All posts by mickeybarb@charter.net

Ammonium Nitrate

Ammonium Nitrate, Market Watch, South Central, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf:

Sources said NOLA ammonium nitrate barges were simply non-existent. A nearby price point, Yazoo City, Miss., was last heard as $440/st FOB.

Western Cornbelt:

Ammonium nitrate pricing had reportedly strengthened to $460/st FOB in the Western Cornbelt, where available.

Southern Plains:

The ammonium nitrate market was pegged at $460/st FOB Catoosa/Inola for new offers, up another $35/st from last report.

South Central:

Ammonium nitrate pricing FOB Yazoo City was reported at the $440/st level for limited offers of only small volumes.

Southeast:

The Tampa ammonium nitrate price was moving up, with sources quoting the market at $430/st FOB in late April.

Ammonium Sulfate

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

U.S. Gulf:

Ammonium sulfate barges continued to be called $255-$265/st FOB, with domestic producers seeking $275/st FOB.

Eastern Cornbelt:

The granular ammonium sulfate market remained at $280-$315/st FOB in the Eastern Cornbelt, depending on location, with the upper end reflecting the posted price from AdvanSix at Granite City, Ill. The market FOB Ottawa and Burns Harbor remained at the $305/st FOB level.

“Inventories at a few terminals are very thin and resupply is going to get dicey,” said one industry source. Mid-grade ammonium sulfate pricing from AdvanSix as of April 14 included $280/st FOB Byron, Ill., and $290/st rail-DEL in Illinois.

Western Cornbelt:

Granular ammonium sulfate was unchanged at $270-$310/st FOB in the Western Cornbelt, with the low confirmed at St. Louis. Sources pegged the Caruthersville market at a firm $280/st FOB in late April. Postings from AdvanSix on April 14 included mid-grade at $290/st rail-DEL in Iowa.

In the Northern Plains, sources quoted the granular ammonium sulfate market at $300-$310/st FOB St. Paul, Minn., and $330-$335/st FOB Sioux City.

Southern Plains:

The ammonium sulfate market reportedly strengthened to $275-$290/st FOB in the Southern Plains, up $20-$25/st from last report, with the low reported at Houston and the high at Catoosa/Inola.

South Central:

Ammonium sulfate was reported at $270-$280 FOB terminals in the South Central region, up another $5/st from the previous week and a full $20-$30/st higher than late-March levels. The lower end of the range was confirmed at Memphis and the high FOB Shreveport and out of most Arkansas terminals.

Southeast:

AdvanSix raised its ammonium sulfate prices FOB Hopewell, Va., by $10/st on April 14, to $285/st for granular, $265/st for mid-grade, and $245/st for standard. Tons in the Florida market were reported at $325/st for granular and $275/st for standard as the week progressed, up roughly $20/st from last report.

China:

The price for caprolactam grade ammonium sulfate continues to fluctuate within a narrow range. Sources said the current price of $155-$160/mt FOB reflects more the changes in currency rates and vessel availability than any change in supply or demand. One trader noted that while the Chinese price has moved up and down lately, the landed price in Asia has remained relatively stable around $190/mt CFR.

Exports for the first quarter were reported at 2.2 million mt, according to Trade Data Monitor, up 25 percent from 1.7 million mt during the same period in 2020. Brazil and Indonesia were the two largest buyers this year at 367,000 mt and 307,000 mt, respectively.

March exports were reported at 872,000 mt, up 14 percent from the March 2020 export number of 765,000 mt.

Brazil:

The import market remained flat at $200-$210/mt CFR at Paranagua. Inland, however, the Rondonopolis price dropped $5/mt on the lower end of the reported range, to $345-$355/mt FOB ex-warehouse.

DAP/MAP

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:

DAP trucks loading from Central Florida continued to be quoted at $550/st FOB, unchanged from the previous week. Sources also reported MAP steady at the prior $580/st FOB level.

U.S. Gulf:

Prices for NOLA DAP and MAP barges edged lower for the week. Hope that late-April barges would still arrive at upriver locations in time for spring led to a wide price variance between nearby and 30-day loadings, sources said.

Prompt and loaded DAP barges were reported changing hands at a $560/st FOB high, slipping from the week-ago $563/st FOB top, while volumes trading at the bottom of the range were noted firming $8/st to $528/st FOB. Domestic barges were reportedly offered at $545/st FOB for April or May shipment.

Barges off an Egyptian DAP vessel unloading on April 26-27 were rumored to be offered at below-market prices, in the low-$500s/st FOB. Players attributed the discount to the product’s “goldish” color, as well as potential quality concerns.

