U.S. Gulf: While some higher-priced barges were reported at NOLA early in the week, most said prices had sunk back to the $432-$435/st FOB range by week’s end. Upriver barges were reported to be garnering a significant premium.
Low water levels, especially on the lower Mississippi River, continue to be a major concern, as is a large influx of imports slated for August/September. There were unconfirmed reports that some vessels were being diverted away from NOLA.
Eastern Cornbelt: Granular urea pricing had reportedly slipped to $490-$500/st FOB in the Eastern Cornbelt region, with the low reported in the Illinois market.
Western Cornbelt: Granular urea continued to be quoted in the $495-$500/st range FOB most regional terminals in the Western Cornbelt, with minimal demand reported.
Northern Plains: Minnesota sources quoted the granular urea market at roughly $500/st FOB the Twin Cities, give or take. In the Dakotas, urea pricing for limited tons in late July ranged from $515-$526/st FOB, depending on location.
Agrium’s granular urea postings moved on July 20 to $550/st FOB Marion, S.D., and North Dakota warehouses at Alton, Carrington, Colfax, and Scranton; and $555/st DEL in Minnesota, Wisconsin, and the Dakotas. Those levels reflect a $25/st increase from Agrium’s July 13 urea postings in those locations.
Great Lakes: Granular urea pricing in the Great Lakes region ranged from $490-$505/st FOB, with the low quoted in southern Wisconsin and the upper end in the Michigan market. Michigan sources said prepay urea was being offered on a spot basis for about $15/st higher.
Northeast: The granular urea market was down from last report, with the dealer price pegged at a nominal $510/st FOB Philadelphia.
Rainfall in recent weeks has eased drought concerns in much of the Northeast, but patches of moderate to severe drought persisted in western New York and on Maryland’s eastern shore, according to the July 31 U.S. Drought Monitor.
Argentina: The Profertil complex is expected to be offline for one month due to gas curtailments.
Pakistan: The Trading Corporation of Pakistan (TCP) closed its last tender July 27. The company issued an award of 50,000 mt to Keytrade at $419.39/mt CFR. The price is $7/mt lower than what TCP paid to CHS in the previous tender.
All told, nine companies participated in the tender, with the highest offer at $447.39/mt CFR. Sources say the price reflects the sentiment that the urea market is going soft.
The tonnage awarded last week closes the importing authorized by the Pakistan government. After reviewing the output of the domestic urea producers earlier this year, the government instructed TCP to bring in 300,000 mt to ensure enough material was on hand for the upcoming application season.
Pakistani producers complained that the only reason there was a shortfall in urea production was because of a shortage of natural gas. The government diverted the gas from the industrial sector to domestic use. In the period leading up to the first couple of tenders, the producers argued that they could cover the 300,000 mt needed for less than the imports if they were only provided the natural gas they need.
Of the 250,000 mt already ordered, TCP reports that 110,000 mt has arrived in the country and is on its way to regional distributors.
Pakistani media report that in late June the Ministry of Petroleum reported five out of 10 urea plants were shut down because the suspension of natural gas forced the producers to close their plants.
The new estimated shortfall is being pegged at 443,000 mt by industry analysts. These