AMMONIA
U.S. Gulf/Tampa: The Tampa market rolled over for the second half of February at $360/mt DEL last week. There was talk of possible new barge business at NOLA, but some sources wondered if icy conditions upriver might deter anything until March/April.
Eastern Cornbelt: The anhydrous ammonia market had reportedly firmed to $420-$435/st FOB regional terminals, with both the upper and lower end of the market claimed by Illinois sources for recent prompt business, depending on supplier. One supplier was referenced forward contract ammonia earlier in the week at $440/st FOB for March, but another source speculated that dealer pricing could hit the $450/st FOB mark by March 1. Agrium’s Feb. 6 ammonia postings included $445/st FOB Cincinnati/Finney, Ohio, and $435/st FOB Illinois shipping points at E. Dubuque, Niota, Meredosia, and Marseilles.
On the retail side, several sources commented on the huge swing in price in the last 12 months. One regional dealer said retail pricing hit the $550/st FOB mark last spring, fell to below $400/st last fall, moved to $425-$435/st FOB for early spring prepay programs, and now has climbed again to $490/st FOB, with some retail reference prices currently at the $530/st mark before discounts.
Western Cornbelt: The regional ammonia market was quoted at $415-$430/st FOB, with several sources touting the $425/st FOB level as the common dealer price last week. Delivered ammonia was pegged at $445-$450/st in Missouri. One supplier was referencing forward contract ammonia for March at $425-$435/st FOB regional terminals last week, with the low in Nebraska and the upper end FOB Palmyra, Mo.
Northern Plains: Anhydrous ammonia was quoted at $415-$425/st FOB in the region, with delivered ammonia in North Dakota pegged at a solid $455/st last week. One supplier was offering forward contract ammonia for March at $430/st FOB regional terminals. Dakota Gasification’s Beulah, N.D., ammonia plant remained down last week, with no pricing available and no firm date established for a restart.
Agrium’s postings for anhydrous ammonia firmed significantly on Feb. 6 to $425/st FOB Mankato, Minn. Postings in the Leal, Velva, Grand Forks, and Beulah sales area in North Dakota moved up on that date to $437/st FOB and $455/st DEL.
Eastern Canada: Ontario sources quoted the anhydrous ammonia market at $514-$540/mt FOB last week, with the low for cash market tons and the upper end for spring prepay. Agrium’s reference for delivered ammonia to Ontario and Quebec locations had firmed from $776/mt in mid-January to $850/mt on Feb. 9.
Black Sea: A tightening global market is firing up prices in Yuzhnyy. Asian sources report business in the area with a netback of $285/mt FOB. One source pointed to a deal at $290/mt FOB, but would not – or could not – name the buyer. Even without the rumored deal, sources are convinced that $300/mt will be broken by next month.
The delivered price is the main complaint of buyers, say sources. Reportedly, congestion through the Bosporus Straits has added $20-$30/mt to the cost of material to the United States. Sources say the congestion is a result of passage rules set by the Turkish government that permit only one ammonia carrier in the straits at a time, and only during daylight hours.
Middle East: A spot cargo from the region remains rare as hen’s teeth. Asian sources report a deal from Qafco for 5,000 mt at $345.63/mt FOB. Buyers and sellers, however, agree this price is outside the norm. Still, said one observer, it is a clear indication of the upward spiral in prices.
Indian phosphate producers remain a driving force in setting the price. Sources add, however, that strong demand from Asian buyers is also putting pressure on supplies.
Even with all the Sabic facilities back up and running, sources report the company is so far in debt to other companies who covered its contracts that spot material from Saudi Arabia is not expected until late April.
Because of the strong demand and limited supply, sources now peg the market at $325-$335/mt FOB.
Asia: Demand remains strong throughout eastern Asia. Taiwanese and Korean demand remains high as downstream users seek to increase their output. That desire, of course, means an increase in ammonia inputs.
The KPI plant in Indonesia came back online the middle of last week. When the plant went down, the company was fearful it would face another long-term shutdown. Sources say engineers quickly identified the problem as minor, and just as quickly fixed it.
