All posts by mickeybarb@charter.net

Stamicarbon, Shchekinoazot Eye Green Development

Europe, News, News Briefs, Russia

Maire Tecnimont Group, Milan, reported that its Stamicarbon subsidiary and Russian chemical company Shchekinoazot have teamed up to jointly explore, develop, and implement green technologies at Shchekinoazot’s existing and new enterprises in Russia, with the common goal to contribute to sustainable fertilizer production.

Stamicarbon will continue to develop green technologies and will inform Shchekinoazot of their potential application, while Shchekinoazot will explore the introduction of green technologies at its existing plants and new enterprises.

Danakali Orders Reverse Osmosis Plant, Touts Seawater as “Game Changer”

Australia, News, News Briefs, Specialty, Sulfate of Potash

Junior sulfate of potash (SOP) developer Danakali Ltd., Subiaco, Western Australia, which is focused on the development of the Colluli Sulfate of Potash Project in Eritrea, confirmed on May 19 that instructions have been issued to WEC Projects in South Africa to complete reverse osmosis (RO) plant manufacturing and function testing for shipment to Eritrea.

WEC has confirmed that manufacturing of the RO plant will be complete and ready for shipment in three to four months. The total contract value of the RO plant is US$1. 6 million. The company said the RO plant will make fresh water available at the site and is an essential part of the project and its early works program.

In other news, on May 27 Danakali said test work has confirmed that filtered seawater is reliable, unlimited, and an economic option for the project, which can now rely on a combination of a beach well intake, smaller pumping station, and greater renewable energy to pump the water to the SOP processing plant.

“Using filtered seawater as an unlimited input in our production process is not only a world first, but also a long-term game changer,” said Danakali Executive Chairman Seamus Cornelius.

Russia’s Industry & Trade Ministry Says No Signs of Unjustified Fert Price Increases

News, News Briefs, Russia

Russia’s Ministry of Industry and Trade reported early this week that investigations initiated by the country’s Federal Antimonopoly Service (FAS) in certain agricultural regions did not reveal any signs of “an unjustified” increase in fertilizer prices, and consequently, there currently are no reasons for freezing fertilizer prices, Interfax reported, citing the ministry’s press service.

The FAS announced plans in late February to examine the grounds for pricing of mineral fertilizers to the Russian domestic market, following fertilizer price increase concerns by the country’s farmers (GM Feb. 26, p. 37). Russia’s Agriculture Minister in March had proposed a domestic fertilizer price freeze for the country’s planting season (GM March 5, p. 31; March 19, p. 29).

Croatia’s Petrokemija Sees August Completion of Granular CAN Expansion

Calcium Ammonium Nitrate, Europe, News, News Briefs

Croatian Nitrogen and NPK producer Petrokemija d.d expects revamp work at its NPK 1 plant in Kutina to be completed in August. The 15 million kuna (approximately $2.4 million at current exchange rates) project is designed to achieve a 600 mt/d increase in granular CAN production, with the potential to produce a new product containing sulfur.

Blue & Green NH3 Planned for Abu Dhabi

ADNOC - Abu Dhabi, Ammonia, Green Ammonia, News, News Briefs

Both blue and green ammonia projects were announced for Abu Dhabi in the past week. State-owned Abu Dhabi National Oil. Co. (ADNOC) announced that it has awarded a contract for the initial design of a 1 million mt/y blue ammonia plant in the Ta’ziz industrial and chemicals hub in Ruwais. A final investment decision is expected in 2022, with operations targeted to start in 2025.

The oil company said it has signed a number of initial agreements to explore hydrogen supply opportunities with customers in key demand centers, including Japan’s Ministry of Economy, Trade, and Industry, and South Korea’s GB Energy Corp.

In a separate development, Greece’s Helios SA is reported to be planning to build a $1 billion solar-powered hydrogen and ammonia plant in the emirate, to be located in Abu Dhabi’s Khalifa Industrial zone, according to a Bloomberg report, citing state-run Abu Dhabi Ports Co.

