Central Florida:
Central Florida DAP truck postings remained at the week-ago $655/st FOB level, sources confirmed. Truck-loaded MAP was posted at $685/st FOB, also steady from the prior report.
MAP trucks loading from northern Florida were quoted at $720/st FOB, firming from the week-ago $700/st FOB.
U.S. Gulf:
Supply tightness throughout the phosphate system contributed to rising prices at NOLA, sources said.
DAP business continued to be noted at the week-ago $675/st FOB high, while sales of domestically produced material were reported changing hands at $650/st FOB, rising $15/st from the week-ago $635/st FOB floor. Sources quoted new offers lifting to $680/st FOB, with no takers on Sept. 30.
Extreme MAP tightness translated to soaring values, with early-week $745/st FOB trading noted lifting to $765/st FOB by Sept. 30. Domestic sellers reportedly pulled NOLA MAP pricing indications quoted at $650/st FOB in the prior week, while new offers were reported lifting to $775/st FOB on Sept. 30.
DAP values lifted to $650-$675/st FOB for the week, rising from $635-$675/st FOB in the prior report. MAP rocketed to $745-$765/st FOB, up from $665-$730/st FOB the week before.
U.S. Exports:
Sources continued to report a quiet Gulf export market, with last-done DAP holding steady at $660/mt FOB. The MAP market’s most recent spot sale was reported at $685/mt FOB.
Eastern Cornbelt:
DAP prices generally fell in the $710-$720/st FOB range in the Eastern Cornbelt in late September, while MAP had reportedly increased to $760-$790/st FOB, up from the prior week’s $735-$775/st FOB range, depending on location.
Western Cornbelt:
DAP pricing remained in a broad range at $685-$725/st FOB in the Western Cornbelt, with the St. Louis market unchanged at $700-$710/st FOB. The MAP market firmed to $760-$785/st FOB in the region, with pricing at both St. Louis and Catoosa/Inola, Okla., reported at $770-$785/st FOB as the week progressed.
Northern Plains:
Sources pegged the DAP market at $700-$735/st FOB St. Paul, with MAP quoted at $760-$785/st FOB at that location, up from $730-$770/st the week before. Delivered green MAP had reportedly jumped to $825/st in western North Dakota, up from the last reported $755/st DEL level.
Northeast:
Phosphate pricing FOB East Liverpool was confirmed at $725/st for DAP and $775/st for MAP, up $35/st from early September. There is currently no MAP supply at Fairless Hills, but offers for late October and November reportedly firmed from $735/st up to $750/st FOB during the week.
Nutrien confirmed that its MAP price at Aurora, N.C., and White Springs, Fla., moved up $20/st during the week, to $720/st FOB.
Eastern Canada:
Phosphate prices were up in Eastern Canada, with reports of new MAP offers ranging broadly at C$985-$1,060/mt FOB in Ontario in late September, up C$15/mt at the higher end of the range. The last DAP business was reported at the C$980/mt level FOB Montreal.
Western U.S.:
MAP postings in California and the Pacific Northwest firmed to $840/st DEL during the week, up from the previous week’s levels of $785-$805/st DEL in California; $775-$795/st DEL in Washington, Oregon, and Nevada; and $765-$785/st DEL in Idaho, Utah, and Montana.
Saudi Arabia:
The recent Saudi Arabia phosphate market was quoted at $635-$650/mt FOB, unmoved from the prior report.
China:
The week opened with the NDRC issuing instructions to all phosphate producers on what they needed to do to ensure a plentiful supply of phosphates, especially DAP, for the domestic market at a stable price.
The directive told companies that exports of phosphates would be limited through June 2022. Many in the industry read the edict to imply a full ban was being called. However, sources pointed out that the NDRC could only enforce a limit on exports. One trader said a ban on exports would have to come from a different government agency. Such a move would trigger a series of force majeures that could affect future efforts to export phosphates.
The companies with existing export contracts were told to comply with the limitations on exports, attempt to decrease the tonnage being shipped, or see if they can delay shipment until after June 2022. The NRDC also suggested just walking away from the contract.
According to Chinese government data reported by Trade Data Monitor, China exported 4.8 million mt of DAP in the January-August 2021 period, up 32 percent from the 3.6 million exported during the same time last year.
The move comes as producers face growing problems maintaining production. Higher prices for inputs, including phos rock, sulfur, and ammonia, have been cutting into the producers’ margins as buyers push back against ever higher prices. At the same time, the Chinese government has ordered reductions in available electricity. In some cases, rolling blackouts will be the norm for a while.
The government is reportedly stepping up efforts to increase energy output, but the rising cost of coal and natural gas is hampering electricity producers, whose ability to raise power prices is severely limited.
A further hit on the industry comes from the central government’s pledge to clean up the environment. Phosphate producers are being watched more closely to ensure their plants are not exceeding pollution standards. The gypsum stacks produced are also being closely watched to ensure they are not violating any pollution and safety regulations.
Brazil:
The announcement by China’s NDRC that phosphate exports would be limited shook up the MAP market in Brazil. Despite the nervous situation, prices only moved slightly to $720-$740/mt CFR in Paranagua.
According to Trade Data Monitor, China exported 1.6 million mt of MAP to Brazil from January through August this year. However, the Brazilian government reported imports from China of only 210,000 mt for the same period. International traders tend to accept the larger number as more accurate.
The barter rate for 1 mt of MAP shifted to 102 bags of corn at Sorriso, up from the previous 100 bags.