AMMONIA
U.S. Gulf/Tampa: The Tampa market remained quiet last week, with the last done business still called $370/mt DEL. Likewise, all appeared quiet across the Gulf with the $382/mt DEL import into Geismar and NOLA barges at $355/st FOB.
Eastern Cornbelt: Anhydrous ammonia was quoted at $465-$480/st FOB regional terminals, with some reference prices as high as $490/st FOB to the dealer. One supplier was offering forward contract ammonia for April in the $470-$475/st FOB range in the region last week.
Western Cornbelt: Anhydrous ammonia was quoted at $445-$465/st FOB in the region, with the low in Nebraska and the upper numbers in Missouri. One source quoted the Iowa market last week in the $450-$460/st FOB range.
Northern Plains: Anhydrous ammonia was quoted at $450-$472/st FOB terminals in the region, with the low for forward contract tons for April from one regional supplier. On a delivered basis in North Dakota, ammonia was pegged in a broad range at $490-$525/st last week, with the upper quoted by one source as a new reference level. Agrium’s Feb. 21 ammonia postings included $460/st FOB Mankato, Minn., along with $472/st FOB and $490/st DEL in the Leal, Velva, Grand Forks and Beulah sales area in North Dakota.
With the recent snowfall likely to delay the opening of the spring season, Dakota Gasification’s Beulah, N.D., ammonia plant remained offline last week. The company’s delivered ammonia price in North Dakota was quoted at the $500/st mark for spot sales to dealers.
Great Lakes: Anhydrous ammonia was quoted as low as $445/st FOB Courtright, Ont., for immediate shipment, but tons were limited at that price point. One Wisconsin source tagged the spot market firmly at the $465/st FOB level last week. Pricing was substantially higher for April commitments, however, with sources quoting the forward market as high as $485-$490/st FOB terminals.
Black Sea: Strong demand from the United States and the rest of the world is keeping the price up. Sources in Asia say the price is just below $300/mt FOB with other sources calling the market just north of that level.
Besides the strong demand factor, sources say problems with supply from Iran and the Arab Gulf is adding to the strong global price. Delays in the opening of a new plant in Iran and the continued problems with Safco IV mean that buyers have to look for tons wherever possible.
Middle East: Asian sources report Safco IV remains down. The plant has had a checkered operation schedule. Its opening was delayed by almost six months and then once it was up and running late last year had to shut down again. Sources have said the problems are related to start-up “growing pains.” While down, Sabic is engaged in swap deals with other suppliers. Even if the plant comes back up this week, say sources, Sabic will not have any additional tons for sale until early June. All tons produced between now and then will go to covering their own contracts as well as paying back the borrowed product.
At the same time, the new Iranian plant opening keeps getting pushed back. At first, the plant was to be open by now. Then the opening got pushed back to late-May or early June. Now, say sources, the opening won’t happen until July or August.
The delay continues to put pressure on supplies in the area.
Even with the plant not in operation, sources say there have been a few extra cargoes appearing on the market. Observers note that Transammonia sent a cargo to South Korea and Ameropa reportedly sent a cargo to China.
Prices remain high with Asian sources calling the market $325-$335/mt FOB.
Asia: Joint venture facilities in Indonesia offer a bright side to the regional market. They are both up and running at full capacity. Sources say while neither plant has any extra tons because they are covering their clients’ needs, at least they do not have to borrow material from other sources to make good on their contracts.
Japanese buyers are in a cautious long-term buying mode. A number of domestic producers are scheduling turnarounds April and May. Some buyers are looking to incremental imported tons to cover their needs. At least one company is involved in a complex deal of passing on its domestically purchased ammonia to another company while importing tons.
While Japanese buyers are not happy with the current high price levels, they are not nervous about running out of material.
