AMMONIA
U.S. Gulf/Tampa: Major players concluded February business at $365/mt DEL last week. In the meantime, as reported last week, other recent business has been done as high as $375/mt DEL.
Eastern Cornbelt: The anhydrous ammonia market was quoted at $400-$440/st FOB regional terminals, with the low for prompt tons on a spot basis and the upper end reflecting limited prepay offers. One source quoted spring prepay in his location at the $435/st FOB level, while another quoted cash market ammonia at $400/st FOB in Illinois and $405/st FOB in Indiana.
Western Cornbelt: Ammonia remained at $360-$410/st FOB, depending on location, with the low reported in Nebraska for prompt tons and the upper end in the Iowa market for spring prepay. One supplier was referencing cash market ammonia at the $395/st level FOB Palmyra, Mo. Another was posting forward contract ammonia for March at $395/st FOB in Nebraska, $410-$430/st in Iowa, and $435/st FOB in Missouri.
Northern Plains: Anhydrous ammonia was pegged at $400-$415/st FOB regional terminals for prepay tons, depending on location, with the low reported at Vernon Center, Minn. Delivered ammonia was pegged in the $455-$485/st range in North Dakota for spring prepay, depending on supplier. Dakota Gasification was referenced at $470/st DEL for prompt tons.
Black Sea: The tightness of the market is evidenced by two manufacturers engaging in a sale. Sources in Asia report that Nitrochem bought 6,000 mt from OPZ at $300/mt FOB.
The new asking price is $350/mt FOB. Observers say it will be a while before producers achieve that level.
The latest business in Tampa at $365/mt CFR confirms prices have moved out of the upper $290s/mt FOB and well into the low $300s/mt FOB. One Asian source said he doubted that the latest Tampa business was from Yuzhnyy. He added, however, that the Tampa price gives a good indication of a Yuzhnyy equivalent price.
Sources say Ukrainian producers need the price to move into the $320s/mt FOB now that the price of natural gas from Russia has moved up. Some even speculate the $350/mt FOB offers now reflect the new break-even price.
The tight market easily justifies a new price range of $300-$310/mt FOB, said one source.
Middle East: The offers in the latest FACT/India tender for 7,500 mt puts the new spot market price in the area at $338-$345/mt FOB.
Sources say the lowest offer from PIC at $373/mt CFR will most likely be accepted for a Feb. 15-18 delivery to India. Middle East sources peg the freight at $35/mt.
Besides the demand from India, Asian buyers are looking at any possible source for tons.
To underscore the shortness of tons, Gresik of Indonesia reportedly bought 10,000 mt from Qafco at $390/mt CFR. Ordinarily, Gresik would get its supply from Indonesian sources.
India: The FACT tender for 7,500 mt received three offers.
| Company | US$/mt CFR |
| PIC | 373.00 |
| Qafco | 375.00 |
| Transammonia | 380.00 |
The Transammonia material will most likely come from Oman, say sources. Delivery of the tons is slated for Feb. 15-18.
Talks are continuing on a long-term contract from FACT for 50-100,000 mt of ammonia with shipment of 7,500 mt lots each month. A final decision on the award may not be known for at least another week or so.
Asia: Demand remains strong throughout the area.
Sources say the Gresik/Indonesia purchase of 10,000 mt from Qafco shows how tight the Southeast Asian market is.
The Gresik purchase comes even as the major joint ventures in Indonesia, KPI and KPA, operate at full capacity. Most of the state-owned Indonesian plants are also turning out as much ammonia as they can. Some, however, are reportedly having problems because of input shortages.
Kaltim/Indonesia signed a new gas deal to guarantee a 10-year supply for the Kaltim V plant, which is slated to come online in 2014. The new facility is rated at a daily ammonia output of 2,500 mt.
UREA
U.S. Gulf: Sources said the market was quiet overall last week, with more attention focused on phosphate and potash than on nitrogens. Granular barge prices were reported to be treading water, and recent sales were called $319-$320/st FOB.
Eastern Cornbelt: The granular urea market remained at $355-$365/st FOB, with the upper end quoted by Illinois sources for prepay. One supplier was referencing cash market urea at $355/st FOB Peoria and $360/st FOB Cincinnati.
