Tampa: Sources said the recent run-up in prices at China was a bit of a fluke and may not last. The price has gone from around $80/mt to $120/mt in just the past several weeks.
Prices tend to rise at this time of year in China because of weather conditions in Russia and its other low-priced feeders, but that does not mean Chinese customers were willing to take the bait. While suppliers from the Middle East were more than willing to fill the gap, other buyers may not go along with the increases. As one source said, the “bubble” will break.
The thinking was that the current situation will not have a major impact on first-quarter prices. The phosphate industry has seen prices on the decline for the past couple months and will not be in a position to accept significantly higher prices.
According to the U.S. Department of Energy, the weekly average for refinery capacity operating rates fell 0.1 percent last week, from 88.7 percent to 88.6 percent. The year-ago rate was 87.5 percent.
The fourth-quarter price for molten sulfur delivered to Tampa was $75/lt.
U.S. Imports: U.S. July-September imports were up 8 percent, to 625,829 st from the year-ago 580,626 st.
U.S. Gulf: The price for Gulf prill was unchanged at $60-$70/mt FOB.
Vancouver: Suppliers from Vancouver were not reaping the benefits of the sharp price rise at China, and probably will not unless the price increase continues for some time. The price most in China were willing to pay was something south of $100/mt, and not the $120/mt being offered.
The spot price range at Vancouver was still $50-$70/mt FOB.
West Coast: Prices on the West Coast remained in line with Vancouver, and were reported in the $53-$73/mt FOB range.
Benelux: The Benelux price range for the fourth quarter was $108-$122/mt, down from the third-quarter price of $140-$155/mt.
ADNOC: The ADNOC price for November was $80/mt FOB. At Qatar, the price was $73/mt FOB.