All posts by mickeybarb@charter.net

European Gas Prices Drop As Sluggish Economy Caps Demand

Europe, Featured, Natural Gas, News

Natural gas prices in Europe declined further on Friday, March 3, amid signs that a slow economic recovery in the region will weigh on demand, according to Bloomberg.

Benchmark gas futures decreased as much as 3.3% on Friday to the lowest level since August 2021, and were heading for a weekly loss of more than 10%. Persistent high inflation pressures are forcing central banks to consider more interest-rate hikes, which risks braking economic activity and energy consumption.

“Economic slowdowns in advanced economies weigh on commodities demand,” Caroline Bain, Chief Commodities Economist at Capital Economics, said in a note.

Fitch Ratings sees Germany and Italy’s economies going into recession by the end of this year as they battle to control inflation. Manufacturing output fell sharply in January in France, “confirming that industry is currently in a strong slowdown phase, which is likely to continue over the coming months,” said ING Economics in a note.

Strong liquefied natural gas imports are also pushing the fuel’s cost lower. LNG flows to Europe have surged in recent days, helping the continent offset concerns over the current late-winter cold snap, which is expected to continue next week, and even intensify in parts of the region.

Storage is also at healthy levels, with sites about 61% full, well above the five year norm of 39% for this time of year, according to Gas Infrastructure Europe.

“Strong fundamentals seem to be mitigating most bullish drivers,” said Alfa Energy in a note on Friday.

Benchmark gas futures traded 2.8% lower at €45.49 per megawatt-hour by 11:09 a.m. in Amsterdam. The UK equivalent contract dropped 2.9%. German next-month power contracts also declined.

First Phosphate Inks MOU with Prayon; Receives Dual Listing on FSE and CSE

Canada, Europe, Featured, News, Phosphate, Phosphoric Acid

Junior miner First Phosphate Corp., Saguenay, Quebec, on Feb. 24 announced that it signed a Memorandum of Understanding (MOU) with Prayon SA, Engis, Belgium, Europe’s largest producer of purified phosphoric acid.

First Phosphate holds 1,500 square kilometers of total land claims in the Saguenay Region, some 110 kilometers north of the City of Saguenay, which it is actively developing to produce battery grade phosphate at ESG standards and with a low-carbon footprint (GM Oct. 14, 2022).

First Phosphate and Prayon have committed to study the potential of a long-term offtake agreement. Prayon requires phosphate concentrate and is interested in purchasing concentrate from First Phosphate’s eventual mining operations, subject to specifications. Such feedstock would be transformed into merchant grade phosphoric acid (MGA) and subsequently into purified phosphoric acid (PPA) at Prayon’s plant located in Belgium.

First Phosphate and Prayon have agreed to study the potential of a long-term purified phosphoric acid toll processing agreement.

First Phosphate contemplates the development of its own fully dedicated, captive-use LFP battery grade phosphoric acid production facility. First Phosphate and Prayon have agreed to discuss the terms and conditions of a license for Prayon’s technological expertise in the manufacture of merchant grade and LFP grade phosphoric acid to permit First Phosphate to establish its own phosphoric acid facilities in Quebec. The manufacturing methodology would be based on Prayon’s clean technologies, which include options for full gypsum recycling.

Prayon has familiarity in the production of LFP cathode active material and has expressed interest in collaboration with First Phosphate to study the feasibility of such a production facility based in Quebec.

“The LFP battery already represents a leading globally accepted battery chemistry but still has limited domestic manufacturing supply in Europe and North America,” said First Phosphate President Peter Kent. “Today’s announcement sows the seeds to onshore that production capacity in North America. Let’s not forget that LFP battery technology was originally developed decades ago in a partnership with researchers in Quebec, Canada, the US, and Europe.”

“We are pleased to cooperate with First Phosphate and to test implement our recognized technologies for the production and treatment of high grade phosphoric acid intended to supply the LFP battery industry in North America,” said Prayon Chief Technology Officer Marc Collin. “The opportunity of partnership with First Phosphate is an important step in our global diversification initiatives.”

Prayon is jointly owned by OCP of Morocco and SRIW of Belgium.

First Phosphate on Feb. 28 announced that its common shares have begun trading on the Frankfurt Stock Exchange (FSE) under ticker symbol “KD0.” The company’s common shares are now cross listed on the Canadian Securities Exchange (CSE) and the FSE. On Feb. 22, the company had announced that its shares were approved to trade on the CSE under the ticker “PHOS.”