MAP barges also suffered top-end erosion, slipping to a $570/st FOB ceiling from the week-ago $575/st FOB high. Pricing moved up at the bottom of the range, however, to $535/st FOB from the prior $525/st FOB low.

Sources noted no immediate market impact from reports that Mosaic will be forced to reduce second-quarter DAP and MAP production at its Faustina plant in St. James, La., in response to tight molten sulfur supply. Described by industry sources as a hangover from robust spring production runs, the cuts were projected to impact early summer fill volumes, but will likely resolve prior to the pre-fall fulfillment window.

DAP barges were reported in the $528-$560/st FOB range, moving from $520-$563/st FOB the week before. Sources quoted MAP barges at $535-$570/st FOB, shifting from the week-ago $525-$575/st FOB range.

U.S. Exports:

Low spot availability continued to result in a subdued Gulf export market, sources said. Recent business included a 7,000 mat DAP load sold into Latin America at $580/mt FOB. With no new transactions reported, Gulf phosphates continued to be called $580/mt FOB.

Eastern Cornbelt:

DAP was quoted at $600-$615/st FOB in the Eastern Cornbelt, up another $5-$10/st on reports of tight supply. The Ottawa market was pegged at the $605/st FOB level, with Cincinnati DAP pricing reported at $605-$610/st FOB. MAP remained at $620-$635/st FOB in the region.

Western Cornbelt:

DAP pricing in the Western Cornbelt continued to firm, with the market quoted at $585-$595/st FOB, up $5-$10/st from last report. MAP pricing, meanwhile, was down slightly at $610-$625/st FOB in the region, with inventories described as more readily available than DAP.

Southern Plains:

The DAP market had reportedly edged up to $585-$600/st FOB on reports of very tight supply in the Southern Plains, with the low confirmed in Houston and the high at Catoosa/Inola. MAP supplies were described as more plentiful than DAP, with MAP pricing pegged at $610/st FOB Houston and $625-$640/st FOB Catoosa/Inola.

South Central:

Warehouse DAP prices were quoted at $585-$605/st FOB terminals in the South Central region, up $5-$15/st from last report, with the lower end of the range reported at Memphis and the high at Shreveport. The market FOB Little Rock, Ark., was pegged firmly at the $600/st FOB level at mid-month.

Sources described heavy spring application volumes in the region, with supply and logistics issues starting to crop up on the river. “We are seeing pretty busy days,” said one regional contact. “Logistics are a concern, as vessels are facing berthing delays and barge pick-up times are longer than normal.”

Southeast:

Nutrien’s reference pricing for DAP and MAP at Aurora, N.C., moved to $580/st FOB during the week, up $10/st from the previous price. Nutrien’s MAP price at White Springs, Fla., was also confirmed at the $580/st FOB level.

Saudi Arabia:

Saudi Arabia DAP was reported firming to $530-$550/mt FOB, up from $520-$550/mt FOB one week earlier.

India:

Sources reported DAP deals in the $560s/mt CFR this week. Traders said buyers dealt directly with Chinese producers on deals that touched both the bottom and top of the $560s/mt CFR. At the same time, major suppliers from outside China have also been calling the market in the mid- to upper-$560s/mt CFR.

This new level could cause difficulties for sellers in the country. The government has given permission to only a limited number of companies to increase the price of their DAP. The companies have said they will be selling only the older, lower-priced DAP at first. Eventually, they will have to move the more expensive material to the local distributors.

The higher price for DAP is also working against phos acid buyers. Sources said the Moroccans are looking to match the nutrient price with what DAP costs in India. One trader said the Moroccans are looking at further increases if DAP prices keep going up.

China:

The DAP price remains stable in the upper-$530s/mt FOB. Sources said there is still some room to move the price up based on the Indian price, but not much more.

March exports were down 5 percent, to 518,000 mt from 548,000 mt in March 2020. The reduction did not dramatically affect first-quarter exports, which were reported by Trade Data Monitor at 918,000 mt, up 13 percent from 810,000 mt during the same period in 2020.

Brazil:

Weak demand is shifting prices downward. Sources reported the Paranagua MAP price at $605-$615/mt CFR. Buyers of alternative nutrient products appear to be part of the downward push on MAP as stockpiles build up.

Prices at Rondonopolis have not shifted, however, as sources said limited demand is balanced with limited supplies. The barter rates for 1 mt of MAP remained steady at 37 bags of soybeans or 100 bags of corn.

TSP

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

U.S. Gulf:

Sources continued to report NOLA TSP barges in the $475-$485/st FOB range, unchanged from week-ago levels.

Eastern Cornbelt:

Sources quoted new TSP offers at the $505-$515/st level FOB Cincinnati during the week.

