All posts by mickeybarb@charter.net

Ammonium Nitrate

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

U.S. Imports:

April ammonium nitrate imports were noted at 81,005 st, firming 150.7 percent from the year-ago 32,314 st. July-April totals stood at 260,048 st, however, down 28.4 percent from the year-ago 363,076 st.

U.S. Exports:

April exports of ammonium nitrate firmed 101.9 percent, to 72,746 st from the year-ago 36,022 st. July-April exports totaled 578,952 st, a 57.7 percent increase from the year-ago 367,186 st.

Western Cornbelt:

Ammonium nitrate pricing was quoted at a nominal $450-$460/st FOB in the Western Cornbelt for the last offers.

Ammonium Sulfate

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

U.S. Gulf:

Ammonium sulfate barge prices continued to firm, with new trades reported in the $290-$300/st FOB range, up from $285-$300/st FOB. Product remained in very short supply.

U.S. Imports:

July-April ammonium sulfate imports totaled 867,934 st, rising 51.8 percent from the year-ago 571,818 st. April imports dipped 9.7 percent, however, to 135,623 st from 150,244 st in the prior year.

Canada led importers in the July-April period with 431,163 st, up 48.3 percent from the prior-year 290,793 st, while material loading from Belgium totaled 191,885 for the same period, a 43.0 percent increase from 134,207 st in the prior year. Russian tons totaled 97,191 st, up 70.6 percent from the year-ago 56,967 st.

U.S. Exports:

Ammonium sulfate exports firmed 1.8 percent in July-April, to 520,004 st from the year-ago 510,795 st. April totals were up 550.2 percent year-over-year, to 50,392 st from 7,750 st.

Eastern Cornbelt:

Granular ammonium sulfate pricing remained in the $305-$350/st FOB range in the Eastern Cornbelt, depending on location, with the low reflecting the latest Midwest river terminal postings from AdvanSix. Specific regional terminal quotes in mid-June included $320/st FOB East Dubuque, $325/st FOB Ottawa, and $350/st FOB Cincinnati for domestic tons.

Western Cornbelt:

Ammonium sulfate prices were steady at $305-$350/st FOB in the Western Cornbelt, with the low reflecting the latest river terminal pricing from AdvanSix and the high reported at Sioux City, Iowa. The St. Louis and Camanche markets remained at the $320/st FOB level at mid-month.

Northern Plains:

The granular ammonium sulfate market was quoted at $350-$360/st DEL for prompt tons in the Northern Plains, with reports of fill offers circulating in the $310-$325/st DEL range. The St. Paul market was pegged at $300-$325/st FOB at mid-month, with reference pricing FOB Sioux City quoted at the $350/st level.

Great Lakes:

Ammonium sulfate pricing in the Great Lakes region had strengthened to $345-$370/st FOB, up $10/st at the high end of the range, with the low confirmed at Burns Harbor and the high at Webberville. The market FOB Maumee, Ohio, was reported at the $360/st FOB level in mid-June.

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, Ohio. Delivered pricing ranged from $340-$345/st in the region.

Eastern Canada:

Granular ammonium sulfate pricing in Eastern Canada was steady at C$459-$515/mt FOB in mid-June, unchanged from last report. Sources reported very limited supply, with a fill program expected in July.

China:

The rising price of urea has hit the amsul market in China. Sources said NPK producers in Asia have given up on looking for deals in the urea market and have settled on buying more ammonium sulfate. The result was an explosion in pricing.

Haili in China held an auction for 10,000 mt of caprolactam grade ammonium sulfate for July shipment. The tender closed on June 16 at a price of $180/mt FOB, reflecting a $20/mt jump from last week.Concurrent to the Haili business, Luxi sold a cargo of 3,000 mt of capro grade at $190/mt FOB.

As the week ended, sources said talks for additional cargoes were all focusing on $200/mt FOB and up. Traders said they heard of deals being done at that level, but could offer no details.

The demand for amsul by NPK producers is not limited to China. Sources said producers throughout Southeast Asia are looking for amsul to replace the more expensive urea. Buyers in Indonesia and Malaysia are being hit twice. Sources said not only is the price of amsul going up, but the freight continues to bedevil buyers with higher rates.

Brazil:

Granular ammonium sulfate in Brazil has moved up more than $15/mt, to $255-$285/mt CFR in Paranagua. International traders said they were not surprised by the jump in the Brazilian price after seeing what happened in China during the week.

Even as Paranagua showed a big step higher, the Rondonopolis price took a slight dip to $330-$404/mt FOB ex-warehouse. The drop of $20/mt across the range showed how the market is in a state of flux, said sources.

