AMMONIA
Eastern Cornbelt: The anhydrous ammonia market was tagged at $540-$560/st FOB in the region, with the low out of spot Illinois locations for prompt tons. One source also reported fall prepay ammonia being offered at the $555/st FOB level in Illinois on a spot basis.
Western Cornbelt: The ammonia market was tagged at $540-$560/st FOB regional terminals, with the low in Nebraska and the upper end out of Iowa terminals. Postings remained as high as $580/st FOB at some locations. Out of production points in Oklahoma, ammonia pricing had reportedly moved to the $495/st FOB mark or higher, depending on location.
Effective Aug. 23, Agrium’s ammonia postings will move to $560/st FOB Mankato, Minn., and Iowa terminals at Early, Garner, and Whiting; $555/st FOB Greenwood, Neb.; $550/st FOB Hoag, Neb.; $545/st FOB Clay Center, Kan.; $540/st FOB Conway, Kan.; $535/st FOB Mocane, Okla.; and $495/st FOB Borger, Tex.
California: Anhydrous ammonia was steady at $520-$525/st truck-DEL in California, with aqua ammonia pricing unchanged at $142/st FOB.
Pacific Northwest: Truck-delivered ammonia was quoted firmly at the $550/st level in the Pacific Northwest region last week. Effective Aug. 11, Agrium’s anhydrous ammonia postings moved up to $530/st rail-DEL in Washington, Oregon, and northern Idaho; $550/st truck-DEL in Washington and Oregon east of the Cascades, and in northern Idaho; $555/st rail-DEL in southern Idaho and Utah; and $580/st truck-DEL in Montana and northern Wyoming from the company’s Carseland, Alberta, plant.
Western Canada: Anhydrous ammonia to the dealer had reportedly moved up to $612-$656/mt DEL in Western Canada, with the low in Manitoba and the higher numbers in Alberta. Most spot pricing quotes in Manitoba and Saskatchewan fell in the $612-$626/mt DEL range last week. Producer reference prices for ammonia ranged from $622-$666/mt DEL in the region, depending on location.
Southern Plains: Agrium reported that the restart of its Borger, Texas, ammonia plant began on Aug. 13, and that the facility was at 90 percent capacity with the temporary tower in place. The company reported in early August (GM Aug. 9, p. 13) that the plant had gone down unexpectedly due to a structural failure on the west side of the cooling tower.
Black Sea: Sources report Ukrainian producers are coming back online. The steady increase of prices in the international market is making it possible for the producers to start looking at firing up their plants again. Sources say a slow and steady return to production would not drastically affect the price. Demand, they say, is strong across the globe.
The Ukrainian producers had been taking extended turnarounds to avoid returning to the market place at a time of soft ammonia prices and higher natural gas prices. Even with the expected increase in natural gas costs, sources say the current ammonia market can guarantee plants will be able to operate and sell at a profit.
As the market entered the third quarter, the break-even price was pegged at $320/mt FOB. Now, sources say the price is closer to $350-$360/mt FOB.
The most recent estimate for prices out of Yuzhnyy is $360-$370/mt FOB, with higher prices expected in the coming weeks.
Middle East: Mitsui reportedly bought a cargo from Iran at $345/mt FOB late last week. The deal shows a continued increase in the market price.
The Arab producers reportedly showed some joy over the Iranian price. Most of the Arab producers are tied to formula-priced deals. Often these deals are at a discount from the spot market. The only problem is there have been few spot sales recently.
Producers have been arguing that the increase in prices elsewhere in the world should be reflected in the local market as well. But without specific deals to nail down a spot price, sources were hard-pressed to firmly call a price. The recent Iranian deal helped end the stalemate.
One source noted that the $345/mt FOB should be considered the low-end of the regional market because Iran often offers its product at a discount. The need to process the sale through a third party to handle currency exchanges – to avoid penalties based on the U.S. and European sanctions against Iran – often means the product needs to be offered at a slightly lower price than its Arab counterparts.
The discount was once as much as $10/mt, but in recent weeks the gap has closed to only a couple of dollars.
Without any other public deals to confirm the price, even one producer said the best guess is to call the market in the low $340s/mt FOB.
Asia: Buying remains firm and brisk. Sources say the most likely reason Mitsui went to Iran for a cargo was to satisfy an Asian buyer.
Sources report production in Malaysia and Indonesia remains in top form.
UREA
U.S. Gulf: Most sources last week pegged the granular urea barge market within the $303-$308/st FOB range for prompt trades. While some claimed little activity in the market, others said there was plenty as buyers moved to assure product was in place for wheat country.
Eastern Cornbelt: Granular urea prices actually eased back last week after the previous week’s rapid escalation. Sources tagged the dealer market in a broad range at $325-$345/st FOB, with the low end in the Cincinnati market.