UREA
U.S. Gulf: NOLA granular barges were reported on Monday at $332-$337/st FOB, but by late Thursday sources said they were firmly within the $340-$345/st FOB column for February, with $350/st FOB being quoted for the next transaction. Trading with urea, as with DAP, was in a frenzy. Many said they could never remember such a time. Sellers said imports are off 1 million tons, and corn demand is expected to be up 10 percent or more.
Urea imports are indeed off nearly 1 million tons, according to the most recent DOC trade data. July-November imports are off 36 percent, to 1.7 million st from the year-ago 2.6 million st. Domestic production is expected to be up as producers churn out product at full capacity, but not near enough to take up the slack, say sellers.
Prills, which had been badly lagging granular, were reported to be moving up as well. New trades were called $310-$320/st FOB, with forward business called $320-$330/st FOB.
Eastern Cornbelt: Granular urea pricing continued to firm. The dealer market was quoted at $365-$372/st FOB last week, with the low in Illinois and the upper end in Ohio.
Western Cornbelt: Granular urea was quoted at $355-$365/st FOB, with the upper end reported in Iowa. Postings from some suppliers had reportedly moved to as high as $390/st FOB in the region last week.
Northern Plains: Granular urea was pegged at $360-$370/st FOB in the region, with the upper end reflecting dealer reference pricing FOB the Twin Cities from one supplier. One source said that as of Feb. 7 there was still prepay urea available at the $355/st FOB mark in Minneapolis, but most put the Twin Cities market last week firmly at the $365/st FOB level for prompt tons. Forward contract urea for March was quoted from one supplier at the $390/st level FOB Pine Bend, Minn.
One source said he thinks some Dakotas dealers still have 50 percent of their spring urea to cover yet. Delivered urea in the Dakotas was pegged at $385/st on the low end, with reports of some suppliers crowding the $400/st DEL mark for new tons. One regional supplier was referencing forward contract urea at the $400/st DEL mark in North Dakota for March.
Northeast: Granular urea was in tight supply, with reports of product being unavailable at Philadelphia last week. Where tons could be had, sources continued to peg the market at $355-$370/st FOB, with dealer reference pricing now at the $372/st mark FOB E. Liverpool, Ohio. Delivered urea in Pennsylvania was tagged at the $375/st level last week.
Eastern Canada: Granular urea was quoted at $460/mt FOB Hamilton, Ontario, for inbound vessel tons and out of some Quebec shipping points last week. Reference prices to the dealer were pegged at the $505-$508/mt FOB level at other Ontario terminals, with rail-DEL urea from Western Canada shipping points referenced at the $508/mt mark to Ontario and Quebec locations. Prilled urea was reportedly available at the $425/mt FOB level in Quebec at mid-month. One dealer noted that retail urea prices were now up $100/mt from year-ago levels.
Black Sea: Buyers are in a state of shock as prices continue to rise. The last bit of done business was pegged at $303/mt FOB, with offers as high as $310/mt FOB being discussed. One trader noted that all the cargoes for this month and most of March are now in the hands of traders. A result, he said, is that there is now nothing available for less than $300/mt FOB – and in another week even that price will appear cheap.
A number of factors are being blamed for the run-up in prices. The obvious villain in buyers’ eyes is anticipation of the India, Iran, and Pakistan tenders. So far, with only Iran publicly declaring its intentions, there is great anticipation on the other two.
Traders also point to strong demand from the Americas. One trader noted that Mexico made a number of deals, with more expected. At the same time, Central American buyers will also need tons in the next few weeks.
A trader pointed to a cargo of 40-50,000 mt concluded at $303/mt FOB as the mark for the market. Others, however, say the real spread is more like $300-305/mt FOB.
European demand is also strong enough to help provide a solid floor – once combined with all the other activity – on the pricing.
Middle East: Product remains tight. Sources say producers are now telling Indian buyers the price for material to cover the NPK producers will be $325/mt FOB. While no one could point to actual business at that level, few in the industry are willing to dismiss it out of hand.
For now, say sources, the prices remain $310-$320/mt FOB for granular and $305-$320/mt FOB for prills.
ASSC/Iran is back in the market. Sources say the company is asking for 200,000 mt in a tender to close March 12. Usually ASSC asks for 100-150,000 mt, but the poor showing in its last set of tenders means it needs more.
