All posts by mickeybarb@charter.net

Governments Partner on Zero Carbon Shipping

Green Ammonia, Hydrogen, News, News Briefs, Scandinavia, U.S.

The governments of Denmark, Norway, and the United States, along with the Global Maritime Forum and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, on June 2 announced that they will lead a new Zero-Emission Shipping Mission as part of Mission Innovation, a global initiative of 24 countries and the European Commission working to accelerate clean energy innovation.

The objective is to help move clean energy solutions from lab to market. Mission Innovation was announced at COP21 on Nov. 30, 2015, as world leaders came together in Paris to commit to ambitious efforts to combat climate change.

The Mission aims to accelerate international public-private collaboration to scale and deploy new green maritime solutions, setting international shipping on an ambitious zero-emission course. The Mission will also be supported by the governments of India, Morocco, the U.K., Singapore, France, Ghana, and South Korea.

“Through fearless technological innovation, ambitious clean energy deployment, and constructive international collaboration, we can build a net-zero carbon economy that creates millions of jobs and lifts our citizens into greater prosperity,” saidJennifer Granholm, U.S. Secretary of Energy.

Carrying 80-90 percent of global trade in a less carbon-intensive manner than other freight transport modes, international maritime shipping nonetheless represents about 2–3 percent of the world’s total annual greenhouse gas emissions. Without immediate and concerted efforts, emissions from the sector could increase between 50-250 percent by 2050.

The three main goals of the Zero-Emission Shipping Mission are: develop, demonstrate, and deploy zero-emission fuels, ships, and fuel infrastructure in a coordinated fashion along the full value chain; by 2030, have ships capable of running on hydrogen-based zero-emission fuels – such as green hydrogen, green ammonia, green methanol, and biofuels – make up at least 5 percent of the global deep-sea fleet measured by fuel consumption; and by 2030, ensure that at least 200 of these well-to-wake zero-emission fueled ships are in service and utilizing these fuels across their main deep sea shipping routes.

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, India, Market Watch, Middle East, North Africa, Northwestern Europe, South Central, Southeast Asia, Southern Plains, Tampa, Turkey, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa:

June Tampa ammonia prices continued to be called $535/mt CFR.

Eastern Cornbelt:

The ammonia market was steady at $615-$625/st FOB in the Eastern Cornbelt, with the low reported at Illinois and Indiana terminals and the high at Lima, Ohio.

Western Cornbelt:

Ammonia pricing was unchanged at $600-$620/st FOB terminals in Iowa and Nebraska, depending on location, with the Palmyra, Mo., market pegged at the $615/st FOB level. Sources also continued to report delivered offers for as low as $585-$590/st into Missouri for limited tons from Oklahoma.

Southern Plains:

Ammonia pricing remained at $575/st FOB Verdigris and Pryor, Okla., with the low end of the regional market pegged at $540/st FOB Enid, Okla., and Beaumont, Texas. The Coffeyville, Kan., market was pegged at $570-$575/st FOB in early June. Sources reported no current truck offers out of Beaumont, Texas.

South Central:

Limited offers for ammonia truck pricing were reported at $575/st FOB El Dorado, Ark., $575-$595/st FOB Memphis, Tenn., $590/st FOB Donaldsonville, La., and $600/st FOB Cherokee, Ala. Sources said the Waggaman, La., plant was planning another restart for the June 1-3 timeframe, but that was not confirmed by press time.

Black Sea:

Ammonia prices remained stable, but with some strong upward pressure. Sources said supplies are limited to covering contracts rather than any new spot deals.

New orders in Asia could push up prices once tons become available for spot sales. Sources said the current price in Asia equates back to a $500-$550/mt FOB level, if any tons were available.

India:

Unconfirmed reports had an India buyer taking a cargo from Algeria at $650/mt CFR. If true, this price would represent a jump of more than $50/mt in the spot ammonia price into India.

There have been reports of Indian buyers looking far and wide for their needed material. International traders said the price is possible given the recent run-up in prices in Southeast Asia and dwindling supplies available from Black Sea and Arab Gulf suppliers.

