All posts by mickeybarb@charter.net

EarthRenew, Fertoz Ink Supply Contract

Australia, Canada, News, News Briefs, Phosphate Rock, Specialty

EarthRenew Inc., Toronto, on July 2 announced a partnership with Australian-based Fertoz Ltd. to provide pulverized rock phosphate for its regenerative product line. EarthRenew subsidiary Replenish Nutrient’s Ltd. produces natural fertilizer alternatives using rock phosphate as a key ingredient.

Fertoz pulverized rock phosphate 0-20-0 will be supplied to Replenish targeting 10,000 mt/y over a period of five years. Some 500-1,000 mt will be supplied monthly beginning in July of this year.

EarthRenew said the partnership will benefit Canadian producers by improving access to granulated rock phosphate and blends throughout Western Canada, provide fertilizer options and blends that are tailored to individual regions and soil types, and enable access to EarthRenew’s other products and services.

“It has long been Fertoz’s strategy to open and use Canadian mines to supply Canada and focus on Montana and Mexico mines for the U.S. market,” said Sean Gatin, Fertoz Sales Vice President. “These volumes will allow opening and long term mining of our leases in the Fernie (B.C.) area.”

Itafos Completes Conda Turnaround

Houston, TX, News, News Briefs, Phosphate

Itafos Inc., Houston, said on July 1 the Conda phosphate plant completed its scheduled plant turnaround during June 2021 and has returned to full production capacity.

The company said Conda’s plant turnaround was completed on schedule and within budget. The turnaround focused on inspection, testing, repair, and preventative maintenance of critical equipment, including cleaning the phosphate rock reactor.

Itafos Redomiciles to the U.S.

Houston, TX, News, News Briefs

Itafos Inc., Houston, said on July 1 it has completed a redomiciliation from the Cayman Islands to the U.S.

“We are pleased to have completed our redomiciliation to the United States, where most of our operations, customers, employees, and contractors are located,” said G. David Delaney, Itafos CEO. “This transaction further improves the efficiency of our corporate structure.”

The redomiciliation was implemented as a continuation of the company’s jurisdiction of incorporation from the Cayman Islands to the State of Delaware.

In connection with the redomiciliation, the company has changed its name from Itafos to Itafos Inc. It said it has received all required approvals and consents to implement the redomiciliation.

The company does not anticipate any impact to its operations, customers, employees, or contractors as a result of the redomiciliation. The company’s issued and outstanding shares will remain issued and outstanding as shares of the company’s common stock after the redomiciliation without any action required by shareholders.

Company shares will continue trade on the TSX-V under the ticker symbol “IFOS,” and the company will continue to be subject to the rules and policies of the TSX-V.

Trading of the company’s shares as a Delaware corporation and under its new name will commence at market open on the date specified in the TSX-V bulletin that will be issued in connection with the domiciliation and name change. On such date, the company’s shares will commence trading under the new CUSIP 465270106 and new ISIN US4652701065.

Ammonia

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

U.S. Gulf/Tampa:

July Tampa ammonia prices continued at $585/mt CFR. In the absence of any recent NOLA barge sales, prices are put at the Tampa equivalent of $531/st FOB, which would be in line with the Gulf Coast truck market at $540-$590/st FOB.

Eastern Cornbelt:

Sources said fall prepay offers were circulating for ammonia during the week at higher levels that the last prompt and fill business.

After the prior week’s brief ammonia fill offers at $565/st FOB in Illinois, CF reportedly came out on June 29 at $625/st FOB in Illinois and $630/st FOB in Indiana for October-December ammonia shipments. Koch was reportedly referenced at $655/st FOB in Illinois and Indiana for 4Q ammonia shipments.

Western Cornbelt:

Ammonia prepay offers for fourth-quarter shipment were circulating at $625-$650/st FOB in the Western Cornbelt in late June, with the low confirmed at Palmyra, Mo, and the high at Fort Dodge, Iowa. The prepay market in Nebraska was pegged at the $640/st FOB level for October-December shipment.