Western Cornbelt: Most sources tagged the granular urea market at $330-$345/st FOB in the Western Cornbelt region, down slightly from the previous week. The upper end of the range was reported in Iowa, with the low out of river terminals in Missouri on a spot basis.
California: Urea had reportedly moved up to $385-$405/st FOB California warehouses, with the upper end reflecting reference levels from Simplot at certain locations. That range reflected a $25/st increase from last report. No current delivered urea prices were reported in the region.
Pacific Northwest: Sources tagged the granular urea market at $365-$385/st DEL in the region, up $15-$20/st from last report. On an FOB basis, the granular urea market was tagged at $350-$380/st FOB, depending on location and supplier.
Agrium’s urea postings firmed on Aug. 13 to $365-$375/st DEL in Montana and Wyoming, depending on location; $380/st FOB West Woodburn, Ore.; $385/st FOB Washington warehouses at Glade, Warden, and Wilson, and Idaho warehouse locations at Pella and Acequia; $390/st DEL in Washington, Oregon, Idaho, and northern Nevada; $400/st DEL in northern and central Utah; and $405/st DEL in southern Utah. Those prices were up $20/st from Agrium’s July 23 urea postings, and $50/st from July 1 reference levels.
Western Canada: Urea pricing in Western Canada was on the upswing. As of Aug. 13, urea pricing had reportedly firmed to $436-$441/mt DEL in Manitoba and Saskatchewan, with Alberta pricing quoted in the $446-$461/mt DEL range. Those levels were up some $25/mt from last report, and up a full $65/mt from mid-July dealer prices in the region. Dealer reference levels from producers ranged from $445-$470/mt DEL in the region.
India: The IPL tender closed early last week, with more than 1.5 million mt of material offered.
Prices showed that just about everyone was looking at higher prices. Offers from the Black Sea showed sellers at $285-$300/mt FOB and from the Middle East at $310-$315/mt FOB.
For the first time, IPL demanded all offers be made in FOB and CFR. Many of the offers appeared to show freight rates of $10-$15/mt. Such rates are difficult to accept, said one source.
Most of the CFR prices came in higher than the target price of $310/mt CFR. Sources said last week the $310/mt CFR price is the highest the government was willing to go for the subsidy program.
The offers made in the tender follow on page 6.
In the end, IPL made counter bids at $308/mt CFR for the port of Krishnapatnam, $310/mt CFR for Vizag, and $311/mt CFR for Paradip and Tuticorin. IPL issued letters of intent Thursday to the following companies.
| Company | Quantity mt | Source |
| Ameropa | 90,000 | China |
| Quantum | 50,000 | China |
| Amber | 50,000 | China |
| Sinochem | 55,000 | China |
| Rare Earth | 60,000 | China |
| Helm | 50,000 | China |
| Dreymore | 50,000 | China |
| Continental | 50,000 | China |
| Swiss Singapore | 25-40,000 | China |
| Wilson | 25-30,000 | China |
| Transglobe | 20,000 | Iran |
Reportedly, Helm and Quantum were initially also asked to supply an additional 50,000 mt each under a seller’s option.
Industry sources were surprised to see so many tons offered from China. One trader speculated that some of the offers may not have been made with the Chinese tons already under contract.
In the past, some Chinese producers have backed multiple traders in tenders. How many of the tons IPL is looking to buy are unique to each seller is up in the air, said one trader.
Some traders are also wondering how many tons will actually be able to be delivered by the October 15 deadline.
China bumps up its export duty to 110 percent beginning Sept. 16 through Oct. 15. Only urea in a bonded warehouse with a vessel already nominated by Sept. 15 will be allowed to be shipped under the current 7 percent duty.
One trader said the scramble for ships in such a narrow window could have interesting consequences for the freight market.
Another trader speculated that IPL could still walk away from some of the deals. In the past, he noted, some of the Indian buying companies have rejected cargoes because of the quality of the vessel.
A rush for ships could lead to some problems with the IPL inspectors.
The offers were to remain valid until Aug. 22. Sources say IPL could still issue more LOIs within that time frame if the companies are willing to fit the delivered price into the Indian pricing formula.
Even accepting tons at $311/mt CFR stretches the number set by the Indian government to qualify for a subsidy.
One source said that allowing cargoes to come in just over the line confirms the view by some in the industry that the government, despite its hard-line statements, is willing to stretch the rules to ensure enough urea reaches farmers during the application season.
Already, Indian media are reporting of complaints by some farmers that supplies in their areas are not high enough for their needs. In turn, local politicians are leaning on the central government to get urea into the country. None are yet reported as saying the imports should come in “at any cost,” but the pressure is growing.
Middle East: Arab producers offered tons in the Indian tender more to show where they think the market should be for their product rather than having any hopes of winning an award.
Offers at $300-$315/mt FOB ensured the producers would not get an award as long as they held to those prices.