The project initially will include 100 MW of solar capacity, increasing to a future 800 MW, according to the report. At peak capacity, the proposed facility will produce 40,000 mt/y of green hydrogen, which will be used to produce 200,000 mt/y of green ammonia. The ammonia will be exported.

Japan’s JERA & IHI Plan Demonstration Project for Ammonia Co-Firing

Ammonia, Japan, News, News Briefs

Japan’s largest power generation company, JERA Co. Inc., and IHI Corp. have received notice of acceptance of their joint grant application to conduct a demonstration project aimed at establishing ammonia co-firing technology by co-firing coal and ammonia at a large-scale commercial coal-fired power plant.

The demonstration project will also evaluate both boiler heat absorption and environmental impact characteristics such as exhaust gases, and will run for approximately four years, from June 2021 to March 2025, JERA said on May 24.

In the project, JERA and IHI plan to demonstrate an ammonia co-firing rate of 20 percent at Unit 4 of JERA’s Hekinan Thermal Power Station (power generation capacity: 1GW) in FY 2024.

JERA is in charge of ammonia procurement and construction of related facilities such as the storage tank and vaporizer, while IHI’s role is to develop the burners to be used in the demonstration. The two companies are moving forward with design and construction.

According to JERA, this is the world’s first demonstration project in which a large amount of ammonia will be co-fired in a large-scale commercial coal-fired power plant.

The grant has been provided under Japan’s New Energy and Industrial Technology Development Organization’s “Development of Technologies for Carbon Recycling and Next-Generation Thermal Power Generation/Research, Development, and Demonstration of Technologies for Ammonia Co-Firing Thermal Power Generation” program.

JERA earlier this month signed a MOU with Yara International ASA, Oslo, to collaborate on the production, delivery, and supply chain development for blue and green ammonia to enable zero-emission thermal power generation in Japan (GM May 14, p. 1).

Bolivia’s YPFB Expects June Restart of Bulo Bulo Plant

Ammonia, News, News Briefs, South America, Urea

Bolivia’s state-owned oil and gas company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), expects the restart of operations at the idled Bulo Bulo ammonia and granular urea plant next month, according to a BNAmericas report, citing YPFB (GM March 26, p. 35; April 2, p. 30). The plant is the country’s only nitrogen fertilizer production facility.

Repairs and commissioning work at the plant, located in the country’s central Cochabamba department, are 85 percent complete, while contracts for the purchase of supplies for the restart of operations are in place, according to the report. Some 200 plant workers have also been re-hired.

According to the report, YPFB said it has received expressions of intent from local producers to purchase more than 20,000 mt of urea, and that international companies from Brazil, Argentina, Paraguay, Peru, and Uruguay are interested in buying up to 1.4 million mt/y once production at Bulo Bulo is ramped up.

During the repair work, the oil and gas company was working with a commercial team “to close some commercial aspects so that when the plant starts to operate again the company can quickly link the commercialization of the urea output.

Bolivia exported 305,040 mt of urea in 2019 and 21,769 mt in 2020, according to Trade Data Monitor statistics. The 2020 export volumes are understood to have come from inventory.

Production at Bulo Bulo was halted in November 2019 (GM Jan. 31, 2020). According to comments in March by YPFB Executive President Wilson Zelaya, the shutdown of operations at the plant was not done according to proper procedures, and resulted in some damage to equipment. He said an adequate hibernation of the plant was not undertaken, nor was proper maintenance performed during the 12 months and more of its shutdown.

Zelaya had put the cost of repairs to the plant at an estimated $53 million.

Started up in September 2017, the Bulo Bulo production facility has nameplate capacity of 2,100 mt/d of granular urea, but has suffered a series of operational problems since start-up.

Ammonia

Ammonia, Black Sea, China, Eastern Cornbelt, Great Lakes, India, Market Watch, Middle East, North Africa, Northern Plains, Northwestern Europe, Southeast Asia, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa:

Tampa ammonia prices for June dropped $10/mt, to $535/mt CFR, down from May’s $545/mt CFR. Sources attributed the decline to more production capacity coming back online within the past month or so.

