Industry sources are reporting that CF Industries Holdings Inc. on June 24 launched a UAN-32 fill program, with terminal postings at $135/st FOB Verdigris and Woodward, Okla.; $150/st FOB Mount Vernon, Ind., St. Louis, Mo., and Port Neal, Iowa; and $155/st FOB Cincinnati, Ohio. No details were confirmed about the order and shipping window, or if pricing offers were extended at other terminals.
Sources reported RCF issued a counter bid in its urea tender based on the Samsung prices of $237.35/mt CFR for the East Coast and $238.45/mt CFR for the West Coast.
Rashtriya Chemicals & Fertilizers Limited released the offered prices in the urea tender that closed June 19. Samsung came in with the lowest prices for the East and West Coasts at $237.35/mt CFR and $238.45/mt CFR, respectively. Sources said Samsung price is well off the average of $244/mt CFR. One option floated is for RCF to declare all offers valid and traders must supply their offered tons. Another is to accept the price of another trader and set that as the price for all purchases except the Samsung tons.
The Samsung prices equate to a netback into China around $225/mt FOB and to the Arab Gulf at $227/mt FOB. These prices represent a drop for Chinese producers and an increase for their Arab counterparts.
