All posts by mickeybarb@charter.net

Belarus Eyes Gazprom Participation in Grodno Azot Modernization

Ammonia, Belarus, News, News Briefs, Russia, Urea

Belarus has proposed that Russia’s state-owned energy group Gazprom participate in the modernization of Grodno Azot’s nitrogen production facilities, according to an Interfax report this week, citing Belarus president Alexander Lukashenko following his meeting last month with Russian president Vladimir Putin.

State-owned Grodno Azot is looking to build a new nitrogen fertilizer production complex and refurbish its existing production facilities. There was talk late last year by Belarus’ Ministry of Architecture and Construction that construction of the new complex might start as early as 2021(GM Dec. 31, 2020). However, at the time no firm dates for the project timeline had been officially confirmed, and it remains unclear if the state-owned nitrogen fertilizer producer has secured any project funding.

According to Grodno Azot’s website, the new complex will be built with capacity for 875,000 mt/y of ammonia and 1,225,000 mt/y of granular urea.

PhosAgro Starts Up New Ammonium Phosphate Plant at Volkhov

News, News Briefs, Russia

PhosAgro has launched a new ammonium phosphate plant at Volkhov, some 122 km east of St. Petersburg, with a pilot batch of product produced at the new facility, the Russian fertilizer group said March 9.

The new plant with 288,500 mt of production capacity is the first stage of a project for the development of a large production complex at Volkhov. The RUB28 billion (approximately $379 million at current exchange rates) project was launched in March 2019 (GM March 29, 2019).

The first stage of the development also includes a phosphoric acid plant with capacity of 200,000 mt/y P2O5, storage facilities for 490 mt of liquid ammonia, three new sulfuric acid tanks for a total volume of 12,000 mt, and a warehouse for storage of up to 15,000 mt of ammonium phosphate.

The second stage of the project involves the modernization and overhaul of the existing production facilities at Volkhov to enable them to produce ammonium phosphate. The work will include the overhaul of the phosphoric acid extraction unit, which on completion will raise phosphoric acid production capacity at the site to 450,000 mt/y P2O5. New equipment also will be installed for the production of sulfuric acid, enabling annual sulfuric acid production capacity of 800,000 mt/y.

On completion of the work, the annual production of ammonium phosphate at the Volkhov site will be increased to 800,000 mt/y, PhosAgro said. The group expects to see the start-up of these main capacities in 2023.

Ammonia

Ammonia, Black Sea, Brazil, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, South Central, Southern Plains, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf/Tampa:

Tampa ammonia for March continued to be called $445/mt CFR, with the NOLA barge market at $475/st FOB. The supply situation in the area is starting to improve, as the Yara Freeport plant in Texas was reported to be in the process of coming back up and there were unconfirmed reports that OCI’s Beaumont plant was as well.

IPL’s Waggaman, La., plant is expected to return to operation on March 15 after an extended turnaround that began in January. These outages, along with those in Trinidad, have stressed Tampa and NOLA pricing.

U.S. Imports:

January ammonia imports totaled 265,460 st, according to the U.S. Department of Commerce, firming 9.6 percent from the year-ago 242,312 st. July-January imports were down 11.2 percent, to 1.41 million st from 1.59 million st the year before.

U.S. Exports:

Exports of ammonia fell 6.9 percent in July-January, to 353,121 st from the year-ago 379,341 st. January exports stood at 50,024 st, 51.1 percent below the year-ago 102,248 st.

Eastern Cornbelt:

Sources reported ammonia pricing at $650/st FOB East Dubuque, Ill., with March 3 reference prices from CF remaining at $570/st FOB Kingston Mines, Ill.; $580/st FOB Huntington, Ind.; $590/st FOB Illinois terminals at Albany, Peru, and Seneca; $600/st FOB Cowden, Ill., and Terra Haute, Ind.; $620/st FOB Frankfort, Ind.; and $650/st FOB Mount Vernon and Henderson, Ky.

