Western Cornbelt:
Ammonium nitrate pricing remained at a firm $460/st FOB in the Western Cornbelt, where available.
All posts by mickeybarb@charter.net
Ammonium Sulfate
U.S. Gulf:
Ammonium sulfate barge prices strengthened, with the latest trades quoted at $275-$290/st FOB, up from the week-ago $265-$275/st FOB.
Eastern Cornbelt:
Granular ammonium sulfate prices in the Eastern Cornbelt were firming as terminal inventories shrink. Sources quoted the regional market in a broad range at $300-$350/st FOB, with the low reported in the Cincinnati market for imports and the high for domestic tons. Pricing in Illinois was pegged at $315/st FOB East Dubuque and $320/st FOB Ottawa, up $10/st from last report.
New ammonium sulfate postings from Interoceanic (IOC) on May 26 included $320/st FOB Delta terminals, $325/st FOB Upper Mississippi and Illinois River terminals, and $330/st FOB Ohio River terminals. Compared with IOC’s previous list prices on May 3, those levels reflect a $20/st increase at Delta terminals and a $15/st increase out of terminals on the Upper Mississippi, Illinois, and Ohio Rivers.
Western Cornbelt:
Ammonium sulfate was pegged in a broad range at $300-$350/st FOB, with the low at St. Louis and the high at Sioux City, Iowa. The market FOB Camanche was quoted at the $315/st level for May-June tons, up $10/st from the previous week. Sources reported tight inventories, with some terminals starting to run out for the balance of the spring season.
IOC hiked its ammonium sulfate prices on May 26, with postings firming to $320/st FOB St. Louis, $325/st FOB Upper Mississippi River terminals, and $350/st FOB Sioux City. Those levels reflect a $20/st increase at St. Louis and Sioux City, and a $15/st increase on the Upper Mississippi River.
IOC’s ammonium sulfate postings in the Southern Plains were unchanged at $295/st FOB Houston, Texas, and $325/st rail-DEL.
Northern Plains:
The granular ammonium sulfate market was quoted at $300-$315/st FOB St. Paul, with delivered tons ranging from $365-$385/st in the Northern Plains, up significantly from last report. IOC on May 26 reposted ammonium sulfate at $325/st FOB Upper Mississippi River terminals and $350/st FOB Sioux City, up $15-$20/st from its May 3 postings. Sources said product was still “in high demand” in the region in late May.
Great Lakes:
Ammonium sulfate pricing in the Great Lakes region had strengthened to $345-$360/st FOB, up from $305-$330/st at last report, with the lower end of the range reported in Wisconsin and the high in Michigan. Spot pricing in late May included $350/st FOB Saginaw and Maumee, Ohio.
Northeast:
Granular ammonium sulfate remained at $300-$330/st FOB in the Northeast, with the low confirmed at Hopewell, Va., and the high at East Liverpool. Delivered pricing ranged from $315-$345/st in the region.
China:
Sales to Southeast Asian buyers showed a netback to China of $160-$165/mt FOB for caprolactam grade ammonium sulfate. The move was not unexpected. Sources said the rising price of urea is causing more buyers to look for a cheaper nitrogen input.
Ammonium sulfate exports for January-April were up 25 percent, according to Trade Data Monitor, to 3.1 million mt from 2.47 million mt during the same period last year. The main buyer was Brazil, which took 555,000 mt, followed by Indonesia at 371,000 mt and Myanmar at 330,000 mt.
April exports were also up 25 percent, to 920,000 mt from 734,000 mt in April 2020. Again, Brazil led the pack at 188,000 mt, followed by Myanmar at 91,000 mt. The Myanmar number represented a massive increase compared with its April 2020 take of only 8,500 mt.
Thailand:
January-April ammonium sulfate imports in Thailand were up 90 percent, to 123,000 mt from 65,000 mt during the same period last year. The main source of the material was China at 91,000 mt.