In the Southern Plains, sources reported 4Q ammonia prepay offers at $580/st FOB Pryor and Verdigris, Okla.

California:

Anhydrous ammonia was unchanged at $626/st DEL in California, with aqua ammonia referenced at $172/st FOB.

Pacific Northwest:

Ammonia prices were quoted at $615-$620/st FOB terminals in the Pacific Northwest, with new rail-DEL offers pegged as high as $675/st, depending on location. Aqua ammonia was quoted at $168/st FOB Kennewick, Wash.

Western Canada:

Ammonia pricing in Western Canada was quoted at C$900-$950/mt DEL in late June, down from last report.

Black Sea:

Sources said pressure has been building for a major increase in ammonia prices, culminating in a deal this week at $550-$555/mt FOB that moved the price up more than $20/mt in one week.Sources said the 25,000 mt is bound for India and will most likely load at the end of this month.

Besides strong demand from India, sources said prices are being pushed up by strong demand in Asia. Shortages of ammonia from the Arab Gulf have forced Southeast Asian buyers to look far and wide for the ammonia they need.

The latest deal out of Yuzhnyy will most likely end up looking cheap in the near future, said sources. The prevailing market sentiment from traders is that prices will keep moving up.

Middle East:

In an unusual move, SABIC went to the global market to secure tons to cover the loss of its own production at the Ma’aden plant that went down in May.Sources said the Saudi company bought 25,000 mt from EBIC in Egypt for loading later in July. The reported price was put at $690/mt CFR, for a netback to Egypt of $650/mt FOB.

The tightness of the Arab Gulf market, which was made clear by the Saudi purchase, has meant no tons are available for spot sales. The producers are all reportedly doing the best they can just to fulfil their contracted orders. Some have speculated that the price paid by SABIC could become the new price promoted to buyers.

The bottom line in the Arab Gulf is that tonnage is limited. Pricing levels are constantly being quoted at ever-higher levels.

India:

The fact that an Indian buyer had to accept a cargo coming from Yuzhnyy exhibited just how tight the market is. Anyone wanting ammonia must step up and pay more.

Indian buyers are facing a serious problem. Most of the purchases are being done to support the Indian phosphate industry. The ever-rising ammonia price puts a major dent in the ability of the Indian producers to turn out a product that can be sold at a profit. Besides higher ammonia costs, phos rock and sulfur are also showing stronger prices.

The Indian government is desperate to get more DAP into its market, but the limits on how much producers can charge are running up against the high cost of their inputs.

Sources said Arab Gulf producers are looking at using the $690/mt CFR price SABIC paid as the basis for their export prices as spot tons become available. Such a move would be devastating to all buyers.

For now, Indian buyers keep looking for tons from whatever source is available. Reportedly, ammonia previously contracted is being covered at prices previously negotiated. The new tons, however, are fewer and more expensive.

Northwest Europe:

For now, the ammonia price remains in the $520s/mt C&F. However, sources said with the rising price in Yuzhnyy and the Caribbean, the Northwest Europe price should soon see a jump closer to $600/mt C&F.

A deal from a Baltic supplier reportedly was concluded for July loading at $540/mt FOB, reflecting a jump of more than a $100/m from June. This price, if it holds, would move the Antwerp price into the low-$600s/mt C&F.

The shifting and ever-rising market has producers thinking it might be time to go back to linking the Baltic price to the Black Sea price. In the past, this linkage showed Baltic port prices at a $10-20/mt premium over the Yuzhnyy price. If that arrangement is made, buyers will be immediately looking at $570-$575/mt FOB.

South Korea:

Ammonia imports in South Korea for January-May were up 9 percent, according to Trade Data Monitor, to 594,000 mt from 544,000 mt during the same period last year.The main suppliers this year were Indonesia at 281,000 mt and Saudi Arabia at 140,000 mt.