Eastern Cornbelt:

Ammonia was quoted at $615-$625/st FOB in the Eastern Cornbelt, down from last report, with the low at Kingston Mines, Ill., and Huntington, Ind., and the high at Lima, Ohio. Other Illinois terminals were pegged at $615-$620/st FOB Trilla, Wood River, and Cowden, with Terra Haute, Ind., reported at the $620/st FOB mark.

“The sidedress ammonia market has seen some weakness, but not nearly as much as the last few seasons,” said one contact. “Sidedress is going good, but a majority of that demand is UAN.”

Western Cornbelt:

The ammonia market was quoted 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 Enid, Okla.

Northern Plains:

Ammonia pricing was reported in a narrow range at $640-$650/st FOB regional terminals in late May, depending on availability, with the Velva, N.D., market pegged at the $645/st FOB level. Sources said the last delivered ammonia business was at the $685/st level in the Dakotas, but there was very little demand in late May.

Great Lakes:

Ammonia pricing was pegged at $570-$625/st FOB in the Great Lakes region, with the low quoted by Michigan sources for tons pulled from Courtright, Ont., and the high FOB Lima. The market FOB Huntington remained at the $615/st FOB level in late May.

India:

The FACT ammonia tender closed with only one offering company. Because the buyer needed the ammonia, it accepted the offer. Sources said Trammo will supply two cargoes of 7,500 mt each at $595/mt CFR.

Previous efforts to conclude tenders for this tonnage were scrapped because of the ever-rising price, or because of a lack of participation due to the tightness of supply in the area. This time around, however, sources said Trammo will be able to supply the cargoes for mid-June and early-July deliveries.

Middle East:

The FACT/India tender offered the first opportunity in a long time to see what the spot ammonia market out of the Arab Gulf looks like. The netback from the Indian tender put the Arab Gulf spot price around $550/mt FOB. Sources said the range could be as low as $545/mt FOB, depending on the final freight costs.

There is no guarantee that the ammonia going into the Indian tender will actually come from the Arab Gulf, as some have speculated it could come from Indonesia. Wherever it is sourced, however, the awarding of the tender has now allowed industry watchers to calculate the Arab Gulf spot price more accurately after a lengthy period of no spot deals being done.

Availability of ammonia from the Arab Gulf has been tight for some time. Some plants have experienced production issues, such as the current shutdown of Ma’aden, at a time when demand has been strong. The supply-demand ratio was leaning to more demand than product. Material being sent out of the area was all covered under existing contracts or other long-term pricing plans, leaving the spot market barren.

The tight situation continues to confound the market. Sources reported that at least two contracted cargoes were cancelled because of a lack of available tons. The tightness in the market is expected to continue well into June. Sources said the Ma’aden shutdown is scheduled to continue for at least another four weeks.

Black Sea:

Ammonia prices have not shifted in the area, as supply and demand remains tightly balanced. Sources said the limited tonnage coming out of Yuzhnyy was spoken for long ago.

Northwest Europe:

The ammonia price out of Antwerp remains at $520-$530/mt C&F as European demand parallels supply.

Talks for the June Baltic price have started, with buyers looking to replicate the success of Tampa buyers in getting a $10/mt reduction in the June contract price. However, producers are being equally hard-nosed about the situation. They seem to have dug in their heels on at least rolling over the $450/mt FOB price into June.

North Africa:

Sources said OCP is stepping up its DAP production, which means it needs to draw on more ammonia. So far, it has been able to add to its ammonia supply by buying from other Mediterranean countries.

Reportedly, OCP recently picked up an ammonia cargo from Libya and has also talked with Algerian producers. The Algerians are said to be happy selling their product to the Mediterranean market rather than looking farther afield.

Southeast Asia:

The tightness of the ammonia market is reflected in its steady-to-strong pricing. Sources reported that the main producers in Indonesia and Malaysia have no extra tons for sale through June and possibly into July.