UREA
U.S. Gulf: Granular barge prices appeared to have stalled somewhat last week, with most sources saying the market had remained in the $360s/st FOB. Players were calling business between $360-$367/st FOB for prompt March material. Sources were divided over April barges. While some were quoting $370/st and higher, others said forward price ideas are down. Still, much may depend on new business in India and international market in general. Sabic is bringing in one less vessel than expected, while there are rumors other importers may be short as well.
In the meantime, prills were reported as $336-$340/st FOB.
Eastern Cornbelt: Granular urea pricing had reportedly firmed to $395-$402/st FOB in the region last week.
Western Cornbelt: Granular urea was quoted at $395-$400/st FOB in the region, with the upper end reported in southern Iowa and northern Missouri. The Catoosa, Okla., urea market continued to firm as well, with pricing quoted at $385-$390/st FOB and moving to the $400/st FOB level, provided tons could be had. Forward contract urea from one supplier was being offered for April at $410/st FOB Inola, Okla.
Northern Plains: Granular urea was quoted at $400-$405/st FOB the Twin Cities. Product was very tight. Reference pricing in Sioux City, Iowa, was quoted at the $410/st FOB level last week. Forward pricing for April was available from one supplier at $415/st FOB Pine Bend, Minn., and $430/st DEL in North Dakota and northern Minnesota.
Agrium’s March 2 granular urea postings included $405/st FOB Shakopee, Minn., and North Dakota terminals at Alton, Carrington, Colfax, Marion and Scranton, and 410/st rail-DEL in Minnesota, the Dakotas and Wisconsin. Those levels were $20/st higher than the company’s Feb. 21 urea postings.
Great Lakes: Granular urea was quoted in a broad range at $402-$425/st FOB, with the low in Wisconsin and the upper end reflecting dealer reference pricing in Michigan. Agrium’s March 2 granular urea postings included 410/st rail-DEL in Wisconsin.
Northeast: Granular urea was quoted at $395-$405/st FOB, with the upper end reflecting reference levels at Baltimore. The dealer market FOB Philadelphia and E. Liverpool, Ohio, was tagged at the $397/st mark last week.
Black Sea: Sales continue to move at a brisk rate and the price keeps edging upward.
Turkey is taking tons with netbacks that show a possible netback of $320/mt FOB. At the same time, other deals are coming in at $325/mt FOB. There are also reports that traders have paid $326/mt FOB for early April tons.
The new target is clearly $330/mt FOB and some observers are convinced that number will be hit and surpassed. One observer noted that a buyer looking for a prompt deal would have to pay that level or keep looking.
One Asian observer noted that even if a major buyer such as Turkey pushes back on the pricing, the producers and the traders who are holding most of the tons have enough other places to ship that they can push right back.
Demand from Latin America, Ethiopia, and Iran are part of the ongoing pressure on material. And sitting in the wings are Indian buyers.
Once the actual business is added up and the potential deals are factored in, sources say there is no reason for prices to come down.
For now, with the current round of deals, sources peg the market at $315-$325/mt FOB.
Middle East: Producers are so confident of a strong market that offers made to the BCIC/Bangladesh tender were so far out of the park that few are taking them seriously. Still, said one trader, if BCIC accepts those prices, the producers won’t decline the deal.
The last solid bit of business in the area was a Fertil sale to ASSC/Iran of 20,000 mt at $325/mt FOB. Producers are now saying the new floor is $330/mt FOB for prills and granular.
With tenders still pending in the subsidized markets of Sri Lanka and Iran sources say there are few incentives to producers to lower prices. Add to the discussion continued reports of Indian buyers looking to secure several cargoes quietly before they are forced to call a tender for this season’s application needs. And lastly, there is the development deal between Pakistan and Saudi Arabia that is expected to ensure solid orders for Sabic for the next few months.
Reports that U.S. buyers are also still willing to deal for granular product is the icing on the price cake as far as producers are concerned.
Taking advantage of the Arab Gulf producers’ growing strength, sources say Libya and Egypt are also raising their prices.
The ASSC/Iran tender did not pull in the number of tons the company had hoped. At the same time, IPCC closed a tender March 6 for 200-300,000 mt. At press time results were not known.
