AMMONIA
U.S. Gulf/Tampa: Prices continued at $275/mt DEL for Tampa and $275/st FOB for NOLA. However, there was some speculation about some new business being worked for NOLA.
Yara has been having some production problems at Tringen 2 in Trinidad. It went down Feb. 13 and is now in start-up mode, having lost up to 32,000 mt in production.
There were unconfirmed reports of problems at FertiNitro.
Eastern Cornbelt: Sources reported some dry spreading activity in the region in early March, along with reports of spotty preplant ammonia movement. Anhydrous ammonia pricing remained in the $450-$525/st FOB range, with the low for cash tons in Illinois.
Western Cornbelt: The anhydrous ammonia market was steady at $425-$500/st FOB, with the low in Nebraska. Delivered ammonia to points in Missouri remained in the low- to mid-$400s/st from southern production points. Agrium’s anhydrous ammonia postings in the Leal, Velva, Grand Forks, and Beulah sales area in North Dakota will move on March 15 to $600/st FOB and $620/st DEL.
California: Calamco dropped its ammonia postings $80/st at midnight on March 2, with new levels at $495/st truck-DEL and $540/st rail-DEL in California. Aqua ammonia postings from the company moved on that date to $135/st FOB from the previous $155/st FOB level.
Agrium followed suit, adjusting its ammonia postings on March 5 to $495/st truck-DEL in Central California and $500/st truck-DEL in Northern California.
Pacific Northwest: Anhydrous ammonia was quoted at $530-$575/st DEL in the region, down slightly from last report, with the upper end for trucked tons and the low reported for spot rail-delivered business.
Western Canada: Anhydrous ammonia was steady at $799-$844/mt DEL in Western Canada, but an increase to $844-$889/mt DEL will take effect March 15.
Black Sea: Sources report the Ukrainian producers remain down until international prices surpass production costs. They add that the tanks of the Ukrainian producers are empty.
With the Black Sea price remaining stable, Ukrainian producers have little choice but to stay closed. Reportedly, the break-even cost in production is about $300/mt. With the current price remaining at $210-$220/mt FOB, sources say there is no incentive to begin production.
The limited demand for ammonia is being covered by the restart of a few plants in Europe and the U.S. Other commitments are being handled with purchases from Russian plants – with lower natural gas costs – and other ammonia producing areas such as the Arab Gulf and Malaysia.
Reports circulated late last week that a major trading house concluded a deal for a European buyer at $320/mt CFR with Russian tons.
Middle East: Indian buying is moving up the contract price. And with increases in contract sales, the producers are pushing up the price of spot material. Not that there is a lot of spot ammonia available.
Sources are reporting that Sabic claims a cargo of 20-25,000 mt could be purchased near the end of the month – at the right price.
For producers, the right price is $260/mt FOB or higher.
That level was selected because of the Qafco-Mitsui deal closed late last month. Asian sources say the $260/mt FOB paid by Mitsui was very high, and one that was forced on the Japanese trading house because of time and vessel constraints.
The increases in the Indian contract prices provide new upward pressure on pricing. Sources say with more tons being shipped to India, inventories in the area are being drawn down and easing pressure to sell.
The latest word on the contract price puts the purchases at $250/mt CFR. That indicates a netback of $200-$210/mt FOB. With spot tons being offered at $260/mt FOB and up, Asian sources say the spread is a bit too wide. They say, however, the spot price could come off a bit while the contract price keeps rising. In a week or so the gap should get back to normal levels.
Buyers hoping to push the spot price down are finding that Sabic and the others in the area are not desperate to sell. Many of them see the growing Indian market as becoming just vibrant enough to ensure no storage tanks in the Middle East get too full.
Adding to the Indian demand are purchases that might have otherwise been covered by Yuzhnyy suppliers who are now shut down. And lastly, there is just enough steady demand from Asia for tons.
For now, the price remains at $250-$260/mt FOB. Producers want more, but buyers are seriously digging in their heels.
India: Phos acid and rock are slated to start arriving in India the last half of this month. With those two ingredients ready, sources say the Indian DAP producers need more ammonia. Contracted tons are beginning to flow more regularly from the Middle East suppliers to Indian ports in anticipation of ramped-up DAP production. The latest price paid is a reported $250/mt CFR.