May imports were up 44 percent, to 122,000 mt from 84,000 mt in May 2020. Indonesia and Saudi Arabia dominated the month with 52,000 mt and 32,000 mt, respectively. An interesting purchase, however, came in the 18,000 mt from Ukraine. South Korea has not purchased any ammonia from Ukraine since 2016.

Turkey:

January-May imports of ammonia in Turkey were down 31 percent, according to Trade Data Monitor, to 389,000 mt from 566,000 mt during the same period last year.May imports were down 24 percent, to 76,000 mt from the 100,000 mt in May 2020.Russia has dominated as the primary source, sending 262,000 mt in January-May and 62,000 mt in May.

Thailand:

January-May ammonia imports in Thailand were up 27 percent, according to Trade Data Monitor, to 178,000 mt from 140,000 mt during the same period last year. May imports were actually down 41 percent, to 25,000 mt from 42,000 mt in May 2020. At its current purchasing rate, Thailand will surpass the 350,000 mt it bought in 2020.

Urea

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

U.S. Gulf:

Granular urea barges traded in the $415-$432/st FOB range during the week, up just a tad from the week-ago $413.50-$430/st FOB. These were mainly prompt and loaded barges. August sales were also reported at the $430/st FOB mark.

One player said if prices drift much lower, NOLA may see an uptick in exports, as the international prices remain firm.

Eastern Cornbelt:

Urea pricing remained at a firm $475-$490/st FOB in the Eastern Cornbelt, with the low confirmed at East Dubuque, Ill., for June-July tons. The urea market FOB Cincinnati, Ohio, was pegged in the $485-$490/st FOB range, up $5-$10/st from the previous week.

Western Cornbelt:

The urea market remained at $470-$480/st FOB in the Western Cornbelt in late June, depending on location, with the St. Louis, Mo., market pegged in the $475-$480/st FOB range.

Pricing FOB Camanche, Iowa, was tagged at the $475/st level for June-July tons, with urea pricing quoted firmly at $480-$485/st FOB St. Paul, Minn., and $495-$500/st FOB Catoosa/Inola, Okla.

California:

Urea prices were firming in California, with sources quoting new bulk offers at $590-$600/st FOB port terminals as of July 1, up from $545/st FOB in mid-June. Bagged urea pricing was reported as high as $660/st FOB Stockton, Calif., up from $580/st FOB at mid-month. Sources continued to report no available quotes on rail-DEL urea in California.

Pacific Northwest:

Urea continued to be quoted at $525/st FOB Rivergate, Ore., and $530/st FOB Aurora, Ore., although sources said supplies were out at Rivergate pending the arrival of a new vessel. Rail-DEL pricing fell in the $517-$522/st range in the region in late June.

Western Canada:

Urea prices were climbing in Western Canada. New offers were reported at C$650-$675/mt DEL in the region, up from C$610-$655/mt DEL at mid-month, with the low in Alberta and the high in Saskatchewan.

India:

The RCF tender closed with about 1.8 million mt offered. However, the price of $501.96/mt CFR for West Coast deliveries and $509.95/mt CFR for the East Coast made it difficult for the buyer to take all the tons it needed.

Sources estimated that RCF needed to buy most of the product offered in the tender to get the urea supply chain back on track. In the end, however, only seven companies accepted the low price, for a total of 779,000 mt.

The orders were divided up so that 10 cargoes will go to East Coast ports and six vessels to the West Coast. This reverses a trend in recent tender that favored the West.

Supplier Cargoes Awarded Total MT
East Coast West Coast
Dreymoor 1 1 102,000
Ameropa 3 2 259,000
Samsung 5 225,000
OQ Trading 1 50,000
Medallion 1 50,000
Swiss Singapore 1 48,000
Continental 1 45,000
Total 10 6 779,000

Industry watchers speculated on the source of the cargoes, noting that there is only about 220,000 mt currently in Chinese port-side warehouses. With a little luck, said one trader, Chinese product might then account for 4-5 cargoes.