Hovering over the whole region is the expectation that Pakistan and India will be back in the market by the middle of March. Some in the industry have even speculated that Indian buyers may publicly make their intentions known before the end of this month.
At the same time these two power buyers are getting ready to come back into the market, sources point out that Thailand is still buying, and the Philippine buyers have yet to make their intentions known. Lastly, with the successful conclusion of the six-power talks about North Korea’s nuclear program, sources say South Korea will need to import 100-150,000 mt of urea to cover that country’s assistance program to the north. While some of those tons could come from China, observers note that Middle East material will most likely be considered as well.
South Korea: Sources expect to see South Korean companies start buying urea, either for use in NPK production for North Korea or for direct re-exporting to the north. Namhae has already called a tender for 25,000 mt of granular to close Feb. 22. Sources say this is a routine tender and the paperwork on it started long before the talks with North Korea were finished. However, said one observer, with the South Korean government not ready to restart its aid program of rice and fertilizer shipments to the north, this tender could be the first of a series in the next couple of months.
The South Korean government promised to send about 600,000 mt of fertilizer to the north. While much of it is in the form of NPKs, sources estimate about 100,000 mt of that amount will be urea.
For the past several years, South Korea has shipped close to 1.2 million mt of NPKs and urea a year to the north. The Seoul government halted shipments in July 2006 when North Korea went ahead with missile and nuclear weapons testing.
Some Asian sources expect the South Korean buyers to look to China for the urea they need. Freight from northern China to South Korea is pegged at $16/mt. Even with urea at $300/mt FOB bagged, the delivered price will be significantly cheaper than buying from the Middle East in the $320/mt FOB bulk neighborhood, with freight in the mid-$30s/mt.
Bangladesh: Two tenders were announced by BCIC to close March 5 and March 22, for 100,000 mt each. In each tender the company is looking for 50,000 each of prills and granular. Bangladesh remains desperately short of material. The local media are filled with almost daily reports of arrests of people selling “adulterated” urea, or of smugglers being caught with just a few hundred kilos of the material.
Sources say the tenders in March are most likely being done for political reasons rather than practical ones. One trader noted that even if BCIC accepts the offers, makes the awards, and opens letters of credit in record time, the first shipment would not arrive until the rainy season. At that point, he said, unloading the ship becomes difficult and then the cargo will have to sit in a portside warehouse until the weather allows it to be trucked inland.
Of the nearly 500,000 mt BCIC called for in its tenders, it awarded and received only one or two cargoes in the last half of 2006. Delays in issuing awards, and issuing awards to non-traditional companies who could not perform led to the current shortage, say Asian traders.
China: With the successful conclusion of the six-party talks about North Korea’s nuclear program, sources say China is now ready to resume its supply of urea to North Korea.
Reportedly, Sinochem has been snapping up tons of northern urea from producers for shipment to North Korea. Sources say about 200,000 mt of urea should be shipped to North Korea as part of China’s assistance program to its Communist neighbor.
In addition to the Chinese program, Asian sources expect to see Chinese urea sold to South Korea to cover Seoul’s assistance program.
Sources peg the current Chinese market at $300/mt FOB bagged.
All activity out of China – and indeed most of Asia – should come to a halt this week as they celebrate the Lunar New Year. Once the festivities are over, however, industry sources expect to see a strong return to the market.
India: Reportedly, Middle East suppliers told Indian buyers looking for tons under the radar that the starting price is $325/mt FOB. At that price, said one Asian source, the Indians demurred and went home to recalculate their options.
The conventional wisdom still holds that IPL and MMTC will announce tenders within the next two to three weeks for a series of shipments evenly spread over the remaining months of the year.
NITROGEN SOLUTIONS
U.S. Gulf: UAN barge prices were hard to find last week. The sentiment was they were following urea, but maybe not up quite as much due to a lack of storage space. As with urea, imports are off significantly from year-ago levels. U.S. imports are off 41 percent for the July-November period, to 672,804 st from the year-ago 1.13 million st.
Eastern Cornbelt: UAN was tagged at $7.25-$7.50/unit FOB regional terminals, with reference prices reported at $250/st ($7.81/unit) FOB for UAN-32 and $220/st ($7.86/unit) FOB for UAN-28.