“North America and Europe represent two of the largest and most advanced electric vehicle markets in the world,” said Kent. “Our management has worked diligently to ensure that our FSE listing would coincide as closely as possible with our recent CSE listing. We wish to extend an invite to European battery metals investors to join our shareholder family.”

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Petrokemija Restarts Production After Almost 12-Month Stoppage

Croatia, News, News Briefs, Nitric Acid, NPK

Croatian fertilizer producer Petrokemija Plc has restarted production at Kutina after a halt of nearly a year, the company reported in a March 3 media release.

Petrokemija said following several days of preparations, it has restarted the energy plants, the nitric acid plant 1, and the NPK plant, with plans to produce 4,000 mt of nitric acid by March 9 and 14,000 mt of NPK 15-15-15 fertilizer by March 23.

“Further production, as well as a restart of the ammonia plant, are continuously re-examined and a decision will be made based on market conditions,” the company said.

Currently, Petrokemija is able to meet the demand on the domestic fertilizer market with its own output, as well as with imported products, it added.

The company’s new controlling shareholder, Turkey’s Yildirim Holding AS, late last year said it was targeting Petrokemija’s restart of production in the first quarter of 2023, and “would step up its efforts to achieve this once it had completed the acquisition of the Croatian company” (GM Dec. 9, 2022).

Petrokemija is Croatia’s sole fertilizer producer. Its nameplate production capacity for nitrogen fertilizers includes 0.45 million mt/y of ammonia, 0.31 million mt/y of ammonium nitrate, 0.5 million mt/y of urea, and 0.2 million mt/y of UAN, according to Green Markets database.

Bulgaria’s Neochim Restarts Ammonia Production

Ammonia, Eastern Europe, News, News Briefs

Bulgarian fertilizer producer Neochim AD has restarted operations at its ammonia plant at Dimitrovgrad in southern Bulgaria, according to a SeeNews report, citing a Feb. 22 company bourse filing.

Operations were restarted after the producer resolved the technical issues reported at the facility on Jan. 10 and Jan. 23, Neochim reported.

Neochim has experienced a number of production disruptions to its ammonia and nitric acid units in the past several months, a number of them due to technical issues (GM Jan. 13, p. 29).

Neochim has capacity to produce 0.45 million mt/y of ammonia and 0.63 million mt/y of ammonium nitrate at its Dimitrovgrad site.

Biden Sets in Motion Gasoline Policy Shift to Bolster Ethanol

News, News Briefs, U.S.

The Biden administration is advancing a fuel policy shift demanded by Midwest governors who expect it will encourage filling stations to sell higher-ethanol E15 gasoline and offer it year-round, according to Bloomberg.

Under the EPA proposal outlined on Wednesday, March 1, the change would start by the 2024 summer driving season, with effects rippling across the fuel supply chain, from refineries to filling stations.

While on the one hand EPA’s move is a positive for ethanol advocates, it is also a blow to supporters who called for action by this summer. But refiners and pipeline operators argued they needed time to adapt, including by adding equipment to produce, store, and distribute a new, lower-volatility gasoline blendstock for the region.

The EPA action would take effect in April 2024, Ben Hengst, Deputy Director of the EPA’s Office of Transportation and Air Quality, said during an address at the industry’s National Ethanol Conference.

Some governors from corn-producing Midwestern states had asked EPA last year to stop giving conventional E10 gasoline a partial waiver from volatility limits meant to curb air pollution. That would put E10 and E15 on the same regulatory footing in their states – and potentially encourage more sales of the higher-ethanol variety. Under the Clean Air Act, EPA does not have latitude to deny the governors’ request outright, though the agency can delay it in one-year increments.

In response to the governors’ requests, EPA is proposing to remove the E10 waiver in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin.

To meet the EPA requirements, refineries would have to churn out raw, unblended gasoline that is less volatile, essentially creating a fuel specifically for the affected Midwest states. Refiners argued complying this year was not feasible, especially as summer gasoline production got underway.

But biofuel producers decried the delay, with Geoff Cooper, CEO of the Renewable Fuels Association, saying the industry is “frustrated and disappointed that the agency is proposing to kick the can on implementation until 2024.”

