The changes in prices of urea, ammonium sulfate, ammonium phosphate, Calcium triple superphosphate and potash fertilizer from August 11-August 18
Urea
Prices in most international urea markets fell again this week due to China's commitment to supply large quantities of urea to India.
This round of Indian IPL urea tender suppliers finally confirmed the tender volume of 1,759,400 tons. Among them, more than 1.12 million tons will be loaded from Chinese ports, which is far beyond the 800,000 tons expected in the pre-tender period.
In addition, market trading generally slowed down as importers and traders mostly waited for the confirmation of India's urea tender before making new deals. The U.S. Gulf fell $15/mt, Brazil $20/mt, Europe $20/mt, and Southeast Asia $20/mt.
Moreover, neither the grain nor the energy markets will provide much support for market sentiment or fundamental balance in the near term.
The international market is trending towards a surplus situation as supplies from Nigeria and Southeast Asia return to normal and Chinese exports increase. Demand, on the other hand, does not look outstanding and traders and importers seem to be generally bearish.
Ammonium sulfate
Standard ammonium sulfate prices in Northwest Europe fell to $172-185/mt FOB and stabilized due to limited spot supply in September. Northwest Europe granular ammonium sulfate FOB was 245-300 euros per ton.
China's standard ammonium sulfate price was $157-170/mt FOB this week.
Prices in the north were lower than in the south this week as northern extruded granular ammonium sulfate were less active in the market and did not buy large quantities of standard caprolactam-grade ammonium sulfate as raw material.
MMA grade ammonium sulphate prices were stable at $135-145/mt FOB. Extruded pellet ammonium sulfate prices were $185-190/mt FOB this week. There was a deal for 5,000mt of extruded granular ammonium sulfate at $190/mt FOB to Brazil for September shipment.
Atlas Philippines received the lowest bid of $190/mt for 6,000 mt of standard ammonium sulfate to be shipped to Sangi and Davao ports by Sept. 10 in a purchase tender last week. It is unclear whether the bid was won. Importers issued a new purchase tender this week for 8,000 tons of standard ammonium sulfate to be shipped to Sangi port by September 20th. The tender will close on August 23rd.
Domestic demand for ammonium sulphate in Vietnam has been weak this week. 6,000 mt of caprolactam-grade ammonium sulphate for shipment at the end of September is being tendered at $155/mt CFR.
Against the backdrop of lower offer levels, Brazilian extruded granular ammonium sulfate prices fell to $210-215/mt CFR. Brazilian importers remain on the sidelines due to uncertainty in the urea market. Standard ammonium sulfate prices were at $200-205/mt CFR.
Tepeyac of Mexico shipped 10,000 tons of ammonium sulfate in September at $190-195/mt FOB China.
A 25,000-ton shipment of Northwest European ammonium sulfate is scheduled to be shipped to the US at the end of August. Offers are at $230-260/mt FOB Nola as producers keep their offers unchanged amid supply shortages and uncertainty in the urea market.
Ammonium phosphate
Importers from India and Pakistan returned to the diammonium phosphate (DAP) market this week, continuing to increase import quantities ahead of the winter Rabi season.
Indian diammonium phosphate prices rose to $552-556/mt CFR. 150,000 tons of diammonium phosphate purchase tenders have been transacted by NFL and Hindalco at $550/mt.
NFL has purchased 50,000 tons of Moroccan diammonium phosphate from two trading companies respectively and the price is likely to be at $550/mt CFR.
Hindalco bought 50,000 tons of Moroccan diammonium phosphate from a trading company at $550/mt CFR. The purchase is an increase from a deal struck last week for around $540/mt CFR.
Pakistan has seen a significant increase in aggressive imports this week, with at least 135,000 tons of diammonium phosphate confirmed to have arrived.
Nepalese fertilizer importer and supplier KSCL tendered for 25,000 tonnes of diammonium phosphate on July 31 at a minimum offer of $585/mt per tonne. The other two offers were $631.40/mt and $690.60 /mt , respectively.
China's diammonium phosphate prices rose slightly this week. Transaction prices were around $550/mt and then rose to $570/mt and above. Several producers have started supplying diammonium phosphate to Pakistan this week at $565-570/mt FOB for September shipments.
Indonesia's imports of diammonium phosphate in January-June this year fell 52% year-on-year to 82,800 tons. Imports from China fell 48% year-on-year to 37,500 tons. Vietnam replaced China as Indonesia's main supplier.
Atlas Philippines will close a tender on August 17-18 for 8,000 tons of diammonium phosphate to be shipped by September 20 to Sangi port.
In August, Saudi Arabia's Ma'aden sold 40,000 tons of diammonium phosphate to the United States at $600/mt CIF.
West of Suez, Brazilian diammonium phosphate prices were stable at $530/mt CFR. monoammonium phosphate was stable at $530/mt CFR, but import incentives declined this week. Russian suppliers have limited monoammonium phosphate available and remain on hold.
The U.S. market remains at the high end of the global price spectrum, with FOB diammonium phosphate barges at $530-545/mt, while FOB monoammonium phosphate barges remain at $635/mt. Mosaic is offering diammonium phosphate at $550/mt FOB Tampa.
Benelux demand for diammonium phosphate is picking up, but supplies are tight. Diammonium phosphate closed at around $600/mt in Ghent this week.
A German supplier raised its diammonium phosphate offer to 560 euros per ton earlier in the week from 550 euros per ton last week, with prices now set to rise to 570 euros per ton.
UK diammonium phosphate was priced at $600/mt CFR and above, with high-end offers as high as $650/mt CFR, but there were no deals.
Prices of diammonium phosphate in Romania and Bulgaria are stable at $635-640/mt bagged. The latest price list released by Bulgaria's Agropolychim on August 17 showed diammonium phosphate at €600/mt bagged.
Morocco's OCP has sold at least two shipments of 50,000 tons of diammonium phosphate to Pakistan for loading in the first half of October. OCP sold 33,000 tons of diammonium phosphate to Western Europe at $530-580/mt FOB, the producer said.
Egypt's NCIC will hold a monthly sales tender around August 20th. The latest data shows that the FOB price of diammonium phosphate is about $580/mt.
The U.S. and European markets will continue to be active in the coming months. From November onwards, affordability, natural gas prices and the macroeconomic environment situation will be key to the direction of prices as demand wanes.
Triple superphosphate
Brazilian Triple superphosphate prices are stable at $410-430/mt CFR this week.
A supplier is shipping 30,000 tons of Tunisian Triple superphosphate to Bangladesh, with loading scheduled for August 28-September 3. The product is likely to be a fulfillment of a pre-existing private sector tender.
Potassium fertilizer
The potash market was generally stable this week due to tight supply of potassium chloride.
There is strong demand for potassium chloride in the U.S. market through October;
Prices for granular potassium chloride in Brazil also rose this week in line with increased demand. Demand in Brazil has declined compared to previous weeks as soybean demand has been largely met.
In Europe, the price of granular KCl has also increased slightly amid shortages and higher prices.
Prices of standard potassium chloride in South-East Asia have also started to rise. Potassium sulfate prices have also risen because of higher KCl prices.
Potash Australia failed to find an investor for its Lake Wells potassium sulfateproject and terminated its search for additional funding for the project.
Under Pupuk Indonesia's standard potassium chloride purchase tender, BPC has secured three shipments of about 75,000 tons at a price of $306 per ton CIF.
The supplier is expected to improve its performance during the fourth quarter as demand from the United States and Brazil will continue to support granular KCl prices.
Attention: The above price information is for commercial reference only due to the diversity of information collected, and Kelewell is not responsible for the authenticity of the data.
Comments