To try to get the tons they need, sources say the Iranian buyers have called another tender that will close March 12.
All told, sources now peg the Middle East market for prills and granular at $320-$330/mt FOB.
Turkey: Recent purchases from Yuzhnyy are showing a netback around $320/mt FOB. Sources say efforts to push back on ever-higher prices are being firmly opposed by the producers.
Bangladesh: The first of a pair of March tenders closed March 5. The results were predictable. Mostly Chinese tons were offered and other suppliers tried to take advantage of a runaway bull market.
Sources note that the lower freight rates from China to Bangladesh as compared to the rates from the Middle East were the deciding factor. Even if the Arab Gulf suppliers had offered material at the current market rate – instead of inflating that rate by several dollars – the $5-$8/mt freight advantage the Chinese material enjoys would have cinched the deal.
The big question is now, will BCIC move quickly to award the tender so it can get its material before the rainy season starts.
Results of the tender follow:
| Prills – 50,000 mt | ||||
| Supplier | Source | Quantity Mt | US$/mt FOB | US$/mt CFR |
| Moon Soon and Brothers | China | 12,500 | 320.00 | 367.00 |
| Hydro Carbon | China | 12,500 | 322.90 | 377.90 |
| Bulk Trade | China | 12,500 | 324.40 | 379.40 |
| Saudi Arabia | 37,500 | 329.00 | 384.40 | |
| Conagra | Qatar/UAE | 12,500 | 365.00 | 414.50 |
| 12,500 | 365.00 | 415.60 | ||
| Poton | Qatar | 12,500 | 384.34 | 439.34 |
| 12,500 | 384.34 | 439.34 | ||
| O.Y. STN Electronic | CIS | 12,500 | 395.00 | 440.00 |
| 12,500 | 397.00 | 442.00 | ||
| 12,500 | 398.00 | 443.00 | ||
| 12,500 | 399.00 | 444.00 | ||
| Granular – 50,000 mt | ||||
| Supplier | Source | Quantity mt | US$/mt FOB | US$/mt CFR |
| Bulk Trade | China | 25,000 | 368.70 | 423.70 |
| Hydro Carbon | China | 12,500 | 393.17 | 448.17 |
The next tender for equal tonnage closes March 12.
Bangladesh reportedly is extremely short of material. Industry observers note that delays in making awards following last year’s tenders led to the current rush to buy whatever tons they can get as soon as they can. The problem with the March tenders, say sources, is that even if BCIC issues all the necessary paperwork quickly, odds are the first set of vessels will be arriving just as the rains begin.
Unloading urea during the monsoons is not something buyers or port operators look forward to with joy.
An outage was reported March 8 at BCIC’s Ghorasal urea plant in Narsingdi. The plant manager told local media that production suddenly stopped after problems with a gas-powered turbine generator. Authorities were hoping to resume production within the next three days.
India: All eyes are still on India to see what IPL and MMTC will do. Sources report agents from these two companies continue to talk to Middle East producers in hopes of nailing down several cargoes before calling tenders.
Securing tons in private talks is an Indian tradition. Sources add that this year the buyers may be looking to arrange for monthly cargoes rather than short spurts of large tonnage. By spreading out the purchases, the buyers hope to smooth out the spikes in pricing.
The buying agents are under pressure to get good deals because the economic leadership in the country is concerned about the growing debt that will be created with increased subsidies. The subsidies are needed, say farmers and their political supporters, to ensure that everyone as equal access to urea.
Pakistan: Sources say TCP may just sit out the first half of the year. Reportedly, the development deal struck between the governments of Pakistan and Saudi Arabia should provide the country with more than enough urea for the current season.
China: Even with a 30 percent export duty in place Chinese material is competitive in a number of international markets. Chinese urea dominated the BCIC/Bangladesh tender. The Dongbu/South Korea tender will show some competition between Chinese and KAFCO/Bangladesh tons.