Had the Biden administration swiftly responded to the governors’ petition last year, the marketplace would have had “more than enough time to adjust and prepare for implementation this summer,” Cooper said. “But instead, under pressure from the oil industry, the White House ignored a statutory deadline, sat on the proposal for months on end, and slow-rolled governors who acted in good faith to ensure consumers would have the ability to choose lower-cost E15 all year long.”

Refiners and industry analysts said the change risks isolating the Midwest’s fuel supply from the rest of the country. Pipeline systems fully contained within the Midwest and refineries primarily serving the region would generally shift to the new specification, but in-region refiners probably would have to find new markets for butane and other cheap, volatile hydrocarbons that lower the cost of gasoline.

“A new Midwest summertime gasoline blend for 2024 and subsequent years would cost more to produce and distribute, reduce overall supply, and inflict unnecessary harm on consumers,” said Patrick Kelly, Senior Director of Fuels and Vehicle Policy at the American Fuel and Petrochemical Manufacturers Association. “The push to outlaw the current blend of summertime gasoline and replace it with a boutique blend is going to impose major costs on the Midwest’s fuel supply chain and consumers.”

The Biden administration already moved to waive E15 from summer volatility requirements last year, allowing its sale in a bid to lower gasoline prices. However, the broader E10change could have uneven effects on prices at the pump.

Analysis commissioned by a refining trade group predicts as much as 12 cents more per gallon in added industry costs to make and distribute the new fuel. Biofuel boosters said that the shift would encourage more gas stations to eventually offer cheaper E15 year round, and last year, it cost nearly $1-per-gallon less than conventional E10 in some areas.

Ammonia

Ammonia, Asia, Black Sea, California, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, Pacific N.W., Tampa, U.S. Gulf, Western Canada, Western Cornbelt

US Gulf/Tampa:

After a 25% drop in Tampa ammonia prices from February’s $790/mt CFR to $590/mt CFR in March, prices remain under pressure, with sources continuing to cite low natural gas prices in Europe and the US.

Eastern Cornbelt:

The ammonia market remained at $840-$850/st FOB for spring tons in the Eastern Cornbelt, with the low reported in Illinois and the high in Indiana and at Lima, Ohio. “They haven’t adjusted since the Tampa drop and they may wait until closer to in-season to do it, but I do not see an $8 in front of it when they do adjust,” commented one regional source.

Western Cornbelt:

The ammonia market continued to be quoted in the $725-$840/st FOB range in the Western Cornbelt, with the low at Palmyra, Mo., and Wever, Iowa, and the high in eastern Iowa. Other spot terminal prices in early March included $750/st FOB Hermann, Mo., $775/st FOB Hoag, Neb., and $780/st FOB Fort Dodge, Iowa.

New ammonia offers out of Oklahoma production points slipped to $600-$625/st FOB, down from $610-$650/st, with the low reported at Woodward and Enid and the high at Verdigris. Pricing for truck tons out of Gulf Coast terminals dropped to $525-$540/st FOB in the wake of the March Tampa settlement, down from $675-$700/st FOB.

California:

The anhydrous ammonia market dropped to $980/st DEL in California, down from the previous $1,250/st DEL level. Aqua ammonia was also lower, falling to $259/st FOB Stockton and $269/st FOB Sycamore, well below the previous $326/st FOB and $336/st FOB levels, respectively.

Pacific Northwest:

New offers for ammonia were reported at $730-$775/st DEL in the Pacific Northwest, well below the previous $850-$858/st DEL range. Pricing out of Washington terminals slipped to $730/st FOB, down from the prior $915/st FOB level.

Aqua ammonia fell to $190/st FOB in the region, down from $235/st FOB.

Western Canada:

The latest offers for spring ammonia in Western Canada fell to C$1,100-$1,300/mt FOB for April-June shipments, depending on location, down sharply from the last confirmed C$1,475-$1,640/mt DEL range.

Black Sea:

If all goes according to plan, the first Russian ammonia export facility will open at Taman in December 2023. According to Tass, the facility will initially move 2 million mt/y of ammonia, with expansion to take the total to 5 million mt/y by December 2025.