Middle East:

The Ma’aden shutdown will continue through June, according to international sources. The shortage created by maintenance closure has prompted buyers who normally looked to SABIC and other Arab Gulf suppliers to look farther afield.There are reports that agents for Ma’aden even went looking for ammonia as far away as the U.S. to cover the ammonia needs for its own increased DAP production.

Sources looked at the prices in Asia and estimated the netback to the Arab Gulf at around $550/mt FOB, which represents a steady price from last week.

Northwest Europe:

The ammonia price has held even in the area at $520-$530/mt C&F. Sources pointed to conflicting data to try to discern a path forward.The Baltic price came down to $430/mt FOB, while prices out of Asia and North Africa are showing increases. Traders figure it will take a couple of weeks to sort things out.

Southeast Asia:

A sale into China was reported at $675/mt CFR. Sources said the unconfirmed price indicated a netback to Yuzhnyy of around $550/mt FOB.

The limited ammonia tons out of the Arab Gulf are allowing producers in Malaysia and Indonesia to move up their prices. Adding to the upward pressure are reports that some Indonesian production is down for the next few weeks, further tightening the supply side of the market.

North Africa:

Algeria reportedly sold a cargo to India at an unconfirmed price of $650/mt CFR. The fact that an Indian buyer had to go to Algeria for ammonia was not surprising, as sources noted the limited tons available out of the Arab Gulf and Southeast Asia.

Morocco is reportedly in the market for more material as well. Sources said OCP is looking to step up its DAP production as demand begins to grow.

Turkey:

Ammonia imports for the first four months of the year were down about a third compared to the same period in 2020, according to Trade Data Monitor. Imports for January-April 2021 were pegged at 313,000 mt, compared with 466,000 mt in 2020.

April imports were down about 40 percent, to 71,000 mt from 116,000 mt in April 2020. The main supplier this year was Russia with 33,000 mt, which was down 60 percent from its April 2020 total of 83,000 mt.

Urea

Black Sea, Brazil, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, South Central, Southeast, Southern Plains, Turkey, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf:

NOLA granular urea barges continued to surge to meet demand in the Delta. Loaded barges were called as high as $410-$435/st FOB, with the higher numbers as the week advanced. June barges started the week at $386/st FOB.

Eastern Cornbelt:

Prices were firming for urea, fueled by tightening supply. Sources quoted the low end of the regional urea market at $440-$445/st FOB spot Illinois and Ohio River terminals as the week began, but prices firmed from there. The Cincinnati, Ohio, market had reportedly strengthened to $450-$465/st FOB by midweek, with reports of new offers climbing to $475/st FOB Ottawa, Ill., by June 3.

Western Cornbelt:

The urea market was quoted in a broad range at $425-$475/st FOB during the week, up from the previous week’s $415-$435/st FOB, with the high end of the range reported at Caruthersville, Mo., late in the week. Pricing at St. Louis, Mo., began the week at the $425/st FOB level before firming to $435-$445/st FOB, while terminal values in Iowa were pegged solidly in the $440-$450/st FOB range for June tons.

The St. Paul, Minn., urea market was pegged at $440-$460/st FOB during the week, up from last week’s $425-$440/st FOB range.

Southern Plains:

Urea prices moved up quickly in the Southern Plains during the week. Sources reported the Catoosa/Inola, Okla., market at $445-$460/st FOB at midweek, but some suppliers had reportedly firmed to $475/st FOB by June 3. The Houston, Texas, market was pegged at a solid $445/st FOB, with reports that supply has improved since some spot outages during the third week of May.

South Central:

Urea prices were firming rapidly in the South Central region in early June, with levels up some $30-$40/st since mid-May.

Sources reported the Memphis market firmly at the $445-$450/st FOB level at midweek, while pricing at Little Rock, Ark., and Shreveport, La., moved up to as high as $475/st FOB by June 3. The Convent, La., market firmed as well, to $450/st FOB as the week progressed.

Southeast:

Urea prices in the Southeast were moving up in early June. Sources quoted the Wilmington, N.C., market firmly at the $445/st FOB level at midweek, up $10/st from last report, with no tons available at Savannah, Ga.

