All posts by mickeybarb@charter.net

Ammonium Sulfate

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

U.S. Gulf:

Ammonium sulfate barges continued to firm, with the last done trades reported at $300/st FOB, up from the week-ago $295-$300/st FOB.

U.S. Imports:

May ammonium sulfate imports were reported at 77,271 st, firming 9.0 percent from the year-ago 70,866 st. July-May totals stood at 945,204 st, up 47.1 percent from the year-ago 642,684 st.

Canada led importers in the July-May period with 461,229 st, up 42.0 percent from the year-ago 324,809 st, while Belgium held on to second place with 206,831 through the same period, a 53.2 percent increase from 134,976 st in the prior year. Russian volumes narrowly topped 95,394 st from South Korea, totaling 97,870 st for the period, up 54.2 percent from the year-ago 63,460 st.

U.S. Exports:

May exports of ammonium sulfate softened 13.1 percent, to 51,484 st from the year-ago 59,237 st. Exports totaled 571,488 st for July-May, a 0.3 percent increase from the year-ago 570,032 st.

Eastern Cornbelt:

The ammonium sulfate market remained in the $320-$350/st FOB range in the Eastern Cornbelt, depending on location. AdvanSix’s June 28 postings included $330/st FOB river terminals in the Midwest and Plains regions, with inland warehouses priced at traditional spreads to the river.

Western Cornbelt:

Ammonium sulfate prices were unchanged at $320-$350/st FOB in the region, with the low at St. Louis and Camanche and the high reported at Sioux City, Iowa.

Northern Plains:

Granular ammonium sulfate pricing ranged broadly at $290-$325/st FOB St. Paul, depending on supplier and point of origin. Delivered fill offers into North Dakota were pegged in the $315-$325/st range in early July.

Northeast:

Granular ammonium sulfate remained 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 $340-$345/st in the Northeast.

China:

Prices stabilized in the low-$190s/mt FOB for caprolactam grade ammonium sulfate. Sources said higher prices are expected in the coming months as prices rise on raw materials to the producers.

The higher urea prices are also putting additional pressure on demand for amsul for use in NPK production. And, for the rest of the summer, routine shutdowns of plants in China will deprive the market of 150,000-200,000 mt of product.

The plants reported to be taking turnarounds in July and August include Haili Chemical in Jiangsu (300,000 mt/y); Haili Chemical in Shandong (300,000 mt/y); Luxi Chemicals (300,000 mt/y); Yangmei Group (200,000 mt/y); Zhejiang Hengyi (300,000 mt/y); Shanxi Lubao (150,000 mt/y); and Shandong Heze Dongju (150,000 mt/y).

Buyers will also face continued higher freight rates to go along with the rising cost of the product. Sources said many of the buyers end up adding small lots of amsul to their shipments of other fertilizers such as MAP or urea, just to top off a vessel.

Brazil:

Finding ammonium sulfate at Paranagua is reportedly getting harder. Sources talked of a supply scarcity at the port facility, with prices for granular material edging up about $10/mt, to $300/mt CFR.

The general view of using amsul instead of urea for NPK production has tightened the inland market. Sources said the Rondonopolis price moved up to $370-$415/mt FOB ex-warehouse.

Imports for the first semester of 2021 were up about a third, to 1.7 million mt from 1.28 million mt in January-June 2020, according to Trade Data Monitor. June imports this year were up 46 percent, to 332,000 mt from 228,000 mt in June 2020.

Second-quarter imports for 2021 were down about 12 percent, to 535,000 mt from 607,000 mt in the second quarter of 2020.

DAP/MAP

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

Central Florida:

DAP trucks loading from Central Florida continued to be quoted at $620/st FOB, unmoved from one week earlier. Truck-loaded MAP maintained a premium to DAP at $655/st FOB. North Florida MAP trucks saw posted pricing unchanged at $640/st FOB.

U.S. Gulf:

What began as a slow week on the NOLA DAP and MAP barge markets was seen accelerating as the trading period wore on.

Loaded DAP barge sales late on July 7 were reported in the $624-$635/st FOB range. Sources noted early-week lows at $605/st FOB, a $10/st bump from the week-ago $595/st FOB floor.

Some argued for the bulk of market sentiment falling in the $605-$624/st FOB range for the week, with the $635/st FOB portrayed as unrepeatable on July 8.