April imports more than doubled, to 64,000 mt from 31,000 mt in April 2020. Most of the product this year came from China at 36,000 mt, followed by South Korea at 27,000 mt.
Brazil:
Ammonium sulfate prices moved up to $235-$245/mt CFR at Paranagua for granular ammonium sulfate. Sources said further upward pressure could be coming. Reportedly, some sellers have defaulted on their shipments of ammonium sulfate coming into Brazil.
Inland demand is also stepping up. Sources said the price at Rondonopolis moved up to $345-$355/mt FOB ex-warehouse, with nothing left of the sub-$345/mt material from last week.
Additional demand for ammonium sulfate is expected as urea prices continue to climb. Buyers around the world are looking for cheaper nitrogen inputs. In most cases, ammonium sulfate is the first thing requested when urea prices rise. Blenders also like to use the product as a urea substitute because they get the added benefit of sulfur.
The barter rate for 1 mt of ammonium sulfate shifted from 38 bags of corn last week to 42.45 bags this week.
DAP/MAP
Central Florida:
Central Florida DAP trucks were posted at $590/st FOB, steady from the previous week. Truck-loaded MAP remained at $615/st FOB.
U.S. Gulf:
DAP and MAP barges loading from NOLA continued to press higher in recent trading, sources reported.
Barges of DAP slated for loading in a wide May-September window were heard trading up to $585/st FOB, unchanged from week-ago levels, while values at the bottom of the range firmed about $3/st to $580/st FOB. Sources said domestic producers largely abstained from the market for the week.
MAP cargoes, seen in tighter overall supply than DAP, saw a more pronounced upward move, with tons slated for a wide summer loading window quoted as high as $635/st FOB. Sources continued to see the bottom of the range even with the week-ago $610/st FOB, while a rumored $640/st FOB trade went unconfirmed on May 27.
Most cargoes were projected to load later in May-September window, sources said, noting that the largest share of material as likely to release from NOLA between July and September.
NOLA DAP barges were quoted in the $580-$585/st FOB range, up from $577-$585/st FOB reported one week earlier. MAP pricing lifted to a wide $610-$635/st FOB range, up from $610/st FOB reported previously.
U.S. Exports:
No new business was reported on the week’s Gulf phosphate export markets. Last-done included a 6,000-7,000 mt cargo priced at $583/mt FOB and scheduled to load in May. Firming values in the Latin America markets suggested higher Gulf values should new business conclude today.
With no new reported trades, the Gulf phosphate export markets continued to be noted at $583/mt FOB.
Eastern Cornbelt:
Phosphate prices continued to firm in the Eastern Cornbelt, with DAP in particularly tight supply. DAP was quoted at $630-$640/st FOB in the region, up another $10/st from last report, with the Cincinnati market pegged at $630-$635/st FOB in late May.
MAP was reported at $660-$670/st FOB, also up $10/st, with the low at Cincinnati and the high reported at Ottawa. The East Dubuque MAP market was pegged at $665/st FOB for May-June tons.
Western Cornbelt:
DAP and MAP prices continued to edge higher in the Western Cornbelt. The DAP market was pegged at $615-$625/st FOB St. Louis and $620-$625/st FOB Dubuque, Iowa, up $5/st at the lower end of the range.
MAP was quoted at $650-$665/st FOB, also up $5/st from the previous week, with the high confirmed at Dubuque and Camanche for May-June tons. The St. Louis MAP market was reported in the $650-$660/st FOB range.
Sources reported the Catoosa/Inola, Okla., market at $615-$625/st FOB for DAP and $650-$665/st FOB for MAP.
Northern Plains:
DAP pricing FOB St. Paul was reported in the $625-$630/st FOB range, up another $5/st from the previous week and a full $25-$30/st above early-May offers. MAP was pegged at $650-$665/st FOB St. Paul and $690-$720/st DEL in central and western North Dakota, reflecting an increase of $20-$40/st in North Dakota.
