All posts by mickeybarb@charter.net

UAN

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

U.S. Gulf:

Sources continued to note a quiet NOLA UAN barge market for the week, as producers focused efforts toward moving earlier sales upriver during a run of poor planting conditions. “Waiting on the weather to clear again, then corn will go in the ground quickly,” said one source. “Once that happens, UAN will perk up.”

Price ideas on NOLA barges continued to track around $300/st ($9.38/unit) FOB, steady from the prior report. East Coast vessels were flat at $345-$350/mt CFR.

Eastern Cornbelt:

The UAN-32 market remained at $325-$345/st ($10.16-$10.78/unit) FOB in the region, depending on location, with the low at Mount Vernon and the high at Burns Harbor, Ind. Rail-DEL pricing was generally reported in the $340-$370/st ($10.63-$11.56/unit) in the region.

Sources continued to peg the Cincinnati, Ohio, market at $330-$332/st ($10.31-$10.38/unit) for UAN-32 and $287-$291/st ($10.25-$10.39/unit) FOB for UAN-28, with Toledo, Ohio, UAN-28 pricing reported at the $293/st ($10.46/unit) FOB level.

Most industry contacts said they don’t anticipate a big dent in sidedress UAN demand after the heavy preplant ammonia run. “My opinion is that we will not get enough ammonia down to negatively impact the usage of UAN, and if so, it could easily be offset with additional corn acres over and above the latest USDA report,” said one source. “We normally don’t see much product switching, but it sure gets a lot of rhetoric and press. Even a 100,000-200,000 ton swing this time of year is a rounding error as no one has accurate data as to what the grower is going to do until after the fact.”

Western Cornbelt:

The UAN-32 market was steady at $325-$345/st ($10.16-$10.78/unit) FOB for prompt tons in the Western Cornbelt, with the low at St. Louis and the high at Hastings, Neb. Reference pricing for May-June shipment remained at $340/st ($10.63/unit) FOB Fort Dodge, Iowa, and $345/st ($10.78/unit) FOB Sergeant Bluff. Pricing out of Oklahoma production plants was pegged at $340-$350/st ($10.63-$10.94/unit) FOB in mid-April.

Northern Plains:

The UAN-32 market was unchanged at $357/st ($11.16/unit) FOB Winona, Minn., in mid-April, with reports of UAN-28 tons offered at the $320/st ($11.43/unit) level FOB Harvey, N.D.

Great Lakes:

UAN-28 ranged from $305-$338/st ($10.89-$12.07/unit) FOB in the Great Lakes region, with the low confirmed at Courtright and the high at Coldwater, Mich. Other terminal levels in mid-April included $308/st ($11.00/unit) FOB Webberville, $316/st ($11.29/unit) FOB Bay City, Mich., $325/st ($11.61/unit) FOB Schoolcraft, Mich., and $335/st ($11.96/unit) FOB Burns Harbor.

“With sidedress happening in May instead of June, the supply system will be stressed,” said one regional source.

Northeast:

The UAN-32 market in the Northeast was pegged at $340-$345/st ($10.63-$10.78/unit) FOB Fairless Hills and Baltimore, Md., depending on time of shipment, with the low for prompt April tons and upper end reported for May-June offers at Fairless. Pricing out of terminals in upstate New York remained at the $360/st ($11.25/unit) FOB level in mid-April.

Ammonium Sulfate

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

U.S. Gulf:

The ammonium sulfate barge market was noted pressing higher for the week, with sources quoting values in the $255-$265/st FOB range, up from the week-ago $253.50-$265/st FOB.

Eastern Cornbelt:

The granular ammonium sulfate market was quoted at $280-$315/st FOB in the Eastern Cornbelt, with the low reported for limited import offers and reflecting a $10/st increase from last week. Sources reported very tight supply in Cincinnati, with the Burns Harbor market pegged firmly at the $305/st FOB level at midweek.

AdvanSix announced another ammonium sulfate price increase on April 14, with postings firming $20/st in the region. New prices include granular at $315/st FOB Granite City, Ill., and mid-grade at $280/st FOB Byron, Ill., and $290/st rail-DEL in Illinois.

Western Cornbelt:

Granular ammonium sulfate firmed to $270-$275/st FOB St. Louis and $300-$310/st FOB in the Iowa market. Postings from AdvanSix moved up $20/st on April 14, with granular ammonium sulfate firming to $335/st FOB Sioux City, Iowa, and mid-grade moving to $290/st rail-DEL in Iowa.