DAP/MAP

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

Central Florida:

Central Florida DAP trucks were quoted at $620/st FOB for the week, rising from $605/st FOB in the prior report. Truck-loaded MAP was posted at $655/st FOB Central Florida, increasing from the week-ago $645/st FOB. MAP trucks loading from North Florida were posted at $620/mt FOB.

U.S. Gulf:

NOLA DAP values pressed higher for the week, driven by ongoing supply uncertainty while shrugging off the cooling corn market.

DAP barges were noted moving up to a $615/st FOB floor in an “extremely quiet” market, a lift from the prior-week’s low of $595/st FOB, while trading noted up to $619/st FOB was typically quoted at the top of the range. Whispers of $620/st FOB were routinely floated, although most sources described that as a standing offer not yet traded as of June 17.

Pricing lifted higher at the bottom of the MAP range, with trading of domestically produced tons quoted at $650/st FOB, up $10/st from the week-ago $640. Concluded business was heard up to $655/st FOB, falling from the week-ago $660/st FOB high, while rumored $660-$665/st FOB deals went unconfirmed on June 17.

The NOLA barge DAP market was quoted in the $615-$619/st FOB range for the trading period, increasing from $595-$605/st FOB at last report. MAP barges were generally noted at $650-$655/st FOB, shifting from the prior-week’s $640-$660/st FOB.

U.S. Imports:

July-April DAP imports firmed 28.6 percent year-over-year, to 1.19 million st from 927,348 st. Totals were up 41.6 percent in April, to 171,600 st from the prior 121,192 st.

Saudi Arabia continued to lead July-April importers with 534,149 st, rising 486.2 percent from the year-ago 91,117 st, followed by Jordan’s 284,013 st and Australia’s 181,817 st. U.S. importers sourced zero tons from Jordan and Australia for the same period in 2019-2020.

MAP/Other imports softened 42.2 percent in April, to 107,046 st from the year-ago 185,055 st. Imports were down 42.6 percent for July-April, to 911,628 st from 1.59 million st.

Mexico led July-April MAP imports with 319,442 st, up 363.6 percent from 68,909 st in the prior year. Saudi Arabia’s 201,323 st was 105.6 percent above the year-ago 97,940 st, while 83,962 st from Russia registered 63.1 percent below the prior-year’s 227,743.

U.S. Exports:

April DAP exports softened 6.8 percent, to 74,904 st from the year-ago 80,367 st. July-April exports slid 29.8 percent, to 659,126 st from the prior-year 939,482 st.

April MAP/Other exports totaled 260,992 st, up 2.3 percent from the year-ago 255,011 st. July-April volumes dropped 20.3 percent, however, to 1.95 million st from 2.45 million st.

Mosaic reported a 6,000 mt DAP cargo sold into a single-market destination in Latin America, priced at $650/mt FOB. An additional MAP load weighing in a 5,000 mt was reported selling at $685/mt FOB. Both volumes were scheduled to ship in late July or early August.

Based on reported transactions, the Gulf DAP export market firmed to $650/mt FOB, while MAP exports lifted to $685/mt FOB. Phosphate exports were previously reported at $605/mt FOB.

Eastern Cornbelt:

DAP remained at $635-$650/st FOB in the Eastern Cornbelt, with the lower end of the range confirmed at East Dubuque and LaSalle, Ill. The Cincinnati DAP market was quoted at $640-$650/st FOB, up $5/st from the previous week.

MAP prices firmed to $685-$700/st FOB in the Eastern Cornbelt, up another $10-$15/st, with the low reported at East Dubuque for June-July offers. Other terminal quotes at mid-month included $690/st FOB Ottawa and $690-$700/st FOB Cincinnati.

Western Cornbelt:

DAP pricing firmed to $635-$650/st FOB in the Western Cornbelt, up another $5-$10/st from last report, with both the high and low ends of the range reported in the St. Louis market as the week advanced. Pricing at Camanche and Dubuque, Iowa, was pegged at $640-$645/st FOB.

MAP was quoted in a tight range at $685-$690/st FOB in the region, also up $5-$10/st.

The Catoosa/Inola, Okla., market was pegged at $635-$645/st FOB for DAP and $690 FOB or higher for MAP in mid-June.

Northern Plains:

DAP pricing FOB St. Paul was reported in the $645-650/st FOB range, up another $5-$10/st from last report. MAP was pegged at $690-$700/st FOB St. Paul, also up $5-$10/st, with delivered tons quoted in the $700-$725/st range in central and western North Dakota.