Western Cornbelt:

A dearth of supply continued to push up ammonia prices in the Western Cornbelt.

Sources reported new ammonia offers from Koch at $615/st FOB terminals in Iowa and Nebraska, while prices from CF remained at March 3 postings of $570/st FOB Palmyra, Mo., $580/st FOB Nebraska terminals at Aurora, Blair, and Fremont, and $585/st FOB Iowa terminals at Garner, Port Neal, and Spencer.

Southern Plains:

Sources reported much higher ammonia prices amid ongoing reports of tight supply and continued production troubles stemming from the arctic blast in February.

Limited ammonia offers were reported at $600/st FOB Pryor, Okla., $615/st FOB Enid, Okla., and Dodge City, Kan., and $630-$635/st FOB Coffeyville, Kan. Sources said no current pricing is being offered from Verdigris and Woodward, Okla., or out of Gulf Coast production points.

South Central:

Sources reported no current ammonia offers in the South Central region due to plant outages and tight supply. No current prices were being quoted out of Donaldsonville, La.; El Dorado, Ark.; Cherokee, Ala.; Hopewell, Va.; and Midway, Tenn.

Black Sea:

Limited tons make identifying the spot market for Yuzhnyy difficult, sources said. Reportedly, at least one deal has been done at $400/mt FOB, while all the talk seems to be at levels much higher.

International traders are saying that the tightness in the global ammonia market and the limited quantities available from the Black Sea could easily push pricing to $410-$420/mt FOB.

Middle East:

Even with reports of limited tonnage, sources said some small ammonia sales were possible. According to sources, Ma’aden reportedly sold 10,000 mt to an unnamed buyer for $400/mt FOB.

The small quantity and high price did not surprise industry watchers. The global market has been tight, and availability of material from the Arab Gulf has been especially limited. A small order at a high price was expected, said one trader.

India:

Buyers keep looking around for product, but keep pulling back after getting offers much higher than they are willing to pay. Sources said one buyer sent a bid to Petronas in Malaysia at $400/mt FOB. Unfortunately for the buyer, however, sources said the response was that Petronas had no material for March or April.

Northwest Europe:

Baltic prices remained tied to formulas with ever-rising netbacks. Sources said $400/mt FOB from a Baltic supplier is possible, especially after that level has been achieved in the Arab Gulf and Black Sea. The higher price has pushed the Northwest Europe market to $440-$450/mt C&F.

Brazil:

Ammonia imports so far this year were reported at 105,000 mt by Trade Data Monitor, using government figures. The January-February numbers for 2021 are up dramatically from the 62,000 mt during the same period in 2020. February imports were at 52,000 mt, against February 2020 imports of 23,000 mt.

Urea

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

U.S. Gulf:

The NOLA granular urea barge market quickly rose early in the week to as high as $400-$401/st FOB, according to sources, although other trades were reported in the $370-$390/st FOB range. The new range was up from last week’s $357-$370/st FOB.

While there was a flurry of business early in the week, sources said the market became extremely quiet as the week progressed, however. One source offered that this may have been due to a “sloppy” international market, where prices dropped this week in China and the Arab Gulf just as India is expected to call a tender.

U.S. Imports:

July-January urea imports were up 0.7 percent, to 1.78 million st from 1.77 million st one year earlier. January imports were up 71.8 percent, to 441,111 st from 256,783 st.

Qatar continued to top the import lineup in the fertilizer year-to-date with 645,347 st, up 9.8 percent from the year-ago 587,594 st. Saudi Arabia followed with 359,758 st, up 16.5 percent from the prior year’s 308,766 st. Canada’s 275,035 st total for the year-to-date represented a 1.6 percent improvement on the year-ago 270,641 st, and was ahead of Russia’s 210,323 st total.

U.S. Exports:

January urea exports came in at 14,692 st, 75.6 percent below the previous year’s 60,096 st total. Imports for the July-January period firmed 30.4 percent, to 530,764 st from 406,978 st.