Western Cornbelt: UAN-32 was quoted in a broad range at $230-$250/st ($7.19-$7.81/unit), with the upper end reflecting dealer reference pricing. One Iowa source pegged the dealer market last week firmly at the $7.35/unit FOB level.
Northern Plains: UAN pricing was “anybody’s guess,” according to one source. Most put the dealer market somewhere in the $7.60-$7.85/unit FOB range last week, with UAN-28 reference pricing reported in the $216-$218/st ($7.71-$7.81/unit) range FOB Winona and Pine Bend, Minn. On a delivered basis, the cash price in North Dakota was pegged at the $225/st ($8.04/unit) level for tons from Canadian shipping points.
Northeast: UAN-30 pricing was quoted last week at $212-$220/st ($7.07-$7.33/unit) FOB Baltimore and Philadelphia, with some claiming the low end of the range at a firm $217/st ($7.23/unit) FOB. The vessel market had reportedly firmed to the mid-$240s/mt C&F.
No current prices were available out of terminal locations in upstate New York. Delivered UAN-30, however, was pegged at the $225/st ($7.50/unit) mark in Pennsylvania.
Eastern Canada: UAN was quoted at $10.00-$11.06/unit FOB Ontario and Quebec terminals, depending on location and time of delivery, with reference prices for UAN-28 pegged at the $313-$317/mt ($11.18-$11.32/unit) FOB level out of some Ontario shipping points.
AMMONIUM NITRATE
U.S. Gulf: Like UAN, barge prices were hard to gauge. With less demand, AN was getting less attention. Like urea and UAN, imports are off so far this fertilizer year. They are off 28 percent for July-November, to 331,342 st from the year-ago 443,897 st.
Western Cornbelt: Ammonium nitrate was steady at $280-$285/st FOB in the region.
Eastern Canada: Ammonium nitrate had firmed to $370-$375/mt FOB in Ontario. CAN-27 was quoted at $310-$350/mt FOB, with the low in Quebec and the high in Ontario.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $180-$190/st FOB in the region.
Western Cornbelt: Granular ammonium sulfate remained at $185-$190/st FOB and $195/st DEL in the region.
Northern Plains: Granular ammonium sulfate was in tight supply, with the market quoted firmly at $200-$205/st DEL in the region, up significantly from last report. No FOB pricing was available in the region last week. Effective Feb. 12, Agrium’s ammonium sulfate postings moved to $205/st DEL in the Dakotas, Minnesota, Nebraska, and Wisconsin.
Northeast: Granular ammonium sulfate was quoted at $162-$173/st FOB, with the upper end to dealers FOB Philadelphia. No current prices were reported for delivered sulfate in the region.
Eastern Canada: Granular ammonium sulfate was $245-$270/mt FOB in Ontario, depending on location, with dealer reference prices reported at the $275/mt FOB level in the province.
Pacific Northwest: Agrium’s ammonium sulfate postings firmed again on Feb. 12 to $200/st FOB warehouse and $205/st DEL in Washington, Idaho, Oregon, Montana, and Wyoming, up $10/st from the company’s Feb. 2 reference levels.
PHOSPHATES
Central Florida: With inventories extremely low and producers having difficulty finding rail transportation for phosphate shipments out of Central Florida, new sales were hard to come by in the market last week. In fact, Mosaic, which held off making new sales last week while it determined how much it had available and what price to charge for what it had, was holding off issuing new prices until last Friday. However, CF Industries put out a new asking price of $310/st FOB for new orders, but had little or nothing left to sell. Last Monday, PotashCorp upped its Central Florida reference price from $280/st FOB to $320/st FOB. The old reference price was set the previous Friday. Still, prices for Central Florida DAP were significantly trailing the river and the export markets. One buyer who was told of the new price hike was told to order immediately or he would not be able to buy.
At the TFI conference at Dallas last week, members of the phosphate industry were practically bouncing off the walls in the 28-story lobby of the Hyatt Regency, where the conference was held. “They were positively giddy,” one TFI attendee said. Many in the fertilizer industry believe it may be possible for the prices of DAP and other phosphates to rise as high as they did in the 1973-1974 period, when former President Richard Nixon lifted price controls and the market shot north of $400/st FOB. The Green Markets price range index had not been established at that time, and the old records for that index were exceeded by about $100/st FOB last week.