No Russian ammonia has been shipped out of the Black Sea since the pipeline to Odessa was closed due to the war in Ukraine. Recent efforts by the Russians to reopen the pipeline, part of a deal brokered by Turkey and the United Nations to move out Ukrainian grain, have failed. Industry sources said the pipeline was located in an active war zone and depended on power from facilities under regular Russian attacks.

The new facility is being built by Togliattiazot, a subsidiary of Uralchem. Industry sources said that some storage tanks have already been built at the site, along with an extension of the jetty to deal with shallow waters in the area.

The ammonia will be sent to the port by rail. International sources noted that the rail line to the port is already overtaxed with shipments of LNG and dry commodities. One trader said that unless the plans also call for upgrading and expanding the rail connection to the port, it is unlikely the facility will achieve its export goals before its own self-imposed deadline of the end of the year.

Once open, the port will provide the first opportunity to move out ammonia since the war began one year ago. Sources said the vessels using the port will be able to avoid the current war zone along the Ukrainian coast, should the conflict stretch out through a second year.

At the same time as the port expansion announcement, Russian foreign minister Sergei Lavrov said that Russia may not allow for an extension of the deal that allows for the free passage of Ukrainian grains, currently set to end on March 18. Lavrov said that Russia would not extend the agreement unless the movement of Russian grains and fertilizers are better addressed.

While Russian and Ukrainian grain has moved out under the deal, Russia began calling for ammonia to be included in the agreement in fourth-quarter 2022. The dangers of opening the pipeline from the Russian border to Odessa were pointed out by most in the ammonia industry, and sources expect that ammonia will not be included in the renewed agreement.

Since the beginning of the war, the Black Sea’s primary use has been to move ammonia to western buyers such as Turkey. Sources reported a sale into Turkey at $550-$570/mt CFR, representing a confirmation of $550/mt CFR prices first reported at the end of February. The tonnage is reportedly coming from North African suppliers.

India:

Demand for ammonia remains limited because several major DAP producers are taking routine turnarounds at their plants. However, even as discussions for future tons progress, buyers are pushing for $600/mt CFR and lower, while sellers are trying to hold on to current levels in the $650s/mt CFR.

Limited imports are expected through March while the plants remain down, although April should see a step up in ammonia vessel arrivals. The bulk of the ammonia coming into India is under long-term contracts, with prices called dramatically lower than the public prices achieved under spot deals.

Ammonia imports totaled 2.2 million mt in 2022, Trade Data Monitor reported, about 8.5% below 2.4 million mt imported in 2021. Saudi Arabia, Qatar, Indonesia, and Bahrain accounted for about 80% of the imports. Saudi Arabia sent 930,000 mt to India in 2022, a 110% increase from 444,000 mt in 2021.

December imports were reported at 650,000 mt, up 7% from 608,000 mt in December 2021. Saudi Arabia accounted for one-third of the imports with 228,000 mt, followed by Qatar with 93,000 mt.

Middle East: 

Sources said that Arab Gulf netbacks from deals into India put the market at $580/mt FOB, but noted that no one is offering that amount. Buyers are pushing for $600/mt FOB but getting nowhere. The last-done spot price is still at $610-$620/mt FOB.

Traders said the producers will eventually have to succumb to lower prices, as producers are facing growing inventories at their plant storage facilities. Sources said that a lack of demand and falling global ammonia market prices have buyers holding back on purchases until the tonnage is needed.

Northwest Europe:      

Despite any new spot deals in Northwest Europe, sources said the price should be pegged at $600-$620/mt CFR based on the Tampa price. Even with the shift downward, traders said that price is still too high. There are already expectations that Tampa could drop another $100/mt or so in April.

The ammonia production cost is now estimated at $500-$550/mt ex-plant, with every indication of further reductions coming. Sources pointed to falling natural gas prices and ongoing limited demand for ammonia as the main reasons for the continued bearish mood on pricing.

The industry came out of the winter season in better shape than anticipated, bucking concerns that natural gas prices would spike and remain high after supplies were cut off from Russia. European countries engaged in aggressive reserve-building to ease the pain on gas users during the winter. A mild winter, however, showed that countries did not need as much of the product as believed for home heating, and the surplus gas is now being made available to the industry at ever-reducing rates.

Asia:      

Chinese exports of ammonia are expected to ease off as the global price falls. Buyers as far away as North Africa and Northwest Europe are unlikely to find the Chinese material competitive as prices fall west of Suez. Even smaller regional buyers such as South Korea and Taiwan may soon find they no longer have Chinese ammonia to play against Indonesian or Middle Eastern product.