Western Cornbelt:

The TSP market firmed to $510-$520/st FOB in the Western Cornbelt, fueled by stronger wholesale replacement costs.

South Central:

TSP terminal pricing strengthened to $510-$520/st FOB in the South Central region, up another $10/st from last week at the low end of the range and a full $20/st higher than early April levels.

Phosphoric Acid

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

Eastern Cornbelt:

Phos acid pricing was steady at $13.45/unit rail-DEL in Illinois and $13.60/unit rail-DEL in Ohio for April shipments.

Western Cornbelt:

The phos acid market remained at $13.35/unit rail-DEL in Nebraska, Missouri, and Iowa for April tons.

Southern Plains:

The phos acid market for April tons remained at $13.35/unit rail-DEL in Colorado, Kansas, and New Mexico, and $13.45/unit rail-DEL in Texas and Louisiana.

India:

Replication of announced $998/mt CFR second-quarter phosphoric acid contracts between OCP and buyers in India were left unconfirmed by North American sellers on April 22, leaving the India phos acid price in a wide $795-$998/mt P2O5 CFR range.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Southern Plains, Western Cornbelt

Eastern Cornbelt:

10-34-0 was unchanged at $560-$590/st FOB in the Eastern Cornbelt.

Western Cornbelt:

The 10-34-0 market was pegged at $565-$595/st FOB in the Western Cornbelt, depending on location.

Southern Plains:

The 10-34-0 market remained at $565-$600/st FOB in the Southern Plains, with the low in Kansas and the high in Texas. 11-37-0 pricing in Texas was unchanged at $600-$650/st FOB, with the low out of Gulf Coast terminals and the high in Central Texas.

Muriate of Potash

Belarus, Brazil, Canada, China, Eastern Cornbelt, India, Market Watch, Potash Muriate, South Central, South Korea, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf:

NOLA potash barge trades edged just a bit lower for the week, with new trades reported in the $310-$315/st FOB range, down from $310-$318/st FOB.

Eastern Cornbelt:

Potash was pegged at $350-$365/st FOB in the Eastern Cornbelt, depending on location, with the low confirmed at Ottawa and reflecting another $5/st drop from last report. The Cincinnati market was quoted at $350-$360/st FOB, down $5-$10/st.

Western Cornbelt:

The potash market remained at $345-$360/st FOB in the Western Cornbelt, depending on location, with the St. Louis and Caruthersville markets pegged in the $350-$355/st FOB range.

Southern Plains:

Potash pricing was reported at $345-$350/st FOB Catoosa/Inola and Houston, down $5-$10/st from early April levels. Postings from Intrepid FOB Carlsbad, N.M., remained at $430/st for 60 percent white granular and $437/st for 62 percent white standard.

South Central:

Potash prices were quoted at $345-$360/st FOB in the South Central region, depending on location, with most warehouses falling in the $350-$355/st FOB range at mid-month.

Southeast:

Potash pricing had reportedly slipped to $345-$350/st FOB Wilmington, with rail-DEL offers in the Southeast ranging in the $390s/st for Canadian tons.

Canada:

Canpotex on April 20 said it is fully committed on potash sales into September 2021 due to continued strong demand in numerous offshore markets, supported by solid fundamentals for several major agricultural commodities and a focus on food security in a number of Canpotex’s offshore markets.

Canpotex has not said if it has reached new contract supply agreements with its Indian or Chinese customers.

India:

Arab Potash Co. (APC) has agreed to a new potash supply contract with India Potash Ltd. (IPL) for firm and optional quantities totaling 350,000 mt, to be delivered from April through December, the producer said in an April 18 stock exchange filing.

APC said the new contract is based on prevailing prices, assumed to be the recently revised Indian contract price of $280/mt CFR with 180 days’ credit. APC, together with ICL and Belarus Potash Co. (BPC), are the only producers so far to publicly disclose that they have reached new supply contracts with India.

ICL announced a new supply contract settlement with IPL on April 5 at $280/mt CFR, and said it will supply an aggregate 600,000 mt of potash, with mutual options for an additional 50,000 mt, through December 2021. BPC in late January contracted to supply 800,000 mt to the Indian market at an initial price of $247/mt CFR (GM Jan. 29, p. 17), but announced a price revision to $280/mt CFR on April 5 (GM April 9, p. 17).

Meanwhile, RCF on April 22 called a tender for the supply of 105,000 mt of standard potash to MBPT (Hay Bunder), of which 35,000 mt is firm quantities and 70,000 mt is at the buyer’s option. The tender closes on May 3, and offers are required to remain valid for 30 days from tender opening.