Asia: Area sources say buying is continuing at a steady pace. Traders in the area, however, are still hesitant to declare a return to the good old days of steady business around the area. Indications are still strong that most of the buying is just to fill up tanks that ran low after several months of no buying.
UREA
U.S.Gulf: Urea prices started out strong last week, according to most sources, with new business in the $302-$305/st FOB range. However, by mid-week came word of much lower postings for Inola and Catoosa and barge ideas headed south. There were several reports that Koch had managed to get its Enid, Okla., urea plant back up, at least at half capacity. This and lower Oklahoma postings caused barge price ideas to tumble. A trade of $290/st FOB was commonly reported at midweek, with rumors late on Thursday of $285/st and speculation of $280/st FOB.
The falling numbers were somewhat surprising as many players have been predicting strength for urea, citing limited imports and USDA corn projections of 86 million acres.
Eastern Cornbelt: The granular urea market was unchanged at $355-$365/st FOB regional terminals for cash tons to the dealer.
Western Cornbelt: The granular urea market remained at $350-$360/st FOB to the dealer. Effective March 15, Agrium’s granular urea postings will move to $410/st FOB North Dakota terminals at Alton, Carrington, Colfax, Marion, and Scranton, and $415/st rail-DEL in the Dakotas, Minnesota, and Wisconsin.
Koch’s Enid, Okla., urea plant was in startup mode last week, reportedly running at about 50 percent capacity by midweek. Sources reported dealer pricing at $320/st FOB Inola, Okla., and $325/st FOB Enid.
California: Granular urea remained at $440-$450/st FOB in California, with the upper end reflecting postings and the low after small discounts. Effective March 15, Agrium’s granular urea posting FOB West Sacramento, Calif., will move to $465/st, while truck-delivered postings will move to $485/st in Central California and $490/st in Northern California.
Pacific Northwest: As of last week, granular urea pricing remained at $395-$400/st FOB and $395-405/st DEL in the region, but higher levels were on the horizon – at least on paper. Agrium’s granular urea postings will move on March 15 to $410-$425/st DEL in Montana and Wyoming, depending on location; $435/st FOB Washington warehouse locations at Glade, Kennewick, Warden, and Wilson; $440/st DEL in Washington, Idaho, Oregon and northern Nevada; $450/st DEL in northern and central Utah; and $455/st DEL in southern Utah.
Western Canada: Granular urea remained at $560-$585/mt DEL in early March, but sources said a slight increase to $575-$600/mt DEL would take effect at mid-month.
Pakistan: All eyes are on TCP this weekend. The government buying entity closed a tender for 50,000 mt Saturday, March 7.
As Green Markets went to press, industry observers were speculating that the best sellers can hope for will be a repeat of the $322/mt CFR price secured in the last tender. Some are saying the final price will be lower.
Industry sources say the 130,000 mt purchased from the earlier tender and the 50,000 mt planned in this one will most likely be used for storage in either regional warehouses or a port-side bonded warehouse.
The tender calls for delivery to Gwadar port. Unfortunately for the receivers of the urea, this port has exhibited trouble clearing ships in a timely manner. The problem is not in the dock-side facilities for ships, but rather the inland infrastructure. Area media report that when urea vessels arrived in January, the system backed up. The issue was not enough vehicles to move out the urea, but rather the lack of space for trucks to assemble and pass through. A Gwadar port official told local media the lack of truck assembling spaces caused the vehicles to park in the roads causing traffic to back up.
The urea eventually was cleared from the area, but the congestion in the port and nearby city caused concern by local officials.
Pakistan will again seek a urea import financing facility from Saudi Arabia to boost foreign exchange reserves. The same will also be sought for oil. Officials are expected to go to Saudi Arabia March 7 to discuss the matter. Pakistan hopes to get $2.5-$4 billion for an oil and fertilizer import package.
According to the latest estimates of Pakistan’s National Fertilizer Development Centre (NFDC), Pakistan may need about 369,000 mt of imported urea to meet the deficit during Kharif season, from April to September 2009. It said during the next Kharif about 2,656,000 mt of urea would be available from local production, against a demand of 3,025,000 mt of urea needed. The report pointed out there might be pocket shortages beyond June that are expected to be met through imports. Meanwhile, the Ministry of Food and Agriculture asked the Ministry of Finance for the allocation of $100 million to import of urea for the Kharif season.