Great Lakes:
Phosphate prices were moving up, with MAP quoted in the $670-$690/st FOB range in the Great Lakes region, up $20-$30/st from last report. DAP was in extremely tight supply, with warehouse prices pegged at $640-$660/st FOB in the region – provided any tons could be sourced.
Northeast:
Phosphate prices were edging higher in the Northeast amid reports of tightening supply. The market FOB East Liverpool, Ohio, was quoted at $635/st for DAP and $665/st for MAP, up $15-$25/st from early-May levels. Sources reported no MAP inventory or pricing offers out of Fairless Hills for the remainder of the spring season.
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:
Ma’aden took an ammonia plant offline as a precautionary measure following a May 20 fire, Arab News reported. The company reported no immediate impact to phosphate production or fulfillment resulting from the incident, and offered no projected timeline to restart the unit.
Sources described phosphates loading from Saudi Arabia unchanged in the $545-$565/mt FOB range for the week.
China:
The DAP price in China is holding steady in the upper-$540s/mt FOB. Sources said the lull in price increases is deceiving, however. Traders said there is no material available for June, so no new sales can be cited to move the price.
Sources expect talks to start next week for July shipments. Some producers will have a few cargoes available for export at that time, but it will not be enough for the expected demand, especially from India and Pakistan. The limited material, at a time when buyers are looking for product, is expected to move the price up next month.
Chinese DAP exports for January-April 2021 were up 14 percent, according to Trade Data Monitor, to 1.4 million mt from 1.2 million mt during the same period last year. Buyers were spread out, but the top four were all in the Pacific. Thailand took 248,000 mt, Vietnam took 177,000 mt, Japan took 154,000 mt, and Australia took 107,000 mt.
April exports were up 15 percent, to 455,000 mt from 397,000 mt in April 2020. Thailand and Brazil were the top two April buyers with 113,000 mt and 60,000 mt, respectively.
India:
Sources said demand for DAP will step up in June and into the third quarter. For now, however, the price remains stable in the $560s/mt CFR.
An increase in the phos acid price could increase DAP imports even more than normal, said sources. The rising cost of acid makes it difficult for the government to justify subsidies to the domestic producers when it would be cheaper to support imports.
Brazil:
Sources put the MAP prices at Paranagua at $640-$650/mt CFR, with buyers anxious to buy tons. As the week closed, a deal at $650/mt CFR signaled that higher prices are still to come. Suppliers are now talking $700/mt CFR, but buyers do not appear to be that anxious to secure tons.
Rondonopolis is now pegged at $730-$760/mt FOB ex-warehouse. Sources said a few deals were done at the lower end of the register, but most business was closer to the $760/mt level as the week drew to a close.
The increase in prices at the ports and inland in just one week shows that demand is stepping up. Paranagua moved up $10-$15/mt and Rondonopolis shot up $30/mt. The soybean barter rate for 1 mt of MAP also shifted to 32.78 bags from 37 bags last week.
TSP
U.S. Gulf:
TSP barge pricing was quoted in the $525-$540/st FOB range for the week, rising from $515-$535/st FOB at last report.
Western Cornbelt:
The TSP market was quoted at a firm $550/st FOB St. Louis for July-August shipment, with prompt tons reportedly in short supply.
Phosphoric Acid
Eastern Cornbelt:
Phos acid was steady at $13.95/unit rail-DEL in Illinois and $14.10/unit rail-DEL in Ohio for May tons.
Nutrien on May 28 reported that it has posted new superphosphoric acid prices at $1,200/st P2O5 rail-DEL in the Midwest for June-August shipments.
Western Cornbelt:
Phos acid pricing was unchanged at $13.85/unit rail-DEL in Nebraska, Missouri, and Iowa for May shipment.
Northern Plains:
The phos acid market remained at May levels of $13.95/unit rail-DEL in Minnesota and $14.10/unit rail-DEL in the Dakotas.
Great Lakes:
The phos acid market was pegged at $13.95-$14.10/unit rail-DEL in the Great Lakes region for May tons, with the lower end of the range confirmed in Wisconsin.