Two cargoes are expected to come from the Black Sea, and possibly another two might come from Indonesia. The rest would be from Arab Gulf producers.

Sources said vessel owners are still hesitant to send their ships to India. Some are reportedly stipulating that the vessel will only make one stop in India instead of visiting multiple ports. The main concern is that authorities might force the ship and its crew into a 14-day COVID-related quarantine. Sources said this could increase the transportation costs and disrupt vessel availability in the region.

The shipping deadline for the RCF awarded tons is Aug. 11. Sources said many of the traders were already working on securing vessels even before the awards were made final. The speculation is that most of the cargoes will begin loading before the end of the month.

If the tons for RCF do get loaded quickly, sources said a new tender could also come quickly. Even if the traders took the full time through Aug. 11, sources said a new tender would need to be called before the end of July.

In each of the previous three tenders this year, the buyer’s expectation was to secure at least 1.2 million mt. The awards never reached that level, however. The March 22 tender secured 802,500 mt, the May 4 tender brought in 549,000 mt, and the most recent RCF tender of May 25 accounted for purchases totaling 565,000 mt.

Now, with this 779,000 mt, sources said India is still almost 2 million tons behind in what its calculated needs are for the current season. Sources said there needs to be at least two more tenders between now and mid-August.

One trader noted that any cargo arriving after the middle of September would most likely be too late for the current season, and would have to go into storage for the next.

China:

The estimated netback to China from the Indian tender is in the upper-$470s/mt FOB before considering any profit for the trader. Sources said the more realistic price is in the low-$470s/mt FOB. Some even said the price will most likely settle around $465-$470/mt FOB.

One trader said he was approached by a Chinese intermediary offering urea at $460/mt FOB. Others, however, dismissed the offer as unrealistic. The strong domestic Chinese market is helping provide a solid floor on prices, even as international prices show no sign of abating.

The steep climb in prices over a short time has sparked some complaints from farmers in China. With farmers and local distributors facing almost daily increases, the National Development and Reform Commission early this week announced on a social media site that it was investigating the causes of the high prices and what can be done to stem the increases.

International traders noted that many of the urea producers have been working at 60 percent capacity because they had limited access to coal and natural gas, which the government diverted to ensure a steady supply of heat in the winter, and now electricity to run air conditioners in the summer. The traders said cutting back on production at a time when there was strong demand locally and globally could only lead to higher prices.

The government now reports that increased supplies of coal and natural gas will allow for the plants to step up production and ease the spot shortages.

During the past couple of months, the government leaned on the urea producers to ensure a plentiful supply of urea for the domestic market. As a result, fewer tons were available for export, driving up international prices. The focus away from exports has led to reports that only about 220,000 mt of urea is available in the warehouses for offshore sales.

Indonesia:

Kaltim sold about 85,000 mt of urea last month at $458/mt FOB. The two main companies securing tons were Koch and Liven. Sources said Koch is in the freight market to move its cargoes to Australia later this month or early August.

Another tender is expected to be called soon for August and September loadings. Sources said the producers should be able to continue to take advantage of the hot urea market.

Middle East:

Just as people began to wrap their minds around an Arab Gulf price in the mid $470s/mt FOB, Fertiglobe confirmed it sold 30,000 mt of granular urea to an African buyer at $555/mt CFR. The estimated netback on the deal is $500-$505/mt FOB. This new price is a $30/mt jump from the netbacks estimated from the RCF tender. Shipment is slated for late-July.

Even before the final awards were issued in the RCF tender, the Arab Gulf producers began pushing for $490/mt FOB as a minimum price for any new talks. At first, this pricing expectation fit in with what the derivative market was thinking. Sources said the paper market is quoted at $477.50/mt FOB for July and $485/mt FOB for August. But now, the actual market has again outpaced the paper market.