Black Sea: Producers are now said to be asking $295/mt FOB for material. Traders say the price is edging that way, but has not yet cleared $290/mt FOB. The most commonly heard price last week was $280-$285/mt FOB, with a few murmurs of $290/mt FOB. The producers claim the higher price is justified because of the TCP/Pakistan business, sales to Vietnam, and reports that one of the major Indian buyers will soon call a tender.
Asian sources, if not immune to the calls of potential Indian business, are at least cautious and not too anxious to jump on the price rise bandwagon.
With only the Middle East and Yuzhnyy as viable options for major sales of urea, sources say prices should be edging upward for a short while.
Once April closes, however, the major markets will be done with their purchases and the price should drop.
Once the price does come down, say sources, India and Pakistan should begin to show interest in picking up tons for the next application season.
One trader noted that when the price dropped to near $200/mt FOB, lots of buyers appeared and deals were made. Now that the price is nearing $300/mt FOB, those same buyers are standing back.
If India remains out of the market for the next two to four weeks, said one source, the producers will have very few places to put their material and prices will have to come down.
Middle East: Producers are claiming they are sold out. They say the new starting price in the area is $320/mt FOB. Unfortunately for them, no one believes them.
Granular urea remains popular with buyers. Sources say demand from Asia is just strong enough to make producers satisfied with the situation.
Unfortunately for the accountants, most of those deals are under contracts or long-term arrangements. The actual netback is significantly lower than what is being quoted by producers for tenders or other spot business.
For now, sources say the granular market is $305-$310/mt FOB.
Prills, while not as popular in terms of production in the area, are plentiful in supply.
Sources peg the prilled market at $295-$305/mt FOB.
Some observers see the current quiet tone from the producers as interesting.
Leading up to the previous TCP/Pakistan tender, Sabic had spread the word that $320/mt FOB was the solid, drop-dead lowest price they would accept. Within hours, however, this same company offered $322/mt CFR to TCP.
Industry watchers say the whole exercise was designed to set pricing expectations high, scare off traders, and then snap up a large deal with Pakistan. Sources report that at least one producer from the area was ready to offer into the tender near the final Sabic offer, but was afraid of being chastised for low-balling the price.
Vietnam: Buying is just about done.
Material from cross-border trade with China has fallen off as the Chinese price rises.
Vietnamese buyers snapped up about 130,000 mt, mostly from the CIS, in the past month. The purchases were possible because of low-interest loans provided by the central government.
With a slowdown in cross-border trade, sources also report that re-exports of Chinese material to Southeast Asian locations have dwindled.
China: The domestic price is moving up. Sources report the latest quotes come in at RMB1,900/mt ex-factory – about $280/mt. That represents an increase of RMB300 in just a couple of weeks. Industry observers had hoped the Chinese government would alter the export duty regime to allow for more exports. It became clear in the past two weeks, however, that Beijing has no intention of making a change.
The export duty will remain at 110 percent until June 1.
India: Domestic political issues are beginning to play a larger role in the Indian urea market. In the past two weeks politicians have claimed India will be self-sufficient in urea by 2011. At the same time, opposition leaders have criticized the government for spot shortages of urea.
International industry watchers say India is on a path to urea self-sufficiency, but that it will need more than two years to achieve it. The reworking of existing plants alone could take three to five years, said one trader.
And that is only if all the elements of the government bureaucracy work right.
Pressure is building on the government to call another tender to knock the legs out of opposition politicians complaining about the urea stockpiles.
International observers say the Indian stockpiles are low, but what is in the warehouses now is buffer stock for the next application season. Any purchases at this time will only serve to load up the warehouses early.
One trader noted that MMTC, STC, or IPL might call a tender, if for no other reason than to get a solid view of pricing ideas. Because the current reserves are sufficient for the time being, any offers not to the Indians’ liking can be rejected.
A number of sources expect to see an Indian tender soon. And they also expect to see the tender scrapped just as quickly.
NITROGEN SOLUTIONS
U.S. Gulf: Sources say prices are under pressure, though it is hard to find an actual sale as inventories continue to be so full. Players called the market $200-$215/st ($6.25-$6.72/unit FOB).
Eastern Cornbelt: UAN-32 pricing to the dealer was steady at $265-$285/st ($8.28-$8.91/unit) FOB regional terminals.