MAP saw a smaller increase, with most noting the top of the range firming to $655/st FOB from $650/st FOB in the prior report. Offers posted at $650/st FOB for loading in the July-September window set the bottom of the week’s range, unmoved from one week earlier.

The NOLA DAP market was quoted in a wide $605-$635 st range, rising from $595-$615/st FOB at last report. MAP barges firmed to $650-$655/st FOB, up from $650/st FOB.

U.S. Imports:

July-May DAP imports were noted at 1.21 million st, rising 21.2 percent from the year-ago 1.00 million st. May imports dipped 73.2 percent, however, to 19,470 st from 72,696 st in the prior year.

With no new imports logged from any of the market’s top importers in May, Saudi Arabia continued to lead fertilizer year-to-date imports with 534,149 st, up 486.2 percent from the year-ago 91,117 st. Jordan’s 284,013 st and Australia’s 181,817 st contrasted with zero tons imported from either country in the year-ago period.

July-May MAP/Other imports softened 42.6 percent year-over-year, to 978,386 st from 1.70 million st. Totals were down 42.5 percent in May, to 66,758 st from 116,071st.

Mexico led July-May MAP imports with 361,018 st, up 415.3 percent from 70,064 st in the same year-ago period. Saudi Arabia’s 201,323 st was up 105.6 percent from the year-ago 97,940 st July-May total, while 85,070 st from Russia was down 64.0 percent from the prior-year 236,156 st.

U.S. Exports:

May DAP exports softened 64.5 percent, to 35,056 st from the year-ago 98,781 st. July-May exports slid 33.1 percent, to 694,182 st from the prior-year 1.04 million st.

MAP/Other exports slipped 19.8 percent in July-May, to 2.18 million st from the year-ago 2.72 million st. May totals were down 15.2 percent year-over-year, to 235,020 st from 277,029 st.

Mosaic reported a 10,000-plus mt DAP transaction priced at $660/mt FOB during the week. Set for loading in late July or early August, the cargo was slated to ship into a single-market destination in Latin America.

No new MAP transactions were reported. Recent spot business included a $685/mt FOB load weighing in at 5,000 mt, set for shipping in July or August.

Based on reported transactions, DAP exported from the U.S. Gulf firmed to $660/mt FOB from the prior $650/mt FOB level. MAP values were unchanged at $685/mt FOB.

Eastern Cornbelt:

DAP remained at $645-$650/st FOB in the Eastern Cornbelt. MAP was quoted at $677-$700/st FOB in the region, with the low reported at East Dubuque. The Cincinnati market was unchanged at $645-$650/st FOB for DAP and $690-$700/st FOB for MAP in early July.

Western Cornbelt:

DAP remained at $645-$650/st FOB in the Western Cornbelt in early July. MAP was steady at $677-$700/st FOB, with the low reported for the last offers out of Camanche. Sources continued to quote the St. Louis and Catoosa/Inola MAP markets at $690-$700/st FOB in early July.

Northern Plains:

DAP pricing FOB St. Paul remained in the $645-650/st FOB range, unchanged from last report. MAP was pegged at $690-$700/st FOB St. Paul, with delivered tons reported in the $700-$725/st range in central and western North Dakota.

Northeast:

DAP prices in the Northeast strengthened to $655/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. Pricing for DAP and MAP at Aurora, N.C., was unchanged at the $640/st FOB level.

Saudi Arabia:

Recent Saudi Arabia phosphate pricing continued to be heard at $565-$580/mt FOB.

China:

Sources continued to report limited DAP supply for export, coupled with higher prices. Traders are now calling the DAP market $585-$590/mt FOB. This new price level makes selling to India even more difficult because of the limits the Indian government places on what can be charged for the product, even with subsidies.

India:

Sources said the maximum retail price allowed for DAP sales means that a trader could lose about US$2 million with every panamax brought in from China. Officially, the price remains in the $570s/mt FOB, but the lack of any new deals makes it hard to nail down a price that matches with what the Chinese and Arab producers are demanding.

To make matters worse for producers, the new phos acid price pushes their break-even price above the maximum retail price set by the government.

Bangladesh:

Sources said some of the traders given awards in the BCIC DAP tender from last month may have to default. Sources said the DAP price moved so quickly that the awarded price is no longer viable.

Brazil:

The MAP market at Paranagua was relatively steady at $755-$770/mt CFR, with the low end of the range up $5/mt from last week. Hesitancy to buy product inland has led to a softer price at Rondonopolis, where sources quoted the market at $867-$880/mt FOB ex-warehouse.