Producers in the region all claim to be sold out through August. Even Iran, which often has a more difficult time finding buyers willing to risk U.S. sanctions, said its major suppliers have full order books through August.

Egyptian producer MOPCO inked a couple of deals for September shipments that moved the price up. Early in the week the producers sold cargoes of 15,000 mt and 6,000 mt at $470/mt FOB. By the end of the week, the producer sold another 3,000 mt of granular urea at $475/mt FOB.

The tons offered by MOPCO are the first to surface following a government edict that producers had to ensure sufficient material for the domestic market for July and August. Because the government was slow in allocating how many tons each plant had to hold back to help the local market, none of the producers were actively seeking new August business. By offering tons in September, MOPCO is operating outside the period set forth by the government.

Movement into the mid-$470s/mt FOB fits in with the expectations of the paper market. Sources said the paper market was calling Egyptian urea at $471.50/mt FOB for July and August. The anticipated price reflects how quickly prices have shifted in Egypt. Prior to the lull in offers due to the government edict in early June, reported deals for August shipments were at $435-$450/mt FOB.

Pakistan:

The national Fertilizer Development Company of Pakistan reported that May 2021 urea offtakes of 501,000 mt were up about 110 percent from May 2020. The state-owned company said the lower number in 2020 was due to COVID-19 restrictions.

The government agency said estimated urea needs for the upcoming year will be about 3.5 million mt of urea. They noted that local production is at 3.2 million mt, so the balance will have to be made up from carryover tons from the current season.

The subsidized price for urea is at $210-$220/mt FOB ex-warehouse. The price of imported urea, however, was reported at $435-$501/mt CFR for the month of May.

The government signed a three-year agreement with the International Islamic Trade Finance Corp. that will help with the imports of more fertilizer as needed.

South Korea:

January-May urea imports in South Korea were down 7 percent, according to Trade Data Monitor, to 431,000 mt from 464,000 mt during the same period last year. The main supplier in 2021 was China at 332,000 mt.

May imports were up 5.8 percent, however, to 78,000 mt from 74,000 mt in May 2020. Again, China dominated the market in May, supplying 77,000 mt this year.

Thailand:

Thai urea imports were down slightly for the first five months of 2021, according to Trade Date Monitor. January-May imports were reported at 888,000 mt, compared with 908,000 mt during the same period last year. The top two suppliers this year were Saudi Arabia at 250,000 mt and Oman at 219,000 mt.

May 2021 imports were up 74 percent, to 467,000 mt from 268,000 mt in May 2020.

Turkey:

January-May urea imports were down 19 percent, to 1.2 million mt from 1.5 million mt during the same period last year. The main suppliers so far this year are Oman at 519,000 mt, Egypt at 371,000 mt, Turkmenistan at 137,000 mt, and Iran at 114,000 mt. May 2021 imports were down 21 percent, to 179,000 mt from 233,000 mt in May 2020.

Brazil:

Pressure from the RCF/India tender was felt in Paranagua. Sources said urea prices moved up to $490-$515/mt CFR.

Even before the prices in the Indian tender were revealed, international traders were reporting discussions at $505/mt CFR. Bidders, hoping to hold back the onslaught of higher prices, kept bidding at $485/mt CFR but were getting nowhere.

Buyers inland faced a much more aggressive selling situation. The Rondonopolis price jumped $100/mt on the upper end, to $590-$700/mt FOB ex-warehouse.

Buyers remain nervous about stepping forward, while at the same time are also fearful that waiting too long will mean paying even higher prices. For now, limited tons are being sold as everyone waits to see how the international market shapes up.

UAN

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

U.S. Gulf:

New NOLA barge trades were put in the $270-$280/st ($8.44-$8.75/unit) FOB range, with the higher end reflecting Nutrien’s fill program that ended July 1.