China:

Ammonia imports for January-April were up 29 percent, to 417,000 mt from 324,000 mt during the same period in 2020. The main suppliers for the first four months were Indonesia with 135,000 mt and Saudi Arabia with 101,000 mt.April imports were down nearly by half, to 61,000 from 115,000 in April 2020.

Urea

Black Sea, Brazil, China, Eastern Cornbelt, Eastern Europe, Great Lakes, India, Indonesia, Market Watch, Middle East, Northern Plains, Thailand, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf:

NOLA granular urea barges were reported to have traded at $383-$404/st FOB, up from the week-ago $363-$390/st FOB. Prompt and/or loaded barges were put at the higher end of the range, with full June at the lower. Upriver NOLA equivalent barges were reported to have traded at $403-$405/st FOB.

Price ideas continued to be strong at press time, with $410/st FOB being seen as the next possible price point.

While Indian price ideas were way up, most NOLA players cited U.S. demand, particularly for rice season, as the main reason for strong prices.

Eastern Cornbelt:

Urea prices were quoted at $425-$445/st FOB in the Eastern Cornbelt, up $5/st from last report, with the low reported at East Dubuque, Ill., and the high at Burns Harbor, Ind. The market FOB Cincinnati, Ohio, was pegged firmly in the $435-$440/st FOB range in late May, while pricing FOB Ottawa, Ill., was quoted at $430/st.

Western Cornbelt:

Urea pricing reportedly backed off $5/st to $415-$435/st FOB in the Western Cornbelt, with the low reported at St. Louis, Mo., and the high at Port Neal, Iowa. The market FOB Camanche, Iowa, was pegged at the $425/st level for May-June tons.

Northern Plains:

The urea market in late May was quoted at $425-$440/st FOB St. Paul, Minn., and $445-$450/st FOB central North Dakota terminals. Delivered tons ranged broadly at $470-$495/st in North Dakota, with the higher numbers reported in western areas of the state.

Great Lakes:

The urea market ranged broadly from $445-$515/st FOB in the Great Lakes region, with the low at Burns Harbor and the upper end reported at Saginaw, Mich., reflecting an increase of more than $40/st since mid-April. Sources said most other Michigan terminals were out of product in late May.

Northeast:

Urea pricing was quoted at $440/st FOB Fairless Hills, Pa., for May-June tons, up $5/st from offers in early May.

India:

The RCF tender closed on May 25 with 12 companies offering 1.48 million mt. One source said the actual number of tons that might be realistically available was lower because there was a lot of double counting of tons.

Going into the tender, sources speculated on a price range of $380-$400/mt CFR. By the day the tender documents were opened on May 25, industry watchers moved the price range to $400-$415/mt CFR. In the end, the lowest offer for East Coast ports was from Koch at $408.88/mt CFR. For the West Coast, Ameropa was lowest at $418/mt CFR. There were only two offers from producers of 45,000 mt each at $396/mt FOB and $390/mt FOB.

The East Coast dominated the offers at 795,000 mt. West Coast offers totaled 595,000 mt, with 90,000 mt offered directly from two producers. The initial thinking was that if the prices were high enough, more Chinese tons could be drawn into the tender. However, prices for urea kept rising in China and the Arab Gulf, leading some to worry that producers will see little value in meeting netback prices that might be lower than where they think the market is.

In response to the offers, on Friday RCF accepted the Koch and Ameropa prices and issued letters to the other traders to match those levels. The buyer counterbid at $373.88/mt FOB to the two Arab Gulf producers. Sources said the producers are not expected to accept the bid.

