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Changes in international fertilizer prices from August 4-August 11

Updated: Sep 1, 2023

The changes in prices of urea, ammonium sulfate, ammonium phosphate, Calcium triple superphosphate and potash fertilizer from August 4-August 11


Urea


Urea prices began to fall this week as international markets turned to short selling and importer demand slowed.


India's urea tender was the major event of the week, with minimum prices of $396/mt CFR on the East Coast and $399/mt CFR on the West Coast. The Indian deal gave producers much lower net margins than last week, but market prices fell in most regions after the Indian tender and the short-term outlook is weak.


Brazilian small-volume deals steadily declined to CFR $415/mt, down 10% from last week's peak, and in half the volume of last week.


October U.S. Nora FOB prices fell to $350/mt ($380/mt CFR).


European market demand was average, totaling only a few thousand metric tons this week, with prices dropping to $430-435/mt CFR.


Despite the weak market performance in the short term, concerns over winter energy prices are likely to continue to support high unseasonal demand throughout the third quarter.


Ammonium sulfate


Most European caprolactam plants are still operating at low capacity, with standard caprolactam-grade ammonium sulfate from Northwest Europe offered at $165-193/mt fob for standard caprolactam grades and $270-330/mt for granules, according to new deals and offers.


According to the latest quotes and indications, China's standard ammonium sulfate prices were $161-170/mt FOB China this week, lower than last week. The downward price trend in the Chinese urea market is also putting pressure on ammonium sulfate prices.

MMA-grade ammonium sulfate prices were $135-145/mt FOB; extruded granular ammonium sulfate prices were assessed at $195-210/mt FOB. In addition, 10,000-15,000 tons of extruded pellets for August-September shipments are trading at $210/mt FOB.


Brazilian import demand was weak this week as importers remained on the sidelines due to the outcome of the Indian urea tender. Extruded pellet manufacturers took limited quantities due to the uncertainty of the Indian urea tender.


Atlas Philippines issued a tender for the purchase of 6,000 tons of standard ammonium sulfate to be shipped to Sangi and Davao ports by September 10th. The tender closed August 11th.


A Vietnamese importer wants to buy standard ammonium sulfate at $140-150/mt cfr for shipment in the second half of September for October compound fertilizer production.


Brazilian extruded granular ammonium sulfate is priced at $215-230/mt cfr and standard ammonium sulfate at $190-200/mt.


U.S. ammonium sulfate prices fell to around $230-260 fob NOLA this week from $245-260 fob NOLA last week.


Ammonium phosphate


Diammonium phosphate (DAP) prices continued to rise this week, led by the upward movement of DAP companies east of Suez.


FOB prices for diammonium phosphate in China rose to $530-550/mt. Strong demand from India supported price stabilization in China. Instead, it spurred buyers from other markets, such as Pakistan and Southeast Asia, to return to the diammonium phosphate market for purchase inquiries. Most producers suspended offers, citing limited export supplies in August. Industrial monoammonium was quoted at $720-730/mt FOB from $700-720/mt FOB last week.


India's Hindalco bought 50,000 metric tons of Moroccan diammonium phosphate through a trader at $539-540/mt CFR for September loading. India's Hindalco on August 3 ended the tender inquiry. A Chinese trading company also sold 30,000-35,000 tons of Chinese diammonium phosphate to Indian fertilizer importers at $540/mt CFR. This shipment will also be loaded in September.


Bangladesh is expected to issue another procurement tender for diammonium phosphate and Calcium triple superphosphate on August 24th. Pakistani importers have yet to return to the market in full force, but a major importer has scheduled two 25,000-tonne cargoes from Saudi Arabia for shipment in September. The latest offer is around $550/mt cost plus freight.


A Thai importer last week closed a tender to buy 7,000 tons of diammonium phosphate. Offers were reported at $490/mt.


Domestic DAP prices in Vietnam are in line with international prices. Chinese diammonium phosphate is VND18,000-20,000/kg ($758-842/ton), up from VND16,800/kg a week ago. However, domestic demand is currently weak due to the seasonal low season.


West of the Suez Canal, monoammonium phosphate prices in Brazil rose to $510-530/mt. From January to July this year, Brazil's total imports of monoammonium phosphate amounted to 2.84 million tons, up 3.6% from the same period last year, setting another record for the same period.


The Argentinean market is also active, with monoammonium phosphate sold at a low of $530/mt CFR earlier this week, and prices now rising to $540/mt CFR.


Meanwhile, the U.S. remains the world's highest priced market, with monoammonium phosphate at $635/mt FOB and diammonium phosphate at $530-545/mt FOB.


Morocco's OCP announced recent sales orders this week, with the FOB price range for diammonium phosphate rising to $475-555/mt from $465-540/mt last week; and the price of monoammonium phosphate increasing to $475-560/mt FOB.


In Egypt, the FOB price of diammonium phosphate was $550-570/mt.


Diammonium phosphate prices will hold and move higher in the coming month due to strong demand from India, the US and Europe in September-October and tightening supply from China. But prices will then come under pressure from declining affordability and a weak urea market. Demand is weakening in Brazil, where imports of monoammonium phosphate have so far reached record levels.


Triplesuperphosphat


Brazilian Triplesuperphosphat rose to $410-430/mt from $400-410/mt last week.


In Bulgaria, TSP prices from German domestic producer Agropolychim rose by €20 to €455/mt.


Romanian distributors offered TSP at $485-490/mt.


Morocco's OCP, sold 13,000 tons of Calcium triple superphosphate to Latin America in September, equivalent to $365-400/mt FOB, and 6,000 tons of Calcium triple superphosphate to Western Europe next month, again at $395-405/mt FOB.


Potassium fertilizer


North American producer Nutrien is returning to normal operating rates with the Rocanville Potash mine in Saskatchewan, following a tentative agreement to end a labor dispute affecting the Port of Vancouver. However, it could take more than a month for the Canadian supply chain to return to normal.


While Canadian supply issues have eased, the Panama Canal has been forced to reduce the number of ships it handles due to a protracted drought. This could further delay potash shipments from Vancouver to markets like Brazil. Market sentiment remains firm due to the problems in Vancouver and the Panama Canal and the rise in Vancouver loaded freight rates.


India's NFL has awarded a July 31 tender for 100,000 mt of red/pink standard KCl at a CFR price of $319/mt, which is in line with prices that have been widely reported for the new Indian standard KCl contract price.


The upward movement in standard KCl prices was small; granular KCl supplies remained tight globally, and suppliers' limited availability in the third quarter pushed granular KCl prices up.

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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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