Indonesian ammonia exports for January were pegged at 140,000 mt, Trade Data Monitor reported, off 24% from the year-ago 184,000 mt. The main buyers were all regional players, indicating the January price was already too high for shipment to Morocco and Northwest Europe. South Korea dominated the purchases with 83,000 mt, for 59% of the Indonesian exports, while China, Japan, and Taiwan combined to take another 35% of the exports.

Urea

Argentina, Black Sea, Brazil, California, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Pacific N.W., U.S. Gulf, Urea, Western Canada, Western Cornbelt

US Gulf:

The week started with word that barges were trading at $330-$335/st FOB. By week’s end, however, trading was put in the $310-$335/st FOB range, the same as the previous week.

Eastern Cornbelt:

Urea was quoted at $380-$400/st FOB in the Eastern Cornbelt, with the lower end of the range confirmed at Cincinnati, Ohio.

Western Cornbelt:

The urea market was pegged at $370-$390/st FOB in the Western Cornbelt, down $5-$10/st from last report. Urea slipped to $370/st FOB St. Louis, Mo., for the latest offers, down from last week’s $375-$380/st, with delivered pricing in the Northern Plains falling to $450-$470/st from last week’s $480-$500/st DEL range.

California:

Urea pricing in California fell to $650-$660/st FOB Stockton, down from $660-$700/st FOB, with rail-DEL offers quoted at the $585/st level in Northern California for March shipment.

Pacific Northwest:

Urea dropped to $500/st FOB Rivergate, Ore., and $505/st FOB Aurora, Ore., down from the previous $540-$545/st FOB range. Rail-DEL offers were reported as low as $400-$459/st in the Pacific Northwest, depending on location.

Western Canada:

Urea pricing in Western Canada was quoted in a broad C$665-$730/mt DEL range for March-April tons, down from previous C$745-$800/mt DEL range. The terminal market slipped to C$640-$720/mt FOB, depending on location and supplier, well below the prior C$750-$820/mt FOB range.

India:

In the run up to the closing of the IPL tender, sources speculated about where prices will end up, with a low of $320/mt CFR to a high of $360/mt CFR. In the end, the price came out in the $330s/mt CFR. OQ Trading has the lowest offer for West Coast delivery, with 220,000 mt at $330/mt CFR. Liven took L1 for the East Coast with 45,000 mt at $334.80/mt CFR.

The prices reflect a drop of about $240/mt from the last urea tender, but are in line with estimates of where pricing should be in the Arab Gulf. The East Coast price indicates a netback to China of $315-$320/mt FOB, markedly down from the $380-$400/mt FOB producers claim should be the price. Two offers came in from producers at much higher levels. Fertiglobe offered 45,000 mt at $353/mt FOB and PIC a similar quantity at $350/mt FOB.

In the tender documents, IPL called for 1 million mt. As the tender closing date approached, more sources were predicting as many as 2 million mt could be secured. The long shipping period that ends June 1 will allow for traders to secure material over the three months without overheating the market. Achieving awards of 2 million mt might not be difficult. The offers totaled 3.27 million mt, about the same among offered in an IPL tender February 2022. At that time the awards were only for 1.4 million mt, but prices were in the mid-$590s/mt CFR.

Offers to East Coast India
Offering Company Quantity (mt) US$/mt CFR
Liven 45,000 334.80
Swiss Singapore 190,000 339.33
OQ Trading 90,000 339.75
Continental 50,000 343.50
Midgulf 156,000 349.50
Dreymoor 90,000 351.00
Ameropa 141,000 352.50
Fertcom 50,000 355.00
Agri Commodities 200,000 355.50
Samsung 180,000 356.00
Aries 100,000 357.79
Gavilon 45,000 359.00
Koch 150,000 380.00
Total ECI 1,487,000
Offers to West Coast India
Offering Company Quantity (mt) US$/mt CFR
OQ Trading 220,000 330.00
Agri Commodities 100,000 330.30
Swiss Singapore 400,000 333.11
Continental 50,000 338.50
Fertcom 50,000 338.75
Ameropa 141,000 345.24
Keytrade 120,000 347.00
Samsung 135,000 347.70
Midgulf 156,000 348.50
Dreymoor 100,000 349.00
Alkagesta 30,000 350.00
Medallion 50,000 351.00
Koch 50,000 353.00
Aries 50,000 359.79
Gavilon 45,000 369.00
Total WCI 1,697,000
FOB Offers
Offering Company Quantity (mt) US$/mt FOB
PIC 45,000 350.00
Fertiglobe 45,000 353.00
TOTALFOB 90,000