Offering Company  Quantity Offered (mt) US$/mt CFR Discharge Port
Ameropa 61,500 426.00 Krishnapatnam
51,500 418.00 Mundra
Swiss Singapore 47,000 422.30 Gangavaram-Paradip-Kakinada-Tuticorin
47,000 422.30 Vizag-Krishnapatnam-Karaikal-Kamarajar
47,000 422.30 Gangavaram-Paradip-Vizag
47,000 425.00 Pipavav-Adani Tuna-Adani Dahej
47,000 425.00 Mundra-New Mangalore-Adani Hazira
47,000 425.00 Kandla-Rozy-Jaigarh
Medallion 60,000 433.17 Gangavaram-Krishnapatnam-Karaikal-Kakinada-Paradip
Continental 50,000 445.00 Krishnapatnam-Kakinada-Gangavaram-Vizag
50,000 442.00 Mundra-Kandla-Adani Tuna
Koch 60,000 408.88 Gangavaram-Krishnapatnam
60,000 408.88 Gangavaram-Krishnapatnam
50,000 419.88 Mundra-Adani Tuna-Kandla
Amber 65,000 429.45 Krishnapatnam-Karaikal-Kakinada-Paradip
65,000 433.45 Mundra-Adani Tuna-Pipavav
Dreymoor 52,500 425.91 Krishnapatnam
52,500 424.10 Pipavav
Transglobe 50,000 428.50 Krishnapatnam
50,000 435.00 Mundra
Keytrade 50,000 435.00 Paradip
55,000 435.00 Kakinada
45,000 432.00 Kandla-Mundra
Samsung 45,000 424.85 Kakinada
45,000 424.85 Krishnapatnam
45,000 427.85 New Mangalore
45,000 427.85 Mundra
Direct Offers from Producers
Producer Quantity (mt) US$/mt FOB
Fertiglobe 45,000 396.00
Muntajat 45,000 390.00

By Friday morning, seven traders had indicated their acceptance of the counterbid from RCF for a total of about 560,000 mt.

Company Cargoes Coast
Ameropa 1 West
Amber 1 West
Dreymoor 1 West
Keytrade 1 West
Swiss Singapore 2-3 West
Samsung 2 West
Koch 2 East

The award of two cargoes to Koch is not surprising. The trader offered two cargoes into the East Coast at the same price. One observer noted, however, that it is surprising Koch is not also doing a West Coast shipment. Its price was only $1/mt lower than the winning Ameropa one. The other companies accepting the West Coast price of $418/mt CFR will have to lower their prices $6-$15/mt to meet the Ameropa award.

At least two cargoes from the Black Sea are possible. Sources said Yuzhnyy is pegged in the mid-$360s/mt FOB, with freight rates around $50/mt. The awards to Dreymoor and Keytrade, traditional suppliers of FSU material, could easily come from the Black Sea.

Even as producers are willing to hedge their prices a bit, India will still get slammed by the ever-rising freight rates, When the tender closed, freight between China and the Indian East Coast was around $35/mt. By the time the pricing envelopes were open, that cost had come up into the low-$40s/mt. Likewise, the price from the Arab Gulf to the West Coast of India moved up from the low-$20s/mt to the mid- to upper-$20s/mt.

Sources said a number of factors are causing the higher rates into India, including reports that ship crew unions and employment agents are lobbying ship owners to skip India because of the COVID-19 pandemic. Some owners are also hesitant to send their vessels there because of the quarantine required after making an Indian port call.

Those willing to take cargoes into India are charging a premium to their clients. At the same time, some are also restricting their vessels to only one port of call. In the past, after unloading its fertilizer a vessel might move to another port to pick up an outgoing cargo. By restricting their vessels to only one port, said one trader, the ability to pick up an outgoing commission is reduced.

Sources also said some ship owners are making their vessels available for shipments to other areas, such as Latin America or Europe. This is also done to avoid the Indian ports. The displacement of many vessels from the South Asian market is another contributing factor to higher prices.

The buyer had hoped to secure more tons in this tender. If the 560,000 mt in awards holds, sources said another tender will have to be called quickly to ensure enough urea for the current season. Sources said they would not be surprised to see the next tender called as early as next week.

China:

The netback from the RCF tender to China is $365-$370/mt FOB. However, producers are now asking $380-$385/mt FOB for granular and $375-$380/mt FOB for prills.

