Central Florida:
Central Florida DAP trucks were posted at $550/st FOB, steady from week-ago levels. Truck-loaded MAP was pegged at $565-$580/st FOB, with sources reporting limited availability at the lower end of the spread.
U.S. Gulf:
A quiet week was reported for the NOLA barge phosphate market, with market players noting softening values.
Nearby DAP barge trades were heard slipping to $540/st FOB from the week-ago $545/st FOB high, while the market’s floor was typically noted at $535/st FOB. Domestic tons loading in April or May continued to be offered at $545/st FOB, with sources reporting interest for the April loading window at $535/st FOB.
MAP barges saw a larger drop, with tons reported changing hands down to $564/st FOB, falling from the previous $575/st FOB bottom. Sales and offers were typically heard up to $575/st FOB, falling from $590/st FOB at last report.
DAP barges loading from NOLA were reported in the $535-$540/st FOB range, slipping from $535-$545/st FOB in the prior report. Sources quoted nearby MAP barges at $564-$575/st FOB, down from the week-ago $575-$590/st FOB.
U.S. Exports:
No new business was reported in the Gulf export phosphate markets. Last-done was reported to include a 7,000 mt DAP cargo priced at $580/mt FOB. With nothing new heard on the market, prices continued to be noted at $580/mt FOB.
Eastern Cornbelt:
DAP pricing edged up to $575-$585/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati and LaSalle, Ill. The MAP market was pegged at $600-$635/st FOB in the region, with the low at Ottawa.
Sources reported tight inventories out of Michigan warehouses, with DAP reported at a firm $600/st FOB and MAP at $620-$640/st FOB, where available. One source said Webberville has been out of MAP for two weeks, and DAP supplies there are now out as well and may not be restocked until late April.
Western Cornbelt:
DAP pricing firmed slightly to $570-$585/st FOB in the Western Cornbelt, with the low reported at St. Louis and the upper end at Dubuque, Iowa. MAP was quoted at $620-$630/st FOB in the region, with the low again confirmed at St. Louis. The market FOB Catoosa/Inola, Okla., was reported at $565-$580/st for DAP and $625-$640/st for MAP.
Northern Plains:
DAP pricing FOB St. Paul was reported at $575-$585/st FOB in late March, with MAP quoted in the $625-$645/st range FOB St. Paul. Delivered MAP in western North Dakota was pegged in the $670-$680/st range from Western U.S. shipping points.
Northeast:
DAP pricing was quoted at $595/st FOB East Liverpool in late March, up $10/st from last report. MAP was pegged at $620/st FOB Fairless Hills for March tons and $625/st FOB for April-June, up roughly $5/st.
Eastern Canada:
MAP was quoted at C$725-$785/mt FOB in Eastern Canada, up roughly C$46/mt on average from mid-February. DAP pricing FOB Montreal was reported at a firm C$785/mt FOB in late March, reflecting a C$109/mt increase.
Saudi Arabia:
Saudi Arabia phosphate levels were noted firming to the $485-$560/mt FOB range in recent trading, with most business pushing toward the upper side of the spread.
China:
Sources reported softening DAP prices as the domestic season ends and buyers become more aggressive in demanding lower prices. Small cargoes sold to buyers in Southeast Asia now put the netback to China at $555-$560/mt FOB. Sensing a softening market, more buyers are bidding at $540/mt FOB, but with no success.
Producers are complaining about the pressure being put on them by the downturn. They note that prices for their raw materials – phos rock, ammonia, and sulfur – are not coming down.
Exports of DAP were up in the first two months of the year, at 399,000 mt versus 262,000 mt in the same period last year, according to Trade Data Monitor. The two big buyers in January and February were Vietnam at 68,000 mt and Japan at 67,000 mt. New Zealand and Bangladesh each took 40,000 mt during the period.
| China DAP Exports | |||
| Partner Country | February (mt) | ||
| 2019 | 2020 | 2021 | |
| World | 330,262 | 119,048 | 279,180 |
| Japan | 27,564 | 28,505 | 42,002 |
| Vietnam | 16,296 | 18,520 | 40,923 |
| New Zealand | 23,111 | 14,101 | 40,230 |
| Bangladesh | 39,544 | ||
| Australia | 90 | 10,318 | 37,742 |
Normally, India is a large buyer of DAP from China, but the country only bought a token amount in January and February, compared with 44,000 mt. last year. The limited sales to India dramatically showed the disagreement between the two countries as Indian buyers kept demanding lower prices from Chinese producers, and the producers refused.
India:
A sale of DAP to an Indian buyer from Saudi Arabia has a reported price of $515/mt CFR. The purchase showed a continued acceptance of higher prices in the DAP market, something Indian buyers had been fighting for several months.
Buyers are reportedly taking a break from negotiations as they wait for the government to announce if there will be any changes to the maximum allowed retail price of DAP. Importers and domestic producers have been arguing for a higher price. Importers have been pointing to the strong global market, while domestic producers point to the rising cost of inputs, including sulfur and phos acid.
Brazil:
Sellers keep arguing for higher MAP prices in the $628-$630/mt CFR range – and keep getting turned down. Sources peg the Paranagua landed price at $590-$610/mt CFR, representing a continued retreat on pricing.
Rondonopolis prices, however, have moved up as material remains difficult to find. Sources put the market at $740-$770/mt FOB ex-warehouse. The Mato Grosso barter rate for 1 mt of MAP is still at 75 bags of corn. At Goitatuba, the barter rate is reported at 32.5 bags of corn or 32.5 bags of soybeans for 1 mt of MAP.