Other buyers include private deals into South Korea include Chinese material as the Korean companies move to not only handle domestic demand but also provide 300,000 mt of urea and NPKs to North Korea.
South Korea: Dongbu closes a tender this week for 10-12,000 mt for arrival the first week of April. Sources say the only ones who will be able to compete and meet the deadline are those who already hold positions from Bangladesh or China.
The South Korean government indicated last month that it would resume shipments of fertilizer to the North following the conclusion of the Six-Party talks on North Korea’s nuclear program.
Late last week North Korea demanded the South ship 300,000 mt immediately.
According to press reports, the Unification Ministry said shipments would resume later this month or early April.
The Seoul government was not clear, however, if it would require other concessions from the North.
In the past, South Korea has pegged family unification and other social issues to the shipment of fertilizer and food. In each case, the North capitulated.
The aid program to North Korea began in 1999 following reports of a massive famine in the isolated communist country. Since that time about 2 million mt of urea and NPKs have been sent by South Korea to the North.
Other aid programs from the European Community, China, and a number of private aid organizations have helped increase agriculture output in the north.
NITROGEN SOLUTIONS
U.S. Gulf: Barges continued to show strength last week, with the most recent business put within the $230-$235/st FOB ($7.18-$7.34/unit).
Eastern Cornbelt: UAN was pegged at $8.35-$8.57/unit) FOB regional terminals and in very tight supply. Forward contract UAN-32 for April was available from one supplier in the $267.40-$272.20/st ($8.36-$8.51/unit) FOB range last week.
Western Cornbelt: UAN-32 pricing had reportedly moved to the $262-$270/st ($8.19-$8.44/unit) level FOB regional terminals, with product in very tight supply. Sources said most dealer reference prices were at the $265/st ($8.28/unit) FOB mark or higher last week.
Northern Plains: UAN pricing continued to climb. One Minnesota source said tons could be had during the third week of February at the $7.90/unit FOB level, but that was old news last week. UAN-32, if available, had reportedly firmed to $270-$273.80/st ($8.44-$8.56/unit) FOB regional terminals, with delivered UAN-28 quoted firmly at $252-$255/st ($9.00-$9.11/unit) in North Dakota from Canadian shipping points.
Great Lakes: UAN-28 was in very tight supply, and the regional market was quoted at $240-$252/st ($8.57-$9.00/unit) FOB terminals. The low was reported in both Michigan and Wisconsin, while the upper end reflecting dealer reference pricing from at least one regional supplier.
Northeast: UAN-30 was quoted in a broad range, with spot prices last week reported at $226.50 ($7.55/unit) FOB Seaford, Del., $235/st ($7.83/unit) FOB Philadelphia, and $237/st ($7.90/unit) FOB Baltimore. Delivered UAN-30 to points in southern Pennsylvania was quoted last week at the $240/st ($8.00/unit) mark. In upstate New York, UAN terminal pricing ranged from $8.17-$8.25/unit FOB.
California: Agrium’s UAN-32 postings moved on March 7 to $268/st ($8.38/unit) FOB Sacramento, $285/st ($8.91/unit) truck-DEL in central California, and $290/st ($9.06/unit) truck-DEL in northern California. Those levels are up $5/st from the company’s Feb. 26 reference prices. Agrium’s UAN-32 postings will move again on March 12 to $283/st ($8.84/unit) FOB Sacramento, $300/st ($9.38/unit) truck-DEL in central California, and $305/st ($9.53/unit) truck-DEL in northern California.
AMMONIUM NITRATE
U.S. Gulf: Barge prices were reported to be moving up to the $247-$250/st FOB range, as more demand was cited from the Arkansas River market.
Western Cornbelt: Ammonium nitrate was pegged at $285-$295/st FOB in the region, with reference prices as high as $300/st FOB. The Catoosa nitrate market was quoted at $275-$285/st FOB last week.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was quoted at a firm $200-$205/st FOB in the region, with mid-grade sulfate at $185/st FOB and moving to $195/st FOB in the near term.
