All posts by mickeybarb@charter.net

Ammonium Sulfate

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

U.S. Gulf:

Sources put the last done ammonium sulfate barge business in the $180-$185/st FOB range, up from $175-$185/st FOB. Some said seller price ideas are now at $190-$200/st FOB, although others were skeptical that buyers would bite at those numbers.

Eastern Cornbelt:

The ammonium sulfate market was pegged at $220-$240/st FOB in the Eastern Cornbelt, up another $5-$10/st from the previous week, with the low confirmed at Ottawa, Ill., for prompt tons. The East Dubuque market was steady at $225/st FOB for prompt and spring tons, with Cincinnati pricing pegged at $220-$230/st FOB. New postings from IOC include $235/st FOB Illinois River terminals and $240/st FOB Ohio River terminals.

Western Cornbelt:

Ammonium sulfate pricing edged up to $220-$240/st FOB in the Western Cornbelt, with the low reported in Missouri. The market FOB Camanche was tagged at the $225/st FOB level at midweek. Granular postings from AdvanSix firmed $10/st on Jan. 20, with reference pricing from IOC as of Jan. 13 reported at $230/st FOB St. Louis, $235/st FOB Upper Mississippi River terminals, and $250/st FOB Sioux City, Iowa.

Northern Plains:

The granular ammonium sulfate market was pegged in a broad range at $225-$250/st FOB in the Northern Plains, up $10-$20/st from December. Prompt delivered tons were quoted at $240-$245/st in North Dakota for railed product and $245-$250/st for trucks, with Q2 shipments reported at $255-$265/st DEL. IOC on Jan. 13 raised its ammonium sulfate postings to $245/st rail-DEL in the Northern Plains.

Great Lakes:

The granular ammonium sulfate market was reported at $235-$250/st FOB in the Great Lakes region, up $10/st from last report, with the high confirmed at Webberville. The Burns Harbor market was reported at the $245/st FOB level at midweek.

Northeast:

Sources quoted the granular ammonium sulfate market at $235-$245/st FOB East Liverpool, Ohio, with the higher level taking effect on Jan. 20. Rail-DEL offers for domestic tons in the Northeast were pegged at $245-$255/st.

China:

Prices in China are stable near the $130/mt FOB mark for caprolactam-grade ammonium sulfate.

Sources said there is a growing problem identifying tons for sale, however, as ammonium sulfate producers face the same problem as all industrial plants. Natural gas for the plants is being diverted to home heating needs, and power is also being diverted because of coal shortages at the power plants.

Even as output is limited, so is demand from Chinese buyers for the same reasons affecting production. All industries are being hit by power limitations. Sources said so far, the reduced demand is matching the reduced output enough to keep prices balanced.

Chinese ammonium sulfate exports for 2020 jumped more than 1.5 million mt, to 8.7 million mt from 7 million in 2019. The single largest buyer in 2020 remained Brazil at 2.5 million mt, according to Trade Data Monitor.

Brazil:

Ammonium sulfate prices have moved up for granular ammonium sulfate at Paranagua, where sources now put the market at $160-$165/mt CFR. Some of the increase might be attributed to extended delays getting the product into the port.

Sources said a vessel with a cargo from China waited 50 days before being able to unload. Excess rainfall at the port reportedly prevented a lot of unloadings, creating backups for everyone. Some industry watchers also complained that operations at TERMAG near Sao Paulo have not been as efficient as they should be, causing further delays.

Rondonopolis prices showed upward movement as well, with sources now quoting the market there at $245-$255/mt FOB ex-warehouse. Improved prices for crops have also changed the barter rate, which has dropped from 40 to 37 bags of corn for 1 mt of ammonium sulfate.

AGI Remediation Costs Increase C$30 M

Canada, News, News Briefs

Equipment provider Ag Growth International Inc. (AGI), Winnipeg, said on Jan. 20 that full remediation costs to repair commercial grain storage bins for two customers is expected to cost C$30 million more than expected. In addition to higher steel costs, AGI said it will proceed with replacing the entire hopper base of the grain bins as opposed to replacing components of the existing structure.

As a result, the replacement of the hoppers results in a significantly expanded scope. The company said it continues to believe that this amount will be partially offset by insurance coverage and result in a lower net impact.

A twelve-story grain storage bin manufactured by AGI and located at customer Fibreco’s export terminal in North Vancouver, B.C., collapsed last fall (GM Sept. 18, 2020). The incident did not result in any injuries. AGI said in May 2019 a similar product in a substantially different application and installed at a different site for a different customer suffered a failure.