Quantity Color Shipment period
35,000 mt firm white/pink Within 25 days from the date of purchase order
35,000 mt at RCF’s option white/pink June 2021 or as per RCF requirement
35,000 mt at RCF’s option white/pink Aug. 2021 or as per RCF requirement

Earlier this month, BPC was reported to have secured a tender award with FACT for the supply of 80,000 mt of standard red/pink potash for shipment in two lots during first-half July and first-half August. The award was reportedly negotiated at the new India contract price of $280/mt CFR.

China:

To date, no other major supplier has announced publicly if it has settled new supply contracts with customers in China, following BPC’s settlement of a new contract price of $247/mt CFR with the Consortium of Chinese Buyers (Sinochem, CNAMPGC, CNOOC) in February (GM Feb. 12, p. 16).

There has been talk that some Chinese contracts have recently been settled at the new India price level of $280/mt CFR, but this could not be confirmed by press time. As with the original India contract price, many of the major suppliers believed a China contract price of $247/mt CFR was significantly below prevailing market levels for potash in key markets.

China’s imports of potash reached a high of 1.13 million mt in March, some 49 percent above March 2020’s total of 757,937 mt. Imports in the first quarter of 2021 were 21 percent higher, at 2.59 million mt versus the year-ago 2.15 million mt. Belarus and Israel saw the biggest volume gains in the quarter, while Canadian volumes were down 21 percent.

Canada remained the main supplier of MOP, sending 789,000 mt to China during the first quarter. Right behind it was Russia with 696,000 mt, and Belarus with 636,000 mt.

Belarus:

Belaruskali reported that its number four production unit (RU-4) produced 351,841 mt of potash in March, with 307,368 mt shipped for export from the site. The producer did not provide any company-wide output figures for the month or year-to-date, however.

Belaruskali’s potash production reached a record 11.1 million mt in the January-November 2020 period, with full-year output reaching 12.3 million mt (GM Dec. 4, 2020). However, that final 2020 figure has not been confirmed by the producer.

Brazil:

MOP prices moved up in Paranagua about $15/mt, to $340-$365/mt CFR. Producers will talk higher prices at every opportunity, sources said. While prices are not moving as fast as producers would like, sources said there is a definite shift upward in MOP prices from ports to inland distributors.

Rondonopolis prices moved up about $10/mt, to $400-$450/mt FOB ex-warehouse.The barter rate in Rondonopolis is pegged at 12 bags of soy or 58 bags of corn for 1 mt of MOP. In southern Goias, the rate is 22.2 bags of soy or 38.3 bags of corn.

South Korea:

First-quarter MOP imports this year were down 4.5 percent, according to Trade Data Monitor, to 189,000 mt from 197,000 mt in 2020.March imports showed essentially no change, with both 2021 and 2020 each showing about 43,000 mt of imports.

Sulfur

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

Tampa:

Sources continued to report tight U.S. sulfur stocks due to COVID-related refinery curtailments and recent winter storms. “It’s very quiet. Nobody has any product to sell,” said one source. “It’s very tough out there.”

The supply woes were noted impacting phosphate production, with a molten sulfur shortfall forcing second-quarter DAP and MAP production cutbacks at Mosaic’s Faustina facility. The cuts were expected to continue through the early summer.

Second-quarter Tampa molten sulfur contracts were valued at $192/lt CFR, doubling the first-quarter $96/lt CFR deal.

The U.S. Energy Information Administration (EIA) reported nationwide refinery utilization at a combined 85.0 percent of capacity for the week ending April 16, unchanged from one week earlier. The rate stood above the year-ago 67.6 percent, while falling short of the 85.5 percent five-year average.

Despite the capacity rollover, daily crude inputs softened to an average 14.765 million barrels/d for the week, falling 286,000 barrels/d from the 15.051 million barrels/d rate posted previously.

U.S. Gulf:

Genscape on April 20 reported a 78,000 barrel/d catalytic reformer shutdown at the Marathon refinery in Galveston Bay, Texas. Workers initiated a restart on a 145,000 barre/d fluidic catalytic cracking unit (FCC) at the site, reported offline since Feb. 15. A previous restart attempt executed on April 4-15 failed to bring the unit to full operation.

ExxonMobil Corp. successfully restarted a 116,000 barrel/d FCC at the company’s Baton Rouge, La., refinery during the week. The unit was taken offline on April 8.

An unplanned repair outage continued on an 80,000 barrel/d FCC at Total’s Port Arthur, Texas. Increased heating of the unit was observed on April 20, although activity remained below operational levels.

Softer freight rates were pushing up available Gulf netbacks, sources indicated, lifting export price ideas to the $180-$185/mt FOB range. The market was last reported at $180/mt FOB.