Sources said many of the MAP sales are taking place with other fertilizers such as MOP to help balance nutrient needs and to not commit to large orders as prices fluctuate.

January-June MAP imports for 2021 were down about 7 percent, to 2 million mt from 2.1 million mt during the same period last year, according to Trade Data Monitor. June imports were up about 14 percent, however, to 557,000 mt from 489,000 mt in June 2020.

Second-quarter imports were down 22 percent this year, to 1.1 million mt from 1.4 million mt during the same period in 2020.

Phosphate Rock

India, Jordan, Market Watch, Phosphate Rock, U.S. Imports

U.S. Imports:

Phosphate rock imports were down 57.1 percent in May, to 124,359 st from the year-ago 290,084 st. Imports were up 36.8 percent for July-May, however, to 2.74 million st from 2.00 million st.

India:

FACT is reported to have awarded its tender for the supply of 40,000 mt of phosphate rock (minimum 31.75 percent P2O5) to Agrifields, which had offered Togolese product. The award price is not known. The cargo is for shipment to Cochin port on Aug. 25-Sept. 10. The tender closed on June 25, having been extended from June 18 (GM June 25, p. 14).

Jordan:

Jordan Phosphates Mines Co. (JPMC) reported that it exported 554,762 million mt in June, the highest volume ever exported since the establishment of its new joint venture phosphates export terminal at the port of Aqaba, the producer said in a July 7 stock exchange filing. The new terminal can handle and export up to 6 million mt/y of phosphate rock.

Phosphoric Acid

Eastern Cornbelt, India, Jordan, Market Watch, Northern Plains, Phosphoric Acid, U.S. Exports, Western Cornbelt

U.S. Exports:

May wet-process phosphoric acid exports were noted at 8,541 st, down 7.2 percent from the year-ago 9,204 st. July-May volumes dropped 38.2 percent, to 164,976 st from 267,138 st noted one year earlier.

Eastern Cornbelt:

The phos acid market for July was quoted at $13.15/unit rail-DEL in Illinois and Wisconsin, and $13.30/unit rail-DEL in Ohio, up $0.15/unit from June.

Western Cornbelt:

Phos acid pricing for July was pegged at $13.05/unit rail-DEL in Nebraska, Missouri, and Iowa, up $0.15/unit from June.

Northern Plains:

Phos acid pricing for July was quoted at $13.15/unit rail-DEL in Minnesota and Wisconsin, and $13.30/unit rail-DEL in the Dakotas, up $0.15/unit from June pricing levels.

India:

OCP and buyers in India reportedly agreed on new phos acid contracts with values quoted firming to $1,160/mt P2O5 CFR, a $162/mt increase on the prior $998/mt CFR deal. It was unclear whether U.S. phos acid suppliers had matched OCP’s agreement with Indian buyers on July 8.

The new price will continue to make production of DAP difficult within the maximum price set by the Indian government. Sources said some DAP producers may forgo the purchased acid in favor of buying their own rock and sulfur to make their own acid.

Jordan:

Indo-Jordan Chemicals Co., a fully-owned subsidiary of Jordan Phosphate Mines Co. (JPMC) since 2010, produced 27,107 mt P2O5 of phosphoric acid in June, a record monthly output, JPMC said in a July 7 stock exchange filing.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt:

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

Western Cornbelt:

The 10-34-0 market was steady at $575-$595/st FOB for the last reported business in the Western Cornbelt.

Northern Plains:

10-34-0 pricing remained at $590-$600/st FOB and $600-$610/st DEL for the last reported offers in the Northern Plains.

Northeast:

The 10-34-0- market in upstate New York was pegged at the $600/st FOB level, unchanged from last report.

Nutrien to Buy Terra Nova Agrícola, Add to Retail Expansion in Brazil

Brazil, Featured, News, Saskatchewan

Nutrien Ltd., Saskatoon, has agreed to buy Terra Nova Agrícola, which operates in the state of Minas Gerais, in order to expand its retail network in Brazil. The purchase will add nine branches, bringing Nutrien’s total to 33 in Brazil, the company said on July 8.

“With today’s announcement, we have now advanced four value-enhancing acquisitions in the last 18 months, supporting our expansion goals with a complementary increase in the number of physical branches and specialized consultants,” said Andre Dias, Nutrien’s Latin America President.