Great Lakes:

Phosphate prices out of Great Lakes region terminals firmed to $650-$655/st FOB for DAP and $690-$710/st FOB for MAP, where available.

Northeast:

DAP prices in the Northeast strengthened to $650/st FOB East Liverpool, up $15/st from last report. The MAP market at East Liverpool surged to $710/st FOB at mid-month, a full $45/st higher than late-May levels. No phosphate tons or pricing were available at Fairless Hills in mid-June.

Eastern Canada:

By far the biggest price jump was reported for MAP in Eastern Canada. Sources quoted a very wide range of C$930-$1,010/mt FOB in mid-June, up a full C$125-$220/mt from early-May levels, depending on location.

As with most other product, some major wholesale suppliers were out of inventory until replacement cargoes arrive later this summer. DAP was reportedly unavailable in Eastern Canada, with no current prices reported.

Saudi Arabia:

Phosphates loading from Saudi Arabia were clocked at $550-$565/mt FOB, unmoved from one week earlier.

India:

Two DAP tenders are expected to offer a snapshot of the explosive market. The first tender by GSFC for 50,000 mt of DAP will close on June 18. The company is asking for delivery by the end of July to a West Coast port.

The other tender, which drew a lot of media attention, is from NFL. It is calling for two cargoes of 50,000 mt each, one to be delivered to a West Coast port and the other to an East Coast port. The tender closes on July 1 with shipment by Aug. 15.

Industry watchers said they do not expect much from the tenders. Availability from China and Arab producers is limited, prompting sources to speculate that the limited offers that might be submitted will reflect dramatically higher prices than currently under discussion.

The current price of $573-$580/mt CFR is no longer seen as viable given the prices being quoted out of China. Sources said the two tendering companies may end up looking at prices closer to $610/mt CFR, but only if China does not impose a rumored export tax on phosphates.

China:

Rumors gained strength during the week that Beijing was getting ready to impose a 50 percent duty on all phosphate exports. The move, like previous export duties imposed by Beijing, is designed to limit exports and support lower prices for the domestic market.

Sources said even without the duty, exports from China are rare. Sources said international traders have repeatedly come up empty in their talks with producers.

That is not to say that an occasional deal can be made, usually directly by a producer with an overseas buyer. Sources reported that YUC closed a DAP deal with a Latin American buyer that showed a netback of $570/mt FOB. The deal came on the heels of reports of smaller deals in the upper-$560s/mt FOB.

The rumors of the export duty, along with pushback from buyers who are not anxious to feed a hot market, have essentially frozen all talks about DAP sales out of China.

Brazil:

Sources reported stable but robust MAP demand in Brazil.

Paranagua is reported at $735-$750/mt CFR after deals last week shot past the $700/mt CFR mark. Sources said most of the business being conclude was in the $745-$750/mt CFR range as the week ended, leading observers to speculate that the price increases have not stopped.

The strong price in Brazil appears to have attracted some Chinese MAP. Sources said deals are being done for 11-44-0 MAP at a lower price than the 12-52-0 MAP offered by other suppliers.

Rondonopolis is showing a tighter price range. The lower end of the scale came up from last week to create a range of $843-$920/mt FOB ex-warehouse.

Phosphate Rock

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

U.S. Imports:

Imports of phosphate rock were up 343.5 percent for April, to 242,355 st from the year-ago 54,642 st. July-April totals firmed 52.7 percent, to 2.61 million st from the prior-year 1.71 million st.

India:

FACT on June 18 closed a tender for the supply of 40,000 mt of phosphate rock (minimum 31.75 percent P2O5) for arrival at Cochin on Aug. 7-14 (GM June 11, p. 12).

Phosphoric Acid

Eastern Cornbelt, Great Lakes, India, Market Watch, Phosphoric Acid, U.S. Exports, Western Cornbelt

U.S. Exports:

Phosphoric acid exports for April totaled 3,481 st, off 21.6 percent from the year-ago 4,438 st. July-April shipments fell 39.4 percent, to 156,435 st from 257,934 st one year earlier.

Eastern Cornbelt:

Phos acid was unchanged at $13.00/unit rail-DEL in Illinois and $13.15/unit rail-DEL in Ohio for June tons.

Western Cornbelt:

Phos acid pricing for June remained at $12.90/unit rail-DEL in Nebraska, Missouri, and Iowa.

Northern Plains:

Phos acid pricing for June was quoted at $13.00/unit rail-DEL in Minnesota and Wisconsin, and $13.15/unit rail-DEL in the Dakotas.