India:
Second-quarter India phosphoric acid contracts were quoted at $998/mt P2O5 CFR, up $203/mt from $795/mt CFR in the prior period.
Sources said negotiators are getting closer to a third quarter price. Reportedly, OCP/Morocco is now asking $1,004/mt CFR, while the buyers are looking at $1,001-$1,002/mt CFR.
Whatever the result, the price will be higher than last quarter and will continue to cause problems for the domestic Indian DAP producers. Each time the acid price goes up, the government calculates it is cheaper to subsidize imported DAP instead of subsidizing the domestic product.
Ammonium Polyphosphate
Eastern Cornbelt:
10-34-0 remained at $580-$600/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati.
Western Cornbelt:
The 10-34-0 market was unchanged at $575-$595/st FOB in the Western Cornbelt, depending on location.
Northern Plains:
10-34-0 pricing was steady at $590-$600/st FOB and $600-$610/st DEL in the Northern Plains.
Great Lakes:
The 10-34-0 market was quoted at $585-$600/st FOB in the Great Lakes region, but Michigan sources reported virtually no tons available in late May.
Northeast:
The 10-34-0- market in upstate New York was pegged at the $600/st FOB level in late May, up $30/st from last report.
Muriate of Potash
U.S. Gulf:
NOLA potash barge prices continued to surge. The market was quoted at $345-$362/st FOB, up from the week-ago $330-$345/st FOB. Domestic producers are posted at $365/st FOB.
Eastern Cornbelt:
Potash remained at $375-$400/st FOB in the Eastern Cornbelt, depending on location. Spot pricing in late May included $375/st FOB Burns Harbor, $380/st FOB East Dubuque, $385/st FOB Ottawa, $385-$395/st FOB Cincinnati, and $400/st FOB inland warehouses.
Western Cornbelt:
Sources quoted potash pricing at $375-$400/st FOB in the Western Cornbelt, depending on location and time of shipment, with the low confirmed at St. Louis and the high reflecting producer postings for 4Q shipment. The market FOB Camanche firmed $5/st from the previous week, to $380/st FOB for May-June tons.
Northern Plains:
Sources quoted the potash market at a firm $380-$390/st FOB St. Paul for prompt, with producer reference pricing at the $400/st FOB level for 4Q tons. The market to U.S. buyers FOB Saskatchewan mines was pegged at $360-$370/st after netbacks, depending on grade.
Great Lakes:
Sources pegged the potash market at $385-$415/st FOB in the Great Lakes region, depending on grade and location, with the upper end reported out of Toledo, Ohio. As with most other products, Michigan sources reported extremely tight potash inventories, with white tons essentially unavailable in late May.
Northeast:
Potash prices in the Northeast began the week firmly at the $390/st level FOB Fairless Hills for May-June tons, up $10/st from early May. On May 27, however, the Fairless price firmed again, to $415/st FOB.
China:
China’s potash imports increased 22 percent in the January-April period, according to Trade Data Monitor, reaching 3.54 million mt, up from the year-ago 2.90 million mt. Notable year-over-year increases were seen in volumes from Belarus, Israel, and Laos.
China Potash Imports (000 mt)
| Jan-April 2021 | Jan-April 2020 | % Change | |
| Total | 3,541 | 2,902 | +22 |
| Canada | 1,059 | 1,358 | (22) |
| Russia | 905 | 897 | +1 |
| Belarus | 890 | 321 | +177 |
| Israel | 275 | 51 | +439 |
| Jordan | 223 | 235 | (5) |
| Laos | 163 | 29 | +462 |
| Uzbekistan | 26 | 0 | – |
| Germany | * | 10 | – |
* 168 mt
April 2021 imports of 949,000 mt were up 26 percent, to 949,000 mt from 752,000 mt in April 2020. The main suppliers for April were Canada at 271,000 mt, Belarus at 255,000 mt, and Russia at 209,000 mt.