In Minas Gerais, where Nutrien already has a presence, it said acquiring one of the major retailers in the state furthers Nutrien’s growth goals and allows the company to leverage Terra Nova’s extensive reach and expansion capacity while offering Nutrien’s full-service model, which combines Experience Centers, consultants, and a digital platform in an integrated way.

“Terra Nova has developed a commercial approach that brings important competitive advantages to help further solidify Nutrien as one of the leading agricultural retail companies in Minas Gerais. We will continue Terra Nova’s work of offering a complete portfolio of services and a qualified sales team, now with access to our expanded set of solutions to serve the farmer,” added Dias.

Total revenue from Terra Nova’s crop inputs business is estimated at 250 million Brazilian reals (US$47.6 million), with average EBITDA margins of approximately 10 percent, which Nutrien said is in line with similar transaction metrics of ag retail businesses acquired by Nutrien in the U.S.

The transaction is subject to approval by the Administrative Council for Economic Defense (CADE). The acquisition value was not disclosed.

Muriate of Potash

Brazil, China, Eastern Cornbelt, India, Market Watch, Northeast, Northern Plains, Potash, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf:

Price ideas continued to be up for NOLA potash, but it was still hard to find word of actual new trades beyond the last done $495/st FOB. Recent speculation ranged in the $520-$550/st FOB span.

U.S. Imports:

MOP imports rose 12.6 percent for the July-May period, totaling 13.14 million st versus the year-ago 11.68 million st. May imports rose 10.8 percent, to 1.23 million st from the year-ago 1.11 million st.

Material originating from Canada led the fertilizer year-to-date with 10.53 million st, a 4.5 percent increase from the year-ago 10.07 million st. Russia’s 1.37 million st July-May total was 66.4 percent above the prior-year 822,421 st, while tons loading from Belarus firmed 27.3 percent, to 713,953 st from the year-ago 560,751 st.

Eastern Cornbelt:

Potash was quoted at $570-$585/st FOB in the Eastern Cornbelt, with the low reported for the latest offers out of East Dubuque. Sources said no spot quotes were available out of Cincinnati during the week.

Western Cornbelt:

Sources reported potash pricing firmly at the $570-$575/st FOB level for very limited offers in the Western Cornbelt in early July. “People want fourth-quarter pricing, but no one wants to offer any,” said one regional contact.

Northern Plains:

Sources quoted the potash market at a firm $565-$575/st FOB St. Paul during the week. The market to U.S. buyers FOB Saskatchewan mines was pegged at $410-$420/st after netbacks, depending on grade.

Northeast:

Sources pegged the regional potash market in the Northeast at $575-$600/st FOB based on very limited offers, with the upper end confirmed at Wilmington, N.C., for prompt tons late in the week.

India:

FACT issued a new tender on July 6 for the purchase of 40,000 mt of red/pink standard potash in two shipments. The company reportedly scrapped an earlier tender for a single 40,000 mt shipment, which closed on June 29 (GM July 2, p. 15).

The new tender calls for the loading of the first shipment in August and the second in September. Both cargoes are for delivery to Tuticorin/Vizag port. The tender closes on July 21.

China:

Potash inventory at the seaports was put at 2.06 million mt as of July 6, according to China National Chemical Information Center Co. Ltd. (CNCIC). This makes for around 0.56 million mt sitting at the port that is useable. Some 1.5 million mt of port inventory is typically labelled as strategic reserve, according to Nutrien’s Executive Vice President and CEO of Potash Ken Seitz, speaking at a company earnings call in May (GM May 7, p. 18).

Brazil:

The MOP market in Brazil remains on fire. Prices jumped to $620-$660/mt CFR at Paranagua amidst limited trading.

Inland buyers were hesitant to buy, but when they did the price was also higher than last week. Sources put the Rondonopolis price at $620-$700/mt FOB ex-warehouse. Farmers appear to be taking just what they need, even as they argue that prices should turn around soon.

MOP imports for the first semester this year were up 8.8 percent, to 5 million mt from 4.6 million mt during the same period last year, according to Trade Data Monitor. The three main supplies so far this year were Russia at 1.5 million mt, up 16 percent from 2020; Canada at 1.3 million mt, down 18 percent from last year; and Belarus at 1.1 million mt, up 20 percent from the same period last year.

June imports were down 5.8 percent, to 994,000 mt from 1.1 million mt in June 2020. Second-quarter MOP imports were also down about 14 percent, to 2.5 million mt from 2.9 million mt in April-June 2020.