Although many in the industry said they were planning to wait for TFI’s meeting to make new sales a week earlier, very little actual trading took place. One source noted that the extremely cold weather, ice, and snow had slowed buying last week.
At this point, farmers in most areas have not been faced with actually paying the new high prices, but that situation will change during the next few weeks. However, few in the industry believe farmers will rebel, not when the price of corn was hitting $4.20/bushel, which was more than twice what it brought a year ago. While farmers could mine some phosphates from their soil, yields would suffer – and so would their profit margins.
The Central Florida price range for the week – and another new Green Markets record – was $295-$310/st FOB, up from the previous week’s record index price of $265-$269/st FOB. Prices were likely to go higher this week as long as new sales are made. PotashCorp’s Central Florida reference price increased to $280/st FOB this week, then again to $320/st FOB. In Texas, Agrifos’ truck previous prices for DAP or MAP were $275-$280/st FOB, but new prices were not available. That company also matches the rail prices of other producers, but rail supplies were sold out through March.
U.S. Gulf: Activity in the river market slowed last week as cold, ice, and snow slammed the Midwest – at least in terms of sales, but not prices. Even with a reduced level of buying, prices continued to climb to new record highs, almost on a daily basis. However, that combination of slower activity and higher prices could result in some bargains, at least in terms of the current market. A bargain today would have been an absurd price just a few weeks ago. Some small traders who have already made a markup of $50/st FOB may be eager to sell their barges and cash in the profits, rather than get credit for their next load, which would also represent a handsome profit. Those situations could result in savings of $5-$10/st FOB under the current market level, and buyers should be on the lookout for those deals.
At the TFI conference at Dallas last week, the phosphate industry was dizzy with excitement, while some on the buying end were shaking their heads and grumbling acceptance. Rumors of deals made at the conference held that sales had been made as high as $350/st FOB, but those could not be confirmed. The highest price that could be confirmed for a prompt DAP barge was a deal done last Monday at $335/st FOB, and much of the week still remained. Other rumors claimed prices of $340-$345/st FOB, but many traders said those had been asking prices. Green Markets uses only confirmed prices in its index.
Regardless, prices continued to rise quickly, possibly as much as $10/st FOB a day. As of late last week, there was nothing to put the brakes on prices. One source noted, though, that a NOLA DAP barge price of $350/st FOB would result in an ultimate price of $450/st for farmers, including delivery.
The nasty weather last week slowed buying and may do the same this week unless conditions improve, but there were no signs prices will stop going up. The Army Corps of Engineers had opened locks as far north as Clinton as of last week, and ice and St. Louis traffic were the primary obstacles to deliveries to points north. Most – but not all – of those buying last week planned to put the product in their own warehouse systems.
Despite rumors, and based on confirmed deals made last week, the river’s NOLA DAP barge price range increased from $303-$310/st FOB to 324-$335/st FOB, and will undoubtedly increase again this week.
Eastern Cornbelt: Although several sources said dry spreading activity had been steady in the region in recent weeks, activity was stalled last week due to the massive snow and ice storm that plowed through the Midwest and the Northeast.
Phosphate pricing continued to strengthen rapidly. Most sources reported the current warehouse markets for DAP and MAP in the $340-$350/st FOB range in the region, up again dramatically from the prior week. One Ohio source reported at $342/st FOB price at midweek, but qualified it by saying that another increase at that location was scheduled for Feb. 19. An Indiana source said he priced DAP firmly at the $348/st FOB reference level, but knew of business that had been concluded early in the week at $340/st FOB inland.
No current prices were reported for TSP. 10-34-0 was quoted at $285-$295/st FOB. The low end was reported last week by an Indiana source, but he said product was sold out at several locations.