Western Cornbelt: Granular urea was steady at $350-$360/st FOB in the region, with the low reported in southern Missouri on a spot basis. The dealer price for urea FOB St. Louis was reportedly referenced at the $355/st level last week.
Northern Plains: Sources tagged the urea market at $365-$370/st FOB the Twin Cities for prompt or prepay tons, with delivered urea quoted at $400-$405/st in North Dakota for either truck or rail tons. Agrium’s granular urea postings firmed on Jan. 15 to $400/st FOB North Dakota terminals at Alton, Carrington, Colfax, Scranton, and Grand Forks, and $405/st rail-DEL in Minnesota, Wisconsin, and the Dakotas.
Northeast: Granular urea was pegged at $355-$365/st FOB in the region.
Eastern Canada: The granular urea market was pegged at $480-$489/mt FOB in the region, reflecting a slight increase from last report.
Black Sea: Industry observers dismiss reports of prices hitting $300/mt FOB.
Turkish buyers reportedly rejected offers at $295/mt FOB.
Talk of material in the $290s/mt FOB is being pushed by producers. Reportedly, some traders are pushing the $300/mt FOB prices.
The last bit of confirmed business is pegged at $280/mt FOB. One Asian source figured $285/mt FOB will have been concluded over the weekend.
The rising price at Yuzhnyy is bad news for Agora. Once again, the trading house is a main topic in the rumor mill. Sources say the company has yet to fulfill its deal with IPL/India for 100,000 mt. The arrangement struck between IPL and Agora called for deliveries at $300-$305/mt CFR. With freight rates moving up, as well as the FOB price, sources say there is little chance Agora will be able to fulfill the contract and make a profit.
For now, the only active market for Black Sea material is coming from Turkey. Buyers there, however, are pushing back against the higher price ideas of producers.
Despite the hopes of producers, the market has not yet moved into the upper $280s/mt FOB. Sources peg the market at $280-$285/mt FOB.
Middle East: Producers and traders agree the supply demand balance currently favors the producers.
Contracts with buyers around the globe are being filled in a steady manner. Prices are settled on a formula basis.
Granular prices in the area run the range from $300/mt FOB for Iranian product to $335/mt FOB from Egypt.
Prills remain soft and in the $290s/mt FOB.
India: Sources report rumblings of a potential tender from India to cover the tons not yet provided by Agro under the late-2009 arrangement with IPL.
Bullish attitudes say India needs the tons to start flowing soon to ensure full reserves for the spring application season. Supporters of the idea that a tender will be called within the next couple of weeks say the government might want to ensure farmers are kept happy by having a plentiful supply of urea either in the local warehouses or in the pipeline for delivery by the time the application season starts.
Others say the Department of Fertilizer can afford to hold off on making any new purchases until after the beginning of the Indian fiscal year, April 1.
In addition to claiming that the current reserves are more than adequate to get the spring season started, sources say the DOF is currently preoccupied with calculating the urea demand for the next fiscal year.
The calculations, started in mid-January, are not usually finished until late February.
In addition, sources say India is instituting a new subsidy system in the next few weeks. The new scale is based on nutrient content rather than a commodity. Sources say importers and farmers may be just as happy buying another form of nitrogen fertilizer instead of urea if the price is right.
Traders say the DOF will want to pay close attention to how the new subsidy plan is implemented before it authorizes new urea purchases.
China: Prices remain strong as the window for exports gets ready to close. The export duty will jump to 100 percent Feb. 1 and stay there until July.
Sources report even at the current prices of $300/mt FOB for prills and $325/mt FOB for granular, any tons leaving the country under the old regime are too expensive for most buyers.
In the past, some producers have been able to move tons offshore through means that have been described as less than kosher. Land-based transfers and small vessel loads that bypass the usual customs procedures in China bound for Vietnam have kept Vietnamese buyers satisfied.
Sources now report, however, that China has increased the penalties for anyone caught illegally shipping urea out of the country. One Asian trader said the stiffer penalties have effectively dried up the extra tons Vietnam once depended on.
Any tons in the bonded warehouses can still be shipped after Feb. 1 if a vessel has been nominated. Sources say the ships will need to get into port, get loaded, and move out quickly.
The whole country will come to a virtual standstill by the middle of next week as workers begin traveling to see family members for the Chinese New Year.
The new year begins Feb. 14, and the Chinese government is giving people a week off for the celebrations. The logistics of traveling by train and bus during this period may require some people to leave earlier and come back later.