Eastern Cornbelt:

Sources reported firming urea prices during the week. The market was quoted at $425-$435/st FOB in the Eastern Cornbelt, up $20-$30/st from the previous week, with the low reported at East Dubuque and the high out of spot Illinois and Ohio River terminals.

Western Cornbelt:

Urea pricing reportedly jumped to $420-$430/st FOB in the Western Cornbelt, up $15-$30/st from the previous week, with the higher numbers confirmed at St. Louis and Caruthersville, Mo., as the week progressed.

Iowa sources quoted spot river terminal pricing firmly in the $425-$430/st FOB range during the week, with the St. Paul, Minn., market reported at $420-$430/st FOB for river-open offers.

Southern Plains:

Sources quoted the urea market at $420/st FOB Houston, Texas, and a firm $425-$435/st FOB Catoosa/Inola, Okla., up some $35-$50/st from the previous week’s low. With higher NOLA barge values reported this week, some contacts said they expect the Catoosa/Inola market to edge up to the $450-$460/st FOB range for the next round of offers.

South Central:

Urea pricing was quoted in a broad range at $410-$440/st FOB terminals in the South Central region, up $30-$35/st from last report, with the low confirmed at Memphis, Tenn., and the high at Shreveport, La. Sources reported the bulk of new offers out of Arkansas River terminals at the $430/st FOB level at midweek, with the Convent, La., market also reported “above $400/st” FOB.

Southeast:

Sources said the week began with urea offers at $410/st FOB Wilmington, N.C., and $420/st FOB Charleston, S.C., but quickly firmed to a solid $430/st FOB level out of port terminals by midweek. Postings FOB Fairless Hills, Pa., also moved up to $430/st FOB for March and $445/st FOB for April-May, up from the previous week’s $400/st FOB for March tons and $405/st FOB for Q2 shipments.

China:

Growing inventories, increased production, and reduced domestic demand have combined to push down export prices. Sources said some small prilled deals were done at $335-$340/mt FOB. Sources said that would place the granular market at $340-$350/mt FOB.

These prices show a marked drop from the $370s/mt FOB of just last week. Traders said the decline came as portside warehouses went from almost empty to reserves of more than 300,000 mt in just a couple of weeks. Sources said the product heading to the ports is coming from regional facilities that would normally serve domestic buyers. With the domestic season winding down and urea plants increasing output, however, traders saw an opportunity to take positions with product for the pending Indian urea tender.

One source said a number of Chinese and international traders are taking long positions on Chinese urea in anticipation of the Indian tender. Some are now saying 500,000-700,000 mt have been booked with the idea of offering the material to India.

Besides the potential India business, sources said demand is picking up in Australia, Thailand, the Philippines, and South Korea. While demand is strong, sources said buyers are pushing back against prices that have been rising in recent weeks. Freight rates have also been going up, causing sellers to scale back their pricing ideas to ensure a deal.

India:

The consensus in the market seems to be that India will call its urea tender at the end of the month so the awards can be made under the new budget that takes effect on April 1.

Traders are already lining up tons from China at prices in the $330s/mt FOB. Reportedly some have secured tons from the Arab Gulf at levels that also indicate a softening in that market. Price ideas in the tender show a wide range of $350-$380/mt CFR, with the mid-price of $365/mt CFR apparently being a point of general agreement.

Any price in the $360s/mt FOB will be higher than anything paid in the past seven years, according to Green Markets data. November 2018 showed tender awards at $353-$356/mt CFR. The next highest rate was November 2013 at $339-$343/mt CFR. By comparison, the price paid in March 2020 was $255-$258/mt CFR.

Indian buyers will face not only higher urea prices, but also higher freight rates. The increased cost in petroleum is only part of the reason for higher shipping costs, said traders. Many vessels are out of position to take advantage of favorable rates to move product to India from either China or the Arab Gulf. The rate from China to the East Coast of India is pegged around $20/mt against a normal level of $15-$18/mt, Sources said prices are even more unfavorable from the Arab Gulf to the West Coast of India.