Nutrien on July 1 said it filled its order book on schedule and has moved prices up $30/st for product available Oct. 1. The company also reported that it has sold an export of 10,000 mt out of Geismar at a NOLA equivalent of $295/st FOB.

On the East Coast, recent vessel trades were reported to be in the $305-$320/mt CFR range. Importers were reportedly eyeing $320-$330/mt CFR for the next round of business, however.

Eastern Cornbelt:

The UAN-32 market remained in a broad range at $337-$370/st ($10.53-$11.56/unit) FOB in the Eastern Cornbelt, with the low confirmed at Peru, Ill., and the high at Terre Haute, Ind. The market FOB Mount Vernon, Ind., was reported at $350-$355/st ($10.94-$11.09/unit) in late June, with Cincinnati pricing reportedly up $5/st to $355-$360/st ($11.09-$11.25/unit) FOB.

The UAN-28 market was pegged at $310-$315/st ($11.07-$11.25/unit) FOB Cincinnati.

Western Cornbelt:

The UAN-32 market was steady at $345-$355/st ($10.78-$11.09/unit) FOB in the Western Cornbelt, with pricing at St. Louis and Port Neal, Iowa, pegged at the $350/st ($10.94/unit) FOB level in late June.

California:

The UAN-32 market in California was pegged at $355-$365/st ($11.09-$11.41/unit) FOB Stockton and other port terminals for June/July tons. Sources continued to report limited rail-DEL offers at the $370-$380/st ($11.56-$11.88/unit) level, but movement was described as slow in late June.

“Fertilizer volumes have held steady, with some drop in liquid volume due to the drought,” said one contact. Added another: “With demand easing off, we have been carefully working through existing inventory and only buying to our immediate needs. We experienced a stronger June than expected, and are mulling through potentials for the fall season.”

Pacific Northwest:

The UAN-32 market was steady at $385-$390/st ($12.03-$12.19/unit) FOB in the Pacific Northwest, with rail-DEL offers reported in the $405-$412/st ($12.66-$12.88/unit) range. There were reports, however, of several suppliers pulling offers at midweek after the announcement of CF’s antidumping petition against UAN imports from Russia and Trinidad and Tobago.

Western Canada:

UAN-28 fill offers were reportedly circulating at C$400-$420/mt (C$14.29-$15.00/unit) DEL in Western Canada, down from the last reported prompt business at C$420-$430/mt (C$15.00-$15.36/unit) DEL.

Ammonium Sulfate

Ammonium Sulfate, Brazil, California, China, Eastern Cornbelt, Market Watch, Pacific N.W., South Korea, Thailand, Turkey, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf:

Ammonium sulfate barges remained in tight supply, with the latest trades still called $295-$300/st FOB.

Eastern Cornbelt:

The ammonium sulfate market remained in the $320-$350/st FOB range in the Eastern Cornbelt, with the low at East Dubuque and the high out of inland warehouses on a spot basis.

AdvanSix on June 28 said it was increasing the price of granular ammonium sulfate to $330/st FOB river terminals on new orders in the Midwest and Plains regions, effective immediately. The price is up $25/st from the $305/st level posted on June 7. The company said inland warehouses will continue to be priced at traditional spreads to the river.

Western Cornbelt:

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

California:

Granular ammonium sulfate prices ranged from $325-$340/st FOB in California, up slightly from last report, with the low at Stockton. Standard grade continued to be referenced at $318/st FOB Chico and Woodland. Rail-DEL tons remained at $320-$345/st in the state, with the low for fine grade and the high for granular.

Pacific Northwest:

Reference prices for ammonium sulfate in the Pacific Northwest remained at $330/st FOB or DEL for standard and $363/st FOB or DEL for granular product.

Western Canada:

Ammonium sulfate prices were down slightly in Western Canada, with sources quoting the market at C$505-$510/mt DEL in late June.