Western Cornbelt: Phosphate pricing continued to escalate. DAP was quoted in a broad range at $325-$350/st FOB regional warehouses, with the low reported early in the week in Missouri and the high quoted as a dealer reference price in Iowa. One Iowa source also reported a $340/st FOB warehouse level for DAP last week. MAP was generally pegged at $335-$350/st FOB in the region, with reference prices as high as $360/st FOB from some suppliers. One supplier was offering forward contract tons for March FOB Sioux City, Iowa, at $386/st for MAP and $389/st for DAP.
To illustrate the rapid increase in phosphate pricing, one source said he knew of warehouse sales that were made in Missouri on Feb. 2 at the $285/st FOB level. Four days later, the reference price at that Missouri location had firmed to $340/st FOB, he said.
10-34-0 remained in tight supply at $285-$295/st FOB in the region. No market was reported for TSP last week.
Northern Plains: Sources continued to express incredulity at the rapid increase in fertilizer prices, particularly for phosphates. Lack of sales kept the new levels untested, so “there’s no way to know what’s real and what’s not,” according to one. Most had locked up most of their spring fertilizer needs; “if you aren’t positioned now, you’re definitely on the outside looking in,” remarked one source, who added that supply issues were all but a certainty in some markets this spring.
DAP and MAP pricing out of the regional warehouse system was hard to peg last week, owing to the rapid increase in price at the Gulf and the lack of spot business to test the market. One Minnesota source quoted the warehouse market in the $315-$325/st FOB range for DAP as of Feb. 12, but was uncertain if that was still achievable by midweek. Dakota sources put the market at the $330/st FOB mark or higher out of the warehouse, with delivered MAP in North Dakota pegged at $350-$360/st and in very tight supply from western shipping points.
Others, noting freight charges from the Gulf, said replacement costs for phosphates should be substantially higher in the region. That was reflected in forward pricing for March from at least one regional supplier, which was at the $374/st FOB mark for DAP and $371/st FOB for MAP in Minnesota last week.
No current prices were reported for 10-34-0 in the region, and product was described as very tight.
Northeast: The regional phosphate market was a hard one to call. Sources said MAP was unavailable at Philadelphia, and reference pricing for both DAP and MAP had firmed to $342/st FOB E. Liverpool, with another increase likely by Feb. 19. Another Pennsylvania source said spot warehouse tons could be had at $330/st FOB, but for how long was uncertain. No current pricing was available for 10-34-0 in the region.
Eastern Canada: MAP was up substantially from last report, with the market quoted at $460-$475/mt FOB in Ontario. One source tagged the dealer price as low as $438/mt FOB last week, but others said that was an earlier quote that was no longer available in a rapidly strengthening market. DAP was referenced at the $483/mt FOB mark in Ontario, and TSP was quoted firmly at $408/mt FOB, where available.
Pacific Northwest: Agrium released back-to-back ammonium phosphate pricing hikes in the Western U.S. last week. Postings effective Feb. 15 included MAP at $380/st DEL in Montana and Wyoming; $385/st DEL in southern Idaho, Utah, Nevada, and Oregon’s Malheur County; and $385/st FOB and $390/st DEL in Washington, northern Idaho, and Oregon excluding Malheur County. The company’s 16-20-0 postings moved on that date to $300/st DEL in Montana and Wyoming; $305/st DEL in Idaho, Oregon, Washington, Nevada, and Utah; and $300/st FOB in Washington, northern Idaho, and Oregon excluding Malheur County. Those postings were up $20/st from the company’s Feb. 12 postings, and $40/st higher than Agrium’s Feb. 2 ammonium phosphates postings in the Western U.S.
California: Agrium’s ammonium phosphate postings in California and Arizona, effective Feb. 15, included MAP at $395/st FOB warehouse or rail-DEL, and 16-20-0 at $305/st FOB warehouse or rail-DEL. Those levels were up $20/st from the company’s Feb. 12 reference prices, and $40/st higher than the Feb. 2 reference prices.
U.S. Export: Working hard not to be outdistanced by the river’s NOLA DAP barge market, the export market price took a giant leap forward last week with a high price $44/mt more than the previous week’s high. That was the last deal done by PhosChem late last week. Earlier in the week, the group made a sale of a partial load into Brazil at $330/mt FOB. The next deal of 6,000 mt into Central America was done at $335/mt FOB, while the last transaction of another 6,000 mt into Central America was done at $350/mt FOB. PhosChem was attempting to determine its next price hike late last week.