Sources said at best 350,000 mt will be shipped from China, if a price agreement can be reached. These tons reportedly are already at portside warehouses waiting for export. Some of the tons have already been booked by traders in anticipation of the Indian tender.

The short time frame to ship – by June 30 – could mean some congestion at key ports, said one trader. Another even noted that there are already some backups for vessels waiting to berth at Chinese ports.

Sources said domestic demand and prices are stable, helping support the higher prices producers are asking. Domestic demand is expected to strengthen as regional domestic distributors look to ensure a plentiful supply of urea for August and September.

Exports from China were up almost 50 percent in the first four months of the year, according to Trade Data Monitor, to 1.3 million mt from 898,000 mt during the same period last year. The main customers so far this year have been India at 493,000 mt and South Korea at 228,000 mt.

April 2021 exports of 539,000 mt were up a whopping 382 percent from the April 2020 total of 112,000 mt. India took 249,000 mt last month, up 110 percent from its April 2020 take. South Korea was a distant second at 82,000 mt. followed by Guatemala, Australia, and Brazil with about 30,000 mt each.

Thailand:

Urea imports for January-April this year were down 34 percent, according to Trade Data Monitor, to 421,000 mt from 639,000 mt during the same period last year. April 2020 imports were reported at 239,000 mt. April 2021 imports were down 68 percent, to 76,000 mt from 239,000 mt in April 2020.

The April year-over-year decline was also matched in February and March.

Middle East:

Arab Gulf and Egyptian producers moved urea prices up just as the RCF tender numbers were being released.

Sources reported sales out of the Arab Gulf at $385/mt FOB as the tender envelopes were opened at the beginning of the week. On the heels of the pricing envelopes opened later in the week. MOPCO reported a sale of 30,000 mt for August at $408/mt FOB.

The two Arab Gulf producers who directly offered into the RCF tender submitted prices of $390/mt and $396/mt FOB. With reports of freight rates in the mid-$20s/mt, sources said the low West Coast price of $418/mt CFR equates to the low-$390s/mt FOB. If freights keep going up, traders with Arab Gulf product will have to do some fast talking to secure tons for India, as the higher transportation costs eat into the netback.

Sources had earlier speculated that the Arab Gulf might supply two or three cargoes for the RCF tender. However, after the Koch West Coast offer of $419/mt CFR, the next lowest is Swiss Singapore at $425/mt CFR. Some traders were not sure the company would be able to ensure a netback price from an Arab Gulf producer that would allow it to participate.

The paper market for the Arab Gulf is already reflecting a price lower than where the industry currently sees prices. The paper price is pegged at $387.50/mt FOB for June and $392.50/mt FOB for July. Sources said the supply of urea out of the region is expected to remain tight well into August.

Going into the week, the Egyptian price held steady at $400/mt FOB into July. Just as the week closed, however, MOPCO confirmed a sale at $408/mt FOB for 30,000 mt to be shipped in early August.

The paper market for Egypt is also a bit behind the times. June prices are pegged at $400/mt FOB, a number long ago achieved for June and July. The July price was put at $404/mt FOB. In this case, buyers broke the $400/mt FOB barrier for an August cargo. Sources said Egyptian producers are sold out for June and most of July.

Black Sea:

Sources reported at least two cargoes from Yuzhnyy might be available for the RCF tender. With freight rates put at $50/mt from Yuzhnyy to West Coast India, sources said the current talk of prices in the low-$360s/mt FOB fit in well.

Toros in Turkey will close a tender on May 28 for 25,000-30,000 mt of granular urea and 5,000-6,000 mt of prilled urea. The material is slated for multiple buyers in Turkey.

Croatia:

Nitrogen and NPK producer Petrokemija reported on May 27 that it will shut its ammonia and urea plants from May 28 to June 11 for planned technical maintenance.

The shutdown will enable the optimization of production according to market demand, and will allow for the necessary repair and maintenance of equipment in order to minimize the risk of unplanned shutdowns during the autumn season, according to a SeeNews report, citing a company filing.

