AMMONIA
U.S. Gulf/Tampa: The much-anticipated prices for major Gulf area price points finally hit last week. Reports were that Yara concluded Tampa September business with CF at $931/mt DEL. In addition, CF was reported to have bought an import cargo for Donaldsonville at $936/mt DEL. In the meantime, new NOLA barge business was called $880/st FOB.
Eastern Cornbelt: Anhydrous ammonia remained at $1,040/st FOB river terminals in Illinois on the low end for cash tons, but sources reported little business to test the market. One source reported a prepay offer of $1,150/st FOB on the table for spring 2009. Forward contract ammonia for October through December was being referenced at $1,240-$1,250/st FOB regional terminals.
Western Cornbelt: The ammonia market remained at $1,020-$1,080/st FOB for limited spot market tons, with spring prepay reportedly available for $1,150/st FOB. Reference prices for forward contract tons for October through December ranged from $1,230-$1,240/st FOB in the region.
Northern Plains: Minnesota sources said spot ammonia tons could be had at $1,050/st FOB terminals to the dealer, but reference levels remained as high as $1,235-$1,255/st FOB, depending on supplier and time of delivery. Reference levels for delivered ammonia were reported at the $1,380-$1,400/st level in North Dakota.
Eastern Canada: Anhydrous ammonia was reportedly referenced at $1,160/mt FOB Courtright, Ont., with discounts bringing the low end of the range to roughly $1,120/mt FOB.
California: Calamco raised its anhydrous ammonia price at midnight Aug. 27 to $890/st truck-DEL and $935/st rail-DEL in California, up $190/st from its previous postings. The company’s aqua ammonia price also increased on that date, to $232/st FOB in California from the previous $185/st FOB.
UREA
U.S. Gulf: New granular barge business was reported within the $750-$755/st FOB range last week. Indications were that the business started its way at the low end and worked its way up. Sellers were holding out for $760/st FOB by the end of the week. Prills were called $740-$750/st FOB.
Eastern Cornbelt: Granular urea was down slightly from last report. The dealer market was reported in a broad range at $805-$850/st FOB last week, with the low out of spot river terminals in Illinois and the upper end reported in Ohio to the dealer.
Western Cornbelt: Granular urea was reported at $800-$830/st FOB, down slightly from last report.
Northern Plains: Granular urea was reported at the $805-$810/st mark FOB the Twin Cities last week, while delivered urea was pegged at $820-$830/st in the Dakotas.
Northeast: Granular urea was reported at $849-$857/st FOB Philadelphia, Pa., and E. Liverpool, Ohio, with reference prices reported at the $890/st FOB mark in Baltimore, Md. Sources reported little new buying to test the market.
Eastern Canada: The granular urea market was quoted at $1,032-$1,100/mt FOB in the region, depending on location.
Pakistan: Pakistan Finance Minister Syed Naveed Qamar telephoned Saudi Commerce Minister on the direction of Prime Minister Syed Yousuf Raza Gilani, seeking another facility of $400 million for urea, according to the local media. The facility would be used for importing nearly 400,000 mt of urea from Saudi Arabia to meet local consumption, as the MINFAL reported to the prime minister that the country may face a shortage of nearly 400,000 mt of urea during the coming Rabi season.
Saudi authorities finalized a credit facility of $125 million for importing urea last month. Nearly 200,000 mt from this facility would land at the end of this month, while the remaining would be shipped later.
NITROGEN SOLUTIONS
U.S. Gulf: Barges continued to be called $500-$505/st FOB ($15.62-$15.78/unit FOB). Rumors circulated about sub-$500/st FOB business, but there was no firm word on those deals.
Eastern Cornbelt: The UAN market was reported at $16.00-$16.79/unit FOB regional terminals for cash tons, with reports of spring prepay being offered for $17.50/unit FOB on a spot basis. Reference prices for forward contract UAN-32 tons for October through February were reported in the range of $598.40-$606.40/st ($18.70-$18.95/unit) FOB.
Western Cornbelt: UAN-32 remained at $510-$525/st ($15.94-$16.41/unit) FOB regional terminals for cash tons.