Middle East:

Sources said urea prices from the Arab Gulf have dropped into the mid-$360s/mt FOB even as producers reported no material available for March sales. April tonnage is reported as limited and only available at “the right price.”

With more Chinese tons now moving to export ports for possible use in the upcoming India tender, sources said the Arab Gulf producers will have less sway over what happens in that tender.

Even as Chinese and Arab Gulf prices soften, Egyptian producers continue to enjoy strong returns. Sources said MOPCO settled a deal for a May shipment at $400/mt FOB. The company is also reportedly loading a vessel for the U.S., which is also seeing a rise in urea prices.

One trader noted that the only upside to the situation in Egypt is that prices seems to have stabilized. Producers sold product for April shipments at $400/mt FOB. The May deal at the same price could indicate a plateauing of prices.

Indonesia:

Producers are moving out previously booked tons and contracted orders. No new urea tenders were reported this week.

Black Sea:

Sources said some small urea deals out of Yuzhnyy have indicated a netback of $380/mt FOB. Details of the exact quantities sold and to whom were sketchy, but solid enough for sources to feel comfortable with the new posted price.

Brazil:

Demand remains strong in Brazil as prices added a few bucks on the upper end of the range from last week. Sources now put the Paranagua urea price at $395-$405/mt CFR, with sellers pushing for $410/mt CFR.

Traders are saying the market may have topped out and point to strong pushback against the $410/mt CFR offers. One source added that by the end of the month the pushback will be at the $400/mt CFR level. He added that buyers are beginning to slip into an “off season” mood.

Even as portside prices appear to be reaching their peak, upward pressure continues on inland prices. Rondonopolis reported prices at $480-$600/mt FOB ex-warehouse, showing a wider range from last week. The market in Sorriso was also up, with sources reporting prices at $503-$508/mt FOB ex-warehouse.

Brazil Urea Prices
Terminal/City US$/mt FOB ex-warehouse
Week ending 03/05 Week Ending 03/11
Rondonopolis 545-550 480-600
Sorriso NA 503-508

Farmers are said to be hesitating to make large-scale purchases. Sources said excess rain in Mato Grosso is delaying fieldwork that would normally be taking place at this time.

Despite concerns about a weakening Real against the U.S. dollar, sources said the barter rate for 1 mt of urea remains at 60 bags of corn.

Imports of urea so far this year were dominated by Qatar at 393,000 mt, Russia at 353,000 mt, and Algeria at 175,000 mt. All told, in the first two months of the year, Brazil imported 1.3 million mt of urea, up about 23 percent from the same period last year. February imports were pegged at 718,000 mt, according to Trade Data Monitor, against 590,000 mt in February 2020.

UAN

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

U.S. Gulf:

NOLA barges were hard to peg after the recent run-up in prices. Based on producer offers and upriver business, the market was put in the $280-$300/st ($8.75-$9.38/unit) FOB range, up from the week-ago $220-$300/st ($6.88-$9.38/unit) FOB.

The most recent East Coast vessel business was put in the $305-$330/mt CFR range, with offers now reported to be $345/mt CFR.

U.S. Imports:

Nitrogen solutions imported in July-January fell 22.3 percent from one year earlier, to 1.34 million st from 1.72 million st. Totals were down 39.2 percent in January, to 173,992 st from 286,221 st.

Russian tons stood atop the July-January import list at 586,308 st, a 34.9 percent year-over-year decline from 900,580 st. Material sourced from Trinidad and Tobago totaled 505,979 st for the period, down 25.5 percent from 679,182 st, while Canada’s 222,110 st total was down 7.8 percent from the year-ago 240,914 st.

U.S. Exports:

January exports of UAN jumped 876.5 percent, to 58,597 st from the year-ago 6,001 st. Exports for July-January totaled 523,553 st, off 14.7 percent from the year-ago 613,962 st.