Western Cornbelt: Granular ammonium sulfate was tagged at $195-$205/st FOB in the region. Agrium’s March 9 ammonium sulfate postings included $215/st DEL in Nebraska.
Northern Plains: Granular ammonium sulfate was in tight supply, and the regional market had reportedly firmed to $215-$235/st DEL, depending on location. Dakota Gasification’s new reference levels included $220/st DEL in North Dakota, $225/st DEL in eastern Montana, $230/st DEL in northern Minnesota, $235/st DEL in South Dakota, and $247/st DEL in southern Minnesota. Agrium’s March 9 ammonium sulfate postings included $215/st DEL in the Dakotas and Minnesota.
Great Lakes: Granular ammonium sulfate was pegged at $195-$200/st FOB in the region, but a pending increase was slated to bring the market to $210-$215/st FOB by the week of March 12. Wisconsin sources quoted mid-grade sulfate at a firm $185/st FOB last week, but moving to $195/st FOB. Agrium’s March 9 ammonium sulfate postings included $215/st DEL in Wisconsin.
Northeast: Ammonium sulfate was quoted at $165-$173/st FOB in the region, with delivered sulfate pegged at the $183-$185/st mark in Maryland and Pennsylvania.
PHOSPHATE
Central Florida: DAP prices in Central Florida were the lowest among the major markets last week, but availability was virtually zero. A great bargain you can’t have. One trader who does business in the Northeast, which continued to suffer with subfreezing temperatures last week, said that if he had a buyer for 25 railcars of DAP, “I don’t know where I could get them,” but if he had access to 25 railcars, “I don’t know where I could sell them.” It’s a strange, strange world after all.
Little in the way of new spot business was being done last week, outside of a few truck sales, and most of the activity was contract business. However, inventories remain extremely tight and that situation will not change for the next couple of months or longer. Production has slipped somewhat, as phosphate producers, primarily Mosaic, were having trouble finding sufficient sulfur supplies, as a result of refineries on turnaround and down for various repairs.
Conoco/Phillips Lost Cabin facility in Central Wyoming was said to be having major problems and sulfur production was stymied. That plant supplies Mosaic. Those who rely on rail from Canada were in better shape, especially since the CN rail strike has ended and employees had returned to work.
With both the export and NOLA DAP barge markets continuing to surge, they will most likely be ahead in line for any additional supplies that may be created. Another problem in Central Florida is a lack of availability of railcars, so product can be hard to move even if it can be located.
A number of sources said Agrifos had sent a note to customers that it was far behind on deliveries, and were still working on getting out orders placed in December, but that report could not be confirmed.
The Central Florida index price range last week was $340-$350/st FOB. PotashCorp’s Central Florida reference price was $330/st FOB, but was reported to be moving to $350/st FOB on March 12. Mosaic’s asking price late last week was $350/st FOB, while CF’s was asking $340/st FOB but was going up to $350/st FOB, as well. Of course, neither had anything to sell.
In Texas, Agrifos’ prices for DAP or MAP were $385/st FOB, but only trucks were available.
U.S. Gulf: Last week, prices through Tuesday remained in the previous week’s NOLA DAP barge price range, but on Wednesday prices took another jump upward. The probability that the price of phosphates, both DAP and MAP, will hit or exceed $400/st FOB also increased. Still to enter the game were buyers for the northern areas of the Cornbelt, Iowa, Minnesota and parts of Illinois. Those areas were low on product at the end of the summer and most did not restock in the fall, in the belief or hope that prices would go down or stay the same. Within the next few weeks, assuming the weather starts to cooperate, those areas will be hitting the market, which was already desperately short of phosphates. That will result in even more acute shortages and even higher prices. A source rhetorically asked, “If they continue to run out (of phosphates) in the South, what happens when the North opens up?” Good question.