Northern Plains:

Granular ammonium sulfate was quoted at a firm $300-$310/st FOB St. Paul, up from a recent low of $265/st FOB, with delivered tons ranging from $295-$325/st in North Dakota, depending on location and rail versus truck offers.

AdvanSix on April 14 raised its granular ammonium sulfate postings by $20/st, to $320/st FOB Winona, Minn., and $325/st FOB Brooten, Minn. The company’s mid-grade postings also firmed $20/st on that date, to $290/st rail-DEL in Minnesota.

Great Lakes:

The granular ammonium sulfate market was pegged at $305-$325/st FOB in the region, up another $15-$25/st from last report. New postings from AdvanSix on April 14 included granular at $320/st FOB Prairie du Chien, Wisc., and $325/st FOB Amherst Junction, Wisc., with mid-grade firming to $290/st rail-DEL in Wisconsin.

Northeast:

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. Granular pricing in the Northeast region was pegged at $310/st FOB East Liverpool, Ohio, and $315-$330/st DEL.

China:

Sources said the price for caprolactam grade ammonium sulfate has come off a few dollars to $150-$155/mt FOB. A sale to Malaysia at $190/mt CFR helped set the basis for this price shift.

Supply remains an issue for most grades other than caprolactam. Source said the capro-grade material is still preferred by the NPK producers as a source of nitrogen. However, falling urea prices are forcing ammonium sulfate sellers to also lower their prices or abandon the sales.

Brazil:

The landed price of granular ammonium sulfate slid a few dollars to $200-$210/mt CFR in Paranagua. Sources said a continued slide is expected. Not only is there a slight surplus at the ports, but more material is expected in, putting additional pressure on pricing.

While the portside price is under pressure, sources said inland prices are moving up. Rondonopolis prices were quoted at $350-$355/mt FOB ex-warehouse, showing a marked increase from last week. Sources reported a lack of tons in many inland distribution centers, which could account for the rising inland prices while the ports are showing lower levels.

DAP/MAP

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

Central Florida:

DAP trucks loading from Central Florida were posted at $550/st FOB, steady from one week earlier. Sources reported MAP postings rising to $580/st FOB, up from $565-$580/st FOB in the prior report.

U.S. Gulf:

With the spring application window quickly narrowing, sources reported softening values for DAP and MAP barges loading from NOLA.

Prompt and loaded barges continued to draw a significant premium to those releasing in May, with trades quoted up to $563/st FOB, a decline from the week-ago $578/st FOB. Trading for first-half May was noted slipping to a $520-$522/st FOB floor, down from $525/st FOB one week earlier. Offers for domestic barges loading in April and May were posted at $545/st FOB.

Sources reported a quieter MAP market, with offers and trades softening to $575/st FOB at the top of the range. Trading was quoted up to $582/st FOB in the prior report.

The nearby DAP barge market was pegged in a wide $520-$563/st FOB range for the week, falling from $525-$578/st FOB in the prior report. MAP barges were quoted at $525-$575/st FOB, down from last week’s $525-$582/st FOB range.

U.S. Exports:

Sources described a quiet Gulf spot export market. Last-done included a 7,000 mt DAP load selling into a Latin American destination, with pricing pegged at $580/mt FOB. With no new trades reported, Gulf phosphate exports remained at $580/mt FOB.

Eastern Cornbelt:

DAP pricing was quoted at $595-$605/st FOB in the Eastern Cornbelt, with the low reported at Ottawa and reflecting a $10/st increase from last report. The Cincinnati DAP market remained at a firm $595-$605/st FOB in mid-April on reports of tight supply.

“Logistics are a bit of a mess everywhere, creating delays in product arriving,” said one source. “There are lots of outages on the Ohio River.”

MAP was pegged at $620-$635/st FOB in the region, with the low confirmed at Cincinnati. The Ottawa MAP market was pegged firmly at the $630/st FOB level at mid-month.

Western Cornbelt:

DAP pricing firmed to $575-$590/st FOB in the Western Cornbelt, depending on location. The St. Louis DAP market was quoted at a firm $585-$590/st FOB in mid-April, up $10-$15/st from last report. MAP was unchanged at $615-$630/st FOB in the region, with St. Louis pricing pegged in the $615-$625/st FOB range.