The Indian goal of $310/mt CFR means that nothing higher than $295/mt FOB with a very good freight rate could be considered by the Indians.
Sources say the small quantities offered from the area also point to the producers’ intent of sending a message rather than making a deal.
Reports from the area say production in the area remains steady, but not at full capacity. The order books are reportedly full into September, with orders from a number of long-term clients.
Any spot deal would have to be in the low-$300s/mt FOB, say sources. But one producer said the contract/formula tons are still moving out at levels just under $300/mt FOB.
Egypt reportedly concluded a deal at $320/mt FOB.
The Transglobe offer into the Indian tender showed that Iran is looking at $302/mt FOB, based on last week’s exchange rate between the UAE dirham and the US dollar.
With the Iranian business at the low end of the market and Egypt at the upper end, sources say the price range is $305-$325/mt FOB for prills and granular.
IPL Urea Tender |
|||||||
| Company | Source | Quantity (mt) | US$/mt FOB | US$/mt CFR | Discharge Port | Comments | |
| Wilson | China | 25-30,000 | 284.75 | 308.75 | Kakinada | ||
| Open | 309.00 | Vizag – Tuticorin | |||||
| Valency | Open | 25-30,000 | 284.00 | 319.00 | Vizag | ||
| YUC | China | 40,000 | 285.00 | 320.00 | Vizag | ||
| JSC | Odessa | 30,000 | 287.00 | Aug. – Sept. shipment | |||
| Sinochem | China | 55,000 | 288.98 | 309.48 | Krishnapatnam – Gangavaram | ||
| 25,000 (SO) | |||||||
| Ameropa | Open | 60,000 | 293.23 | 308.23 | Krishnapatnam | ||
| 311.73 | Mundra | ||||||
| 25-30,000 | 291.23 | 312.23 | Vizag | ||||
| 85-90,000 (SO) | Same terms | ||||||
| Helm | China | 50,000 | 294.00 | 314.00 | Kakinada – Vizag | ||
| 50,000 (SO) | |||||||
| Yuzhnyy | 200,000 | (SO) | 300.00 | 328.00 | Mundra – Vizag – Kakinada | ||
| China | 200,000 (SO) | 308.00 | 328.00 | Mundra – Vizag – Kakinada | |||
| Dreymore | China | 40-60,000 | 297.71 | 312.71 | Krishnapatnam | Shipment Oct. 15 | |
| Yuzhnyy | 285.76 | ||||||
| Iran | 302.76 | ||||||
| Egypt | 298.76 | ||||||
| China | 297.71 | ||||||
| 40-60,000 (SO) | Same terms | ||||||
| Rare Earth | Open – China | 50-55,000 | 295.00 | 309.75 | Krishnapatnam | ||
| 25-30,000 (SO) | Same terms | ||||||
| Quantum | Open | 50-100,000 | 300.00 | 317.90 | Krishnapatnam – Gangavaram | ||
| Amber | China – Open | 50,000 | 300.00 | 314.90 | Krishnapatnam – Gangavaram | ||
| Swiss Singapore | Open | 25-40,000 | 304.31 | 314.76 | Kandla – Mundra | ||
| 25,000 (SO) | |||||||
| Keytrade | Open | 25,000 | 304.00 | 322.00 | Vizag | Valid until Aug. 18 | |
| Transammonia | Oman | 25-50,000 | 310.00 | Sept. – Early Oct. | |||
| China | 300.00 | ||||||
| 319.50 | Pipavav | Oct. 15 arr. | |||||
| 316.00 | Krishnapatnam | ||||||
| 25-50,000 (SO) | Same terms | ||||||
| Emmsons | 40-50,000 | 311.31 | 331.31 | Mundra | |||
| 40-50,000 (SO) | |||||||
| Uzuagro | Open | 45,000 | 310.00 | 355.00 | Vizag | 3 lots in containers | |
| 335.00 | Kandla | ||||||
| 308.00 | 333.00 | Mundra | |||||
| Fertil | UAE | 25,000 | 312.00 | ||||
| PIC | Kuwait | 50,000 | 312.00 | Sept. – Oct. shipment | |||
| 311.00 | |||||||
| Qafco | Qatar | 50,000 | 312.00 | Sept. – Oct. shipment Oct. ship | |||
| Sabic | Saudi Arabia | 25-30,000 | 315.00 | ||||
| Continental | Open | 40-45,000 | 318.50 | Krishnapatnam | |||
| 320.50 | Vizag – Kakinada – Tuticorin | ||||||
| Transglobe | Iran | 15-20,000 | 1110.25 UAE DH | 1143.75 UAE DH | Kandla – Mundra | ||
| Gavilon | China – FSU – Malaysia – Middle East | 25-55,000 | 315.00 | 337.00 | Gangavaram | Valid until August 17 | |
Black Sea: Just before the IPL/India tender closed, sources were reporting a lot of activity in the Yuzhnyy market. The speculation was that traders were looking to grab as many low-priced tons as possible to offer in the tender.