The big push for phosphate fertilizers has been the quickly emerging ethanol industry, much of which will receive its raw material in the form of corn. However, not everyone will be growing corn or soybeans, both of which were enjoying high prices. Wheat farmers in some areas were said to be reducing the amount of phosphate they were using, but not enough to put a damper into the high-priced market. Reduced applications for wheat were expected by fertilizer traders, but the amount of the reduction has been less than anticipated. Along the Arkansas River, where wheat is big business, terminals ran out of DAP last week and not enough was en route to fill the demand. One operator said he had a barge due in last Sunday and expected it to last approximately 10 hours. In order to keep pace, each of the terminals in that area would need to have at least one barge a day arrive, and that was not on the books last week.
Warehouse prices were climbing to reflect the higher cost of phosphates, and were having the effect of pushing up barge prices even more. In some areas of the Midwest, terminal prices climbed to $400/st FOB last week, and will continue to rise.
Another indication that prices on the river have not stopped their run up was the export market, which traditionally is the most closely linked to the Gulf market. Last week, the high price on the export market hit $418/mt FOB. It seemed more like a game of leap frog, every time one of the two markets hits a new high, the over jumps over and ahead.
At the beginning of last week, NOLA DAP barges could be and were purchased as low as $370-$373/st FOB, but by Wednesday the price climbed to $378-$381/st FOB. The highest prices were paid for prompt barges on the water. Last week, the NOLA DAP barge price index range was $370-$381/st FOB, while the previous week the range was $370-$372/st FOB. Expect to pay more this week.
Eastern Cornbelt: DAP and MAP, both in very tight supply, were quoted at $395-$405/st FOB regional warehouses. Rail-delivered MAP was tagged at the $410/st mark in central Illinois. One supplier was offering forward contract DAP for April at $408/st FOB in Illinois and $411/st FOB in Ohio.
No current pricing was available for TSP. 10-34-0 was pegged at $295-$305/st FOB in the region, and in very tight supply.
Western Cornbelt: DAP and MAP remained in very tight supply. The regional DAP market was quoted at $390-$400/st FOB, with the low reported south of St. Louis, Mo, and the upper end in southern Iowa and Nebraska. MAP was pegged at roughly $395-$405/st FOB in the region. Forward contract offers for April included DAP at $408/st FOB St. Louis and $411/st FOB Inola, with MAP at the $405/st level at Inola.
No current pricing was available for TSP in the region. 10-34-0 was reported at $300-$310/st FOB in the region, with most recent business, either for spot or prepay, reported in the $305-$310/st FOB range.
Northern Plains: Phosphate inventories were extremely tight in the region. DAP and MAP were quoted at the $400/st FOB mark on the low end last week, with forward contract tons for April available from one supplier at Pine Bend for $411/st on MAP and $414/st FOB on DAP. A North Dakota source quoted rail-delivered MAP as high as $430-$435/st in early March.
10-34-0 was also extremely tight; the market was quoted in a broad range at $300-$325/st FOB, with the low in Minnesota and the high in South Dakota. Delivered 10-34-0 in North Dakota was pegged as high as $340-$350/st last week.
Great Lakes: DAP and MAP were quoted at $385-$405/st FOB in the region last week, with most sources touting the upper end of that range as the true dealer market for any available tonnage. Product was in very tight supply; one Michigan source said he was on a list for phosphate deliveries in the second half of May, with the price to be established at time of delivery.
No current pricing was reported for TSP. 10-34-0 inventories were tight as well; the market was pegged in a broad range at $295-$320/st FOB, with the low in Wisconsin and the upper end in Michigan to the dealer.
Northeast: DAP and MAP were in tight supply, with the regional markets pegged at a firm $398-$407/st FOB last week, up significantly from last report. The upper end reflected reference levels at Philadelphia and E. Liverpool. 10-34-0 was pegged at $280/st FOB in upstate New York.