Northern Plains: Minnesota sources pegged the UAN market at a firm $17.20-$17.40/unit FOB terminals to the dealer, reflecting an increase from last report.
Northeast: Sources pegged the UAN-30 market at $465-$468/st ($15.50-$15.60/unit) FOB Baltimore and Philadelphia to the dealer, but most said that price is continuing to firm. One referred to indications of later tons that are closer to the $16.00/unit FOB mark, and another reported UAN-32 referenced at $518.40/st ($16.20/unit) FOB in Delaware last week. Out of terminals in upstate New York, the UAN-32 market was referenced at $16.75/unit FOB last week, while rail-delivered UAN-32 in New England fell in the $560-$575/st ($17.50-$17.97/unit) range.
Eastern Canada: UAN was reported at $19.28-$19.50/unit FOB, with the upper end reported at $542-$546/mt ($19.36-$19.50/unit) FOB in Ontario.
AMMONIUM NITRATE
U.S. Gulf: Recent barge prices were reported at $520-$530/st FOB, with some suppliers still looking for much higher numbers for fall barges.
Western Cornbelt: Ammonium nitrate pricing was steady at $575-$600/st FOB in the region.
Eastern Canada: Ontario sources pegged the ammonium nitrate market at $875/mt FOB to the dealer, while CAN-17 was reported at $715/mt FOB in the province.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $485-$495/st FOB in the region, with the upper end reflecting dealer reference prices.
Western Cornbelt: Granular ammonium sulfate remained firm at $475-$490/st FOB.
Northern Plains: Granular ammonium sulfate was tagged at $470-$495/st FOB in the region, with the upper level reflecting dealer postings before discounts. Delivered sulfate remained at $470-$480/st in the region.
Northeast: Granular ammonium sulfate was up from last report at $474-$502/st FOB in the region, with the upper level FOB Philadelphia to the dealer.
EasternCanada: Granular ammonium sulfate was tagged at $590-$592/mt FOB.
PHOSPHATES
Central Florida: It’s the season. Tropical Storm Fay moved out of Florida early last week after dumping a couple of feet of water on the state’s East Coast, but causing no real damage to phosphate operations in Bone Valley – although railcar service was temporarily suspended.
By the end of the week, however, a new storm, Gustav, was churning up the waters south of Cuba and Jamaica. Gustav was expected to begin moving west-northwest into the Gulf of Mexico on Thursday, where it was forecasted to become a hurricane – possibly as strong as Category 3, with winds of about 115 mph. While Florida was out of the track of Gustav, the storm could hit New Orleans or Texas on Monday or Tuesday of this week, and was already having an impact on shipping – particularly sulfur to Tampa. Sulfur vessels were preparing to seek shelter in nearby ports until after Gustav passes.
Another tropical depression, No. 8, had formed behind Gustav about 350 miles east-northeast of the Leeward Islands. If it continues developing, it would become Tropical Storm Hanna. Computer projections said that storm would move northwest before turning west and threatening Florida or the Southeast coast. Still another tropical wave had moved to about 750 miles west of the Cape Verde Island and could strengthen.
No new prompt sales were reported out of Central Florida last week, but railcars were being filled by earlier orders. In general, phosphate sales in the major markets were slow and will not likely improve until the fall season gets underway. Most dealers’ warehouses were believed to be full.
The Central Florida DAP price range last week remained $1,070-$1,080/st FOB. PCS Sales’s Central Florida reference price was unchanged at $1,070/st FOB for DAP and had a $25/st FOB premium for MAP. Mosaic’s asking price was $1,090/st FOB for DAP and $1,115/st FOB for MAP, but was making sales at $10/st FOB less for both products last week. CF dropped its asking price from $1,070/st FOB for DAP to $1,050/st FOB, and from $1,145/st FOB for MAP to $1,110/st FOB, but had limited availability. In Texas, Agrifos’ DAP price continued at $1,100/st FOB for trucks and $1,095/st FOB for rail shipments.
U.S. Gulf: Normally, Oklahoma winter wheat farmers would be hitting their dealer’s warehouses for phosphates and other fertilizers by last week, but they were not. The reason was unclear. Wheat farmers had good crops last season and have money to spend, and rainfall has been sufficient to put enough moisture in the soil. Some were guessing they simply might be waiting to see if prices will go down, which could happen.