The results of the tender as Green Markets went to press showed no winners from the Black Sea.
Prices had moved up smartly in the past month. In early July the price was at $240-$245/mt FOB, with some mild indications the price was ready to move up.
Late last week sources were quoting deals done at $290/mt FOB, with strong indications the price will continue to rise.
Sources say the market can easily be called at $280-$290/mt FOB, with room to expand.
One trader said the producers will have to hope for a sustained higher market price. The cost of natural gas is expected to go up in the fourth quarter. Without a corresponding increase in urea prices, the producers may have to follow the example of the region’s ammonia producers and shut down.
The Black Sea producers are facing some serious challenges to keeping the price up.
With IPL issuing awards for almost nothing but Chinese tons, and with the fires around Moscow affecting the country’s agriculture belt, two major sales venues are closed off.
Some traders say the producers are beginning to show some signs of concern that the run-up in prices may be at an end.
Still, said one Asian trader, there are possibilities into Latin America and Europe that could provide a reasonable floor for the Black Sea price.
Indonesia: Late last week Kaltim announced a selling
tender for 60,000 mt to close Friday, August 20. In the end,
the company sold 100,000 mt.
The tender is an important indicator of how Asian buyers see the market. And the evidence is that the market is stronger and more willing to accept higher prices. Even the lowest bid showed a $10/mt increase in pricing ideas from the previous tender.
Kaltim awarded 70,000 mt to Fertcomm Trading with its bid of $293.25/mt FOB. Brio and Summit each received 15,000 mt for their tie bids of $291/mt FOB.
The last tender price from Indonesia was $267/mt FOB.
Kaltim said it would accept bids for granular or prilled urea. One source said because the company can deliver in either flavor, it will take the highest bid for whatever type of urea the buyer wants.
In the end, it looks as if everyone wanted granular material.
| Company | US$/mt FOB | Type of urea |
| Fertcomm Trading | 29325 | Granular |
| Brio Agrichem | 291.00 | Granular |
| Summit Prakasa | 291.00 | Granular |
| Indevco | 287.50 | Granular |
| Trada | 287.25 | Granular |
| Liven | 286.25 | Granular |
| Universal | 286.00 | Granular |
| Feitra Ltd. | 284.00 | Granular |
| Parna Artha | 283.00 | Granular |
| OE | 282.50 | |
| Swiss Singapore | 281.25 | Granular |
| Samsung | 280.50 | Granular |
| Helm | 279.00 | Granular |
| RCL | 278.00 | Granular |
Late Friday Pusri announced its own selling tender, to close August 23 for 60-70,000 mt. Industry watchers will look to see if the higher prices hold over the weekend.
Pakistan: The flooding that has left an estimated 4 million people homeless may have also washed out the nutrients from the farmland.
Sources said once the water recedes the farmers may need to replace the fertilizer that was spread just before the flooding, and then some extra to jump-start the revitalization process.
A lot will depend on the final analysis. If fertile topsoil was dropped onto the affected farms, the fertilizer needs will be less. If, as is expected by sources outside the country, the topsoil was just removed, more fertilizer will be needed.
Ironically, Sabic had just sent the last cargo of 300,000 mt to the country under the government-to-government deal signed earlier this year.
Sources had expected Sabic to stretch out its deliveries into September to ensure a continued stream of sales. A trader noted, however, that the company moved as quickly as the Pakistan buyers had hoped.
Nepal: The AIC tender closed last week with four offers. The tender was only for 25,000 mt of bagged prilled urea. But, said one trader, it does offer a small window into the pricing ideas of regional players.
The offers were to be based on delivery to the seaport of Haldia or the river facility Kolkata in northeast India.
Tender results follow.
| Company | Source | Quantity (mt) | US$/mt CFR Bagged |
| Wilson International | China – Vietnam | 12,500 | 352.37 |
| 12,500 | 36187 | ||
| Trading | China | 25,000 | 355.00 |
| Indian Potash Ltd. | UAE – Kuwait – Iran | 25,000 | 362.00 |
| Samsung | China | 25,000 | 374.99 |
An award in the tender is not expected for a while, said one trader.
The urea sales to Nepal usually involve some sort of international development aid money that is handled through a trading house.
NITROGEN SOLUTIONS
U.S. Gulf: New business was reported last week at $215/st FOB ($6.72/unit), with offers now at $220/st FOB ($6.87/unit). Product continues to be in short supply.
Eastern Cornbelt: UAN remained in the $7.50-$8.13/unit FOB range in the region, with the low reported by sources in Indiana and Ohio out of spot river locations at midweek.