Western Cornbelt: UAN-32 remained in a broad range at $250-$280/st ($7.81-$8.75/unit) FOB regional terminals, with the low out of the St. Louis market and the upper end reported in Iowa to the dealer
California: UAN-32 pricing was down from last report following new reference levels published in mid-February. Sources tagged the market at $300-$325/st ($9.38-$10.16/unit) FOB, with the low FOB Stockton after discounts and the upper end FOB El Centro. One Central Valley source quoted delivered UAN-32 as low as $285-$300/st ($8.91-$9.38/unit) for the month of March, with the lower numbers from Midwest suppliers. Effective Feb. 19, Agrium’s UAN-32 postings moved to $313/st ($9.78/unit) FOB Sacramento, $335/st ($10.47/unit) DEL in central California, and $340/st ($10.63/unit) DEL in northern California.
Pacific Northwest: The UAN-32 market was pegged in a broad range at $300-$335/st ($9.38-$10.47/unit) DEL in the region, with the low in Washington and the upper end in Montana. Effective Feb. 19, Agrium’s UAN-32 postings moved to $305/st ($9.53/unit) DEL in Washington, Oregon excluding Malheur County, and northern Idaho; $310/st ($9.69/unit) rail-DEL and $315/st ($9.84/unit) truck-DEL in southern Idaho, Nevada, Utah, and Oregon’s Malheur County; and $335/st ($10.47/unit) DEL in Montana and northern Wyoming. Agrium’s UAN-28 postings in Montana and northern Wyoming moved on Feb. 19 to $293/st ($10.46/unit) DEL.
Western Canada: UAN-28 pricing was unchanged at $353-$368/mt ($12.61-$13.14/unit) DEL to the dealer, but an increase to $362-$378/mt ($12.93-$13.50/unit) is reportedly slated for March 15.
AMMONIUM NITRATE
U.S. Gulf: The market remains very quiet, with the last trade called $230/st FOB.
Western Cornbelt: Ammonium nitrate was steady at $275-$305/st FOB, with the upper end in Missouri.
California: No market was reported for ammonium nitrate in the state. CAN-17 remained at $270-300/st FOB to the dealer, with the low FOB Stockton and the high at El Centro. The dealer market FOB Helm was tagged at the $275/st level last week. The ammonium nitrate solution 20-0-0 (AN-20) market was pegged at $225-$230/st DEL, down some $20/st, with the low in Central California and the upper end in Southern California.
Pacific Northwest: Ammonium nitrate pricing was reported at $353-$361/st DEL in the region, with the upper end reported in Idaho. Agrium’s ammonium nitrate solution 20-0-0 posting moved on Feb. 19 to $197/st FOB Kennewick, Wash.
CAN-17 pricing was quoted at $250-$255/st FOB and $260-$265/st DEL in eastern Washington and northern Idaho. Those numbers reflect a slight increase from last report.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was reported at $175-$235/st FOB in the region last week.
Western Cornbelt: Granular ammonium sulfate was reported in a broad range at $175-$245/st FOB in the region, with the low in Missouri and upper end reported in Iowa for new business. Agrium’s reference price for granular ammonium sulfate firmed on March 1 to $235/st DEL in North Dakota, Minnesota, and Wisconsin.
California: The ammonium sulfate market was reported at $255-$290/st FOB, with the low FOB Lathrop after discounts and the upper end FOB El Centro. Sources said those numbers, effective March 3, reflect a drop of roughly $20/st from the previous levels.
Pacific Northwest: The granular ammonium sulfate market was up slightly to $225-$235/st DEL in the region. Effective March 1, Agrium’s granular ammonium sulfate postings firmed to $235/st DEL in Washington, Idaho, Oregon, Nevada, Montana, and Wyoming, and to $230/st FOB warehouses in Washington, Oregon, Idaho, Nevada, and Utah.
Western Canada: As of March 2, granular ammonium sulfate was quoted at $370-$375/mt DEL in the region, up $10-$20/mt from the previous level.
PHOSPHATES
Central Florida: After a slight uptick the previous week, Central Florida sales slowed and prices leveled off last week as the weather made a major negative contribution to the process. The major exception was in Florida, where the weather continued to be virtually perfect except for a lack of rain. Crops in Florida were well into the growing season, but fire warnings were widespread throughout the state. In Georgia, farmers were getting ready to head to their fields. The rest of the eastern U.S. still had a way to go.