Great Lakes:

The phos acid market was pegged at $13.00-$13.15/unit rail-DEL in the Great Lakes region for June tons, with the lower end of the range confirmed in Wisconsin.

India:

Phosphoric acid shipped to India was contracted at $998/mt CFR for delivery in the second quarter, a $203/mt increase compared with the first quarter’s $795/mt CFR agreement.

Talks are continuing on third-quarter pricing. Sources said the gap is only a few dollars at this point, but still at high levels. Observers said the range under discussion is $1,000-$1,004/mt CFR.

The Indians, hoping for something lower than $1,000/mt CFR, had their hopes crushed late last week when Bangladesh had to scrap its tender for phos acid because no one offered tons.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Great Lakes, 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, depending on location.

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.

Great Lakes:

The 10-34-0 market remained at $585-$600/st FOB in the Great Lakes region for the last reported business.

Northeast:

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

Muriate of Potash

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

U.S. Gulf:

NOLA potash barge price ideas continued to shoot up. All contacts reported no near-term material available. The closest and most consistent pricing was for September-October and was reported at $455/st FOB, if not higher. That number equates to the lower end of the current Brazil range of $500-$515/mt CFR. Sources speculated that if there was indeed a prompt barge to be had, it would likely go for a higher number.

The week-ago price was tagged as $400/st FOB, which came after Mosaic announced it would be cutting production by some 1 million mt through March 2022.

U.S. Imports:

MOP imports lifted 12.8 percent for the July-April period, totaling 11.91 million st versus the year-ago 10.56 million st. April imports rose 4.0 percent, to 1.61 million st from the year-ago 1.55 million st.

Imports from Canada led the fertilizer year-to-date with 9.36 million st, a 3.2 percent increase from the year-ago 9.06 million st. Russia’s 1.30 million st July-April total was 74.5 percent higher than the prior-year 747,439 st, while tons loading from Belarus firmed 31.1 percent, to 713,953 st from the year-ago 544,705 st.

Eastern Cornbelt:

Potash prices in the Eastern Cornbelt firmed again at mid-month. The market rose to $450-$485/st FOB in the region, up from the prior week’s $425-$450/st FOB, with the high reported out of inland warehouses on a spot basis.

River terminal prices at mid-month included $450-$460/st FOB Cincinnati, and $465/st FOB Ottawa and East Dubuque for limited tons.

Western Cornbelt:

Sources quoted potash pricing at $450-$465/st FOB in the Western Cornbelt, up $5-$25/st from last report, with the low reported at St. Louis and the high at Camanche.

Northern Plains:

Sources quoted the potash market at a firm $490-$500/st FOB St. Paul during the week, up some $50/st from the previous week and a full $110/st higher than late-May levels. The market to U.S. buyers FOB Saskatchewan mines was pegged at $410-$420/st after netbacks, depending on grade, reflecting another $20/st increase from the prior week.

Great Lakes:

The potash market firmed to $485-$505/st FOB for limited supply in the Great Lakes region, with the low reported in Wisconsin and the high in Michigan.

Northeast:

The last potash prices were confirmed at $465/st FOB East Liverpool, up dramatically from $390-$415/st FOB in late May, but suppliers had reportedly pulled offers at both East Liverpool and Fairless Hills in mid-June. Sources said they expected some resupply by the end of the week, but no new prices were reported.

Eastern Canada:

Sources pegged the potash market firmly at the C$560/mt level FOB regional warehouses in Eastern Canada.

India:

FACT on June 15 called a tender for the purchase of one shipment of 40,000 mt of red/pink standard potash for arrival at Tuticorin port on Aug. 1-31. The tender closes on June 29.

RCF last month awarded its full May 3 tender tonnage of 105,000 mt of standard potash to Belarus Potash Co. (BPC) at a price level reported to be above India’s current contract price of $280/mt CFR (GM May 21, p. 16).

Brazil:

Sources reported small potash deals at Paranagua at higher prices. Deals throughout the week were reported at $500-$505/mt CFR. As the week closed, however, a sale was confirmed at $515/mt CFR.

Traders complain of limited tonnage on hand to trade. Some have accused suppliers of holding back shipments to boost prices, and then swooping in to nail down a higher price with material still on a ship about to be unloaded.

Rondonopolis MOP jumped to $540-$625/mt FOB ex-warehouse. The move showed an increase of $45/mt on the upper end of the previous price range and a more dramatic $80/mt on the lower end. Sources said the emphasis by the end of the week was all at the upper end.