Eastern Cornbelt:

UAN-32 pricing was pegged at $315-$330/st ($9.84-$10.31/unit) FOB Illinois River terminals for April-June tons, depending on location and supplier, with CF postings for spring material holding at March 4 levels of $325/st ($10.16/unit) FOB Mount Vernon, Ind., $327/st ($10.22/unit) FOB Cincinnati, Ohio, and $345/st ($10.78/unit) FOB Burns Harbor, Ind.

Western Cornbelt:

CF reportedly raised its UAN-32 posting FOB Port Neal, Iowa, by $10/st on March 11, with the market there firming to $330/st ($10.31/unit) FOB. Other postings in the region remained at March 4 levels of $325/st ($10.16/unit) FOB St. Louis, Mo.; $340/st ($10.63/unit) FOB Garner, Iowa; and $345/st ($10.78/unit) FOB Hastings, Neb.

Southern Plains:

The UAN-32 market in the Southern Plains was pegged at $320-$335/st ($10.00-$10.47/unit) FOB regional production points for very limited tons, with the low reported earlier in the week for June tons FOB Woodward, Okla.

By March 11, however, sources said prices had firmed to $330-$335/st ($10.31-$10.47/unit) FOB Coffeyville, Kan., for prompt tons, $330/st ($10.31/unit) FOB Verdigris, and $335/st ($10.47/unit) FOB Woodward.

South Central:

UAN-32 pricing was up dramatically to $300-$325/st ($9.38-$10.16/unit) FOB South Central terminals, up a full $90-$100/st from mid-February levels, with the low confirmed at Donaldsonville and Yazoo City, Miss., and the upper end reported by Kentucky sources out of Ohio River terminals. The Memphis market was pegged solidly at $310-$315/st ($9.69-$9.84/unit) FOB at midweek.

Southeast:

The UAN-32 market was pegged at $295-$305/st ($9.22-$9.53/unit) FOB port terminals in the Southeast, up $45-$50/st from late February levels, with the low end of the range reported for limited offers FOB Wilmington early in the week. By midweek, pricing out of port and inland terminals was quoted firmly in the $300-$305/st ($9.38-$9.53/unit) FOB range.

Sources said the UAN-32 market FOB Baltimore, Md., climbed to $320-$330/st ($10.00-$10.31/unit) FOB for Q2 offers, up from $295-$305/st FOB at last report. The market FOB Fairless Hills firmed as well, to $350/st ($10.94/unit) FOB for March through Q2.

Argentina:

Like East Coast U.S., vessel imports into Argentina were up this week. The market was called $320-$330/mt CFR, up from the week-ago $280-$300/mt CFR.

Ammonium Nitrate

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

U.S. Gulf:

NOLA ammonium nitrate barges were put at $325-$350/st FOB based on recent postings.

U.S. Imports:

January ammonium nitrate import volumes softened 66.3 percent, to 15,312 st from the year-ago 45,492 st. Imports were down 58.3 percent for the July-January period, to 115,864 st from 277,979 st.

U.S. Exports:

Exports firmed 63.1 percent for the July-January fertilizer year-to-date, to 438,566 st from 268,955 st one year earlier. January totals lifted 61.4 percent, to 45,359 st from 28,100 st.

Western Cornbelt:

Ammonium nitrate pricing was pegged at a solid $400/st FOB in the Western Cornbelt.

Southern Plains:

Ammonium nitrate pricing was up significantly, to $400/st FOB Muskogee, Okla., for new offers, reflecting an increase of $50/st from last report.

South Central:

The ammonium nitrate market was reported at $350-$400/st FOB in the South Central region, with the low confirmed at Yazoo City and the upper end out of spot river terminals in Arkansas and Kentucky.

Southeast:

Ammonium nitrate pricing at Tampa was quoted at $350/st FOB for the last business, with supply described as “very tight.”