Farmers were still holding off making a decision about how much of what they were going to plant, and several sources said the biggest drawback was the price of potash. Regardless, potash will have to be used, but applications may be substantially reduced. Sources say that has impacted the buying of other fertilizers.
Production of phosphate was picking up speed. CF was said to be in full production at its Plant City facility. PotashCorp’s White Springs was still in shutdown mode, but the company’s Aurora, N.C., plant may soon return to production. Sulfur sources said the company was beginning to increase its sulfur supplies.
Mosaic was guarded about how much its production has increased. In January and early February, it was operating at about 30 percent of capacity. It has increased enough to meet the slightly increased domestic demand and its share of what will be due for the sale by PhosChem to India of 1.25 million mt.
Concerns that logistics will be a problem once farmers begin to prepare their fields may be overblown, since sources said the system was basically still full. Dealers’ bins and warehouses throughout the country were said to be full and just waiting for the season to begin. Much of that occurred during the fall season, when prices effectively stopped sales.
The Central Florida DAP price range was slightly higher on the bottom end of the range of the previous week’s $312-$325/st FOB and moved up to $315-$325/st FOB last week. PCS Sales had no published price. Mosaic’s price was $315/st FOB for DAP and $325/st FOB for MAP. CF was at $320/st FOB for DAP and $20/st FOB higher for MAP. The price from Agrifos remained at $350/st FOB for trucks and $345/st FOB for rail shipments.
U.S.Gulf: Warmer weather swept across Texas and Oklahoma last week, but a prolonged drought kept farmers from their fields in Texas and wheat growers in Oklahoma from top dressing last week. In areas where irrigation was not available, problems will continue until substantially more rain falls.
Sales at warehouses were described by several sources as steady but slow, but most believed business would increase in March and April as the season progresses. Terminal prices were as low as $355/st FOB for DAP at some locations on the Arkansas, and up to $385/st FOB in the more northerly areas.
NOLA DAP barge sales were well down from the previous week, but were basically unchanged from the previous week’s price range of $318-$325/st FOB.
Eastern Cornbelt: DAP pricing out of regional warehouses continued to be quoted in the $365-$385/st FOB range, with MAP at a $10-$15/st premium. 10-34-0 pricing remained in a broad range at $650-$825/st FOB in the region, with the low in Illinois and the higher numbers in Ohio out of spot locations.
Western Cornbelt: DAP was steady at $360-$370/st FOB most regional warehouses to the dealer, with MAP at $375-$385/st FOB. The 10-34-0 market continued to be quoted in the $625-$700/st FOB range in the region. Effective March 1, Agrium’s phosphoric acid postings firmed to $1,050/st rail-DEL in Iowa, Minnesota, Nebraska, Wyoming, and the Dakotas for both super phosphoric acid (SPA) and merchant grade acid (MGA). Simplot also reposted phos acid on March 1 to $10.50/unit DEL in the Midwest
California: As of March 1, phosphoric acid postings had firmed to the $11.00/unit DEL level for both SPA and MGA, with Simplot also referencing MGA at $11.20/unit FOB California warehouse locations. Agrium’s phosphoric acid postings firmed on March 1 to $1,100/st rail-DEL for SPA and MGA in Arizona and California.
MAP and DAP were unchanged at $455-$460/st DEL or FOB warehouse locations in California. Simplot’s list price for 0-45-0 TSP with Avail was steady at $425/st rail-DEL or FOB French Camp. The 16-20-0 market was unchanged at $320-$327/st FOB in the state.
Based on the new ammonia and phos acid numbers, 10-34-0 pricing moved to $477-$487/st FOB in California, up $7/st from last report, with the low in the Central Valley and the high in desert locations.
Pacific Northwest: Simplot hiked its SPA and MGA postings on March 1 to $11.00/unit DEL in the region. Agrium’s phos acid postings also firmed on March 1 to $1,100/st railDEL for SPA and MGA in Idaho, Montana, Nevada, Oregon, Utah, and Washington.
MAP remained at $445-$455/st FOB or DEL in the region, with DAP at $445-$460/st FOB or DEL. 16-20-0 was steady at $300-$305/st DEL. Simplot’s reference prices for TSP with Avail were in the $420-$425/st FOB range in the region.