The Department of Fertilizer (DoF) released basic import numbers for January. According to the DoF, India received 1.1 million mt during the first month of 2023, compared to 1.2 million mt in January 2022. A more detailed review of the urea sources will be available soon.

Imports for 2022 totaled 10.1 million mt, according to TDM, up 25% from 8.1 million mt imported through the prior year. Oman topped the list of suppliers with 1.9 million mt, representing 19% of the market, while China added 1.4 million mt. January-June imports totaled 4.6 million mt, followed by 5.5 million mt in the second half of the year.

December imports were noted at 1.7 million mt, up from 1.1 million mt received in December 2021. Oman, China, Saudi Arabia, and Qatar combined for about 70% of the market.

Indonesia:

Sellers went quiet following a $349/mt FOB sale in February. Sources expect Indonesian producers to sell about 1 million mt in 2023, depending on the strength of the domestic market.

Indonesia exported zero urea tons in January, according to Trade Data Monitor. The Indonesian government does not typically allow exports until late in the first quarter in order to guarantee a plentiful supply for the domestic market. January 2022 exports were reported at 3,600 mt.

Middle East:

Once India called its urea tender, producers pulled back and refused to publicly discuss prices. Sources said that no matter what price indications producers offer, they will end up on the wrong side of the market.

One trader noted that if producers make a big scene about higher prices, they might price themselves out of sales in a large tender. Conversely, if they indicate prices too low to ensure a lot of awards in the tender, they could take the market lower than what the Indians were willing to accept.

Going into the tender, the working price from the Arab Gulf was put in the upper-$350s/mt FOB. The two offers made by producers showed a desire to move the price into the $350s/mt FOB. However, netbacks from the OQ Trading offer of $330/mt CFR to India’s West Coast shows a netback to the Arab Gulf of $310-$315/mt FOB. Chances are this is where prices will settle. Sources said the lack of any other large-scale buying will lead producers to accept the new price level.

The Egyptian market is the only one moving up in price. MOPCO closed another deal this week for March shipment into Europe. The deal was for 5,000 mt at $403/mt FOB.

China:

Prices were estimated in the $380s/mt FOB prior to the closing of the Indian urea tender. The numbers released for delivery to the West Coast of India indicate a netback to China of $315-$320/mt FOB. Sources said the fact that about 1.7 million mt were offered into the West Coast indicates there could be strong support from Chinese producers.

Sources had expected several traders to take a chance that large quantities of Chinese urea would be available for the tender. The long shipping period will allow the traders and producers to work with the Chinese customs officials to get the paperwork through in time for shipment. Even if the current rate of three-four weeks for processing continues, the product could be shipped under the Indian deadline.

Sources noted rumors that the Chinese government may be moving to speed up the export approval process. One trader said the new reported timeline would hope to have the paperwork done in less than a week. Even if the government streamlines the approval process for exports, it is not expected to ease up on the regulations that require approval for each deal.

Black Sea:

Prices bounced back up to $300-$315/mt FOB for prilled exports.

Bangladesh:

The Bangladesh government announced that it has opened talks with SABIC and the Saudi Arabian government to set up a joint-venture urea plant in the Saudi kingdom. The plant would produce urea exclusively for Bangladesh, reducing its need for regular open tenders.

Brazil:

Prices widened to $345-$360/mt CFR as the industry awaited news from the Indian tender. The Rondonopolis price tightened to $560-$565/mt FOB ex-warehouse. Low demand for urea is providing a steady downward push on prices, both at the ports and inland.

Argentina:

Trade Data Monitor reported January imports at 3,600 mt, up from 1,400 mt imported during the year-ago period. Argentina will make the bulk of its urea purchases during the third quarter of the year.