Urea pricing at Fairless Hills, Pa., also strengthened to $445/st FOB as the week began, but firmed again on June 2 to $455/st FOB. A third increase was announced on June 3, with the Fairless price moving to $465/st FOB for prompt June tons.

India:

RCF issued letters of intent to buy only 565,000 mt from its recent urea tender. Sources said a combination of high prices and limited tonnage led to the lackluster purchase. The final price agreed to by RCF with the traders is $418/mt CFR for the West Coast and $408.88/mt CFR for the East Coast.

Going into the tender, sources said RCF would need to buy at least 1.5 million mt to ensure sufficient tons in the pipeline for the current application season and to make up for smaller purchases in the first two tenders this year. Sources said the small take almost certainly guarantees another tender will be called in a couple of weeks.

The awards are heavily weighted in favor of West Coast deliveries. At the same time, however, only two of five cargoes originating in China will go to the closer East Coast.

Company Quantity Source Discharge
Koch 60,000 China   East Coast
60,000 East Coast
Ameropa 51,500 Oman West Coast
Swiss Singapore 47,000 China-Indonesia-Oman     West Coast
47,000 West Coast
47,000 West Coast
Samsung 45,000 China-UAE   West Coast
45,000 West Coast
Keytrade 45,000 China West Coast
Dreymoor 52,500 Black Sea West Coast
Amber 65,000 China West Coast

There are reports that only about half of the tons that are slated to come from China have been secured. The remaining tonnage is currently being negotiated with producers, who are looking for a substantial increase in their price.

Traders noted the tender results so far this year are beginning to resemble those of last year, but prices this year are significantly higher. The early May 2020 tender closed at $226-$232/mt CFR. The 2021 early May tender closed at $357-$359/mt CFR. This is in addition to the most recent tender, which has prices not seen for about 13 years.

China:

A strong domestic market is providing support to demands from producers for export prices nearing $400/mt FOB.

Sources said the price of prills and granular for export are pegged at $395/mt FOB, based on prices to local distributors for the domestic market, against prices in the upper-$370s/mt FOB based on the RCF tender numbers.

Besides demand from the domestic market, sources said about half of the tons awarded in the RCF tender slated to come from China were not secured by the time the letters of intent were issued. Now, traders are negotiating with producers, who want to see an increase of about $20/mt in their netback.

There are reports that some producers are holding out for $400/mt FOB, but no one could point to any deals done at that level. One trader noted that it will only be a matter of time, however, adding that the deal will most likely occur in the domestic market rather than for an offshore sale.

Domestic sale prices of granular puts the export price at $390-$395/mt FOB and prills at $385-$390/mt FOB.

Indonesia:

The most recent sale of 40,000 mt of granular urea to Koch at $385/mt FOB will most likely go to Australia. The shipment time of July and the high price makes the cargo unlikely for a sale into India from the most recent tender. Prills settled at $376/mt FOB when Golden Barley took 10,000 mt in the most recent offering.

A new offering tender is expected soon, with a reserve price closer to $400/mt FOB.

Middle East:

The Arab Gulf remains tight on urea. The price from the RCF tender showed a netback in the upper-$380s/mt FOB. Now, sources said prices are in the $390s/mt FOB.

By midweek, Bahrain reportedly sold a cargo at $395/mt FOB for July shipment. Producers are now also demanding $400-$405/mt FOB for any sales of August tons. Reportedly, there are no tons available for June, and July is almost sold out, leading to the producers thinking they can keep pushing up on prices.

Egyptian producers have been able to move their prices up in what sources are calling a sustained and steady manner. Initially, August sales were reported at $405-$412/mt FOB. By the end of the week, however, those same prices were being used to settle July shipments. Prills were being sold at $400/mt FOB and granular deals at $412/mt FOB for July loadings.

Sources said demand from Europe and Latin America appears to be the main driving forces in the Egyptian prices. To back up that view, sources also reported that Algeria sold a cargo, possibly for Europe, at $408/mt FOB for early August loading.