China:

The ammonium sulfate price in China is stable even as the market is tight and busy. Sources said Chinese sellers spent their time this week looking after deals previously made to buyers in Southeast Asia and Brazil. The price remained stable, just touching on $190s/mt FOB for caprolactam-grade product.

Brazil:

Granular amsul in Paranagua has moved up. Sources now peg the market at $290/mt FOB, with standard grade reported at $240-$250/mt CFR. Demand is growing as urea prices across the globe skyrocket. Blenders see the product as a cheaper alternative to urea, with the added benefit of adding sulfur to the mix.

The Rondonopolis market price spread out a bit from last week, with the top end moving up. Sources now place the market at $348-$410/mt FOB ex-warehouse.

Turkey:

January-May imports of ammonium sulfate in Turkey were up 125 percent, according to Trade Data Monitor, to 483,000 mt from 215,000 mt during the same period last year. May imports were also up at 102,000 mt, compared with 31,000 mt in May 2020. China was the largest single supplier so far this year, with 295,000 mt shipped into Turkey.

Thailand:

Ammonium sulfate imports in Thailand during the first five months of the year were up almost 70 percent, according to Trade Data Monitor, to 191,000 mt from 113,000 mt during the same period in 2020. The main supplier was China at 158,000 mt.

May imports were also up, to 68,000 mt versus 48,000 mt in May 2020. China dominated the month with 67,000 mt this year.

South Korea:

Exports of ammonium sulfate for January-May 2021 were up 37 percent, according to Trade Data Monitor, to 275,000 mt from 200,000 mt during the same period last year. The main buyers so far this year were Mexico at 82,000 mt, the U.S. at 59,000 mt, Thailand at 55,000 mt, and Turkey at 50,000 mt.

May 2021 exports exploded at 85,000 mt, compared with 23,000 mt in May 2020. The top three May buyers were Mexico at 31,000 mt, Thailand at 28,000 mt, and New Zealand at 27,000 mt.

DAP/MAP

Brazil, California, Central Florida, China, Eastern Cornbelt, India, Market Watch, Pacific N.W., Pakistan, Phosphate, Saudi Arabia, U.S. Exports, U.S. Gulf, Western Canada, Western Cornbelt

Central Florida:

Central Florida DAP trucks were posted at $620/st FOB for the week, steady from the prior report. MAP was also unchanged at $655/st FOB Central Florida. MAP loading from North Florida was posted at $640/st FOB.

U.S. Gulf:

Market players reported the week’s DAP and MAP barge values rolling back from recent peaks.

DAP cargoes were reported trading at a $615/st FOB high for domestically produced material, with loading pegged in a wide July-September window, softening from the week-ago $619/st FOB top. A small amount of import material slated for loading in July was noted at $595/st FOB.

Despite the wide price variance, sources reported most nearby transactions falling in the $602-$610/st FOB range for the week. DAP paper trading was also noted up to $615/mt FOB.

MAP trading was subdued, sources said, with limited sales noted at the week-ago $650/st FOB low. Offers were holding steady at $650/st FOB on July 1.

DAP barges were traded in a wide $595-$615/st FOB range for the week, softening from the prior $615-$619/st FOB. MAP barges softened to $650/st FOB, down from $650-$655/st FOB one week earlier.

U.S. Exports:

No fresh transactions were reported on the U.S. Gulf DAP and MAP export markets during the week. The most recent spot DAP transaction included a 6,000 mt load priced at $650/mt FOB, while a 5,000 mt MAP cargo was noted fetching $685/mt FOB. Both cargoes were sold into Latin America, with shipping slated for late July or early August.

With no new data points reported, the Gulf DAP market remained at $650/mt FOB, while MAP was unchanged at $685/mt FOB.

Eastern Cornbelt:

DAP prices edged up to $645-$650/st FOB in the Eastern Cornbelt, up another $5/st at the low end. The MAP market was quoted in a broad range at $677-$700/st FOB during the week, with the low reported at East Dubuque. The Cincinnati market was pegged at $645-$650/st FOB for DAP and $690-$700/st FOB for MAP in late June.

