The changes in prices of urea, ammonium sulfate, ammonium phosphate, Triple superphosphate and potash fertilizer from August 18-August 25
Urea
The international urea market was divided this week, with most markets east of Suez stable, while those in the west were slightly weaker.
Brazilian granular urea prices fell by $30/mt this week as traders sought to circulate spot cargoes, while U.S. Gulf prices fell by only $10/mt.
North African FOB prices were also sharply lower, with FOB Egypt and Algeria down at least $50/mt, following weeks of little trading, with most September loadings still sold.
Prices stabilized or increased this week as September supply shortfalls were generally secured by Chinese and Southeast Asian producers. Indonesia sold to Australia at FOB $392/mt, up about $20/mt from last week's Malaysian deal, while Chinese small pellets were offered at up to FOB $380/mt.
The plunge in urea prices has not only discouraged buyers from purchasing urea but has also left ammonium nitrate and ammonium sulfate prices high by comparison, and consequently slowed trade in these products.
Although the short-term trend remains weak, supplies from Nigeria and Southeast Asia are returning to normal, exacerbating the paradox of low demand across much of the Northern Hemisphere.
However, urea prices have pulled back sharply, and energy concerns and rising demand may spur a market recovery as the fourth quarter approaches.
Ammonium sulfate
The FOB price of standard caprolactam-grade ammonium sulfate in Northwest Europe was $172-185/mt in North Week, unchanged from last week. Granular ammonium sulfate FOB price was $270-319/mt.
There was a deal in Turkey for about 20,000-30,000 tons of standard ammonium sulfate from China at $190/mt CFR for shipment in September-October.
China's standard ammonium sulfate price dropped to $160/mt FOB this week from $157-170/mt FOB a week ago. MMA grade ammonium sulfate FOB price was stable at $135-140/mt this week. Extruded granular ammonium sulfate FOB price was $175-185/mt.
Southeast Asian market sentiment is bearish, with buyers looking for ammonium sulfate prices to come down to match the recent decline in urea prices.
Atlas Philippines completed a tender to buy 8,000 tons of standard ammonium sulfate, with the lowest offer received at $170/mt CFR, and the cargo will be shipped to Sangi port by September 20th.
Vietnam is currently in the off-season for fertilizers, and demand for caprolactam-grade ammonium sulfate will only start to pick up in September-October. Domestic prices for standard ammonium sulfate from China were shown at VND 4,500-5,200/kg ($189-219/mt) out of bags, depending on particle size, while prices for standard ammonium sulfate from Japan were shown at VND 5,000-6,200/kg ($210-261/mt, out of bags).
A 25, 000 tons shipment of granular ammonium sulfate from Northwest Europe will be shipped on August 28th to the United States. Suppliers expect this to be the last shipment of the year. Ammonium sulfate prices tightened this week, with Nola FOB at $240-260/mt.
The Brazilian ammonium sulfate market has seen prices fall this week, with the latest price for granular ammonium sulfate at $175/mt CFR. Prices for standard ammonium sulfate have also declined, with prices this week in the range of $170-190/mt CFR. Brazilian stocks of ammonium sulfate were estimated at 453,216 metric tons in August, down nearly 50% from July due to a drop in imports.
Ammonium phosphate
This week Bangladesh's diammonium phosphate tender has become the focus of attention.
According to the tender, diammonium phosphate was offered at $701/mt CFR and Triple superphosphate at $697/mt CFR. a total of 310,000 tons of diammonium phosphate and 155,000 tons of Triple superphosphate were reported to have been submitted, with 10 offers submitted for diammonium phosphate, all of which showed China as the origin.
India's diammonium phosphate was assessed at around $550/mt CFR. A major importer bought about 50,000 tons of Saudi diammonium phosphate at $550/mt CFR, to be loaded in early September. Domestic demand in India has been strong so far, with sales set to reach around 1.3 million tons in August, compared with 913,000 tons in August last year, according to provisional data.
Pakistan's diammonium phosphate is quoted at $580/mt CFR. domestic diammonium phosphate prices have risen, with suppliers raising offers in Karachi to Rs11,400-11,500/50kg ($748-754/mt) from Rs10,600-10,800/50kg last week. Pakistan's diammonium phosphate stocks fell to 237,000 tons at the end of July, the lowest level since the end of January 2022.