The Croatian producer said sufficient volumes have been secured to maintain supplies to the domestic and regional markets.

Indonesia:

Just before RCF released the figures from its tender, PIH called a selling tender for its subsidiary urea plants. The tender closed May 28 for 45,000 mt of granular urea and 10,000 mt of prilled with a reserve price of $375/mt FOB.

Koch won an award for 40,000 mt of granular urea at $385.20/mt FOB. Golden Barley took 10,000 mt of prilled at $376.10/mt FOB. Both awards are for July shipment.

The July loading time eliminates the use of these awards in the RCF tender, which has a June 30 shipping deadline. The granular price, however, would just work with the current Indian price.

The new price represents a significant leap upward. The last business done for both prills and granular from Indonesia was in the mid-$320s/mt FOB.

Brazil:

Urea prices in Brazil are edging up. Sources are calling the Paranagua market $413-$440/mt CFR. Some traders outside the country have a tighter view of the market, saying business is mostly restricted to the $420-$430/mt CFR range. However, producers claim the real price is closer to $445/mt CFR, but without any evidence to back up that assertion.

Some of the upward movement comes from expectations related to the Indian tender and its higher prices. At the same time, however, there appears to be a real shortage of material inland. Buyers are looking to top off their requirements in preparation for the August and September application season.

Rondonopolis is pegged at $525-$580/mt FOB ex-warehouse. The barter rate changed this week to 62.77 bags of corn for 1 mt of urea at Rondonopolis.

UAN

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

U.S. Gulf:

The NOLA barge market continued to be generally quoted at the $300/st ($9.38/unit) FOB mark, although inland prices were reported to be up.

Eastern Cornbelt:

UAN-32 prices in the Eastern Cornbelt were moving up after back-to-back producer posting hikes amid reports of tight supply. The region’s low was reported at $332/st ($10.38/unit) FOB LaSalle, Ill., but CF’s reference prices at Mount Vernon, Ind., firmed $10/st at mid-month, to $335/st ($10.47/unit) FOB, followed by an additional $10/st increase on May 25, which took the price to $345/st ($10.78/unit) FOB.

Some sources talked of reference prices as high as $370/st ($11.56/unit) FOB Terra Haute, but that level was not confirmed. New offers at Cincinnati were quoted in the $347-$352/st ($10.84-$11.00/unit) FOB range late in the week, up from previous offers in the $332-$337/st ($10.38-$10.53/unit) FOB range. The UAN-28 market was pegged at $298-$307/st ($10.64-$10.96/unit) FOB Cincinnati.

“UAN is tight at terminals,” said one regional source. “The best availability is Cincinnati.”

Western Cornbelt:

With sidedress demand kicking in across the Western Cornbelt, CF’s reference prices for UAN-32 at St. Louis firmed $10/st at mid-month, to $335/st ($10.47/unit) FOB. That increase was followed by an additional $10/st hike on May 25, which pushed the St. Louis market to $345/st ($10.78/unit) FOB.

Sources continued to quote Port Neal pricing at $340/st ($10.63/unit) FOB at midweek. The upper end of the regional market was pegged at the $355/st ($11.09/unit) FOB level in Nebraska.

Northern Plains:

UAN-32 pricing was reported at $357-$365/st ($11.16-$11.41/unit) FOB Winona, Minn., in late May, with UAN-28 quoted at $355/st ($12.68/unit) FOB in central North Dakota.

Great Lakes:

UAN-28 prices ranged widely in the Great Lakes region, from a low of $295/st ($10.54/unit) FOB Courtright to a high of $335-$350/st ($11.96-$12.50/unit) FOB Michigan terminals, depending on location. Sources said they expect sidedress demand to move into high gear in early June.

Northeast:

The UAN-32 market in the Northeast remained at $325-$340/st ($10.16-$10.63/unit) FOB Baltimore, Md., and Fairless Hills for May-June tons. Pricing out of terminals in upstate New York was quoted at $375/st ($11.72/unit) FOB in late May, up $15/st from last report.