France:

Yaraannounced further price increases this week for April deliveries of its 33.5 percent ammonium nitrate (YaraBelaExtran33.5) in France. The posted price rose to €345/mt bulk CPT, up €7/mt from Yara’s last posted price for April deliveries (GM March 5, p. 8). Once again, Yara said only limited volume is available.

Ammonium Sulfate

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

U.S. Gulf:

The ammonium sulfate barge market remained at $225-$240/st FOB. Players said the market is poised for another increase, citing higher urea and sulfur pricing.

U.S. Imports:

Imports of ammonium sulfate were up 57.9 percent for January, to 72,362 st from 45,819 st last year. July-January totals were up 94.5 percent, to 511,230 st from last year’s 262,785 st.

Canada dominated the July-January fertilizer year-to-date import list at 296,150 st, up 86.2 percent from 159,030 st the year before, while tons loading from Belgium totaled 85,761, a 51.1 percent increase from 56,751 st recorded one year earlier. Russian material totaled 61,788 st for the period, up 62.4 percent from 38,047 st the year before.

Tons originating from the Netherlands totaled 31,248 for the period, rising 47,947.5 percent from the previous year’s 65 st total. South Korean tons totaled 30,314 st, compared with just 44 st during the same period last year.

U.S. Exports:

January ammonium sulfate exports were up 167.7 percent from last year, to 61,022 st from 22,795 st. July-January exports fell 0.4 percent, however, to 385,500 st from 387,109 st.

Eastern Cornbelt:

Sources quoted the granular ammonium sulfate market at $255-$275/st FOB in the Eastern Cornbelt, with the low reported at East Dubuque. IOC’s reference remained at $265/st FOB Illinois and Ohio River terminals, while March 1 postings from AdvanSix included granular tons at $270/st FOB Granite City, Ill., and $285/st rail-DEL in Illinois.

Western Cornbelt:

Sources reported ammonia sulfate offers ranging from $245-$260/st FOB in the Western Cornbelt, with the low at Caruthersville and the higher end out of spot Iowa locations for March-June tons. Reference prices from producers continued to include granular product at $260/st FOB St. Louis and $275-$280/st FOB Sioux City, Iowa.

Southern Plains:

The low end of the granular ammonium sulfate market was quoted firmly at $250-$255/st FOB Catoosa/Inola and Houston, up $5/st from last report. IOC on Feb. 25 raised its ammonium sulfate postings to $270/st FOB Houston and $280/st rail-DEL in the Southern Plains, up $25-$30/st from its previous list prices.

South Central:

Ammonium sulfate pricing had reportedly firmed to $245-$250/st FOB in the South Central region, up another $5-$10/st from last report.

Southeast:

Ammonium sulfate prices FOB Hopewell, Va., remained at $265/st for granular, $245/st for mid-grade, and $225/st for standard. Sources in Florida reported delivered tons at $230/st for standard and $280/st for granular.

China:

Product availability remains low, even as regional and global demand picks up. The resulting situation has caprolactam-grade ammonium sulfate firmly in the low-$150s/mt FOB. Some producers are claiming they have been able to sell at $160/mt FOB, but have not backed up those claims to industry watchers.

Traders said higher prices are likely as available product from China remains limited. Suppliers said they have nothing available for spot sales for the rest of March and most of April.

Brazil:

Granular ammonium sulfate prices moved up steadily during the week. The opening price was pegged at $190/mt CFR in Paranagua. By week’s end, however, sources said deals were done at $210-$215/mt CFR.

Some of the demand is coming from inland NPK producers looking for cheaper nitrogen supplements to their blending process. The rising price of ammonium sulfate, and the stabilizing price of urea, however, is beginning to chip away at the benefits of buying amsul instead of urea.

Imports of ammonium sulfate during February were reported at 379,000 mt, with most of it coming from China, according to Trade Data Monitor. The imports showed a marked increase from February 2020 imports of 218,000 mt.