Thailand:
January-April MOP imports in Thailand for this year almost doubled compared to the same period last year, according to Trade Data Monitor. Thailand brought in 282,000 mt in the first four months of the year, compared with 145,000 mt during the same period in 2020. April imports more than doubled, to 71,000 mt from 35,000 mt in April 2020.
Brazil:
The upper end of the MOP range in Brazil moved to $385-$400/mt CFR at Paranagua. Sources said the demand is building, but shipments are not arriving with sufficient tons to satisfy that demand. Buyers are facing delayed and canceled orders of the imported product, with nowhere else to turn but to the holders of the limited tons already in the country.
Even as portside drama is causing higher prices, sources reported a drop at Rondonopolis to $480-$502/mt FOB ex-warehouse. Sources said the drop is seen as more of a correction in pricing than any sign of a downward trend, as a scramble for tons in the previous few weeks boosted prices.
Sources said some potential buyers decided to hold back to see if the upward trend would stick. When cracks were seen in pricing earlier this week, buyers helped the slide along with lower bids, but not ones that were so low that they could be ignored.
The barter rate for 1 mt of MOP is now at 20.79 bags of soybeans or 57.39 bags of corn.
Belarus:
Belarus potash exports increased 30 percent in the first quarter, according to Trade Data Monitor, reaching 3 million mt from last year’s 2.90 million mt. Destination data by volume is not available, but in value terms, China was the number one destination for Belarusian potash exports, rising six-fold from the first quarter of 2020, according to Belstat, Belarus’ National Statistical Committee.
Belarusian potash shipments to Brazil in value terms increased 9 percent. The U.S. became the third-largest market for Belaruskali with a share exceeding 12 percent in first-quarter 2021, versus just 4 percent last year.
U.S. imports of Belarusian potash totaled 238,387 mt in the quarter, up 48 percent from last year’s 161,186 mt.
Bangladesh:
The Ministry of Agriculture closes its annual purchase tender for the supply of potash and DAP on June 3 (GM May 21, p. 16). The ministry is looking for 200,000 mt of standard potash for shipment by Oct. 15.
Sulfur
Tampa:
Genscape reported increased activity from a 95,000 barrel/d fluidic catalytic cracking unit (FCC) and 56,000 barrel/d coking united at the ExxonMobil Corp. refinery in Joliet, Ill., on May 21. Despite the ongoing ramp-up, both units remained below operational levels. The facility was expected to begin restarting production next week after fully shutting down in early April for a planned turnaround.
BP on May 21 restarted the 70,000 barrel/d Ultraformer 4 catalytic reforming unit at its plant in Whiting, Ind. The reformer had been offline since May 13.
Second-quarter Tampa molten contracts were confirmed at $192/lt CFR, double the first quarter’s $96/lt CFR value.
U.S. refinery utilization lifted higher for the week ending May 21, according to the Energy Information Administration (EIA). Refiners operated at 87.0 percent total capacity, a 0.7-point boost from the week-ago 86.3 percent average. The rate also led the year-ago 71.3 percent, while matching the 87.0 percent five-year average.
Crude inputs also edged up to an average 15.239 million barrels/d for the week, increasing 123,000 barrels/d from 15.116 million barrels/d in the previous report.
U.S. Gulf:
Phillips 66 restarted a 103,000 barrel/d vacuum distillation unit (VDU) at its Alliance, La., refinery on the evening of May 20, Genscape noted. A 65,000 barrel/d hydrotreater was returned to production alongside the VDU. The VDU and an additional 35,000 barrel/d hydrotreater were taken offline on the morning of May 20, while a 269,000 barrel/d crude distillation unit (CDU) was reported offline on May 17-18 due to a malfunctioning heater.
Increased activity was observed on May 22 from the 30,000 barrel/d FCC Unit 40 at the Phillips plant in Borger, Texas. The unit was shut down on April 23.
Platts reported operational hiccups at Texas plants operated by Motiva and Total. The facilities were reportedly impacted by heavy rain and the resulting power dips, although sources believed operations were quickly restored.