AGI said the bin that collapsed is part of a new line that was developed and manufactured by the company over the past two years in response to market demand. It is a larger version of AGI’s standard hopper line. The company said the line is unique and distinct from the rest of AGI’s product lines, including its other grain storage bin products, and is not in place or being sold to any other customers.

UAE, Japan to Cooperate on Fuel NH3, Carbon Recycling

ADNOC - Abu Dhabi, Japan, News, News Briefs

The United Arab Emirates (UAE) and Japan on Jan. 14 agreed to cooperate on fuel ammonia and carbon recycling technologies. The agreement followed the signing of a Memorandum of Cooperation between the Abu Dhabi National Oil Co. (ADNOC) and the Ministry of Economy, Trade, and Industry of Japan, highlighting the ambition of the UAE and Japan to harness new commercially feasible technologies to reduce carbon emissions.

“These agreements build on the strong and deep-rooted bilateral ties between the UAE and Japan and highlight the commitment of the UAE leadership to expanding the economic and trade relations between both countries,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO.

“Japan is ADNOC’s largest international importer of oil and gas products with approximately 25 percent of its crude oil imported from the UAE, and we continue to welcome new and existing Japanese partners to explore win-win investment and growth opportunities in the UAE and across ADNOC’s full value chain as we focus on the post-Covid recovery,” he added.

DAP/MAP

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

Central Florida:

DAP truck pricing pressed higher in Central Florida. Sources quoted the market in the $415-$430/st FOB range, an increase from $415/mt FOB in the previous report.

Truck-loaded MAP climbed to $460/st FOB on Jan. 21 after starting the trading week at $440-$450/st FOB, leaving the market in a wide $440-$460/st FOB range for the period.

U.S. Gulf:

Market players continued to report price increases for NOLA DAP and MAP barges, spurred in part by talk of an early spring planting season amid a backdrop of persistent supply tightness.

DAP barges were seen lifting to a nearby high of $430/st FOB, increasing from the week-ago $410/st FOB high. Imports were heard trading in the $410-$413/st FOB range to start the week, also lifting from the prior week’s $393/st FOB low. Tons slated for forward loading traded up to $444/st FOB, players noted.

Sources described the nearby MAP market topping out at $460/st FOB, lifting from the prior week’s $440/st FOB high, while some noted the nearby low holding steady from week-ago levels. March-loading barges were heard changing hands at $465/st FOB, with bids moving up to $470/st FOB by Jan. 21.

The nearby DAP market firmed to the $410-$430/st FOB range, from $393-$410/st FOB at last report. MAP barges were noted at $440-$460/st FOB, rising from $440/st FOB in the prior report.

U.S. Exports:

Mosaic reported a 5,000 mt DAP cargo sold to a single buyer in northern Latin America. The material was priced at $450/mt FOB and projected to release in early March.

Based on reported trades and available netbacks, sources quoted the week’s Gulf export market in the $430-$450/mt FOB range, firming from $405/mt FOB noted previously.

Eastern Cornbelt:

DAP was quoted at $445-$475/st FOB in the Eastern Cornbelt. The lower end was confirmed out of Illinois and Ohio River terminals early in the week, with the high end of the range more commonly reported as the week progressed. Sources at midweek quoted the Ottawa market firmly at the $452/st FOB level for new offers.

MAP pricing had reportedly firmed to $500-$520/st FOB in the region, with higher levels expected in the near term.

Western Cornbelt:

Sources said warehouse phosphate prices were “jumping” during the week, but levels were difficult to peg as some suppliers withdrew offers to reassess the market. “It’s been crazy,” said one industry contact. Phosphate inventories continued to be described as very tight.

While DAP pricing continued to be quoted at $440-$450/st FOB as the week started, sources said they expected those levels to be up at least $30/st by the end of the week, if not higher. MAP was pegged at $500-$520/st FOB earlier in the week, but sources said some Iowa locations were referencing as high as $530-$540/st FOB by Jan. 21.

Northern Plains:

DAP pricing FOB St. Paul was confirmed at $450-$455/st early in the week, but sources said most offers were pulled at midweek, with new offers expected to be up at least $30/st when they come out. MAP was pegged solidly at the $500-$520/st level FOB St. Paul at midweek, with higher numbers expected in the near term.

Great Lakes:

DAP pricing had reportedly firmed to $465-$485/st FOB in the Great Lakes region, with the upper end reported by Wisconsin sources for river-open offers at East Dubuque, Ill., from some wholesale suppliers. MAP was quoted at $508-$540/st FOB in the region, up another $10-$30/st from last report, with the low confirmed at Essexville and the high at East Dubuque.

Northeast:

DAP pricing was pegged at $465/st FOB East Liverpool, up $25/st from late December. MAP pricing had reportedly firmed to $500/st FOB East Liverpool and Fairless Hills for January-February tons, up $30/st from late December, with Fairless referenced at the $510/st FOB level for March-April.