A declaration by the Egyptian government to limit exports for June through August could affect product availability and strengthen prices. The announcement by the Egyptian Minister of Trade and Industry extended an existing policy designed to ensure that the domestic market is covered before any exports are booked. One trader said the move could tighten supply for a urea-hungry global market.

Sources said the urea producers will be required to supply at least 323,000 mt each month through the summer to domestic outlets. The estimated output of the operating plants is about 535,000 mt/month, which leaves around 212,000 mt/month for exports.

A tax of $38-$40/mt will be imposed on any exported material if a company does not supply its quota to the domestic market. It was unclear from the government statement how these numbers will be divided among the various producers. Sources in Egypt and Asia were also unsure how the policy will be enforced.

Black Sea:

Urea remains tight out of Yuzhnyy. One cargo from the Black Sea is slated to cover an award in the RCF India tender. Sources said at current freight rates, the netback remains in the upper-$360s/mt FOB.

Turkey:

January-April 2021 urea imports were down about 19 percent, to 1.05 million mt from 1.3 million mt during the same period last year. The top three suppliers so far this year are Oman at 452,000 mt, Egypt at 314,000 mt, and Iran at 114,000 mt.

April imports this year were also down, to 290,000 mt from 319,000 mt in April 2020. While April imports were up from Oman and Iran, the monthly total from Egypt slipped to 50,000 mt, well below its April 2020 total of 217,000 mt.

Brazil:

Urea prices edged up at Paranagua to $420-$440/mt CFR, even as steady shipments of imported product arrive. Sources in Europe and Asia are keeping an eye on the Brazilian market as an indicator of further movement in the global market. Sources noted that the paper market for Paranagua has now moved to $465/mt CFR for July.

Rondonopolis softened to $505-$560/mt FOB ex-warehouse. The roughly $20/mt drop from last week was largely attributed to the market taking a pause as buyers and sellers reassess their situation following the India urea tender and shifting grain prices.

UAN

Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf:

The NOLA barge market continued to be put at $300/st ($9.38/unit) FOB, with strong inland demand and pricing reported.

Eastern Cornbelt:

The UAN-32 market ranged broadly from $335-$365/st ($10.47-$11.41/unit) FOB in the Eastern Cornbelt, with the low confirmed at LaSalle, Ill., and the high reported by southern Indiana sources out of spot Ohio River locations. Sources said demand was brisk for corn sidedressing. “The upriver and inland basis will widen as tons get tight,” said one contact.

The Cincinnati market remained at $347-$352/st ($10.84-$11.00/unit) FOB for UAN-32 and $298-$307/st ($10.64-$10.96/unit) FOB for UAN-28.

Western Cornbelt:

The UAN-32 market remained at $335-$355/st ($10.47-$11.09/unit) FOB in the Western Cornbelt, depending on location, with the St. Louis price pegged solidly at the $345-$350/st ($10.78-$10.94/unit) FOB level at midweek. Sources reported brisk sidedress applications taking place in Iowa, Nebraska, and Missouri in early June.

Sources said CF is currently not taking new UAN orders for June shipment at Port Neal, Iowa, and has also shut off urea truck shipments at that location. While some speculated that the facilities urea granular plant is down for a turnaround, that was not confirmed.

Southern Plains:

The UAN-32 market was quoted at $340-$350/st ($10-63-$10.94/unit) FOB Oklahoma production points, with the low at Woodward and the high at Verdigris. The Coffeyville, Kan., price reportedly firmed from $335-$340/st ($10.47-$10.63unit) up to $345-$350/st ($10.78-$10.94/unit) FOB late in the week amid reports of brisk sidedress demand in Kansas.

South Central:

The UAN-32 market in the South Central region was firming, with new spot pricing pegged at $345-$355/st ($10.78-$11.09/unit) FOB terminals, up some $20/st from mid-May.

Southeast:

The UAN-32 market was quoted at $315-$325/st ($9.84-$10.16/unit) FOB terminals in the Southeast, with the low out of inland tanks in Georgia and the high FOB Wilmington and other port terminals.

Ammonium Nitrate

Ammonium Nitrate, France, Market Watch, South Central, Southeast, Southern Plains, Western Cornbelt

Western Cornbelt:

Ammonium nitrate pricing was quoted at $450-$460/st FOB in the Western Cornbelt, where available.