Western Cornbelt: UAN-32 pricing was unchanged at $245-$260/st ($7.66-$8.13/unit) FOB in the Western Cornbelt for limited tons. One supplier said he was out of product last week, but would likely repost as high as $275/st ($8.59/unit) FOB when solutions inventories are restocked.
California: UAN-32 was quoted at $270-$285/st ($8.44-$8.91/unit) FOB in California last week, up some $25-$35/st from last report. Aug. 15 reference levels from Simplot included $275/st ($8.59/unit) FOB Stockton, $280/st ($8.75/unit) FOB Helm, and $285/st ($8.91/unit) FOB El Centro.
Agrium’s UAN-32 postings in California moved on Aug. 2 to $268/st ($8.38/unit) FOB Sacramento, $290/st ($9.06/unit) truck-DEL in Central California, and $295/st ($9.22/unit) truck-DEL in Northern California. Agrium’s UAN-32 postings moved up $15/st on Aug. 13, to $283/st ($8.84/unit) FOB Sacramento, $305/st ($9.53/unit) truck-DEL in Central California, and $310/st ($9.69/unit) truck-DEL in Northern California.
Pacific Northwest: Sources quoted delivered UAN-32 commonly at the $275/st ($8.59/unit) level at mid-month, up some $15-$25/st from last report, but higher postings were in effect. Agrium’s UAN-32 postings firmed on Aug. 2 to $275/st ($8.59/unit) DEL in Washington, Oregon excluding Malheur County, and northern Idaho; $280/st ($8.75/unit) rail-DEL and $285/st ($8.91/unit) truck-DEL in southern Idaho; and $285/st ($8.91/unit) DEL in Montana and northern Wyoming.
Agrium’s UAN-28 posting also moved on Aug. 2 to $249/st ($8.89/unit) DEL in Montana and northern Wyoming. Agrium’s UAN-32 postings took another increase on Aug. 13, moving up $15/st from the company’s Aug. 2 reference prices. As a result, new postings from the company include $290/st ($9.06/unit) rail-DEL in Washington, Oregon excluding Malheur County, and northern Idaho; $295/st ($9.22/unit) rail-DEL and $300/st ($9.38/unit) truck-DEL in southern Idaho, Oregon’s Malheur County, and Nevada; and $300/st ($9.38/unit) DEL in Montana and northern Wyoming. Agrium’s UAN-28 posting also moved on Aug. 13 to $263/st ($9.39/unit) DEL in Montana and northern Wyoming.
Western Canada: UAN-28 pricing was up significantly from last report. Sources quoted the market at $261-$276/mt ($9.32-$9.86/unit) DEL in the region, with the low end in Manitoba and the higher numbers to dealers in Alberta. Producer postings ranged from $271-$286/mt ($9.68-$10.21/unit) DEL in the region, depending on location.
AMMONIUM NITRATE
U.S. Gulf: New barge business was reported last week at $252/st FOB, with offers now at $255/st FOB.
Western Cornbelt: Ammonium nitrate was tagged at $290-$305/st FOB in the region, with the low in Iowa and the upper end in Missouri.
California: No market was reported for ammonium nitrate in California. CAN-17 was unchanged at $242-$255/st FOB in the state.
Pacific Northwest: No market was reported for ammonium nitrate in the region last week. Agrium’s CAN-17 posting FOB Kennewick, Wash., firmed on Aug. 2 to $250/st, but industry sources said tons were unavailable. Agrium’s 20-0-0 ammonium nitrate solutions posting FOB Kennewick also firmed on that date to $168/st.
AMMONIUM SULFATE
Eastern Cornbelt: On Aug. 16, Honeywell moved its granular ammonium sulfate postings to $190/st FOB Danville, Ill., and Wisconsin terminals at Amherst Junction and Prairie du Chien, with mid-grade sulfate postings moving to $180/st FOB Danville and Byron, Ill. Honeywell’s raildelivered postings moved on that date to $200/st for granular and $190/st for mid-grade in Illinois, Wisconsin, Arkansas, and Mississippi. Three days later, however, the company notified customers that all of the granular tons available at those prices had been spoken for, while mid-grade remained available at those published prices.
Western Cornbelt: Honeywell moved its granular ammonium sulfate postings up on Aug. 16 to $190/st FOB Dubuque, Iowa, St. Louis, Mo., Omaha, Neb., and Roseport, Minn., with mid-grade sulfate postings moving to $180/st FOB Roseport and Omaha. Honeywell’s rail-delivered postings moved on that date to $200/st for granular and $190/st for mid-grade in Minnesota, Iowa, and Missouri. On Aug. 19 the company notified customers that all of the granular tons available at those prices had been spoken for, but mid-grade remained available at those published prices.
California: Ammonium sulfate remained at $220-$247/st
FOB, with the low for standard grade and the upper end for
granular product in desert locations.