Last week there were few sales in the NOLA DAP barge market, but offers were made far below the current price range, although no takers could be found. Prices were offered as low as $1,005/st FOB, which was $35/st FOB below the bottom of the current range. Sources said the owner of the product was eager to sell because of the large amount of capital – around $1.5 million per barge – tied up and a tight capital market. Mosaic made sales at $1,060/st FOB, which was at the top of the range.
Tropical Storm Gustav was expected to reach hurricane strength late last week and could become a Category 3 storm before making landfall, possibly at New Orleans. If so, barge traffic out of that area would be affected.
Warehouse prices were still in the $1,080-$1,100/st FOB range last week, but more had moved to the bottom of the range.
Based on sales last week, the NOLA DAP barge price range stagnated at $1,040-$1,060/st FOB. MAP barges were $25-$60/st FOB more than DAP, but supplies remained scarce. Mosaic’s asking price for NOLA DAP barges was $1,100/st FOB and $1,125/st FOB for MAP, and its prices for October and November will increase $10/st FOB. CF dropped its DAP price by $20/st FOB and lowered the premium it charged for MAP to $60/st FOB from $75/st FOB, so its prices fell from $1,070/st FOB to $1,050/st FOB for DAP and from $1,145/st FOB to $1,110/st FOB for MAP for prompt deliveries.
Eastern Cornbelt: The DAP market was quoted at $1,080-$1,125/st FOB regional warehouses, with the low out of spot river locations in Illinois. MAP was reported at $1,120-$1,150/st FOB in the region last week.
10-34-0 was reported firmly in the $1,150-$1,200/st FOB range, with reports of spot tons being offered for as high as $1,300/st FOB in the region. 10-34-0 remained extremely tight.
Western Cornbelt: DAP was reported at $1,080-$1,100/st FOB regional warehouses, with MAP at $1,120-$1,145/st FOB. 10-34-0 was firm at $1,175-$1,200/st FOB in the region for very limited spot tons.
Northern Plains: DAP was quoted at $1,075-$1,110/st FOB, down slightly from last report. MAP was quoted at $1,125-$1,150/st FOB, also down from last report. 10-34-0 remained in extremely tight supply, with any limited spot sales reported in the $1,150-$1,250/st FOB range. The low was quoted for black 10-34-0, with the upper end of that range as the firm spot price for green 10-34-0.
Effective Sept. 1, Agrium’s postings for both super phosphoric acid and merchant grade acid will firm to $2,600/st rail-DEL in Minnesota and the Dakotas. Postings will firm again to $2,650/st rail-DEL in October, and to $2,700/st rail-DEL in November.
Northeast: The DAP market was quoted at $1,082-$1,100/st FOB in the region, actually down slightly from last report. MAP was reported at $1,122-$1,140/st FOB, with the low reported at Philadelphia and E. Liverpool to the dealer. 10-34-0 was tagged at a firm $1,100/st FOB shipping points in upstate New York.
Eastern Canada: The DAP market was quoted at $1,395-$1,400/mt FOB, with MAP at $1,420-$1,425/mt FOB. No current prices were reported for TSP in the region.
U.S. Export: The export market has been trending downward in recent weeks. Last week, a trader made a sale of a handymax vessel into India, about 40,000 mt, at $1,160/mt FOB.
On the positive side, ocean freight rates were on the decline and the trip to India was put at $80/mt, down from around the recent $100/mt. That will help to improve FOB prices once more sales are made.
PhosChem has taken a wait-and-see attitude on new export sales due to lower prices. The U.S. dollar has been gaining in value recently, but not due to any good domestic financial news. Instead, other economies were beginning to reflect some of the problems this country has, a reaction to the faltering U.S. economy. The reduced value of the U.S. dollar was one of the primary reasons export sales of all products were up.
The export DAP price range last week declined from $1,215-$1,220/mt FOB the previous week to $1,160-$1,215/mt FOB based on recent sales.
POTASH
Eastern Cornbelt: The potash market continued to tick up, with warehouse pricing reported firmly in the $900-$930/st FOB range, depending on location, grade, and time of delivery.