Nutrien reported that its postings for both DAP and MAP at Aurora, N.C., firmed again to $465/st FOB during the week, up from the Jan. 14 posting of $450/st FOB and the previous list prices of $430/st FOB for DAP and $435/st FOB for MAP.

Brazil:

Sources reported MAP import pricing in the $445-$450/mt CFR range in Brazil for the week, firming from $425-$430/mt CFR noted previously.

Saudi Arabia:

Last-done sales of phosphates loading from Saudi Arabia were reported in the $390-$395/mt FOB range, increasing from $380-$385/mt FOB in the prior report.

China:

Traders reported a series of DAP deals that moved up prices. A cargo to Central America was pegged at $430/mt FOB, a sale to South Korea showed a netback of $440/mt FOB, and a sale as the week ended was reported nearing $450/mt FOB.

The upward movement was expected. Export tons have been rare out of China, as the domestic market first absorbed everything the producers could turn out, and then as producers cut back on output as the domestic demand eased. For weeks, international traders had been talking with producers and only getting high pricing ideas and no promise of tons.

Production is still limited because of power and input shortages. However, renewed COVID concerns are causing producers to limit output. New restrictions by the government are affecting the transportation of product out of the plant to terminals and ports. At the same time, even if the trucks can make the journey, workers at the loading facilities are being told to stay home as part of government-ordered lockdowns.

Exports in 2020 were down compared to 2019. Trade Data Monitor reported 2020 DAP exports at 7.7 million mt against 2019 exports of 6.5 million mt. Traders were surprised to see the drop, even though the 2019 number was also lower than the 7.5 million mt exported in 2018.

Exports during the second half of 2020 were about the same in 2019, but the COVID shutdowns in early 2020 resulted in first-half exports falling to 2 million mt from 2.7 million mt in the first half of 2019.

Exports of DAP during the first quarter were at 810,000 mt, the lowest number seen in a while. That period included not only the usual slowdown related to the Lunar New Year holiday, but the extended shutdowns as China worked to address COVID outbreaks in the major phosphate production area of the country.

India:

Buyers continue to argue that the DAP price in India should not be higher than $400/mt CFR. However, this sentiment is pushing up against Chinese prices now at $430-$450/mt FOB and Arab producers offering at $410/mt FOB.

For now, demand is not strong enough to force buyers to accept the higher prices. Sources said, however, that the Indian buyers will eventually have to move on prices or be left without their necessary phosphate fertilizers.

A tender by RCF closed on Jan. 5 for four lots of 20,000 mt each of either DAP lite or MAP. Only two offers were made in the DAP section, and only for March shipment. In both cases, sources said the offers were also conditional rather than firm. Sources added that the offered prices of $395/mt CFR and $410/mt CFR are now too low to be workable from any source.

The MAP offers were more in line with where traders see the market. Midgulf offered $413/mt CFR for February shipment, $408/mt CFR for May, and $407/mt CFR for June. The only other company offering tons was Wilson, which offered tons only for May at $419.25/mt CFR and June at $421.35/mt CFR.

Brazil:

Sources reported MAP import pricing in the $445-$450/mt CFR range in Brazil for the week, firming from $425-$430/mt CFR noted previously.

Sources from Singapore to Sao Paulo are talking about more tons being pushed into Brazil by OCP. Even as the talk of more tons dominates the discussion, the demand for product remains strong, leading to firmer prices.

The interest in MAP has extended inland, where buyers said tonnage is rare to find. Prices at Rondonopolis have moved up to $530-$561/mt CFR. Likewise, Sorriso is up to $540-$569/mt FOB ex-warehouse. The barter rate for 1 mt of MAP remained at 72 bags of corn, but dropped to 22 bags of soybeans, reflecting better prices for that product.

Brazil MAP Prices
Terminal/City US$/mt FOB
  Week ending 01/15 Week Ending 01/22
Rondonopolis 513-553 530-561
Sorriso 490-540 540-569

Phosphoric Acid

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

Eastern Cornbelt:

Phos acid pricing was unchanged at $11.45-$11.55/unit rail-DEL in the Eastern Cornbelt.

Western Cornbelt:

Phos acid was steady at $11.35/unit rail-DEL in Nebraska, Missouri, and Iowa for January tons.

Northern Plains:

The phos acid market was quoted at $11.45/unit rail-DEL in Minnesota and $11.55/unit rail-DEL in the Dakotas for January tons, up $1.20/unit from December.

Great Lakes:

The phos acid market was pegged at $11.45-$11.55/unit rail-DEL in the Great Lakes region for January shipments, up $1.20/unit from December, with the low end of the range confirmed in Wisconsin.