The Catoosa/Inola market strengthened to $585-$590/st FOB for DAP, with MAP steady at $625-$640/st FOB.

Northern Plains:

DAP pricing FOB St. Paul was reported at a firm $590/st FOB for prompt tons, with MAP quoted in the $625-$645/st FOB range at that location. Delivered MAP in western North Dakota remained at $670-$680/st from Western U.S. shipping points.

Great Lakes:

Sources reported tight phosphate inventories out of Michigan warehouses, with DAP quoted at a firm $600-$605/st FOB and MAP at $630-$640/st FOB, where available. Multiple locations were out of product in mid-April, however, including Webberville and Essexville.

Northeast:

DAP pricing was quoted at $605/st FOB East Liverpool, Ohio, in mid-April, up $10/st from last report. MAP was pegged at $630/st FOB East Liverpool, with Fairless tons quoted at $620/st FOB for April-June offers.

Saudi Arabia:

Recent Saudi Arabia phosphate pricing moved to $520-$550/mt FOB, sources said, a change from $500-$560/mt FOB at last report.

China:

Sources said more DAP buyers are accepting the Chinese price of $530-$540/mt FOB. Deals in India and Pakistan are now showing netbacks that reflect this range.

Producers had allowed some sliding in the price to allow major buyers such as India and Pakistan to move up their landed price. Now that an equilibrium seems to have been found, however, sources said they expect to see the producers hold even at this level.

Pakistan:

Sources said two DAP cargoes were purchased at $570/mt CFR. According to a trader, one cargo was secured some time ago for delayed delivery, while the second cargo was only recently negotiated and accepted.

India:

Sources are reporting that Indian buyers are accepting higher prices for DAP. Reportedly, a deal was struck at $567-$569/mt CFR for a cargo.

The government has still not settled on a maximum retail price for DAP, and sources said buyers will remain hesitant to buy until a new nationwide price is set. So far, the government has only set a price for the state of Karataka and for IFFCO. Other companies and other states are still operating under the old fiscal year pricing.

Russia:

Exports of DAP in February 2021 were down 17 percent, to 142,000 mt from 172,000 mt in February 2020, according to Trade Data Monitor. January-February 2021 exports totaled 264,000 mt, down about 25 percent from 350,000 mt during the same period last year.

Despite the year-over-year drop so far this year, exports on an average monthly basis are ahead of 2020. Average monthly exports in 2020 were about 127,000 mt, compared with 132,000 mt so far in 2021.

Brazil:

Prices for MAP at Paranagua softened a bit at the upper end of the range, to $610-$620/mt CFR. Traders noted the absence of Chinese MAP in the market as a stabilizing price influence.

The Rondonopolis price showed a tightening in the range, to $730-$755/mt FOB ex-warehouse. Sources said the absence of MAP at inland distribution centers is helping strengthen regional prices.

The barter rate in Rondonopolis and Sorriso for 1 mt of MAP remains steady at 37 bags of soy or 100 bags of corn. The rate at Southern Goias shifted slightly to 37.3 bags of soy and 65.2 bags of corn.

Phosphoric Acid

Eastern Cornbelt, Great Lakes, India, Market Watch, Northern Plains, Phosphoric Acid, 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 shipment.

Western Cornbelt:

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

Northern Plains:

Phos acid pricing moved up $0.50/unit on April 1, with new postings reported at $13.45/unit rail-DEL in Minnesota and $13.60/unit rail-DEL in the Dakotas.

Great Lakes:

The phos acid market was pegged at $13.45-$13.60/unit rail-DEL in the Great Lakes region for April tons, with the lower end of the range confirmed in Wisconsin.

India:

Sources said talks between the Moroccans and Indians have narrowed the range for second-quarter phos acid prices.

Rumors of a price increase to $1,000/mt CFR are now being dismissed as too ambitious. However, sources said the Moroccans are determined to get more than the $900/mt CFR that was originally on the table last month. Industry watchers said the new range under discussion is $920-$950/mt CFR.

Even as the talks continue, material is being bought and sold. Sources said each of the purchases since April 1 are under conditional pricing, meaning that for now, buyers are looking at the old price for the product. When the new price is settled, however, the difference will have to be paid.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt:

10-34-0 remained 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.

