Price Changes of Urea, Ammonium Sulfate, Ammonium Phosphate, Triple Superphosphate, Potash Fertilizers, and Compound Fertilizers from December 15 - December 22.
Urea:
India: Before Christmas, India pre-released a new round of tenders for urea. Although the results will only be available on January 4, this news has been sufficient to prevent a decline in prices in most regions. NFL is expected to purchase over 1 million tons of urea in the tender, which will benefit urea exports from the Middle East and Russia in January and February.
Influence by India's urea tender, urea prices in the Middle East and Europe have slightly rebounded from last week's levels. Since China's export restrictions may continue into the first quarter, it is unlikely to provide supply in the Indian tender, keeping the Asian and Latin American markets robust.
The Brazilian and U.S. markets may continue to lag behind, with excess urea from Russia finding an outlet in the Indian tender, and demand for European urea expected to continue into the new year.
Ammonium Sulfate:
Northwest Europe: Due to producers reducing prices before Christmas to ensure liquidity, and with the strengthening of the Euro and lower raw material costs, ammonium sulfate prices in Europe have slightly decreased. The FOB price for standard-grade ammonium sulfate in Northwest Europe is 170 euros per ton, and under sales pressure, prices for large granular and standard granular ammonium sulfate have fallen to 225-250 euros per ton.
China: The price of standard ammonium sulfate has risen to FOB 120-125 USD per ton. Participants in the market state that a northern factory increased its quote this week, possibly due to higher winter energy costs limiting production, combined with transport delays due to adverse winter weather conditions, extending the transportation period for some factories. The FOB price for MMA-grade ammonium sulfate this week is 110 USD per ton, with granular ammonium sulfate prices stable at FOB 140-145 USD per ton.
India: SmartChem has issued a tender to purchase 20,000 tons of standard-grade ammonium sulfate for immediate shipment or delivery to Mumbai by January 25. There are currently no reports of successful bids.
Brazil: Despite sellers attempting to ship at around 175 USD per ton, the shipment price for granular ammonium sulfate in the first quarter of 2024 is CFR 160 USD per ton. The quoted price for standard-grade ammonium sulfate is around CFR 140 USD per ton. However, overall liquidity is low, and transactions are scarce.
Ammonium Phosphate:
Pakistan: The price of diammonium phosphate (DAP) has been falling throughout November, and domestic purchasing demand is slowing down. Due to goods purchased earlier not yet arriving, demand for new imports is in a seasonally slow period. Some dealers have lowered the price of DAP to around 12,000 rupees per 50 kg bag (excluding Karachi).
China: The FOB price for DAP is stable at 580-592 USD per ton. Chinese traders expect export quotas to be clarified in January next year. Although domestic transactions have slowed this week, demand for phosphorite in China persists, with imports of around 1.21 million tons from January to November.
Brazil: The CFR price for monoammonium phosphate has fallen to 560 USD per ton. In Central America, a batch of Russian DAP has been shipped to the Atlantic coast. Brazilian importers may have significant stocks, and a lack of buyer interest may put pressure on prices.
United States: The barge price for DAP has slightly risen to FOBNola 570-580 USD per ton. The barge price for monoammonium phosphate remains stable at FOBNola 615-620 USD per ton in Nola. Mosaic reported this week that 1.02 million tons of phosphate fertilizer were sold in October and November, higher than the same period last year's 914,000 tons.
Morocco: OCP's total sales of DAP to Western Europe this week are less than 5,000 tons, at approximately FOB 590-620 USD per ton.
In Europe, demand is scarce, and the price of diammonium phosphate in the Benelux Economic Union fell to 640-655 USD per ton this week. The price reported in Italy is CFR 620 USD per ton. The price for DAP in the UK is 550 GBP per ton, bagged and delivered.
It is expected that the price of diammonium phosphate will rise in the Suez Canal and Europe, but China re-entering the market will help balance demand.
Triple Superphosphate:
Brazil: Prices remain stable at CFR 420-430 USD per ton.
United Kingdom: The price is 430 GBP per ton.
Potassium Fertilizer:
The upcoming holidays have further subdued the already calm global potassium fertilizer market, especially in the trade-limited West.
In Southeast Asia, potassium chloride sales exceeded 35,000 tons, and suppliers agreed to supply standard potassium chloride to Pupuk Indonesia at a bid price of 306 USD per ton.
Due to stable rainfall in November, the Panama Canal will increase the daily transit frequency from 22 to 24 times starting from January 16. The interruption in the Red Sea has not yet affected potassium fertilizer exports for Israeli producer ICL and Jordanian producer APC. Still, due to the risk of crossing the region, freight for Red Sea goods has risen significantly, impacting CFR prices.
Due to high inventories in key markets such as China and Brazil, the global potassium fertilizer market is expected to weaken in 2024. Some demand may arise in early next year from Europe, but overall purchasing in other markets may be low, putting pressure on prices.
Compound Fertilizers:
The compound fertilizer market remained generally stable at the end of 2023. Assessments for NPK shipped to Southeast Asia further declined, while domestic prices in China saw a slight increase again. Import demand has reappeared in India.
In the European market, after several months of weak domestic demand, Czech producer Agrofert is reducing production at several of its factories.
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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