Central Florida:
Truck-loaded DAP was posted at $620/st FOB Central Florida, steady from the prior week. MAP remained at a substantial premium to DAP at $655/st FOB, also unmoved from one week earlier.
U.S. Gulf:
Nearby NOLA DAP barges were reported trading at a $600/st FOB low for the week, a $5/st increase on the week-ago $595/st FOB bottom. Most sources called the top of the range up to $610/st FOB, rising from $605/st FOB in the prior report. Domestically produced material continued to be offered at $615/st FOB, sources said.
MAP barges were also moving up, with reports of $655-$660/st FOB deals changing hands in a reported August-September loading window, lifting from the prior $650/st FOB high. Domestic material was offered at $650/st FOB to set the bottom of the range, while a rumored $670/st FOB transaction went unconfirmed on Aug. 26.
The week’s DAP range landed at $600-$610/st FOB, rising from $595-$605/st FOB one week earlier. MAP values firmed to $650-$660/st FOB, up from $640-$650/st FOB in the prior report.
U.S. Exports:
Nothing new was heard on the Gulf spot phosphate market. Last-done included transactions priced at $660/mt FOB for DAP and $685/mt FOB for MAP.
Eastern Cornbelt:
The DAP market remained at $640-$655/st FOB in the Eastern Cornbelt, with the low reported out of spot Illinois River terminals in late August. MAP was unchanged at $675-$695/st FOB in the region, depending on location. The Cincinnati market was steady at $645-$650/st FOB for DAP and $680-$690/st FOB for MAP.
Western Cornbelt:
DAP pricing was steady at $635-$650/st FOB in the Western Cornbelt, with the lower end confirmed at St. Louis. The Dubuque, Iowa, DAP market remained at $640-$650/st FOB in late August. MAP was pegged in the $675-$695/st FOB range in the region, depending on location.
Southern Plains:
DAP prices were pegged at $640-$645/st FOB Catoosa/Inola and $655/st FOB Houston. The MAP market remained at $690/st FOB Houston in late August, while pricing at Catoosa/Inola was reported in a wider $675-$695/st FOB range, depending on supplier.
South Central:
DAP was unchanged at $640-$650/st FOB terminals in the South Central region, depending on location, with the low confirmed at Memphis and the high in Kentucky.
Southeast:
Posted phosphate prices at Aurora, N.C., remained at $640/st FOB for MAP and $650/st FOB for DAP in late August.
Saudi Arabia:
Pricing on phosphates loading from Saudi Arabia was heard firming to the $620-$635/mt FOB range, up from $615-$630/mt FOB reported previously.
China:
Phosphate supplies in China remain tight. Sources said output is being hampered by restrictions on available energy as the government gives priority to residential needs over industrial.Prices remain steady in the $620s/mt FOB, which match up with a couple of reported sales to Pakistan at $660-$665/mt CFR.
Sources reported some delays in getting vessels into ports to move the limited tons marked for export. The backup is attributed to a combination of some ports being short-staffed because of COVID-19 and the limitations placed on how many foreign-flag carriers can be in port at one time.
Despite the tightness reported in DAP availability, DAP exports were up nearly 50 percent during January-July 2021, according to Trade Data Monitor, to 4.2 million mt from 2.8 million mt during the same period this year.The top three buyers so far this year were India at 1.2 million mt, Pakistan at 585,000 mt, and Thailand at 496,000 mt.
July exports of DAP were up 27.7 percent, to 984,000 mt from 771,000 mt in July 2020. India took about one-third of the total at 367,000 mt, followed by Bangladesh at 170,000 mt.
Exports of MAP were up 79 percent for the January-July period, to 1.4 million mt from 2.6 million mt last year. Brazil dominated the purchases with 1.2 million mt.
July 2021 MAP exports were up a whopping 239 percent, to 677,000 mt from 200,000 mt in July 2020. This increase matches with reports from regional traders that a number of the producers had shifted to MAP production, which helped account for the tightness of DAP.
Pakistan:
Sources reported the sale of two cargoes into Pakistan at $660-$665/mt CFR. This price fits with quotes out of China in the $620s/mt FOB.
India:
Sources said the country still needs DAP and is willing to pay current rates to acquire it. The limited availability from China makes purchases difficult, however. At the same time, the hesitation felt by buyers is that any deal at this time would involve a loss. Sources said the government needs to raise the maximum retail price from the $570/mt CFR level to meet the current global market prices.
Brazil:
The MAP market in Brazil appears ready for a softening in prices, as all demand for product seems to be covered. Sources in Brazil quoted the Paranagua market at $700-$745/mt CFR. Traders outside the country claim the range is tighter at $725-$745/mt CFR.
The range is widening in Rondonopolis as buyers appear to be looking for a few more tons while facing tighter supplies. The price is now pegged at $831-$870/mt FOB ex-warehouse, which represents a $20/mt rise in the top end of the scale.