Pacific Northwest: Ammonium sulfate was pegged at $215-$225/st DEL in the Pacific Northwest.
Western Canada: Granular ammonium sulfate was unchanged at $285-$295/mt DEL in the region, with dealer reference prices roughly $5-$10/mt higher.
PHOSPHATES
Central Florida: Inventories were down, but so was demand last week in the Central Florida DAP market. Producers were filling only contract orders, and traders were in no hurry to get rid of the small supplies they were holding onto.
Although it had nothing available for prompt shipment, CF Industries was posting an August price of $440/st FOB, and Mosaic had no posted price and nothing available, but would charge $445/st FOB if it had any to sell.
The pending closing of Mosaic’s South Fort Meade Mine will further cut into supply. Agrifos still plans on operating until the end of the first quarter of next year, and may have enough left to go until June, but it will likely shut down at the end of the quarter. The combined loss from the two closings would amount to about 1.6 million t/y, and should have the effect of driving up prices in an already tight market.
The Central Florida DAP price range changed slightly from the previous week’s $440-$450/st FOB, to $445-$450/st FOB based on recent sales and availability. Neither Mosaic nor CF had anything available for prompt delivery. PCS was making sales at “competitive prices.” Agrifos increased its asking price from $475/st FOB to $480/st FOB for DAP truck sales, while railcars were about $5/st FOB less. Although Agrifos was sold out through August, it did have supply available for September.
U.S. Gulf: Floating NOLA DAP barges on the Gulf’s river system were either gone or very nearly so late last week. At the same time, warehouses and terminals were moving product at a steady pace, depending on the area.
Sales were also way down for the week, and with a fairly wide – $10/st FOB – price spread. Although prompt sales were hard to find, future sales for September were fairly common last week, at $472/st FOB. Asking prices were about $475/st FOB.
Terminal prices for DAP were running $490-$505/st FOB, and MAP was posted $10-$15/st FOB higher, depending on location. Terminal prices will most likely increase during the next month as demand hits and supplies remain tight.
Terminals on the Arkansas were quickly running out of time to get any products upriver, as the Corps of Engineers was preparing to begin maintenance work on locks on the river later this week.
Gavilon has been selling phosphate from Morocco, which was scheduled to arrive and be ready for distribution in late September.
Sources said that although dealers were buying at least a portion of their projected needs for the fall season, growers were only beginning to trickle in. However, that could change relatively quickly, because it appeared the corn crop would be harvested earlier this year. Corn was fetching $4.35/bushel for December and $4.39/st FOB for December 2011. At those prices, farmers cannot afford to skimp on phosphate applications for their crops. Wheat was also doing well, but was down slightly from the previous week.
Based on actual sales last week, the NOLA DAP barge range increased slightly – from $460-$468/st FOB to $462-$472/st FOB – as asking prices for September were between $472-$480/st FOB. Sources expect prices to rise for the next couple of weeks.
Eastern Cornbelt: Sources quoted the regional DAP market at $495-$505/st FOB, up another $10/st from last report. One source reported the low end out of a local terminal at midweek, but said the price was going up the next day. Ohio sources quoted DAP at $500/st FOB Cincinnati.
MAP was in very tight supply, with one source pegging the E. Liverpool, Ohio, market firmly at the $525/st FOB level last week. The 10-34-0 market was pegged at $360-$385/st FOB in the region, with the low in Indiana and the upper end reported in the Ohio market.
Several sources talked of delays in receiving fill phosphate tons for fall. One said he has received only seven railcars of DAP out of a total of 100 ordered.
Western Cornbelt: The DAP market had reportedly moved to $490-$505/st FOB, with MAP $10-$15/st higher. One Missouri source tagged the dealer market firmly at $495/st FOB for DAP and $510/st FOB for MAP in his trade area, while a western Iowa contact put the MAP market at $510-$520/st FOB for limited tons.
10-34-0 was tagged at $360-$370/st FOB in the region.
California: DAP and MAP were quoted at $520-$535/st FOB or DEL based on producer postings. Simplot moved its reference prices for both DAP and MAP to $520/st on Aug. 9. Agrium’s MAP postings in California and Arizona firmed on Aug. 4 to $520/st FOB warehouse or rail-DEL. On Aug. 18, however, Agrium’s MAP postings firmed again to $535/st FOB or rail-DEL in the region, up $35/st from the company’s July 26 posting.
16-20-0 was pegged at $344-$374/st FOB California warehouses, up $10/st from last report. Simplot was reportedly referencing 0-45-0 SSP at $452/st FOB or rail-DEL in California, also up $10/st from late July pricing levels.
Phosphoric acid pricing as of Aug. 1 firmed to $8.55/unit DEL for both super phosphoric acid (SPA) and merchant grade acid (MGA). Simplot was also referencing MGA at $8.75/unit FOB in the state as of Aug. 1, and said another increase is slated for Sept. 1. Agrium’s postings for SPA and MGA moved on Aug. 1 to $855/st rail-DEL in Arizona and California.