Southern Plains:

The ammonium nitrate market in early June was quoted at $425/st FOB Muskogee, Okla., down $30-$35/st from last report.

South Central:

The ammonium nitrate market was pegged at $435-$440/st FOB in the South Central region, with the low reported at Shreveport and the high for allocated tons at Yazoo City, Miss.

Southeast:

The Tampa ammonium nitrate market had reportedly softened to $340/st FOB in early June.

France:

Yara on June 1 posted a new list price for its ammonium nitrate 33.5 percent (YaraBelaExtran33.5) in France, setting the new level at €340/mt bulk CPT for July deliveries, effective immediately. The new posting marks a €15/mt increase on Yara’s last list price for June deliveries, announced on May 21 (GM May 21, p. 8).

Once again, Yara warned only limited volumes would be available for July delivery.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains, Turkey, U.S. Gulf, Western Cornbelt

U.S. Gulf:

Ammonium sulfate barge prices continued to strengthen, with the last done business called $280-$290/st FOB, up from the week-ago $275-$290/st FOB. Sources said supplies were very tight.

Eastern Cornbelt:

AdvanSix issued a fill program for ammonium sulfate in the Midwest and Plains regions, with a June 1-4 order period and pricing at $285/st FOB river terminals with limited availability. Inland warehouses were priced at a traditional spread to the river. The company said product availability under this program will not begin until after July 1.

Sources quoted prompt ammonium sulfate pricing in the $305-$315/st FOB range out of most river terminals in the Eastern Cornbelt. The last postings from Interoceanic (IOC) on May 26 included $325/st FOB Upper Mississippi and Illinois River terminals, and $330/st FOB Ohio River terminals.

Western Cornbelt:

AdvanSix was out with an ammonium sulfate fill program at $285/st FOB Midwest river terminals for June 1-4 orders, with delivery slated for after July 1. Prompt ammonium sulfate remained in a broad range at $300-$350/st FOB in the Western Cornbelt, with the low reported at Caruthersville and the high reflecting IOC’s May 26 posting at Sioux City, Iowa. The market FOB Camanche, Iowa, was steady at the $315/st level for June-July tons.

Southern Plains:

Granular ammonium sulfate pricing was pegged at $290/st FOB Catoosa/Inola, $295/st FOB Houston, and $290-$300/st FOB Freeport, Texas. May 26 postings from IOC included $295/st FOB Houston and $325/st rail-DEL in the Southern Plains, which were unchanged from the company’s May 3 reference prices.

South Central:

Ammonium sulfate terminal prices in the South Central region were quoted at $290-$310/st FOB, up from $285-$300/st FOB previously, with the low at Memphis and the high reported by Kentucky sources out of spot Ohio River locations. The market FOB Little Rock and Shreveport was pegged solidly at the $300/st FOB level in early June.

New ammonium sulfate postings from IOC on May 26 included $320/st FOB Delta terminals, up $20/st from the previous list price.

“We continue to see strong and heavy shipments on ammonium sulfate and urea as sidedress/topdress is in full force now,” said one regional contact.

Southeast:

Granular ammonium sulfate remained at $300/st FOB Hopewell, Va., with mid-grade referenced at $280/st FOB and standard at $260/st FOB Hopewell. IOC on May 26 raised its posted price to $325/st FOB Tampa, Fla., up $15/st from its May 3 reference price. Delivered pricing in Florida remained at $290/st for standard and $340/st for granular.

China:

Prices remain steady in the low-$160s/mt FOB for caprolactam grade ammonium sulfate. Sources said the price is largely being fixed by the steady price paid by Southeast Asian buyers.

Fluctuations in pricing seem to be coming from shifts in the freight rates. Sources said rates are centered on $40/mt for the region, but buyers of smaller lots or those requiring multiple port visits end up paying a bit more.

Brazil:

Granular amsul at Paranagua was quoted at $235-$250/mt CFR, up slightly at the high end of the range. Sources said demand is steady, as is supply at the ports.The inland price also remained steady, with Rondonopolis pegged at $345-$355/mt FOB ex-warehouse.