Turkey Targets Bagfas Due to Pollution

Calcium Ammonium Nitrate, News, News Briefs, Turkey

Turkey suspended output from major fertilizer maker Bagfas Bandirma Gubre Fabrikalari AS for failing to meet adequate environmental standards in the Sea of Marmara, according to Bloomberg, citing an announcement by the Ministry of Environment and Urbanization on June 13. However, Bagfas quickly appealed the government decision, and has been given 50 days before having to halt production.

On June 16, Bloomberg reported that Bagfas shares dropped 10 percent after Borsa Istanbul on June 14 excluded the company from its indexes and put it on a watch list following the suspension news.

The government’s move follows allegations that Istanbul-based Bagfas was pouring waste into the sea. Turkey is stepping up its efforts to fight the accumulation of sea snot, a slimy layer of gray sludge at the surface of the water.

Bagfas Chairman Kemal Gencer denied the allegations in an interview with Bloomberg, saying the company only used sea water for cooling purposes and discharged the same water back to the sea, albeit at a higher temperature.

Sea snot, or marine mucilage, is spreading because of rising sea temperatures, pollution, and high amounts of nitrogen and phosphorus, said Environment and Urbanization Minister Murat Kurum. The substance is generally not harmful, but can become so thick that it suffocates marine life below.

Bagfas is a major producer of calcium ammonium nitrate and is involved in the import/export and distribution of a long list of fertilizer products, including DAP, ammonium sulfate, NPKs and raw materials.

Sulfur

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

Tampa:

With the dawn of the third quarter just weeks away, market speculation on the potential valuation of Q3 Tampa molten sulfur contracts was heating up.

Most sources speculated that an increase on the second-quarter $192/lt CFR contract was imminent, propelled by neutral-to-firm international pricing throughout the second quarter, low reported port sulfur inventories at China, lingering COVID-driven supply tightness in the U.S. markets, and increasing international and domestic freight rates.

Potential drags on the market included continued increases in domestic refinery operation that have potentially alleviated a supply crunch felt in the market since early in the COVID-19 pandemic, as well as the potential implications of rising freight costs, particularly should production rates of either finished goods or feedstocks be impacted.

While some argued a rollover from Q2 levels was possible, most agreed a potential increase of $0-$10/lt from current levels was likely.

Refining capacity lifted higher for the week ending June 11, according to the U.S. Energy Information Administration. Utilization was noted at 92.6 percent for the period, up 1.3 percent from the prior week’s 91.3 percent. The current numbers outpaced both the year-ago 73.8 percent and the 90.1 percent five-year average.

Crude inputs were noted at an average 16.337 million barrels/d for the period, a 412,000 barrel/d increase from the week-ago 15.925 million barrel/d level.

U.S. Imports:

July-April sulfur imports firmed 3.9 percent year-over-year, to 3.02 million st from 2.91 million st. Imports moved 16.6 percent higher in April, to 334,887 st from the year-ago 287,245 st.

U.S. Exports:

Sulfur exports totaled 66,860 st in April, a 29.0 percent decrease from 94,144 st in April 2020. Exports were counted at 880,435 st in July-April, down 36.1 percent from the year-ago 1.38 million st.

U.S. Gulf:

Price ideas on sulfur cargoes exported from the U.S. Gulf were noted firming to $190-$200/mt FOB based on reported netback potential, up from $180-$190/mt FOB at last report.

Brazil:

Brazil spot imports lifted to a wide $225-$236/mt CFR range, sources said. The market was previously quoted at $218-$222/mt CFR. Players indicated second-quarter contract values in the $213-$214/mt CFR range.

Vancouver:

Vancouver export pricing was reported steady at $178-$180/mt FOB. Rising prices in China and Brazil could draw Vancouver netbacks higher in the next round of business, market players said.

Alberta:

Alberta netbacks continued to track in the $65-$110/mt FOB range, unmoved from the prior report.

West Coast:

Price ideas on prilled sulfur loading from the West Coast were steady at $178-$180/mt FOB. Sources called second-quarter molten contracts $140-$155/lt FOB, increasing from $70-$77/lt FOB in the prior period.

China:

With China sulfur inventories falling below 2 million mt for the first time since second-quarter 2019, spot import pricing was noted firming to the $217-$220/mt CFR range, rising from $210-$215/mt CFR in the prior report.

ADNOC:

Prill offers from the Abu Dhabi National Oil Co. were heard at $185/mt FOB Ruwais for the month of June, up $2/mt from $183/mt FOB one month earlier.

Qatar:

Qatar sulfur pricing stood at $183/mt FOB Ras Laffan for loading in June, unchanged from the previous month.