Brazil:

Sources continued to put last-done Brazil transactions at $209/mt CFR, unmoved from the prior report. Q2 Brazil contracts were reported in the $213-$214/mt CFR range, rising from $116-$119/mt CFR in the first quarter.

Mexico:

An April 7 fire at the 285,000 barrel/d Pemex refinery at Minatitlan could keep production offline for up to 90 days, Reuters reported.

Vancouver:

Recent Vancouver prill pricing continued to be reported in the $170-$180/mt FOB range, steady from one week earlier.

Alberta:

Shell on April 19 restarted a sulfur recovery unit (SRU) at its Scotford upgrader, located in Fort Saskatchewan, Genscape reported. On April 16-18, Suncor shut multiple units at the company’s Edmonton plant, including an 82,000 barrel/d crude distillation unit.

Alberta sulfur market netbacks were described as flat in the $65-$110/mt FOB range. The hefty spread included both molten material contracted into the U.S. market and prilled sulfur selling internationally through Vancouver.

West Coast:

Multiple units were taken offline throughout the week at BP’s Cherry Point, Wash., refinery, Genscape noted. Maintenance at the plant was scheduled to run from March 31 through May 30. Shell on April 17 powered down multiple units at its Puget Sound, Wash., refinery, including an SRU.

West Coast spot prills were steady at $170-$180/mt FOB, sources said. Molten sulfur tons loading from the West Coast were quoted in the $140-$155/lt FOB range for the second quarter, increasing from $70-$77/lt FOB in the prior period.

China:

China oil refinery outputs for March lifted 19.7 percent year-over-year, to 14.08 million barrels/d, according to the country’s National Bureau of Statistics and reported by Reuters. The increase reflected China’s ongoing bounce-back from early-2020 production curtailments driven by the COVID-19 pandemic.

First-quarter throughput was up 16.5 percent from the year-ago, while March 2021 levels were down from 14.13 million barrels/d through the January-February period.

Sources reported no change in the China spot sulfur market, calling last-done steady in the $180-$200/mt CFR range.

ADNOC:

Abu Dhabi National Oil Co. prills were posted at $185/mt FOB Ruwais for loading in April. Offers were noted at $183/mt FOB in March, a $2/mt difference.

Qatar:

April solid sulfur from Muntajat stood at $185/mt FOB Ras Laffan, sources said, a $2/mt increase from $183/mt FOB in March.

Sulfuric Acid

Brazil, China, Gulf Coast, Market Watch, Midwest, Sulfuric Acid, U.S. Gulf, West Coast

U.S. Gulf:

Sources noted Gulf import price ideas at $135-$140/mt CFR, steady from the prior report.

Gulf Coast:

In the U.S. Gulf Coast delivered market, 2021 contracts were quoted in the $85-$110/st DEL range.

Midwest:

Midwest tons were reported even with the Gulf Coast at $85-$110/st DEL, steady from one week earlier.

West Coast:

Sources quoted West Coast sulacid contracts in the $100-$130/st DEL range.

Brazil:

Tons destined for Brazil continued to be reported in the $150s/mt CFR, unmoved from one week earlier.

China:

Primary lead smelters located in China’s Henan, Hunan, and Yunnan provinces utilized a combined 59.5 percent of total capacity for the week ending April 16, Shanghai Metals Market reported, increasing from 58.9 percent during the prior week.

Secondary lead smelter operation in the provinces of Jiangsu, Anhui, Henan, and Guizhou declined for the period, however, slipping to 49.82 percent on fresh maintenance turnarounds at a number of facilities.

Ammonium Thiosulfate

Amthio, Eastern Cornbelt, Market Watch, South Central, Southern Plains, Specialty, Western Cornbelt

Eastern Cornbelt:

Sources continued to report extremely tight ammonium thiosulfate supplies in the Eastern Cornbelt, with IOC now referenced at the $350/st level FOB Ohio River terminals. The low end of the regional market was pegged at $320-$330/st FOB on a spot basis.

“Multiple Midwest producers are halting sales and informing some customers to not rely on them for additional spring needs,” said one source.

Western Cornbelt:

The ammonium thiosulfate market was quoted at $310-$330/st FOB in the Western Cornbelt, up another $10/st from last report, with continued reports of very tight supply.

Southern Plains:

Ammonium thiosulfate prices from IOC were pegged at a firm $275/st FOB Houston, up $10/st from early-April levels, with supplies described as “very, very tight.”

South Central:

The ammonium thiosulfate market had reportedly firmed to $260-$265/st FOB Memphis for limited tons, up $20/st from early-April pricing levels.