Vietnam: Buyers keep looking for tons. Sources say, however, the pricing ideas of the Vietnamese are significantly lower than the ideas from producers.
Buyers are saying they would accept $318/mt CFR bagged material. The problem is, Chinese tons are at $300/mt FOB for prill and $325/mt FOB for granular. The Black Sea price is moving closer to $300/mt FOB each day. And the Middle East suppliers are on their way to the mid-$300s/mt FOB.
There are no producers willing to sell at a level that can support $318/mt CFR bagged.
Queries for purchases are expected to slow down this week. By next week, no new business will be conducted as Vietnam enters the celebration period for the lunar new year.
Indonesia: The country is currently in its application season. No one is talking about exporting tons at this time.
Sources report that more farmers are willing to try granular urea this year.
Indonesia has been a prilled urea market. State-owned urea producers have turned out granular material for export. With the change in heart by the local farmers, more of the domestic tons can stay home.
The lack of an export market is disturbing to many of the producers. PIM, in particular, is said to be cash-strapped. It, like the other producers, needs the hard currency that comes from international sales to ensure a steady flow of natural gas to the plants.
Kaltim signed a gas contract for its new plant late last week. The deal, worth US$1.93 billion, will bring natural gas from the Mahakam block in East Kalimantan. The French company Total runs the block.
The gas contract is for 10 years beginning 2012. The fertilizer plant that will receive the gas, Kaltim V, should come online in 2014. The plant’s urea output is pegged at 3,500 mt/day.
NITROGEN SOLUTIONS
Eastern Cornbelt: UAN was quoted at $7.50-$7.90/unit FOB regional terminals, depending on location. An Illinois source pegged the dealer market at the $7.75/unit FOB level for prepay last week, and one supplier was posting cash market UAN at $7.65-$7.75/unit FOB in Illinois and $7.90/unit FOB Indiana terminals.
Western Cornbelt: The UAN-32 market was quoted at $225-$248/st ($7.03-$7.75/unit) FOB regional terminals, depending on location and time of delivery. The upper end of the range was reported in Iowa to the dealer.
Northern Plains: Sources quoted the UAN-28 market at $215-$225/st ($7.68-$8.04/unit) FOB regional terminals, with the low for spot tons and the upper end for prepay. One supplier was referenced at $7.95/unit FOB Pine Bend, Minn., for cash market tons. A North Dakota source pegged the UAN-28 market at $230/st ($8.21/unit) DEL for prompt tons and $245/st ($8.75/unit) DEL for spring prepay.
Northeast: The UAN-30 market was quoted at $199.50-$205/st ($6.65-$6.83/unit) FOB Baltimore to the dealer. One source quoted the dealer market for UAN-30 out of spot Delaware locations at the $196.50/st ($6.55/unit) mark, with UAN-32 priced at $209.60/st $6.55/unit) FOB. Several sources also talked of “lowball” offers from some suppliers for as low as $173/st ($5.77/unit) FOB in the region, and there were reports as well of these lower numbers being offered direct to the farm.
Truckload quantities of UAN-32 were moving out of terminals in upstate New York at the $7.50/unit FOB level for spot tons and $7.75/unit FOB for spring prepay.
Eastern Canada: The UAN-28 market was quoted at $277-$282/mt ($9.89-$10.07/unit) FOB regional terminals to the dealer, also up slightly from last report. Dealer reference pricing for UAN-32 was quoted at the $315/st ($9.84/unit) FOB level in Ontario.
AMMONIUM NITRATE
Western Cornbelt: Ammonium nitrate was steady at $275-$295/st FOB in the region, with the low in Missouri and the upper end in Iowa to the dealer.
Eastern Canada: Ammonium nitrate was quoted at $355-$385/mt FOB in the region.
AMMONIUM SULFATE
Eastern Cornbelt: Ammonium sulfate was quoted at $215-$230/st FOB, reflecting a slight increase from last report.
Western Cornbelt: Granular ammonium sulfate was pegged at $210-$220/st FOB in the region. One supplier was reportedly offering prepay ammonium sulfate earlier at the $230/st level FOB Dubuque, Iowa, but it was not clear if that offer was still on the table last week.
Northern Plains: Granular ammonium sulfate remained at $235-$245/st DEL in the region, with the upper end reflecting the Jan. 13 list price from Agrium.