Western Cornbelt:

DAP firmed to $645-$650/st FOB in the Western Cornbelt, up $5/st at the low end of the range. MAP was quoted at $677-$700/st FOB, with the low confirmed at Camanche for June-July tons. Sources pegged the St. Louis, St. Paul, and Catoosa/Inola MAP markets at $690-$700/st FOB in late June.

California:

MAP pricing in California was steady at $750/st rail-DEL and FOB French Camp, Helm, Richvale, Dixon, and El Centro in late June.

Some sources said the worsening drought is starting to take a toll on phosphate volumes in the state. “There has been a fair amount of demand destruction on the phosphate side, with some growers cutting rates,” said one regional contact.

Pacific Northwest:

The MAP market in late June remained at $737/st FOB Aurora, $740/st DEL in Washington, Oregon, and Nevada, and $730/st DEL in Idaho, Utah, and Montana.

Western Canada:

MAP pricing in Western Canada was quoted at C$950-$975/mt FOB, up roughly C$20/mt, with reports of delivered offers in the C$975-$1,030/mt range, depending on location.

Saudi Arabia:

Recent Saudi Arabia phosphate exports were heard firming to $565-$580/mt FOB, up from $555-$580/mt FOB at last report.

China:

Prices for DAP held steady in the $580s/mt FOB, even as some producers reportedly were ready to deal in the $570s/mt FOB.

Sources reported that producers sent an ultimatum to India to step up their purchasing. One source said the Indians were told by the Chinese to quickly make a commitment to buy at least 2 million mt for the upcoming season, or face the threat of the added cost of an export tax on the much-needed DAP.

Sources said DAP producers had faced some cutbacks in power as the government diverted resources to the civilian population. Reportedly, more coal and natural gas are now being delivered to China to improve the stability of the power grid. This movement is allowing producers to step up production.

International traders have been frustrated whenever they came looking for DAP. Sources reported that producers were willing to talk, but wound up saying they had no material for sale.

India:

Buyers of international DAP have a problem in India. Anything that is more expensive than $570/mt CFR will end up being a money loser in the Indian market. Sources said the restrictions on how high the price can go and the lack of larger subsidies means the risk of higher priced DAP is firmly on the shoulders of the importers.

In the past, several Indian companies would run tenders and then scrap them. The move was a well-known ploy to negotiate lower prices. This year, however, producers all claim limited supplies at a time of high prices. The buyers have little to hold over the producers to get lower prices.

In addition to facing ever higher costs for DAP, local producers continue to face the problem of higher input costs. The prices of ammonia, phos rock, and sulfur are all going up. Sources said even though the second-quarter talks for phos acid are not yet concluded, the expectation is that prices will jump to $1,004-$1,005/mt CFR.

Even with all the difficulties laid out, the Department of Fertilizer is leaning on the DAP producers to increase production and on importers to secure more tons. Sources estimated DAP supplies are down about 700,000 mt so far this year compared to last year at the same time.

Pakistan:

The Pakistan government said the country imported 93,000 mt of DAP in May. At the same time, they claimed domestic production was at 75,000 mt.

The government said it has enough on hand to start the upcoming application season. They expect demand to be about 1.02 million mt. Supplies of DAP will come from production of 464,000 mt and imports of 676,000 mt.

However, the increasing price of global DAP and of the inputs for domestic production may force the government bean counters to recalculate their situation, said one trader.

Brazil:

The MAP market at Paranagua appears to want to push forward, said one trader, but does not have the strength. Sources put the market at $750-$770/mt FOB, which represents only a small increase in pricing.

There appears to be more strength and demand inland. Prices jumped to $867-$910/mt FOB ex-warehouse, and source said most players are sold out even as demand is steady.