UAN

California, Eastern Cornbelt, Market Watch, Pacific N.W., U.S. Gulf, UAN, Western Canada, Western Cornbelt

US Gulf:

Prices were reported firming to $260-$280/st ($8.13-$8.75/unit) FOB from the week-ago $250-$275/st ($7.81-$8.59/unit) FOB. Sources said prices were stair-stepping up toward $300/st FOB or higher in May.

Eastern Cornbelt:

UAN-32 was quoted down to $300-$310/st ($9.38-$9.69/unit) FOB Mount Vernon, Ind., with the latest Cincinnati, Ohio, offers reported at $305-$315/st ($9.53-$9.84/unit) FOB. The upper end of the regional market was pegged at $330-$350/st ($10.31-$10.94/unit) FOB out of spot Illinois River terminals, with the low for prompt and the upper end for 2Q shipment.

Western Cornbelt:

UAN-32 was quoted at $300-$340/st ($9.38-$10.63/unit) in the Western Cornbelt, with the low at Port Neal, Iowa. The latest offers at St. Louis included $305-$310/st ($9.53-$9.69/unit) for prompt tons and up to $325-$335/st ($10.16-$10.47/unit) FOB for April shipment.

In the Southern Plains, UAN-32 offers inched up to $290/st ($9.06/unit) FOB Verdigris and $295/st ($9.22/unit) FOB Woodward, Okla., with supplies reportedly on allocation at Woodward. “UAN values are inching higher now that sales are hitting at a better pace,” said one contact.

California:

UAN-32 in California slipped to $390-$420/st ($12.19-$13.13/unit) FOB Stockton, down $10/st from the previous high. Prices were also down $10/st at other port terminals, including $425/st ($13.28/unit) FOB Port Hueneme and $430/st ($13.44/unit) FOB West Sacramento.

Pacific Northwest:

UAN-32 was quoted at $400/st ($12.50/unit) FOB Kennewick, Wash., down $40/st from last report. Rail-DEL UAN-32 pricing in the Pacific Northwest dropped to $380-$400/st ($11.88-$12.50/unit), well below the $480-$515/st DEL range reported in early February.

Western Canada:

UAN-28 pricing was under pressure in Western Canada, with the latest offers quoted at C$450-$470/mt (C$16.07-$16.79/unit) DEL for March-April, down from C$495-$550/mt (C$17.68-$19.64/unit) DEL in early February.

Ammonium Sulfate

Ammonium Sulfate, Brazil, California, China, Eastern Cornbelt, Market Watch, Pacific N.W., U.S. Gulf, Western Canada, Western Cornbelt

US Gulf:

The latest NOLA barge business was reported at $300-$310/st FOB, down from the week-ago $310/st FOB.

Eastern Cornbelt:

Granular ammonium sulfate remained at $370-$400/st FOB in the Eastern Cornbelt, with the low at Cincinnati and the upper end out of spot Illinois River terminals.

Western Cornbelt:

Granular ammonium sulfate was quoted at $360-$390/st FOB in the Western Cornbelt, with the low confirmed at St. Louis.

California:

Ammonium sulfate prices fell to $430-$465/st FOB in California, with the low for standard and the high for granular and/or premium grade. Postings from IRM dropped on Feb. 24 to $440/st DEL for Tranzform and WesternPremium, with WesternStandard moving to $430/st FOB Chico and Woodland and $430/st rail- or truck-DEL in California.

Pacific Northwest:

Granular ammonium sulfate was pegged at $440-$445/st FOB or DEL in the Pacific Northwest, down $25-$30/st from last report. Ammonium sulfate postings from IRM in Oregon, Washington, Idaho, Utah, and Montana dropped $25/st on Feb. 24, to $445/st FOB or DEL for Tranzform and WesternPremium, and $405/st FOB or DEL for WesternStandard.

Western Canada:

New pricing for ammonium sulfate in Western Canada was reported down to C$535-$600/mt DEL for March-April, below the previous C$600-$610/mt range.

China:

Sales of 5,000-6,000 mt to Indonesia for March shipment showed a netback to China in the low-$170s/mt FOB. The deals match other sales of larger quantities slated for March and April shipment.

Brazil:

Limited amsul trading kept the price at $220-$230/mt CFR. Sources expect to see softer prices in the near future as the urea market continues to soften. The price in Rondonopolis moved to $330-$335/mt FOB ex-warehouse. Sources did not see the shift as a major move, but rather as a minor fluctuation in local pricing.