Northeast: Granular ammonium sulfate remained at $185-$190/st FOB and $210-$215/st DEL, depending on location.
Eastern Canada: The granular ammonium sulfate market was tagged at $305-$318/mt FOB in Ontario, with fine grade referenced at the $151/mt FOB level.
PHOSPHATES
Central Florida: As phosphate, both DAP and MAP, became increasingly difficult to find, sales of prompt railcars slowed drastically last week, although truck sales were done at prevailing prices.
Phosphate producers settled with their sulfur and ammonia suppliers, and both were up about $60/ton from the previous periods. One of the biggest problems facing producers during the quarter will be a shortage of sulfur, which has been escalating rapidly on the world market. Heavy weather and strong seas were making the trip across the Gulf of Mexico difficult, and that situation was forecasted to continue this past weekend.
The long, hard cold spell that blanketed Florida in early January took a heavy toll on crops such as citrus, strawberries, blueberries, and produce, so prices for those products will rise at supermarkets. During the two-week period farmers pumped roughly 1 billion gallons of water a day to protect their crops, which dropped the aquifer level as much as 60 feet. At last count, 65 sinkholes had opened, and state officials reported extensive damage to Interstate 4 and other major arteries. In addition, approximately 700 wells were damaged or destroyed, and one mobile home was swallowed by a sinkhole. Farmers were claiming they would go bankrupt if they were forced to pay for replacing or repairing all of the wells.
The Central Florida price range was unchanged last week at $380-$390/st FOB, and both Mosaic and CF were posting $390/st FOB. PCS Sales was charging market-based prices. Agrifos was getting $420/st FOB for DAP and $430/st FOB for MAP, but railcars were about $5/st FOB less, if available.
U.S. Gulf: NOLA DAP barges were becoming difficult to find as dealers were preparing for a spring rush from farmers, although some were available. Naturally, the price took a jump, but a couple of sources said they were beginning to see a pushback from buyers.
With the price of corn for December 2010 running just under $4/bushel, the higher prices for fertilizers should not be a major problem. Still, one source pointed out that a paper trade for March was done at only $393/st FOB, while others have been paying well into the $400-plus range for March and April. However, the amount was small and the original price paid was only around $310/st FOB, said sources, so it was a good deal all around, but not likely to reoccur anytime soon or on a large-scale basis. Nevertheless, some dealers were not looking to build inventories beyond spring, and will be willing to allow their bins to run empty due to the higher prices.
MAP has been extremely difficult to find during the past month, but a Russian vessel was due to arrive in February and the asking price was $428-$430/st FOB, which will probably be an excellent price by the time it docks.
Sources said people with contracts from producers were becoming increasingly reluctant to resell their barges.
As inventories continue to remain tight due to a shortage of sulfur, prices were far more probable to increase than go down anytime in the near future, said several sources. The lowest price in the reporting period for last week was done very early at $405/st FOB but hit $415/st FOB by late last week, and most sellers were asking in the $418-$420/st FOB range.
Based on sales last week, the NOLA DAP barge price range was $405-$415/st FOB. Although some sources say the price will go higher, it was not expected to soar as it did two years ago, before the collapse. Sulfur – the price and the availability – could be the biggest factor in the equation.
Eastern Cornbelt: DAP remained at $435-$445/st FOB regional warehouses, with MAP $10-$15/st higher. One supplier was referencing DAP at $440/st FOB Peoria, Ill., while another was offering forward contract DAP for March and April at $450/st FOB Peoria and $455/st FOB Cincinnati.
10-34-0 was steady at $350-$365/st FOB in the region.
Western Cornbelt: DAP was steady at $425-$445/st FOB regional warehouses, with the low reported in southern Missouri and the high out of Iowa warehouse locations to the dealer. Sources quoted DAP postings out of the St. Louis market at the $435/st FOB level last week. MAP was $10-$15/st higher than DAP, depending on location. 10-34-0 was unchanged at $345-$355/st FOB in the region.
Northern Plains: Minnesota sources quoted the DAP market at a firm $440-$445/st FOB last week, with MAP $10-$15/st higher. A North Dakota dealer pegged rail delivered MAP at $490-$510/st, depending on supplier. 10-34-0 was reported in the $315-$335/st FOB range, with the upper end for prepay and the low for prompt tons on a spot basis.