Demand for amsul in Brazil could pick up if urea prices continue their upward trajectory as blenders look for alternative nitrogen content.

Turkey:

First-quarter ammonium sulfate imports more than doubled in Turkey, according to Trade Data Monitor, to 380,000 mt from 184,000 mt in January-April 2020. China was the main supplier in 2021 with 267,000 mt, compared to only 322 mt last year.

April imports were also up dramatically, at 115,000 mt compared with 34,000 mt in April 2020. Chinese suppliers dominated the market again with 95,000 mt in April 2021.

Saskatchewan Co-ops Propose Merger

News, News Briefs, Saskatchewan

Two Saskatchewan cooperatives have announced merger plans. Borderland Co-op, a retail business with grocery, home center, and convenience store/gas bar locations in Rocanville, Moosomin, and Whitewood, has proposed a merger with Hometown Co-op, a retail business offering food, fuel, and agronomy services to members and customers in Kipling, Grenfell, Sintaluta, and Broadview.

“The decision to amalgamate will ensure a strong, vibrant, and innovative co-op exists in our rural communities,” said Rob Hill, President of the Borderland Board. “Both co-ops complement each other very well.”

“I see endless opportunities ahead for this new partnership,” added Lawrence Swanson, President of the Hometown Board. “Stability, opportunities for growth, and efficiencies in all commodities that will make the member experience stronger and more rewarding across all communities we serve.”

The two businesses said a combined organization will be more resilient to increased competition, provide efficiencies in operations that would save C$100,000 per year, and have more resources and talent to innovate. The two companies already have a management agreement that was established in March 2020 following two years of significant restructuring at Hometown. Both are members of Canada’s Co-operative Retailing System, a network of retail co-ops across Western Canada that operate under the Co-op® brand.

Borderland has 218 employees and 7,800 members, while Hometown has 86 employees and 5,200 members. The merged organization will continue under the Borderland Co-op name, with more than 13,000 members and annual combined sales of more than C$110 million. The unified company will serve eight communities from more than 19 locations. The companies said no jobs would be lost as a result of the merger.

“The board has elected to stay with the name Borderland Co-op if the two should merge simply due to brand recognition and cost of renaming,” said Jason Schenn, CEO of Borderland and General Manager of Hometown. The Borderland name has been in use since 1973, and the cost to rebrand all Hometown assets was estimated at only C$38,000, versus C$170,000 to convert all assets to a new name.

Informational meeting and voting are scheduled on June 7 in Broadview for Hometown members, and on June 8 in Moosomin for Borderland members. If the merger is approved with a two-thirds majority, the proposed starting date of the new co-op will be Oct. 10. The combined board would consist of 11 members for the first year and then go to nine following the expiry of the first term.

DAP/MAP

Bangladesh, Brazil, Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Market Watch, Saudi Arabia, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

Central Florida DAP trucks were reported firming to $595/st FOB for the week, increasing from $590/mt FOB in the prior report. Truck-loaded MAP postings climbed to $630/st FOB, up from $615/st FOB posted previously.

U.S. Gulf:

A reported quiet week of NOLA phosphate barge trading did little to slow the market’s continued upward momentum, sources said.

Prices of DAP and MAP firmed despite the reduced trade volume, with DAP barges lifting to a $590/st FOB high from the week-ago top of $585/st FOB. Imports offered and traded early in the week were even with the week-ago $580/st FOB floor, but offers lifted to $595/st FOB on June 3, sources said.

A rumored DAP barge trade at $596/st FOB remained unverified on June 3, although sources confirmed DAP paper trading at “higher and higher” levels for July and August.

Propelled by ongoing supply woes, MAP barges made larger strides, firming to a reported $630/st FOB floor from the prior week’s $610/st FOB. Sources noted concluded pricing up to $645/st FOB, up $10/st from the week-ago top.

The NOLA DAP market was quoted in the $580-$590/st FOB range for the week, rising from $580-$585/st FOB in the prior report. MAP lifted to $630-$645/st FOB, up from $610-$635/st FOB.