U.S. Export: Last week, PhosChem was continuing to get more for the phosphate products it sells for its members. The first sale of the week was $25/mt FOB higher than the previous week’s high in the export price range. That was the sale of 14,000 mt into Mexico at $410/mt FOB. The second sale of 6,000 mt into Central America was $2/mt FOB higher at $412/mt FOB. The third, 14,000 mt into Brazil, and the fourth deals, 3,000 mt to Central America, were done at $415/mt FOB. The fifth and final sale of 1,500 mt into Central America were conducted at $418/mt FOB. That last deal was $33/mt higher than the previous week’s high for the export market. The increases will also help PhosChem’s members, whose product was being delivered under contracts that were priced based on market indexes at the time of shipment.
The tender issued recently by Pakistan has been answered but no award had been made by late last week. Many producers were unable to respond due to a lack of supply.
Worldwide, phosphate prices continued to rise and inventories of all producers were low, which was essentially the same situation as the domestic market. How high the bubble will rise still cannot be predicted. The only way it will pop would be if buyers decided to sit out, which appears highly unlikely.
Last week, the export DAP was $410-$418/mt FOB, and was expected to increase again this week. The previous week the range was $370-$385/mt FOB.
POTASH
Eastern Cornbelt: Potash was quoted at $210-$224/st FOB regional warehouses, depending on grade and location, with the low in Illinois for import tons. Most new dealer quotes were at the $216/st FOB mark or higher, with rail-delivered potash quoted at $223-$224/st in Illinois.
Western Cornbelt: Potash was $210-$222/st FOB in the region, with the upper end reflecting dealer reference pricing FOB Sioux City.
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. Regional potash prices ranged from $213-$222/st FOB warehouse or DEL, depending on grade and location.
Great Lakes: Potash was quoted at $216-$223/st FOB in the region, depending on grade and location. Rail-delivered potash was also pegged at the $223/st mark in southern Wisconsin, which was reportedly up from the late-February level of $218/st.
Northeast: Delivered potash was quoted at $226/st in Delaware for coarse product, $236/st in Pennsylvania for granular, and up in the $250s/st DEL for soluble in New England. Red granular potash FOB E. Liverpool was quoted at the $231/st mark, up from last report.
SULFUR
Tampa: Sulfur supply continued to be a problem along the Gulf Coast last week, with many refineries down for turnarounds and unexpected problems. That has put a dent in sulfur shipments to Central Florida and may affect phosphate production. In addition to the loss of sulfur production along the Gulf, Conoco/Phillips Lost Cabin, a very large producer, was experiencing problems last week, and sulfur production was being sharply curtailed. Valero’s refineries at Port Arthur and Texas City continued to have curtailed production of sulfur as a result of problems. Multiple sources said Mosaic, which depends on Lost Cabin and the Gulf, was working hard to get their contract suppliers to provide additional supplies, actually closer to the amounts that had been agreed upon. However, that will be difficult, under the circumstances.
Although the CN railroad in Canada was back to work after the recent strike, a severe backlog continued to exist and supplies into Vancouver were far behind schedule. Sources said prices on the spot market had risen there to $10-$15/lt over contract prices, and product was still hard to find.
Sulfur prices in the Middle East were said to be at record levels last week, which was another reflection of the world market.
The shortages were expected to begin to ease within the next six weeks to two months, as oil refineries on the Gulf Coast come back online. However, that will be after the beginning of the second quarter, and may be an indication that the sulfur industry will attempt to seek to regain some of the money they lost on contracts for the first quarter. Any excess in sulfur production will be directed to prillers, which have been seeking supplies for the world market. That may keep domestic sulfur supplies in balance. Prices this quarter were $4.50/lt lower than the previous quarter, and the sulfur industry was already unhappy with that situation, which it considered unjustified.
MARKET NOTES
Pakistan: The National Fertilizer Development Centre (NFDC) reports that Pakistan would need to import about 80,000-100,000 mt of urea and DAP each during coming months to meet production shortage due to closure of Fauji Fertilizer Bin Qasim plant to enhance the production capacity from mid-March to mid-May.