The FOB price of Tech grade monoammonium phosphate in China is about $750-760/mt. The FOB price of diammonium phosphate was stable at $565/mt. Earlier this week a producer sold 30,000 tons of diammonium phosphate to South Asia at $565/mt FOB for September shipment. Export supply from domestic producers remains tight in September, as most producers have already used up their export quotas for the third quarter.
A Chinese supplier sold 8,800 tons of DAP to Thailand on Friday at $560/mt FOB for shipment in early September. This reflected a Thai CIF price of around $580/mt.
A Vietnamese importer bought about 6,000 tons of DAP at a cost plus freight price of $570 per ton last week for shipment at the end of September. Domestic demand for diammonium phosphate has slowed down during the seasonal low season. Demand from dealers and farmers is expected to lift from October onwards in the second major demand season.
Germany's diammonium phosphate was priced at €565/mt in bulk, but trading activity was low; Poland's diammonium phosphate was priced at €575/mt in bulk FCA. France's diammonium phosphate was priced at €555/mt in Rouen, up about €15 from last week.
Turkish diammonium phosphate prices rose to $620-635/mt CFR. demand for diammonium phosphate in Turkey will increase into September in preparation for the winter. The price of diammonium phosphate in Turkey's domestic market is $700-735/mt. Romanian diammonium phosphate prices fell to $645-650/mt.
Morocco's OCP sold 110,000 tons of diammonium phosphate (DAP) to India in October at about $530-540/mt FOB, and 50,000 tons of DAP to other Asian markets at about $520-530/mt FOB.
West of Suez, Brazilian monoammonium phosphate prices were lower at $530-535/mt, with high-end prices up $5/mt and demand slowing. A total of 283,000 tons of monoammonium phosphate will arrive at Brazilian ports in September, according to import data. Russia will provide the largest share of 121,000 tons, while Morocco will provide 94,000 tons, Saudi Arabia 51,000 tons, the U.S. 10,000 tons and China 6,000 tons.
Domestic U.S. prices fell this week due to limited trading activity. The price range for monoammonium phosphate fell $8.25/mt from last week to $615-637.50/mt FOB Nola. Diammonium phosphate also slipped to $530-540/mt FOB Nola from $530-545/mt last week. Mosaic’s diammonium phosphate/monoammonium phosphate remained at $550/mt FOB Tampa.
Prices are expected to stay higher due to Bangladeshi tenders with cargoes coming from China and tight supply of Chinese diammonium phosphate capacity. Demand from India, Pakistan and Bangladesh will drive the diammonium phosphate market higher, but prices for November shipments from the region are expected to start falling. Demand for monoammonium phosphate in Brazil is also tapering off as the import season is coming to an end.
Triple superphosphate
Egypt's NCIC will close its sales tender on August 28, offering 25,000 tons of Triple superphosphate for loading in late September or early October.
French Triple superphosphate prices are at €440 per ton.
Morocco/Western Europe, OCP sold a small amount of less than 5,000 tons of Triple superphosphate at $470-475 per ton in Western Europe this week.
Brazilian Triple superphosphate was up $10 per ton CFR at the low end to $420-430 CFR.
Potassium fertilizer
Slowing demand in Brazil lowered granular KCl CFR prices this week and ended a five-week streak of consecutive gains. Prices in the United States remained elevated due to demand for fourth quarter imports. Elsewhere, potassium chloride prices were relatively flat. Prices in East Asia were boosted by limited supplies of potassium sulphate from China and Egypt.
Indian stocks of potassium chloride have grown by about 50,000 tons since last month, reaching nearly 1 million tons as of 1 August. The latest shipments this month show August imports of about 123,000 tons, and stocks are likely to continue to grow.
Demand in Brazil will continue to slow, putting downward pressure on prices. However, demand for the corn season in the fourth quarter may prevent prices from falling significantly. In the East, demand in Southeast Asia could increase once a new contract in India is agreed and shipments begin from October.
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.
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