U.S. Exports:

Despite a lack of new reported spot cargoes loading from the U.S. Gulf, sources noted export price ideas firming to a minimum $590-$595/mt FOB based on recent increases in the Latin American markets. Additional firming could be expected, sources said, should the international markets continue on their current trajectory. Gulf exports were previously published at $583/mt FOB.

Eastern Cornbelt:

Phosphate prices continued to firm in the Eastern Cornbelt. DAP was pegged in the $630-$650/st FOB range, up $10/st at the higher end, with the Cincinnati market quoted at $635-$645/st FOB. MAP edged up to $660-$680/st FOB in early June, also up $10/st at the high end of the range, with the Cincinnati market pegged at $665-$675/st FOB.

Western Cornbelt:

DAP and MAP prices continued to strengthen in the Western Cornbelt, with the DAP market pegged at $620-$630/st FOB, up another $5/st from last report.

MAP was quoted at $650-$675/st FOB in the Western Cornbelt, up $10/st at the top of the range, with both the high and low reported at St. Louis as the week progressed. The Camanche MAP market was reported solidly at the $665/st FOB level for new offers.

The St. Paul, Minn., market was reported at $625-$630/st FOB for DAP and $650-$686/st FOB for MAP, with MAP pricing up some $20/st at the high end of the range.

Southern Plains:

While the low end of the Southern Plains DAP market remained at $615/st FOB Houston, sources pegged the Catoosa/Inola range significantly higher at $625-$645/st FOB.

The MAP range was even wider, stretching from a low of $630/st FOB Houston to a high of $680-$685/st FOB Catoosa/Inola. Sources said the Catoosa/Inola MAP market started the week at the $650/st FOB level before climbing into the low-$680s/st FOB for confirmed sales.

South Central:

The phosphate market continued to strengthen in the South Central region. DAP was quoted at $610-$630/st FOB regional terminals, up $15-$30/st from last report, with the low at Memphis and the high at Shreveport. Pricing out of Little Rock was quoted firmly at the $625/st FOB level at midweek.

Southeast:

Nutrien’s prices at Aurora, N.C., remained at $605/st FOB for both DAP and MAP. The company confirmed that Aurora is currently on an annual acid plant turnaround from late-May into June, which is normally done in advance of a June liquid program.

Saudi Arabia:

Phosphates produced in Saudi Arabia continued to be reported in the $545-$565/mt FOB range, unmoved from the previous week.

China:

The price for DAP remains in the upper-$540s/mt FOB. However, that is expected to shift as demand appears to be picking up in India, Pakistan, and Latin America. Sources said producers are now saying bids can’t be lower than $550/mt FOB, but no one is biting so far.

A reported deal into Pakistan at $583/mt CFR to multiple buyers appears to back up a price level just under $550/mt FOB.

India:

Sources are reporting a DAP deal between an Indian buyer and OCP/Morocco at $573/mt CFR. This price would match up with the current Chinese DAP price in the $540s/mt FOB. Buyers are slowly beginning to prepare for more DAP purchases, and sources expect to see more inquiries coming soon.

Bangladesh:

A BCIC tender closed on June 3 for 700,000 mt of DAP to be shipped between July and October. The buyer wanted the material in 40,000 mt lots spread out over the four months.

The company received about 50 offers. Rather than take a counterbid off the lowest offer for just one price, BCIC works its way up the offers until it achieves the desired tonnage. In this case, after 18 offers, BCIC achieved 720,000 mt with prices ranging from $585.89-$599.42/mt CFR. The bulk of the offers appear to come from Chinese suppliers.

