf DAP export market continued at $660/mt FOB, with spot MAP pricing remaining at $685/mt FOB.

Eastern Cornbelt:

DAP was quoted at $638-$655/st FOB in the Eastern Cornbelt, depending on location, with the low reported at LaSalle, Ill. MAP was pegged in the $672-$695/st FOB range in the region, with the low confirmed at East Dubuque, Ill. The Cincinnati market was quoted at $645-$650/st FOB for DAP and $685-$695/st FOB for MAP in late July.

Western Cornbelt:

DAP pricing was steady at $640-$650/st FOB in the Western Cornbelt in late July, with the lower end confirmed at St. Louis. MAP was quoted in the $672-$695/st FOB range in the region, with the low reported at Camanche. The Catoosa/Inola, Okla., market was reported at $640-$650/st FOB for DAP and $680-$700/st FOB for MAP.

Northern Plains:

DAP pricing FOB St. Paul was pegged in the $640-650/st FOB range in late July, with MAP reported at $680-$700/st FOB. Delivered green MAP was quoted solidly at the $725/st level in western North Dakota.

Northeast:

DAP prices strengthened to $660/st FOB East Liverpool, up $5/st from last report. The MAP market at East Liverpool remained at a firm $710/st FOB in early July. No phosphate tons were available at Fairless Hills in late July.

In the Southeast, MAP postings remained at $640/st FOB Aurora, N.C., but Nutrien on July 23 raised its DAP posting at that location to $650/st FOB. The company also confirmed that it is currently sold out of DAP at Aurora and not accepting any new orders for the near to medium term.

Eastern Canada:

MAP pricing firmed to C$985-$1,045/mt FOB in Eastern Canada, up C$35-$55/mt from last report. The last DAP business was reported at the C$980/mt level FOB Montreal.

Saudi Arabia:

Recent phosphate business loading from Saudi Arabia was noted firming to $590-$610/mt FOB, up $5/mt from $585-$605/mt FOB in the prior report.

China:

Reports circulated that a DAP deal with Thailand dropped the price to sub-$600/mt FOB. At the same time, producers are arguing that the limited tons they have available should be sold at $625/mt FOB.

Sources reported that Pakistan imported two cargoes of DAP at $620/mt CFR. The China-equivalent price would be no more than $570/mt FOB.

International traders are comfortable calling the market just under $600/mt FOB until more public deals come forward.

India:

The global DAP market is still too expensive for the Indian market. Sources said even with the apparent softening of some prices in the area, the imported price is higher than the maximum retail price (MRP) allowed by law.

The Pakistan purchase of two DAP cargoes at $620/mt CFR could be priced into India at $600-$610/mt CFR. The MRP is closer to $570/mt CFR. Sources said there are rumors the government is discussing raising the MRP for phosphates, but no definitive move has been made so far.

Brazil:

The Paranagua MAP price showed a slight dip at the lower end of the previous range, slipping to $740-$770/mt FOB. Traders said the drop in pricing might be an indicator that MAP prices have reached their peak.

The Rondonopolis price is also off. Sources now call the market $822-$850/mt FOB ex-warehouse, down from the mid-$850s/mt FOB from last week.Barter rates for 1 mt of MAP are reported at 60 bags of corn and 26 bags of soy.

Phosphoric Acid

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

Eastern Cornbelt:

Phos acid prices were unchanged at $13.15/unit rail-DEL in Illinois and $13.30/unit rail-DEL in Ohio for July shipments.

Western Cornbelt:

Phos acid pricing for July remained at $13.05/unit rail-DEL in Nebraska, Missouri, and Iowa.

Northern Plains:

Phos acid pricing for July was unchanged at $13.15/unit rail-DEL in Minnesota and Wisconsin, and $13.30/unit rail-DEL in the Dakotas. Sources said they anticipate no changes for August.

India:

India phosphoric acid quarterly contracts were noted at $1,160/mt P2O5 CFR, rising $162/mt from $998/mt P2O5 CFR reported for the prior three-month period. The price was valid on vessels loading from both Morocco and North America.