Mexico state oil company Petroleos Mexicanos (Pemex) has struck a deal to take full control of a Houston refinery that it currently co-owns with Royal Dutch Shell Plc, Bloomberg reported. The $596 million deal came as the result of an unsolicited offer from Pemex, and is expected to aid in Mexico’s ongoing pursuit of increased energy independence. The purchase was expected to close in the fourth quarter.
Pemex originally bought a 50 percent share of the refinery in 1993, paying more than $200 million at the time. The facility currently purchases about 70,000 barrels/d of Pemex’s Maya crude.
Firming price ideas at Brazil were seen lifting potential Gulf netbacks to the $185-$190/mt FOB range, up from $180-$185/mt FOB in the prior report.
Brazil:
Rising freight costs reportedly pushed Brazil import price ideas to the $215-$220/mt CFR level, above the last-reported $209/mt CFR. Second-quarter contract volumes continued to be quoted in the $213-$214/mt CFR range.
Vancouver:
No changes were reported on the Vancouver export market, leaving pricing at a last-done $170-$180/mt FOB. Recent upward movement at China was expected to press Vancouver higher in the next round of trading, sources said, assuming the firmer levels hold.
Alberta:
Sulfur produced in Alberta netted back to sellers in the $65-$110/mt FOB range. Molten material contracted into the U.S. market was noted setting the low, while prilled tons trading offshore through the Vancouver export market were responsible for the highs.
West Coast:
Increased activity was observed on May 20 from a 32,000 barrel/d CDU at a Phillips refinery in Rodeo, Calif., Genscape reported, although the unit remained below operational levels. The CDU was taken offline for planned maintenance on Feb. 10.
West Coast prills continued to be reported at $170-$180/mt FOB. Sources quoted molten sulfur contracts in the $140-$155/lt FOB range for distribution in the second quarter, increasing from $70-$77/lt FOB in the previous period.
China:
Sources reported the China spot market firming to the $210-$212/mt CFR range, rising from $180-$200/mt CFR reported previously.
ADNOC:
Abu Dhabi National Oil Co. solid sulfur offers stood at $183/mt FOB Ruwais for loading in May, down $2/mt from $185/mt FOB in April.
Qatar:
Prills loading from Qatar were quoted at $183/mt FOB Ras Laffan, a $2/mt discount from April’s $185/mt FOB posting.
Sulfuric Acid
U.S. Gulf:
Recent Gulf sulfuric acid imports continued to be reported in the $135-$140/mt CFR range. Indications for the next round of business remained at a minimum $160/mt CFR, albeit with minimal interest due to low 2021 annual domestic U.S. contract pricing.
Gulf Coast:
Sulfuric acid delivered to U.S. Gulf Coast locations was quoted in the $85-$110/st DEL range for 2021 contracts.
Midwest:
Midwest deals ran even with the Gulf at $85-$110/st DEL, sources said.
West Coast:
Players quoted the West Coast sulacid market in the $100-$130/st DEL range.
Brazil:
Last-done Brazil imports were heard at $165-$170/mt CFR, unmoved from one week earlier.
Ammonium Thiosulfate
Eastern Cornbelt:
Sources reported very limited new sales of ammonium thiosulfate in the $450-$500/st FOB range on a spot basis in the Eastern Cornbelt. While IOC’s May 26 postings included $325/st FOB Houston and $335/st FOB Lubbock, Texas, the company said ATS is currently unavailable out of Ohio River terminals.
Western Cornbelt:
Sources continued to report extremely tight ammonium thiosulfate inventories in the Western Cornbelt, with reports of limited sales in the $450-$475/st FOB range in late May.
Northern Plains:
Limited offers of ammonium thiosulfate were quoted at the $405/st FOB level in central North Dakota, but most described spot offers as nonexistent in late May.
Great Lakes:
Ammonium thiosulfate was unavailable in the Great Lakes region in late May.