Northeast: There was little opportunity for field activities in the region due to the wet conditions, but one Pennsylvania dealer said fertilizer spreaders could be rolling on frozen ground if temperatures cooperate. Sources talked of higher phosphate prices and a firming potash market last week. The lower potash prices in early January spurred some buying for spring, but several sources said growers might balk at the higher phosphate numbers.
“It has been dead for the last ten days,” said one contact, who said he thinks phosphate volumes will be down due to buyer resistance. “I know it’s January, but I don’t understand it. There are lots of empty holes out there to fill in the Northeast.”
The MAP market was quoted at $465-$490/st FOB in the region, with the low at Philadelphia and the higher numbers out of warehouse locations in New York. DAP was $10/st less than MAP, where available. One source quoted the dealer market out of warehouse locations in western Pennsylvania at $470/st for DAP and $480/st FOB for MAP. 10-34-0 was tagged at $345/st FOB terminals in New York.
Eastern Canada: MAP was reported at $555-$561/mt FOB in the region, up significantly from last report. No current pricing levels were available for DAP or TSP.
U.S. Export: PhosChem made two export sales last week, and Agrifos joined in the deal making. PhosChem’s first sale was into Latin America for 10,000 mt at $455/mt FOB early last week. Its next transaction was for 25,000 mt at $460/mt FOB into Southeast Asia. In addition, Agrifos made a sale of 25,000 mt at $470/mt FOB, possibly destined to Latin America.
India was said to be negotiating early for phosphate shipments due to rapidly escalating prices. Although inventories in the U.S. have been on the short side due to capacity restrictions, that situation could begin to change when the domestic spring season comes to an end. Few in this country were planning to stockpile during the off-season, so the export market could potentially receive a boost of product in April and May.
The export DAP price range last week increased from the previous week’s $415-$435/mt to $455-$470/mt FOB. The trend has been higher for the past month, and that will likely continue.
Asia: Sources report warehouses in all the importing countries are either empty or nearly so.
The recent run-up in prices has made buyers nervous. Buyers are thinking about previous years, when the price dipped right after several large forward purchasing deals were concluded.
Rather than take a chance of having warehouses full of expensive material, buyers are now looking at buying only what they need when they need it. No one is looking to take a long position on phosphates, especially DAP.
Australia and New Zealand are seen regularly talking to suppliers from Tampa to the Arab Gulf.
Thailand and Vietnam are also seen as steady buyers.
Buyers will have one less source of material come Feb. 1. The Chinese export duty for phosphates will jump to 100 percent at that time.
The higher price for Chinese material will leave few opportunities for buyers to negotiate with other suppliers.
POTASH
Eastern Cornbelt: Sources reported firming potash prices as producers reportedly sold out their lower-priced volumes and either reposted at higher numbers or simply went to previously published March pricing levels. Sources quoted potash out of regional warehouses at $400-$420/st FOB last week, with the upper end reflecting those new list prices. “It’s definitely up from the $390/st FOB level,” said one source.
Agrium’s 60 percent red premium potash postings will firm on Feb. 2 to $420/st FOB Illinois terminals at Rock Island, Marseilles, and Granite City, Indiana terminals at Garrett, Seymour, and Mt. Vernon, Ohio terminals at Washington Courthouse, E. Liverpool, and Toledo, and Saginaw, Mich. The company’s rail-delivered potash postings will firm on that date to $430/st in Illinois, Indiana, Ohio, and Michigan.
Western Cornbelt: Agrium announced that its 60 percent red premium potash postings will firm on Feb. 2 to $420/st FOB Dubuque, Iowa, New Madrid, Mo., and Homestead, Neb. The company’s rail-delivered potash postings will firm
on that date to $430/st in Iowa, Missouri, Nebraska, Kansas, Oklahoma, and Colorado.
One regional supplier said his company had not increased warehouse red granular potash prices from the previous $390/st FOB level, but noted that he “was watching the market and will react once we see if everyone follows.”
Northern Plains: Potash pricing FOB Saskatchewan mines was quoted at $367-$387/st FOB for new sales, depending on producer and grade. Sources quoted delivered potash in the $400-$430/st range last week, with the upper end reflecting producer postings for new sales.