The first two months of the year showed imports at 742,000 mt against 502,000 mt during the same period in 2020.

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, U.S. Imports, Western Cornbelt

Central Florida:

The Central Florida DAP truck market was noted firming to $540/st FOB from $530/st FOB in the prior report, with sources describing thin availability for March and April. MAP lifted to $555-$570/st FOB, up from $545-$560/st FOB one week earlier.

U.S. Gulf:

Sources reported solid price firming on the NOLA barge phosphate markets amid a slow week of trading. Nearby DAP barges were pegged at a $530/st FOB low, up from $518/st FOB noted previously, while players put the top of the nearby range at $535-$538/st FOB on March 10.

The March 11 ITC ruling affirming countervailing duties on tons from Morocco and Russia offered additional fuel to the market, sources said, with paper trading up to $542/st FOB. Bidding for physical barges was reported up to $540/st FOB on March 11. Offers for domestic tons were quoted at $535/st FOB for loading in April or May, rising $10/st from week-ago levels.

MAP barges also moved higher for the week. Sources generally quoted nearby physical sales and offers at a $575/st FOB floor, with firm bidding interest reported moving to at least $590/st FOB on March 11. Mirroring the DAP market, domestic MAP offers firmed $10/st FOB, to $565/st FOB for April and May loading. Prompt trading rumored up to $595/st FOB went unconfirmed on March 11.

Nearby physical DAP barges were quoted at $530-$540/st FOB for the week, up from $518-$530/st FOB in the prior report. MAP barges were generally called $575-$590/st FOB, higher than $572.50-$585/st FOB at last check.

U.S. Imports:

DAP imports lifted 5.8 percent higher for the July-January period, totaling 649,048 st compared with the year-ago 613,234 st. January imports firmed 80.3 percent, to 186,117 st from 103,229 st.

Saudi Arabia topped the list at 227,059 st in the July-January period, rising 649.7 percent from the year-ago 30,287 st. Vessels from Australia totaled 152,099 st, compared with zero imports in the year-ago period, while Jordan jumped into third-place with 146,942 st, up from zero tons imported for the prior year.

Russian imports sank 63.3 percent year-over-year, to 35,737 st from 97,330 st, while tons from Moroccan were off 94.5 percent for July-January, to 24,251 st compared with 440,948 in the previous year.

MAP/Other imports continued to drag in January, with volumes reported at 58,457 st, a 69.1 percent year-over-year decline from 189,105 st. Imports were also lower in the July-January fertilizer year-to-date, falling 56.9 percent to 495,836 st from the year-ago 1.15 million st.

Mexico led the July-January import period with 149,186 st, up 129.1 percent from 65,113 st in the previous year. Saudi Arabia’s 115,292 st was up 107.0 percent from the previous year’s 55,698 st, followed by 73,564 st from Russia, a 52.9 percent decline from the prior year’s 156,119 st total. Lithuania added 54,521 st, a sharp increase from the year-ago 452 st, while Australia’s 59,482 st total was up from zero tons in the previous July-January period.

U.S. Exports:

January DAP exports were noted at 43,650 st, falling 19.1 percent from the year-ago 53,974 st. July-January volumes dropped 30.0 percent, to 467,091 st from 667,309 st in the prior year.

MAP/Other exports for January were logged at 218,988 st, a 27.3 percent increase from the year-ago 171,960 st. July-January offshore tons fell 15.7 percent, however, to 1.29 million st from 1.54 million st reported one year earlier.

No new spot business was reported on the week’s Gulf phosphate export market. Recent transactions included a 7,000 mt DAP cargo priced at $580/mt CFR and scheduled to load in late March. With no new dealings reported, the market continued to be called $580/mt FOB for both DAP and MAP.

Eastern Cornbelt:

DAP remained at $560-$580/st FOB in the Eastern Cornbelt, with the low reported out of spot Illinois terminals. MAP was steady at $610-$635/st FOB in the region, with spot levels reported at $610/st FOB Cincinnati and $620/st or higher FOB Ottawa, Ill.