Sulfur

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

Tampa:

Members of the Teamsters Local 120 union agreed to a new employment contract proposal at the 102,000 barrel/d Marathon Petroleum St. Paul Park refinery, The Star Tribune reported, ending a five-month lockout. The new agreement, covering approximately 200 employees, will cover employment at the facility into 2027.

Third-quarter Tampa molten sulfur contract negotiations continued for the week, sources said. Speculation continued to center on a potential $0-$10/lt increase from the second quarter’s $192/lt CFR valuation.

U.S. refineries operated at 92.2 percent of total capacity for the week ending July 2, the Energy Information Administration (EIA) reported, a 0.7 point decline from the prior week’s 92.9 percent, but above both the year-ago 77.5 percent and the 91.0 percent five-year average.

The EIA described crude inputs softening to an average 16.115 million barrels/d for the period, a 184,000 barrel/d decline from the previous 16.299 million barrel/d average.

U.S. Imports:

Imports of sulfur were up 0.2 percent for May, to 281,865 st from the year-ago 281,230 st. July-May import totals firmed 3.6 percent, to 3.30 million st from the prior-year 3.19 million st.

U.S. Exports:

Sulfur exports for May stood at 99,942 st, off 32.8 percent from the year-ago 148,627 st. July-May exports fell 35.8 percent, to 980,377 st from 1.63 million st reported one year earlier.

U.S. Gulf:

Gulf export price ideas remained in the $190-$200/mt FOB range, sources said. Increasing international freight rates were noted pushing a larger share of available netbacks closer to $190-$195/mt FOB.

Brazil:

Market sources continued to point to recent import business in the $220s/mt CFR, with some noting an increased level of interest clustered toward the bottom of the range at $221-$223/mt CFR.

Early indications for third-quarter contract values hinted toward a rise into the low $220s/mt CFR, players indicated. Second-quarter agreements were reported at $213-$214/mt CFR.

Vancouver:

Vancouver prill price levels were unchanged at $178-$180/mt FOB.

Alberta:

The province of Alberta has negotiated to forgo years of contracted tolling payments to the troubled 79,000 barrel/d Sturgeon Refinery northeast of Edmonton, instead purchasing a direct 50 percent equity stake in the facility, the CBC reported.

Alberta will pay a combined C$825 million to Northwest Refining and Canadian Natural Resources Ltd. (CNRL) for the stake, canceling C$10 billion in tolling charges previously scheduled to pay out over the next 10 years.

Alberta sulfur pricing held steady in the $65-$110/mt FOB range, although some warned that firming freight costs could chip away at netbacks.

West Coast:

West Coast prill pricing was noted at 178-$180/mt FOB, unmoved from the previous week.Third-quarter West Coast molten contracts were noted in the $150-$155/lt FOB range.

China:

China spot pricing remained in the $217-$220/mt CFR range for the week, sources said.

ADNOC:

Abu Dhabi National Oil Co. prills were heard softening $10/mt in July, to $175/mt FOB Ruwais from $185/mt FOB in June.

Qatar:

Muntajat solid sulfur pricing for July was noted falling to $179/mt FOB Ras Laffan, down from $183/mt FOB in the prior month.

Kuwait:

Sources put Kuwait prill postings at $180/mt FOB for loading in July, down from $183/mt FOB heard in June.

Sulfuric Acid

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

U.S. Gulf:

Price ideas on the Gulf spot market continued in the $190-$195/mt CFR range, steady from the prior report.

U.S. Imports:

July-May sulfuric acid imports firmed 11.0 percent year-over-year, to 3.70 million st from 3.33 million st. Imports were off 13.9 percent in May, however, dipping to 315,420 st from the year-ago 366,188 st.

U.S. Exports:

May sulfuric acid exports totaled 33,417 st, a 77.6 percent increase from 18,816 st in May 2020. Exports totaled 339,438 st in July-May, up 49.9 percent from the year-ago 226,511 st.

Gulf Coast:

Sources quoted sulfuric acid delivered to the Gulf Coast holding in the $85-$110/st DEL range for 2021 contracts.

Midwest:

Midwest agreements were reported even with the Gulf at $85-$110/st DEL, steady from one week earlier.

West Coast:

Material delivered to the West Coast was reported at $100-$130/st DEL.

Brazil:

The Brazil spot market was heard at $195-$200/mt CFR, unchanged from the prior report.