10-34-0 pricing in California as of Aug. 1 moved to 373-393 FOB, depending on location.
Pacific Northwest: Phosphate prices were up significantly from last report. Sources pegged DAP and MAP at $510-$520/st FOB or DEL in the region, with the low in Montana and the upper end in Washington. Simplot was referenced at $515/st in the Pacific Northwest and Nevada, and $510/st in Idaho and Utah.
On Aug. 18 Agrium reposted MAP at $520/st DEL in Montana and Wyoming; $525/st DEL in southern Idaho, Utah, Nevada, and Oregon’s Malheur County; and $525/st FOB and $530/st DEL in Washington, northern Idaho, and Oregon excluding Malheur County. Those levels represent a $15/st increase from Agrium’s Aug. 4 postings, a $35/st increase from July 26 postings and a $55/st hike from the company’s July 1 postings, but industry sources said inventories were mostly sold out after a busy July fill period.
16-20-0 was tagged at $331-$336/st DEL in the region, up $10/st from last report. 10-34-0 was quoted at $380-$400/st FOB.
SPA and MGA were quoted at $8.55/unit rail-DEL in the region from Simplot. Agrium also firmed its phosphoric acid prices in August to $855/st rail-DEL in Idaho, Montana, Nevada, Oregon, Utah, and Washington.
Western Canada: MAP to the dealer had firmed to $622-$657/mt DEL in Western Canada, up roughly $40/mt from last report and $20/mt higher than Aug. 13 pricing levels. Sources quoted the low end of the range in Manitoba, with Saskatchewan pricing levels in the $607-$617/mt DEL range. Alberta sources pegged the dealer market in the $612-$637/mt DEL range last week. Dealer reference levels ranged from $630-$665/mt DEL in the region in mid-August.
10-34-0 was pegged at $480-$493/mt DEL in the region last week.
U.S. Export: No new phosphate exports were done last week, so the price range remained unchanged at $496/mt FOB, but it would probably take a price of $500-$505/mt or better to get anything out of this country.
The Fertilizer Institute (TFI) issued its export phosphate report for July. Hardly a surprise, but hungry India came out on top and accounted for the vast majority of U.S. DAP exports – 493,966 mt of the total of 595,361 mt exported. The monthly total was an increase of 7.2 percent over the same period a year ago. Brazil was in second place at 36,007 mt, followed not so closely by Colombia at 17,642 mt. For the calendar-year-to-date, India, which got a late start on buying, has received 1,367,254 mt of DAP, Mexico 173,030 mt, and Argentina 162,265 mt.
TFI said MAP exports for July were 25.1 percent higher than in 2009 at 184,490 mt. Brazil was the big buyer at 86,742 mt, followed by Argentina at 47,726 mt and Japan at 14,301 mt. For the calendar-year-to-date, Brazil topped the list at 328,994 mt, with Australia next at 221,294 mt, and Canada the third-largest MAP importer at 173,059 mt. The total of MAP exports so far this year amounted to 1,052,751 mt, an increase of 16 percent.
The international market has been looking elsewhere for cheaper phosphate supplies, as domestic demand remained relatively strong and inventories low in this country.
India: Deepak is in the market for 30,000 mt of DAP – and they are looking for DAP at sub-US$500/mt CFR.
Nagarjuna Fertilizers has contracted for 30,000 mt of DAP ex China at US$492/mt CFR India, including credit.
Domestic sources say total Indian DAP imports to date total around 8 million mt.
IFFCO will take phosphate rock on a trial basis from the newly-opened Bayovar mine in Peru, to arrive in September.
POTASH
Eastern Cornbelt: Potash was quoted in a broad range at $390-$410/st FOB, with the upper end reflecting new producer postings and the low reported for spot warehouse tons from secondary suppliers.
For the Aug. 18 through Sept. 30 order and shipping period, Agrium firmed its 60 percent red premium potash postings to $420/st rail-DEL in Indiana, Ohio, Michigan, Wisconsin, and Illinois; and $410/st FOB Illinois warehouses at Rock Island, Granite City, Marseilles, and Calumet City; Indiana warehouses at Garrett, Seymour, and Mt. Vernon; Ohio warehouses at Washington Court House, E. Liverpool, and Toledo; and Saginaw, Mich.
Agrium also firmed its potash postings FOB Vade, Sask., to $370/st for standard and $375/st for premium potash for the same Aug. 18 through Sept. 30 period.