Offering Company Quantity (mt) US$/mt CFR bagged Origin
Bongo Traders Ltd 40,000 585.89 China
Asia One Trading Co. 40,000 588.13 China
Direct Trading Co. Ltd 40,000 588.85 China
Daily Trading Co. Ltd. 40,000 589.16 China
OF Ent. 40,000 593.40 China
Uttara Trade Ltd. 40,000 595.25
Rafiqul Islam 40,000 598.25
NH Trade 40,000 598.40 China/Jordan
Mosharaf & Brothers 40,000 598.67
Araiging Trade 40,000 598.90
Sun Shing Ltd 40,000 598.90
Afroze Trade Agency 40,000 599.00 China
Desh Trading 40,000 599.10 China-Morocco-Jordan
Bulk Trade 40,000 599.20 China
Nazneen 40,000 599.25 China
Asfaq Enterprise 40,000 599.30
Millennium 40,000 599.40 China/Jordan
Rafi Enterprise 40,000 599.42

Brazil:

MAP prices in Brazil picked up as supply dwindled. Sources in Brazil called the market $660-$680/mt CFR, up about $20/mt from last week. European traders agreed the price went up at Paranagua, but capped the upper end of the range at $670/mt FOB. Traders around the globe agreed that sellers were pushing for $700/mt CFR and will probably get it soon.

All the excitement in pricing was in the port cities. Sources reported the Rondonopolis MAP market steady at $730-$760/mt FOB ex-warehouse, with most of the activity at the upper end of the range. Sources said limited sales accounted for the lackluster movement in prices.

TSP

Bangladesh, Market Watch, South Central, Triple Superphosphate, U.S. Gulf, Western Cornbelt

U.S. Gulf:

TSP barges were quoted firming to $540-$545/st FOB for the week, up from $525-$540/st FOB reported previously.

Western Cornbelt:

The TSP market was quoted at a firm $550-$570/st FOB in the Western Cornbelt.

South Central:

TSP in the South Central region was quoted in a broad range at $540-$570/st FOB in early June, with the low at Memphis and the high reported in the Arkansas market. Multiple locations were out of product, however.

Bangladesh:

BCIC closed a tender for 200,000 mt of TSP to be delivered in 30,000 mt lots through October 2021.All told, BCIC received 18 offers totaling 348,500 mt. The company followed its traditional practice of accepting the offers from the lowest price on up until it reached the requested tonnage. In this case, it stopped after 12 companies and 216,000 mt.

Offering Company Quantity (mt) US$/mt CFR Bagged
Ratna Enterprise 15,000 619.00
Bulk Trade Int 15,000 619.00
Saifullah Gulf 30,000 621.97
Desh Trading Corp. 30,000 626.75
Alif Trading 2,500 629.75
Faiz Trade Intl 14,000 629.91
Sufala Trading Comp. 13,000 629.93
Azmain Corporation 1,500 630.00
M/S. Kamru Enterprise 15,000 631.00
NH Trade Intl 30,000 633.75
Taiba Saifullah GM 30,000 649.50
Neepa Enterprise 20,000 651.10

Phosphoric Acid

Bangladesh, Eastern Cornbelt, India, Market Watch, Phosphoric Acid, Southern Plains, Western Cornbelt

Eastern Cornbelt:

Phos acid was down $0.95/unit for June pricing, to $13.00/unit rail-DEL in Illinois and $13.15/unit rail-DEL in Ohio.

Western Cornbelt:

Phos acid pricing for June was down $0.95/unit from May, to $12.90/unit rail-DEL in Nebraska, Missouri, and Iowa; $13.00/unit rail-DEL in Minnesota and Wisconsin; and $13.15/unit rail-DEL in the Dakotas.

Southern Plains:

The phos acid market for June tons was down $0.95/unit from May, to $12.90/unit rail-DEL in Colorado, Kansas, and New Mexico, and $13.00/unit rail-DEL in Texas and Louisiana.

India:

Phosphoric acid contracts at India were confirmed at $998/mt P2O5 CFR for the second quarter, up $203/mt from $795/mt CFR in the first quarter.

Sources said talks are still going on to set the third-quarter price. Traders said not much progress was made from last week, with just a couple of dollars separating the two sides. Some sources said they expect to see the settled price come out just under $1,005/mt CFR.

Bangladesh:

A phos acid tender showed a much higher equivalent price than other buyers in the area would like. Sources pegged the final price at $1,250/mt CFR.

In the Bangladesh case, however, sources said the discussions were with Vietnam – not Morocco – and for far fewer tons than India, and therefore with higher freight rates attached.