Agrium announced that its potash postings FOB Vade, Sask., would firm on Feb. 2 to $367/st for standard and $372/st for premium grade. Agrium’s 60 percent red premium potash postings will firm on Feb. 2 to $420/st FOB Shakopee, Minn., and Grand Forks and Colfax, N.D., and $430/st rail-DEL in Minnesota, Wisconsin, and the Dakotas.
Northeast: Potash was quoted at $410-$440/st DEL, with the higher number reflecting newer postings. Out of warehouse locations in western Pennsylvania, the market was reported at $420/st FOB, up from the previous $390/st FOB level, with 62 percent soluble potash quoted as high as $470/st FOB last week.
Agrium’s rail-delivered red premium potash postings will firm on Feb. 2 to $440/st in Massachusetts, Connecticut, Rhode Island, Maine, Vermont, New Hampshire, Kentucky, Tennessee, Delaware, Maryland, New Jersey, New York, Pennsylvania, West Virginia, Virginia, Alabama, Georgia, Florida, and the Carolinas.
Eastern Canada: PCS Sales moved its 60 percent potash postings in Eastern Canada down on Jan. 4 to $450/mt FOB warehouses in Ontario and Quebec, including Belton, Oxford Station, and Cote Ste Catherine. Several sources said a $30-$35/mt increase was in effect for February. One Ontario source said warehouse pricing had firmed to $485/mt FOB for red granular potash and $495/mt FOB for white granular potash in his trade area last week.
No current mine prices were available for potash out of New Brunswick.
The K-Mag market was reported at $344.50/mt FOB in Ontario, reflecting a drop from last report.
Pacific Northwest: Effective Feb. 2, Agrium’s 60 percent red premium potash postings will firm $30/st to $445/st railDEL and $435/st FOB the warehouse in southern Idaho, Utah, and Oregon’s Malheur County; $450/st rail-DEL and $440/st FOB in Washington, the Idaho Panhandle, and Oregon excluding Malheur County and the Willamette Valley; and $455/st rail-DEL and $445/st FOB in Oregon’s Willamette Valley. The company had originally scheduled the $30/st increase for March 1.
SULFUR
Tampa: PotashCorp has joined Mosaic in completing negotiations with all of its major sulfur suppliers at a new price up $60/lt from the previous quarter. That put the price of molten destined for Tampa by vessel at $90/lt, and rail prices will be adjusted accordingly.
However, that does not necessarily mean phosphate producers will get all the sulfur they need to reach the capacity they could use to fulfill the needs of their market. The recession has put a damper on driving, which means refineries were producing less fuel and therefore less sulfur than they normally would.
Meanwhile, prices on the world market have taken a sharp upturn. A rumor last week held that a price of $170/mt FOB was done in the Middle East to China. With a freight rate of about $30/mt, the price would be more than double the molten price delivered to Tampa.
Still, deliveries of sulfur to prill operations were close to half what they were a month earlier, but it was unclear whether that was due to dedicating more for the domestic market or to turnarounds and production problems at refineries.
A spill of about 450,000 gallons of crude oil occurred near Port Arthur after a collision by the inbound Exxon Mobil vessel Eagle Otome on Jan. 23. Traffic was beginning to move slowly in and out of the port by late last week, but delays were expected to continue. At least one sulfur vessel destined for Tampa had made it out into the Gulf, but others were delayed in both directions. Some refinery activity could be affected, as incoming crude-loaded vessels compose a large portion of the traffic.
A cold front moving across the Gulf was expected to create high waves and possible problems for sulfur vessels bound for Tampa last weekend. Supplies at Tampa were said to be “running hand-to-mouth.”
On the same day as the Beaumont spill, Dupont said it had released 1,900 pounds of methyl chloride vapors from the Dupont plant at Belle, W.V., during a five-day period.
Exxon Mobil also had an incident at its Baton Rouge refinery’s sulfur plant, but few details were available. Valero reported an incident at its plant in Benicia, Calif., but operations had returned to normal.
West Coast: Refineries and prill operations were in the final process of settling contracts late last week. It appeared the new price from the refinery to the priller would be around $30/lt FOB. Prill exported from Stockton, which is normally sold on a spot basis, was going for $70-$80/mt FOB.
Vancouver: New contracts were being settled at prices around $100/mt FOB, and spot sales were said to be exceeding the $100/mt level. A shortage of supply and higher world prices were major factors in the upswing.