Northern Plains:

10-34-0 pricing was up in the Northern Plains, to $580-$600/st FOB and $590-$600/st DEL in mid-April.

Great Lakes:

The 10-34-0 market was quoted at $585-$600/st FOB in the Great Lakes region.

Northeast:

The 10-34-0- market in upstate New York remained at $570/st FOB, unchanged from last report.

Muriate of Potash

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

U.S. Gulf:

Potash barges loading from NOLA were unchanged at $310-$318/st FOB, with barges slated for loading in first-half May representing the low side of the range.

Prompt offers were typically heard at $315-$320/st FOB for the week, although a moving barge reportedly failed to draw bids against a $313/st FOB offer, leading some to predict softening sentiment going forward.

Eastern Cornbelt:

Potash was pegged at $355-$365/st FOB in the Eastern Cornbelt, depending on location, with the low confirmed on the Illinois River. The Cincinnati market was steady at $360-$365/st FOB in mid-April.

Western Cornbelt:

The potash market slipped to $345-$360/st FOB in the Western Cornbelt, down $10-$15/st from last report. The Catoosa/Inola market was pegged at $345-$355/st FOB in mid-April, down $5/st.

Northern Plains:

The potash market was quoted at $350-$355/st FOB St. Paul in mid-April. The market to U.S. buyers FOB Saskatchewan mines remained at a firm $330-$340/st after netbacks, depending on grade.

Great Lakes:

Sources pegged the potash market at $365-$385/st FOB in the region, depending on grade and location, with the upper end reported out of Saginaw.

Northeast:

Potash pricing for April-June shipments remained at $360/st FOB Fairless Hills, with rail-DEL pricing for Canadian tons pegged in the $385-$395/st range in the Northeast.

India:

No further contract settlement have been reported following ICL’s settlement of a new annual supply contract with Indian Potash Ltd. (IPL), India’s biggest potash importer, and Belarusian Potash Co.’s (BPC) announcement last week of a revised contract price of $280/mt CFR (GM April 9, p. 17).

Brazil:

The price for MOP remained steady at Paranagua at $325-$355/mt CFR. Even with the lack of movement, sources said the dynamics are in place for higher prices soon. Sources reported a deal at $340/mt CFR for a June cargo. Talks for additional tons are showing more aggressive pricing ideas from sellers.

Rondonopolis moved up about $10/mt, to $390-$450/mt FOB ex-warehouse. Sorriso also showed a step up in prices of about $5/mt, to $430/mt FOB ex-warehouse.

Russia:

Exports of 731,000 mt of MOP in February represented a 60 percent jump compared to the February 2020 number of 456,000 mt.

The increase in the first two months of the year was even greater. Trade Data Monitor reported January-February exports of 1.8 million, representing a 211 percent increase from the 565,000 mt shipped out during the same period in 2021.

Sulfur

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

Tampa:

Genscape reported a sulfur recovery unit (SRU) turnaround planned for later in April at Marathon’s refinery in St. Paul Park, Minn. Union employees have been on strike at the plant since Jan. 21. Marathon restarted a 20,000 barrel/d hydrotreater at the facility on April 11, while a ramp-up of an 11,000 barrel/d catalytic reformer was noted in progress during the week.

PBF Energy on April 9 shut the 110,000 barrel/d Crude 7 CDU at its refinery in Paulsboro, N.J. PBF on April 9 restarted a 43,000 barrel/d catalytic reformer at its Delaware City, Del., facility. The unit was taken offline on April 5.

The second-quarter Tampa molten contract was settled at $192/lt CFR, up $96/lt from $96/lt CFR in Q1.

U.S. refining capacity ticked higher in the Energy Information Administration’s (EIA) most recent report. Utilization for the week ending April 9 was pegged at 85.0 percent of capacity, a 1.0-point increase from the previous week’s 84.0 percent rate. The rate topped the year-ago 69.1 percent while trailing the 85.4 percent five-year average.

Crude inputs moved slightly higher, the EIA noted, to an average 15.051 million barrels/d, up 7,000 barrel/d from the week-ago 15.044 million barrels/d rate.

U.S. Gulf:

Restart efforts continued at the Chevron refinery in Pasadena, Texas, following the facility’s forced shutdown during the mid-February polar vortex. Genscape noted increasing activity at a 41,000 barrel/d vacuum distillation unit (VDU) on April 13, although the unit remained below operational levels. Other monitored units at the facility were reportedly operational on April 13.