10-34-0 pricing was tagged at $470-$480/st FOB in the region.
Western Canada: MAP was quoted at $650-$680/mt DEL in Western Canada, though some continued to report reference levels in the $790-$825/mt DEL range to the dealer.
U.S. Export: Export sales were off the table last week, but talks with some potential buyers were underway. India, of course, will be a prominent market and will need at least 600,000 mt more than it has already ordered, according to sources, who say those final tons maybe hard to find, which will mean a higher price.
Brazil was said to be negotiating to get its delivered price of MAP down, but higher freight cost in the Atlantic were not helping in those discussions. The FOB price from Tampa was generally considered acceptable.
Wheat planting in Europe will be down this year, after extra acres were grown last year when the market demand was higher. Ukraine was likely to see a decrease in crop production due to confusion created by the government.
With no new sales, the export price range last week remained at $367-$380/mt FOB.
POTASH
Eastern Cornbelt: Sources pegged the potash market in the $700-$750/st FOB range in the region from brokers or resellers, with few new sales to test the market.
Western Cornbelt: Potash out of regional warehouses remained at $700-$750/st FOB range to the dealer, depending on grade and location.
California: Muriate of potash pricing remained at $849-$875/st FOB and $875-$900/st DEL in the region. Sources continued to talk of significant cutbacks in potash volumes this spring. “If we move 20 percent of normal, we’ve done pretty well,” speculated one source.
Sulfate of potash remained at $1,015-$1,055/st FOB for bulk quantities, with the low for standard grade and the high for water soluble.
Potassium nitrate pricing was steady at $1,310-$1,380/st FOB in the state, with the low for bulk and the upper end for bagged product.
Pacific Northwest: Potash was pegged at $805-$890/st DEL in the region, with the low quoted for tons delivered from Midwest suppliers. That low end was down from last report, and several sources said calls were coming from increasingly distant locations from secondary sources with excess tonnage to move. Out of regional warehouse locations, however, the dealer market for potash remained in the $840-$890/st FOB range.
Western Canada: Reference prices for potash remained at $988/mt FOB Saskatchewan mines to Canadian customers. No updated delivered prices were reported for the region last week.
Brazil: Belarusian Potash Corp. (BPC) has cut potash prices to Brazil by some 25 percent to $750-$765/mt DEL for the period March-May 2009. This is down from $1,000-$1,010/mt DEL. BPC is a joint venture of Belaruskali and Uralkali.
The deal now leads to speculation as to what will happen with contracts for other major customers such as China and India, where potash producers have been seeking an increase. BPC is the lead negotiator in producer talks with China. However, it should be noted that with respect to China, producers are expecting increased demand for potash. In Brazil, which is traditionally a higher-priced market, demand has been down.
SULFUR
Tampa: Sulfur sources gave conflicting information on demand last week. Lee Creek, at PotashCorp’s Aurora processing plant at North Carolina, was gearing up sulfur supplies to hit 80 percent of capacity in March, according to one source. However, another said railcars to and from there were becoming a problem, because of the lack of activity.
Supply still exceeds demand, but there were some signs that might be improving – phosphate companies were increasing their production, and industrial customers were doing the same. That’s a good thing. Blocking at Galveston was probably going to come to an end by the end of March, as the location reaches its capacity of between 700,000 mt and 800,000 mt. Sulfur was still seeking a home in landfills, while refineries were still below production capacity for a variety of reasons. Turnarounds this time of year are common, as facilities get ready for higher production in the summer driving season.
Prillers were running at full speed to take up the excess in supply, and interest was being expressed in building additional prill operations.
Some refineries were either shut down or being curtailed for other reasons. BP at Texas City was slowed due to a malfunction at its sulfur recovery plant early last week.
Although still early in March, the question of second-quarter sulfur prices was raised last week. Some thought the price might simply rollover at $0.00/lt to Tampa, but others said they thought a hike to a new level of $40-$80/lt might be possible. Still, it was far too early to make an educated or even uneducated guess.
Vancouver: Discussions between Canadian suppliers and Brazilian customers were ongoing last week on new semester contracts. Currently, the contracts call for Brazil to pay as much as $200/mt, but buyers in that country were seeking a new price of $40/mt or lower in the new terms.