Western Cornbelt: Sources put the potash market in a broad range at $895-$925/st FOB regional warehouses to the dealer.
Northern Plains: Potash was quoted at a firm $900-$925/st FOB level for brokered or resellers tons out of Minnesota warehouse locations, provided any tons could be had. Most said product was unavailable on the spot market in late August.
PCS Sales is raising its North American potash postings across the board by $250/st FOB, effective Sept. 1 through Nov. 30. The company’s Saskatchewan mine prices for that period moved to $767/st FOB for standard, $780/st FOB for soluble, $772/st FOB for granular, and $780/st FOB for white granular.
Northeast: Sources quoted the potash market at $850-$900/st DEL, depending on grade, location, and availability. Effective Aug. 13, Agrium’s 60 percent coarse potash postings firmed to $850/st FOB Wilmington, N.C., and Georgia shipping points at Bainbridge and Tifton.
Eastern Canada: Potash out of warehouse locations in Ontario was reported at $930-$946/mt FOB, depending on grade and availability, with the upper end reported for white granular muriate. On a rail-delivered basis, sources pegged the potash market at $954-$963/mt in the province.
The potash price at the mine FOB Sussex, N.B., was at $623/mt for Canadian customers for the shipping period ending Aug. 31. As of Sept. 1, however, a $300/mt price increase takes effect, bringing the mine price to $923/mt FOB for the Sept. 1 to Nov. 30 shipping period. A $300/mt increase is also on tap for Canadian customers FOB Saskatchewan mines, bringing the red granular price there to $888/mt FOB for Sept. 1 through Nov. 30.
The K-Mag market was quoted at $515/mt FOB, and sulfate of potash was reportedly referenced as high as $1,290/mt FOB in Ontario. Several sources reported, however, that the last SOP tons they purchased were at the $848/mt FOB level.
SULFUR
Tampa: Sulfur vessels were preparing to seek safe harbor late last week as Tropical Storm Gustav was expected to move into the Gulf of Mexico and possibly toward New Orleans as a hurricane. Gustav could become a Category 3 hurricane, with winds up to 115 mph. Oil and gas companies began moving personnel from offshore drilling platforms on Wednesday as a precaution, but onshore refineries were operating as normal on Thursday. If the storm does hit anywhere on the Gulf Coast away from Florida, sulfur production will be impacted. The good news was that sulfur inventories at Tampa and at refineries were sufficient to weather a delay caused by the storm.
Some talk about prices will likely occur at TFI’s conference at Seattle in September, but don’t expect much from the phosphate industry, which has been watching as prices on the world market stagnated and have begun to reverse in some cases. It will not be to their advantage to settle prices quickly and a settlement of fourth quarter prices may be later than normal.
West Coast: Negotiations were still ongoing on the West Coast last week, as buyers have taken a hard line on any price increases. Most likely, not much price movement will take place.
Vancouver: No real change in China, even though the Olympics have come to an end. Negotiations were continuing last week without progress.
MARKET NOTES
Belarus: Belarusian Potash Co. is eyeing the sale of other Russian fertilizers besides potash, according to Mikhail Osipenko, Belnefthim Concern deputy president. “We are considering proposals of several Russian companies, which produce fertilizers other than potash ones and are ready to cooperate with the BPC,” he said.
Poland: Polish Oil and Gas Co., which is the only supplier of gas to the fertilizer industry, has asked for a new increase of gas prices by 30 percent. The company already received a 17 percent increase earlier this year. A further increase is in doubt, say government sources.
Poland’s gas experts fear that Russia will be reluctant to sell more gas to Poland as a result of the anti-Russian actions of Polish President Lech Kaczynski, who supported Georgia and criticized Russian “intervention” in Georgia, saying it was “brutal aggression.” “Russia may cut delivery of gas to Poland, which would kill the Polish fertilizers industry,” said one gas expert. The negotiations on the delivery of Russian gas to Poland will start later this year, and Poland wants more gas.
A new program of the privatization of the Polish fertilizers industry will be announced on Sept. 10, according to the Ministry of Treasury.