ExxonMobil Corp. on April 10 restarted a 97,000 barrel/d CDU and a 44,000 barrel/d VDU at the company’s refinery in Baton Rouge, La., Genscape reported. Both units were taken offline on March 27 for decoking. A 116,000 barrel/d FCC that reportedly suffered an unplanned shutdown on April 8 remained offline on April 12.

Flint Hills restarted a 75,000 barrel/d CDU at its Corpus Christi East facility on April 10 after shutting the unit on April 7. Phillips 66 was noted shutting a 65,000 barrel/d hydrotreater during the week.

Shell powered down a pair of SRUs at its Convent, La., plant on April 10. Shell is in the process of permanently idling the facility after failing to find a buyer in 2020.

Sulfur price ideas out of the Gulf continued to be reported at around $180/mt FOB, unmoved from one week earlier.

Brazil:

Recent Brazil spot pricing was quoted at $209/mt CFR, steady from week-ago levels. Second-quarter contracts were pegged in the $213-$214/mt CFR range, up from $116-$119/mt CFR in the prior period.

Vancouver:

Last-done at Vancouver continued at $170-$180/mt FOB, sources said, steady from the prior report.

Alberta:

The Alberta sulfur market was heard netting back to sellers in the $65-$110/mt FOB range. Molten material contracted into the U.S. set the low side of the range, while prilled tons selling through the Vancouver export market netted back the highs.

West Coast:

Marathon was reported restarting a 65,000 barrel/d CDU and a 62,000 barrel/d VDU at its Carson, Calif., plant on April 14. The units were reportedly shut on April 12. The plant’s 37,000 barrel/d CDU No. 4 has been offline since Oct. 11, 2020.

Sources continued to call the West Coast prill market $170-$180/mt FOB, unchanged from one week earlier. Second-quarter molten contracts were noted in the $140-$155/lt FOB range, firming from $70-$77/lt FOB in the prior period.

China:

Refineries in China processed crude at higher rates than the U.S. for most of 2020, the EIA reported. Capacity in the country pushed ahead of the U.S. for the first time ever in April 2020 as U.S. refiners dialed back production in response to the first wave of the COVID-19 pandemic. Excluding the summer drive time months of July and August, Chinese production outpaced the U.S. during every remaining month of 2020.

Sources continued to call the China spot sulfur market at a last-done $180-$200/mt CFR, steady from the prior report.

ADNOC:

Solid sulfur offers from the Abu Dhabi National Oil Co. were reported at $185/mt FOB Ruwais for April lifting, a $2/mt increase from $183/mt FOB in the prior period.

Qatar:

Muntajat posted April prill offers at $185/mt FOB Ras Laffan, sources said, up $2/mt from the previous $183/mt FOB offer.

Sulfuric Acid

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

U.S. Gulf:

Recent firming at Brazil lifted price ideas in the Gulf to at least $135-$140/mt CFR, sources said, an increase from $130-$135/mt CFR published previously.

Gulf Coast:

Annual Gulf Coast contracts were noted in the $85-$110/st DEL range for 2021.

Midwest:

Tons delivered to the Midwest were quoted even with the Gulf Coast at $85-$110/st DEL.

West Coast:

The West Coast market was noted at $100-$130/st DEL for 2021 agreements.

Brazil:

Recent business at Brazil was reported in the $150s/mt CFR, increasing from $135-$140/mt CFR in the previous report.

China:

Operating rates at primary lead smelters in Henan, Hunan, and Yunnan provinces firmed to 58.9 percent for the week ending April 9, Shanghai Metals Market reported. Smelters were noted operating at 58.3 percent for the prior week.

Secondary smelters in Jiangsu, Anhui, Henan, and Guizhou were also higher, climbing 1.88 percentage points to 55.27 percent, due to a mix of production ramp-ups and concluded maintenance.

Aluminum capacity at China is expected to reach an all-time peak “soon,” according to the China Nonferrous Metals Industry Association (CNIA) and reported by Reuters, as government efforts to meet climate pledges and limit runaway capacity expansion are expected to fully mature by 2025.

Aluminum smelting capacity at China was pegged at 8.34 million mt at the end of 2020.