India:

Settlement talks were reported ongoing for the first-quarter price of phosphoric acid delivered to buyers in India. The fourth-quarter contract was valued at $689/mt CFR, good for material loading in both Morocco and North America.

Ammonium Polyphosphate

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

Eastern Cornbelt:

The 10-34-0 market was quoted firmly in the $415-$430/st FOB range in the region, depending on location and time of shipment.

Western Cornbelt:

10-34-0 pricing was reported at $415-$430/st FOB in the region, with the upper end of the range confirmed in the Iowa market.

Northern Plains:

10-34-0 pricing in the Northern Plains region had reportedly strengthened to $435-$445/st FOB and $450-$460/st DEL.

Great Lakes:

The 10-34-0 market was up significantly in the Great Lakes region, with sources quoting new pricing at $435-$465/st FOB, up $20-$40/st from last report and a full $50-$70/st higher than December pricing levels.

Northeast:

The 10-34-0 market was quoted at $435/st FOB terminals in upstate New York, up another $10/st from last report.

Evacuation Called Due to NH3 Tank Fears

Ammonia, News, News Briefs, Pacific N.W.

The Grant County Sheriff called for the evacuation of a third of the small town of Warden, Wash., Thursday, Jan. 21, at 8:30 p.m., citing fears that a 5,500 gallon ammonia tank inside a burning potato facility would explode.

The fire began around 5:30 p.m. at the Washington Potato Co.’s dehydrator, according to the Spokesman-Review. While initial fears were that the entire complex would be engulfed and the tank might explode, the evacuation notice was lifted Friday around 1:00 a.m. and residents were told they could return home.

Muriate of Potash

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

U.S. Gulf:

NOLA potash barges continued to firm. Recent trades were reported at $250-$262/st FOB, with most tilting toward the upper end of the range. March trades were called $265-$270/st FOB.

Eastern Cornbelt:

The potash market was quoted at $305-$330/st FOB in the Eastern Cornbelt, with the low reported out of spot river locations. Canadian producers were referenced solidly at the $325-$330/st FOB level for tons shipped now through Q2.

Western Cornbelt:

Potash pricing was pegged at $305-$315/st FOB St. Louis and $310-$325/st FOB in the Iowa market, depending on location. Sources quoted the Catoosa/Inola potash market at $300-$305/st FOB at midweek, with a move to $310-$315/st FOB expected imminently.

Northern Plains:

Sources quoted the potash market at $315-$325/st FOB and $330-$340/st DEL in the Northern Plains. The market to U.S. buyers FOB Saskatchewan mines was reported at $285-$295/st for spring tons after netbacks, depending on grade.

Great Lakes:

Potash was pegged at $310-$334/st FOB in the Great Lakes region, depending on grade and location, with the low confirmed by Wisconsin sources FOB East Dubuque. Michigan warehouse prices were reported at $330/st FOB for red and $334/st FOB for white potash at mid-month.

Northeast:

Potash pricing was pegged at $300-$315/st FOB Fairless Hills for 60 percent red MOP, up some $5-$10/st from last report. The low was confirmed for January tons, with the price firming to $305/st FOB for February-March and $315/st FOB for Q2 shipments.

Russia:

Russia’s potash exports for the 11 months through November 2020 increased 9 percent year-over-year, to 8.6 million mt from 7.9 million mt during the same period in 2019, according to Trade Data Monitor. India was a big driver, importing 721,000 mt of potash from Russia in the 2020 period, up from 341,850 mt in 2019.

China:

China’s potash imports in 2020 amounted to 8.83 million mt, down 3 percent from 9.1 million mt 2019, according to Trade Data Monitor figures released on Jan. 21. The big gap in imports occurred during the first half of the year, when much of the country was in shutdown due to the COVID pandemic

First-half 2020 imports totaled 3.8 million mt, according to Trade Data Monitor, compared with 5.5 million mt during the same period in 2019. The second semester of 2020 bounced back to just under 5 million mt, against 3.6 million mt for the same period in 2019.

Brazil:

Potash pricing ideas in Paranagua moved up the lower end of the previous range, leaving the market in the low-$260s/mt CFR. Traders said the movement upward is expected to continue into June, where pricing expectations are set at $270/mt CFR.

While some strength is showing up in the port cities, inland prices were steady at $314-$345/mt FOB ex-warehouse in Rondonopolis, but up in Sorriso at $345-$355/mt FOB ex-warehouse. 

Brazil MOP Prices
Terminal/City US$/mt FOB
Week ending 01/15 Week Ending 01/22
Rondonopolis 314-345 314-345
Sorriso 325-356 345-355