Central Florida:
Central Florida DAP trucks were posted at $620/st FOB for the week, steady from the prior report. MAP was also unchanged at $655/st FOB Central Florida. MAP loading from North Florida was posted at $640/st FOB.
U.S. Gulf:
Market players reported the week’s DAP and MAP barge values rolling back from recent peaks.
DAP cargoes were reported trading at a $615/st FOB high for domestically produced material, with loading pegged in a wide July-September window, softening from the week-ago $619/st FOB top. A small amount of import material slated for loading in July was noted at $595/st FOB.
Despite the wide price variance, sources reported most nearby transactions falling in the $602-$610/st FOB range for the week. DAP paper trading was also noted up to $615/mt FOB.
MAP trading was subdued, sources said, with limited sales noted at the week-ago $650/st FOB low. Offers were holding steady at $650/st FOB on July 1.
DAP barges were traded in a wide $595-$615/st FOB range for the week, softening from the prior $615-$619/st FOB. MAP barges softened to $650/st FOB, down from $650-$655/st FOB one week earlier.
U.S. Exports:
No fresh transactions were reported on the U.S. Gulf DAP and MAP export markets during the week. The most recent spot DAP transaction included a 6,000 mt load priced at $650/mt FOB, while a 5,000 mt MAP cargo was noted fetching $685/mt FOB. Both cargoes were sold into Latin America, with shipping slated for late July or early August.
With no new data points reported, the Gulf DAP market remained at $650/mt FOB, while MAP was unchanged at $685/mt FOB.
Eastern Cornbelt:
DAP prices edged up to $645-$650/st FOB in the Eastern Cornbelt, up another $5/st at the low end. The MAP market was quoted in a broad range at $677-$700/st FOB during the week, with the low reported at East Dubuque. The Cincinnati market was pegged at $645-$650/st FOB for DAP and $690-$700/st FOB for MAP in late June.
Western Cornbelt:
DAP firmed to $645-$650/st FOB in the Western Cornbelt, up $5/st at the low end of the range. MAP was quoted at $677-$700/st FOB, with the low confirmed at Camanche for June-July tons. Sources pegged the St. Louis, St. Paul, and Catoosa/Inola MAP markets at $690-$700/st FOB in late June.
California:
MAP pricing in California was steady at $750/st rail-DEL and FOB French Camp, Helm, Richvale, Dixon, and El Centro in late June.
Some sources said the worsening drought is starting to take a toll on phosphate volumes in the state. “There has been a fair amount of demand destruction on the phosphate side, with some growers cutting rates,” said one regional contact.
Pacific Northwest:
The MAP market in late June remained at $737/st FOB Aurora, $740/st DEL in Washington, Oregon, and Nevada, and $730/st DEL in Idaho, Utah, and Montana.
Western Canada:
MAP pricing in Western Canada was quoted at C$950-$975/mt FOB, up roughly C$20/mt, with reports of delivered offers in the C$975-$1,030/mt range, depending on location.
Saudi Arabia:
Recent Saudi Arabia phosphate exports were heard firming to $565-$580/mt FOB, up from $555-$580/mt FOB at last report.
China:
Prices for DAP held steady in the $580s/mt FOB, even as some producers reportedly were ready to deal in the $570s/mt FOB.
Sources reported that producers sent an ultimatum to India to step up their purchasing. One source said the Indians were told by the Chinese to quickly make a commitment to buy at least 2 million mt for the upcoming season, or face the threat of the added cost of an export tax on the much-needed DAP.
Sources said DAP producers had faced some cutbacks in power as the government diverted resources to the civilian population. Reportedly, more coal and natural gas are now being delivered to China to improve the stability of the power grid. This movement is allowing producers to step up production.
International traders have been frustrated whenever they came looking for DAP. Sources reported that producers were willing to talk, but wound up saying they had no material for sale.
India:
Buyers of international DAP have a problem in India. Anything that is more expensive than $570/mt CFR will end up being a money loser in the Indian market. Sources said the restrictions on how high the price can go and the lack of larger subsidies means the risk of higher priced DAP is firmly on the shoulders of the importers.
In the past, several Indian companies would run tenders and then scrap them. The move was a well-known ploy to negotiate lower prices. This year, however, producers all claim limited supplies at a time of high prices. The buyers have little to hold over the producers to get lower prices.
In addition to facing ever higher costs for DAP, local producers continue to face the problem of higher input costs. The prices of ammonia, phos rock, and sulfur are all going up. Sources said even though the second-quarter talks for phos acid are not yet concluded, the expectation is that prices will jump to $1,004-$1,005/mt CFR.
Even with all the difficulties laid out, the Department of Fertilizer is leaning on the DAP producers to increase production and on importers to secure more tons. Sources estimated DAP supplies are down about 700,000 mt so far this year compared to last year at the same time.
Pakistan:
The Pakistan government said the country imported 93,000 mt of DAP in May. At the same time, they claimed domestic production was at 75,000 mt.
The government said it has enough on hand to start the upcoming application season. They expect demand to be about 1.02 million mt. Supplies of DAP will come from production of 464,000 mt and imports of 676,000 mt.
However, the increasing price of global DAP and of the inputs for domestic production may force the government bean counters to recalculate their situation, said one trader.
Brazil:
The MAP market at Paranagua appears to want to push forward, said one trader, but does not have the strength. Sources put the market at $750-$770/mt FOB, which represents only a small increase in pricing.
There appears to be more strength and demand inland. Prices jumped to $867-$910/mt FOB ex-warehouse, and source said most players are sold out even as demand is steady.