Central Florida:
Central Florida DAP truck postings firmed to $665/st FOB for the week, a $10/st increase from the prior week’s $655/st FOB. MAP trucks moved up to $695/st FOB from the week-ago $685/st FOB. Truck-loaded MAP at North Florida continued at $720/st FOB for the period.
U.S. Gulf:
TheNOLA barge phosphate markets pressed higher for the week.
Imported DAP barges loading in October were reported changing hands up to $690/st FOB, with $695/st FOB offers reported on Oct. 7 expected to add additional upside pressure in the next round of business. Domestic tons were quoted trading at $660/st FOB, firming $10/st from the prior week’s $650/st FOB.
MAP barges loading in a 30-day window from NOLA were generally reported at a $765/st FOB low for the week, even with the week-ago high, while sources reported values as high as $785/st FOB. New offers were heard at $790/st FOB on Oct. 7. MAP barges slated to load further out in the fourth quarter were quoted trading at $690/st FOB.
Ongoing supply constraints stemming from Hurricane Ida were cited as a primary driver for the firming market, while thinning international availability prompted some to voice expectations of increased competition for imported tons.
The nearby DAP market was quoted at $660-$690/st FOB for the period, firming from $650-$675/st FOB at last report. Thirty-day MAP barges were typically quoted at $765-$785/st FOB, up from $745-$765/st FOB in the prior week.
U.S. Imports:
August DAP imports were up 2,687.5 percent, to 226,799 st from 8,136 st in the prior year. July-August totals stood at 418,201 st, up 1,071.4 percent from the year-ago 35,701 st.
Australia claimed the market’s top import spot in July-August with 140,643 st, followed by 95,711 st from Jordan. Material loading from Saudi Arabia totaled 69,113 st. No tons from Australia, Jordan, or Saudi Arabia tons were noted coming to the U.S. in July-August 2020.
July-August MAP/Other imports were noted at 251,236 st, rising 362.2 percent from the year-ago 54,359 st. August imports were noted at 107,013 st, up 500.6 percent from the prior-year 17,817 st.
Tunisia led fertilizer year-to-date imports with 80,999 st, followed by 63,882 st from Saudi Arabia. Importers received 50,368 st from Jordan. Like the DAP market, importers received zero MAP/Other tons from the market’s three largest sources in the year-ago period.
U.S. Exports:
DAP exported from the U.S. in August dropped 28.1 percent, to 34,155 st from the prior-year 47,523 st. Exports totaled 71,540 st for July-August, a 47.8 percent decrease from the year-ago 137,052 st.
MAP/Other exports were off 1.4 percent in August, to 193,390 st from the prior-year 196,208 st. July-August exports slid 1.6 percent, to 428,057 st from 434,883 st last year.
With no new spot business reported on the Gulf phosphate export markets, DAP pricing continued at the previously reported $660/mt FOB level, with MAP holding at $685/mt FOB. Firming international pricing prompted firming expectations for the next round of business.
Eastern Cornbelt:
DAP prices firmed to $725-$750/st FOB in the Eastern Cornbelt, up $13-$30/st from last report, with the high confirmed at Ottawa, Ill.
MAP had reportedly increased to $790-$810/st FOB in the region, up $20-$30/st from the prior week, with the high again reported at Ottawa. The Cincinnati market was pegged at $725-$740/st FOB for DAP and $790-$800/st FOB for MAP in early October.
Western Cornbelt:
DAP pricing firmed to $730-$750/st FOB in the Western Cornbelt, up $25-$45/st from the previous week, with the low confirmed at St. Louis. The MAP market firmed to $800-$810/st FOB in the region, with the low again reported at St. Louis and the high in Iowa.
Southern Plains:
The DAP market climbed to $715-$745/st FOB in the Southern Plains, up another $20-$25/st from last report. The low was reported at Houston early in the week, but sources said the price there firmed to $735/st as the week progressed. The Catoosa/Inola DAP market was pegged solidly at $730-$745/st FOB at midweek.
MAP surged to $800-$825/st FOB in the region, with the low confirmed at Houston and the high at Catoosa/Inola.
South Central:
DAP pricing jumped to a broad range at $700-$750/st FOB in the South Central region, up $15-$25/st from last report, with the low confirmed at Memphis and the high in Arkansas.
Southeast:
Sources reported limited DAP offers at $730-$740/st FOB Wilmington during the week, with another increase expected later in the week. The last MAP price FOB Aurora, N.C., was reported at the $720/st FOB level, with no DAP available at that location.
Saudi Arabia:
Phosphates loading from Saudi Arabia were quoted at $640-$660/mt FOB, lifting from the week-ago $635-$650/mt FOB range.
China:
Sources said the limitations on DAP and MAP exports have essentially shut down the Chinese phosphate export market. Sources said the government is expected to expand on its previous order to limit exports by Nov. 1.
India:
Sources reported a sale of DAP from Ma’aden in Saudi Arabia to India at $680/mt CFR. The price represents another incremental increase in the price of DAP into India.
A tender for 100,000 mt of DAP called by NFL will close on Oct. 9. According to the tender announcement, the prices will be released on Oct. 11. The tender calls for two cargoes of 50,000 mt each, with one to be unloaded at an East Coast port and the other at a West Coast port.
Sources said they were unsure if anyone will participate in the tender, given the limited availability of material available in the area. One trader said there might be some participation, but he expects NFL to scrap the tender and use the pricing ideas presented as the basis for their contract talks with suppliers.
Sources said India faces continuing problems securing DAP. With Chinese availability essentially shut down, the country can make their own or look for additional imports from other suppliers such as Ma’aden or OCP in Morocco.
However, both options bump up against the high cost to produce or import DAP. The maximum retail price for DAP is much lower than what DAP currently costs. Sources said suppliers of DAP, both domestic producers and importers, have been looking for ways to get compensation from the Indian government for the potential losses.
Brazil:
Paranagua showed a steady increase in MAP prices to $740-$750/mt CFR. Sources pointed to the higher ammonia costs around the world as adding to the higher prices Brazilian buyers are facing.
Rondonopolis prices were pegged at $880-962/mt FOB ex-warehouse, a move up from the $850/mt FOB last reported from the area.Sources said prices at the ports and inland are being affected by the decision of the Chinese government to limit or ban exports of phosphates through June 2022.
The barter rate for 1 mt of MAP at Sorriso remained steady at 102 bags of corn.
Imports of MAP for January-September this year were reported at 3.6 million mt, just slightly down from the 3.7 million mt imported during the same period in 2020, according to Tarde Data Monitor.
Third-quarter imports for 2021 were up 21 percent, to 1.6 million mt from 1.4 million mt during the same period in 2020.September 2021 imports of 622,000 mt were up 7.4 percent from September 2020 imports of 579,000 mt.