While export sales have continued during the wild ride the domestic market has been taking, PhosChem said its members were working hard to insure the domestic market was supplied, while at the same time attempting to placate its offshore customers. “We’ve swung a lot of tons into the domestic market (from possible export sales),” a PhosChem source said. “We’re really trying, but we can’t completely cut off all to our export customers. We’re trying to strike a fair balance.” What a terrible dilemma, when everyone wants your product at virtually any price.
The export DAP price range last week took a giant step from $292-$306/mt FOB to $330-$350/mt FOB. However, the next buyer will probably have to pay at least $360/mt FOB or higher.
Bangladesh: BCIC is seeking to import 15,000 mt of phosphate rock. Bids are due up to March 21.
POTASH
Eastern Cornbelt: Potash pricing, according to some sources late in the week, was also on the march in the wake of the TFI Fertilizer Marketing Business meeting in Dallas Feb. 12-15. Spurred reportedly by the CN Railroad strike and worries about the ongoing Esterhazy mine inflow problem, sources said warehouse postings from some suppliers had increased by as much as $10/st, with several claiming $222/st FOB as the common dealer reference price for red granular potash. One source also said rail-DEL pricing had firmed from $217/st the prior week to $222/st last week, and was threatening to go to $230/st in the near term.
Western Cornbelt: Potash pricing was up from last report, with the warehouse market quoted at $210-$222/st FOB in the region. An Iowa source reported in increase in rail-DEL pricing to the $222/st level as well.
Northern Plains: Potash pricing FOB Saskatchewan mines remained at $185-$188/st for standard, $191/st for coarse, $193/st for soluble, and $193-$198/st for granular. Warehouse postings ranged from $213/st FOB to $222/st DEL in the region, depending on grade and location, with talk of another increase in the near term.
Northeast: Potash remained at $215-$222/st FOB, depending on grade and location, with the upper end reflecting the reference price for red granular potash FOB E. Liverpool. Delivered potash was steady at $230-$259/st, with the low for red premium potash and the upper end reported on a spot basis for delivered soluble potash. One Pennsylvania source pegged delivered potash last week at $236/st for 60 percent muriate and $246/st for soluble.
Eastern Canada: Potash was quoted at $282-$301/mt FOB Ontario warehouses, depending on grade and location, with the upper end reflecting the dealer list for red premium potash. Potash FOB New Brunswick mines was reported at $257-$263/mt, depending on grade.
SULFUR
Tampa: The talk among those in the sulfur industry last week at the TFI conference at Dallas was that the recent rollback of $4.50/lt in the price of sulfur for the first quarter was unjustified. Sulfur sources pointed to a growing shortage of sulfur, as phosphate producers were running full bore and refineries were curtailed by turnarounds, bad weather, and other problems. Indications at the conference were that the price for the second quarter will have to either remain unchanged or go up. Odds are that it may not be a tough sell to phosphate producers, who are reaping profits greater than they have seen in decades. Still, negotiations for the second quarter were still more than a month away, and the situation could change.
Vancouver: In Canada, the CN railroad did go on strike, but sources said that will probably not last long, because if it does, the government will likely step in. Deliveries into Vancouver were already well behind schedule, and ships waiting to be loaded were having to pay demurrage during that time. Contract prices for the second quarter on the low end of the index increased to $31-$35/lt. Indications were that Vancouver contract prices will rise during the second quarter.
Meanwhile, many refineries continued to be on turnaround last week, and that situation was likely to continue until sometime in the late spring. However, when sulfur supplies increase, much more of it will be destined for the priller operations along the Gulf Coast, which sulfur producers hope will help keep the market in balance.
Bangladesh: BCIC is seeking to import 15,000 mt of sulfur. Bids are due up to March 19.
MARKET NOTES
India: M.P. State Cooperative has invited bids for several products, including DAP 200,000 mt, NPK 100,000 mt, and SSP 100,000 mt. Quantities between 5,000-50,000 mt are being sought for MOP, phosphate rock, zinc sulfate hepthaydrate, phosophogypsum, and boronated SSP. Bids are due in March 1.