Western Cornbelt:

DAP pricing edged up to $560-$580/st FOB in the Western Cornbelt, up $10/st from last report, with the low reported at St. Louis and Camanche, Iowa, and the upper end at Dubuque, Iowa. The Caruthersville DAP market was pegged at the $575/st FOB level at midweek. MAP remained at $615-$650/st FOB in the region, with the low again confirmed at St. Louis.

Southern Plains:

DAP pricing was quoted at $565-$585/st FOB in the Southern Plains, with the low confirmed at Houston and the higher numbers at Catoosa/Inola from some suppliers. The MAP market was pegged at $610/st FOB Houston and $625-$640/st FOB Catoosa/Inola.

South Central:

Warehouse DAP prices were reported at $570-$585/st FOB terminals in the South Central region, virtually unchanged from last report, with the low reported at Memphis and the high at Shreveport. Most Arkansas River terminals were pegged at the $575/st FOB level at mid-month.

Southeast:

Nutrien’s reference pricing for DAP and MAP at Aurora, N.C., moved up $10/st during the week, to $560/st FOB for both products.

Saudi Arabia:

Recent sales out of Saudi Arabia were heard firming to $450-$530/mt FOB, with more gains predicted in the next round of business.

China:

Prices for DAP moved firmly into the $570s/mt FOB in China, with traders calling the market $570-$575/mt FOB with more upward pressure coming.

Sources said part of the push for higher DAP prices is coming from phosphate producers looking to other products such as MAP or to NPK production. While there are still reports of some possible material available in the $560s/mt FOB, most traders argue that the product being offered is closer to DAP lite rather than the full 18-46-0 DAP.

Sources said the increased focus on products other than DAP means fewer tons are available for export, leaving international traders and a growing number of buyers scrambling to find product.

India:

The limited quantity of DAP on the global market is making it difficult for buyers, and sources said the shortage is hitting the full phosphate line of products.

An RCF tender for DAP lite and GMAP closed on March 9 with no offers. The quick tender was needed to make up for a trader unable to fulfill an award previously issued. The trader declared a force majeure when he could not find available product at any price.

Brazil:

Demand for MAP continues in Brazil. The price at Paranagua is now $615-$640/mt CFR, with sellers pushing for $670/mt CFR.

Portside dealers are not the only ones facing pricing pressure. Rondonopolis now reports a spread of $700-$800/mt FOB ex-warehouse. The rise at the upper end of the range represents an almost $60/mt price increase in just one week.

Farmers are still getting good returns on their crops, according to sources. As a result, the barter ratios for 1 mt of MAP remains at 75 bags of corn or 31 bags of soybeans.

TSP

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

U.S. Gulf:

Players reported TSP barges rising to a $440-$460/st FOB, up from $430-$450/st FOB one week earlier. Egyptian material was heard trending toward the bottom of the range, while Moroccan tons set the ceiling. Material loading from Lebanon was reported occupying the center.

Western Cornbelt:

The TSP market was quoted at $475-$500/st FOB in the Western Cornbelt, down $15-$25/st from last report, with the low confirmed at Caruthersville.

South Central:

TSP terminal pricing in the South Central region were quoted at $475-$480/st FOB, down a full $35/st at the upper end of the range.

Phosphate Rock

Jordan, Market Watch, Phosphate Rock, U.S. Imports

U.S. Imports:

Phosphate rock imports for January firmed to 181,825 st, up 2.9 percent from 176,765 st in the prior year. July-January import totals were reported at 1.78 million st, up 42.8 percent from the year-ago 1.25 million st.

Jordan:

JPMC and IFFCO have inked a new one year contract for the supply of 2.1 million mt of phosphate rock starting on April 1, 2021, and extending through March 2022, JPMC reported in a March 10 filing to the Amman Stock Exchange. The Jordanian producer said the agreement was reached according to “international prices.”