Western Cornbelt: Sources continued to quote the low end of the potash market at $390-$397/st FOB on a spot basis last week, but higher postings were taking effect. For the Aug. 18 through Sept. 30 order and shipping period, Agrium firmed its 60 percent red premium potash postings to $420/st rail-DEL in Iowa, Nebraska, Missouri, Minnesota, the Dakotas, Colorado, Kansas, and Oklahoma; and $410/st FOB Dubuque, Iowa, Shakopee, Minn., New Madrid, Mo., Homestead, Neb., and Colfax and Grand Forks, N.D.
California: Potash was quoted at $430-$440/st DEL in the state, up $15/st from last report. Potassium nitrate remained at $929-$996/st FOB, with the low for bulk tons and the upper end for bagged product. Sulfate of potash (SOP) was quoted at $600-$630/st FOB after discounts for orders of bulk fill tons placed by Nov. 16 and shipped by the end of November.
Pacific Northwest: Potash pricing had reportedly firmed to $425-$445/st DEL for new orders, depending on grade, supplier, and location. For the Aug. 18 to Sept. 30 order and shipping period, Agrium’s 60 percent red premium potash postings firmed to $420/st FOB and $430/st rail-DEL in southern Idaho, Utah, and Oregon’s Malheur County; $425/st FOB and $435/st rail-DEL in Washington, the Idaho panhandle, and Oregon excluding Malheur County and the Willamette Valley; and $430/st FOB and $440/st rail-DEL in Oregon’s Willamette Valley.
Western Canada: Potash was firming in the region. Early in the week, the market was quoted at $397-$406/mt FOB Saskatchewan mines to Canadian customers, depending on grade, producer, and location. Out of Western Canada warehouses, the market remained at $412-$437/mt FOB, with the lower numbers reported in Manitoba for 60 percent red potash and the upper end for 62 percent white granular tons FOB Calgary, Alberta.
As of Aug. 18, however, sources said the market had firmed to $420-$429/mt FOB Saskatchewan mines, with warehouses ranging from $435-$460/mt FOB, depending on grade and location.
Eastern U.S.: For the Aug. 18 through Sept. 30 order and shipping period, Agrium firmed its 60 percent red premium potash postings to $425/st rail-DEL in Alabama, Georgia, Florida, the Carolinas, Kentucky, Tennessee, Virginia, Delaware, Maryland, Pennsylvania, West Virginia, New York, New Jersey, Massachusetts, Connecticut, Rhode Island, Vermont, New Hampshire, and Maine. Agrium’s warehouse postings for that period moved to $417/st FOB Lynchburg, Va., and Wilmington, N.D., and $420/st FOB Mulberry, Fla., and Georgia locations at Americus, Bainbridge, Savannah, and Tifton.
NPK
India: Deepak is in the market for 30,000 mt of NPK 10-26-26 and 12-32-16 for Aug/Sept shipment for the West Coast of India.
RCF has tendered for 475,000 mt for various grades of NPK/NP. The tender closes Aug. 25.
MMTC has issued a tender for 60,000 mt of NP 20.20.0+13S and 35,000 mt of NPK 12.32.16 for Sept/Oct arrival.
SULFUR
Tampa: Refinery rates increased by 1.9 percent, from 88.1 percent to 90 percent for the week ending Aug. 13, according to the U.S. Department of Energy. That should help bolster supplies, but at least one source said it was difficult to find additional supply outside of existing contracts.
With Agrifos shutting down operations in the Houston area around the end of the first quarter of next year and Mosaic planning to shutter its South Fort Meade facility due to problems from a federal court in obtaining a contested Army Corps of Engineer permit, less sulfur will be needed in coming months. Mosaic could lose about 1 million st/y of phosphate production from South Fort Meade, and Agrifos produces about 600,000 st/y. That should eliminate the need for around 650,000 lt/y of sulfur.
The international sulfur market was improving last week, and recent agreements in China resulted in a price of $165/mt DEL. However, a portion of that may be due to rising freight rates, which took a big jump last week.
Vancouver: The two sulfur wharves at Vancouver will both be shutting down for two-week periods within the next month. PCT will be able to receive but not ship for two weeks, and when it restarts, Vancouver Wharves will neither be able to receive nor ship for the following two weeks.
MARKET NOTES
Pakistan: Pakistan’s largest urea manufacturer, Fauji Fertilizer Co. Ltd. (FFCL), has announced that it will acquire a 79.85 percent share of Agritech Limited (AGL), which owns two fertilizer plants – Pak American Fertilizer (PAF) and Hazara Phosphate Fertilizer (HPF).
The PAF manufacturing facility is located in Mianwali (Punjab) and can produce 352,000 mt/y of urea, while HPF is located in Haripur (NWFP) and can produce 130,000 mt/y of SSP.
Agri Tech had already instituted modernization programs at both plants, which will result in capacity enhancements of 37 percent and 25 percent for urea and SSP, respectively, to 483,000 mt/y and 162,000 mt/y. Completion of the expansion is expected by the end of the calendar year.