Price Changes of Urea, Ammonium Sulfate, Ammonium Phosphate, Triple Superphosphate, Potash Fertilizers, and Compound Fertilizers from February 9 to February 16.
Urea:
This week, some markets faced pressure due to insufficient demand, while other markets were supported by immediate demand, leading to higher urea prices.
North Africa: Suppliers maintain firm urea prices, higher than FOB $400 per ton.
Middle East: Urea FOB prices to Mexico and Australia range from $375 to $385 per ton. Iran's Shiraz sold 30,000 tons of granular urea at FOB $352 per ton with a shipment scheduled for early April.
Europe: Except for Ukraine, urea import demand in Europe remains weak. FOB prices for Black Sea granular urea fell to $375-$390 per ton.
Suez West: Due to reduced quotes and bids, CFR prices for urea imported to Brazil are lower at $380-$395 per ton. However, FOB Nora increased to $353-$360 per ton. Australia remains a strong market east of the Suez, with robust demand despite slowed trading activities.
The Russian Railway will stop shipping ammonium nitrate to the Baltic port of St. Petersburg from February 13th to 29th, potentially impeding exports, and this deadline is expected to be extended.
Southeast Asian markets slowed down due to holidays. Indonesia may soon conduct a urea export tender. Due to liquidity issues, urea prices are under downward pressure, but the prices are expected to experience a slight rebound in the short term. However, the U.S., Europe, Southeast Asia, Australia, and India are likely to return with demand in April.
Ammonium Sulfate:
Europe:
Currently, the demand and supply are generally balanced. The market activity for ammonium sulfate of caprolactam grade is lower compared to the granular ammonium sulfate market.
A supplier sold 3,000 tons of standard caprolactam-grade ammonium sulfate to Northwest Europe at an FOB price of €145 per ton for shipment in March. Another producer sold 5,000 tons to France at an FOB price of €160 per ton. Additionally, a shipment of 2,000 tons of granular ammonium sulfate was sold to Ireland at an FOB price of €220 per ton for transport in March to Northwest Europe.
China: Due to the Chinese market being closed for the Lunar New Year holiday, ammonium sulfate prices remained stable compared to the previous week. The standard ammonium sulfate price is maintained at FOB $140-$145 per ton, while the granular ammonium sulfate price remains at FOB $150-$160 per ton.
Brazil: The market activity for ammonium sulfate was low this week. The CFR quote for compressed granular ammonium sulfate is $180-$190 per ton, but no transactions have been concluded.
United States: Both IOC and AdvanSix increased prices for all new orders this week, although delivery dates were not specified. IOC raised prices by $25 per ton for each location. Nora's FOB price also increased to $275-$300 per ton.
Ammonium Phosphate:
This week, the international phosphoric ammonium market saw transactions involving approximately 250,000 tons of diammonium phosphate (DAP) and 75,000 tons of monoammonium phosphate (MAP).
The South Asian market led the purchases of DAP, with India, Pakistan, and Nepal acquiring 80,000 tons of DAP. Saudi Arabia emerged as the most active exporting country, with Ma'aden and Sabic selling 175,000 tons of DAP/MAP to South Asia and Australia.
Due to a shortage in the supply from China, there is a scarcity of MAP in Thailand. Australia continues to source supplies from Morocco and Ma’aden.
The market in the western Suez Canal region remained calm, with prices holding steady. The festivities in Brazil and Argentina have kept the market in a wait-and-see mode. Mexico finalized the tender for 30,000 tons of DAP from Russia at a CFR price of $600-$605 per ton.
It is anticipated that in the next month or so, there might be an increase in import demand from the United States, Brazil, and Europe. The timing of the recovery in supply from China will significantly impact market sentiment.
Triple Superphosphate:
Kenya: The National Cereals and Produce Board (NCPB) issued a tender on February 16th to purchase 175,000 tons of various fertilizers, including 15,000 tons of Triple Superphosphate.
Tunisia (GCT): The FOB price for Triple Superphosphate is in the range of $400-$440 per ton.
Lebanon: The FOB price for Triple Superphosphate is in the range of $430-$445 per ton.
Potassium Fertilizer:
The Lunar New Year holidays in China and Southeast Asia, along with the Carnival in Brazil, have significantly constrained the potash fertilizer market. The price of potassium chloride (KCl) continues to decline, and there is a substantial premium on potassium sulfate, far exceeding historical averages.
Brazil: In the inquiries for shipments scheduled for March/April, the actual transaction prices for potassium chloride (KCl) remain below the lowest target price of $290 per ton set by most sellers.
Europe: The price for standard potassium sulfate is $348 per ton, while the price for granular potassium sulfate is $363 per ton. This is considerably higher than the historical average of around $250 per ton. Due to the disparity in prices between potassium sulfate and potassium chloride, an increasing number of buyers are expressing resistance to the higher prices of potassium sulfate. This may limit further increases in potassium sulfate product prices.
The current price of potassium chloride (KCl) in Brazil may have reached its bottom, potentially encouraging more buyers to re-enter the market and drive prices upward. Suppliers are closely monitoring the prices in March, and if Brazil initiates significant purchases, it could prevent further declines in prices in other markets.
Compound Fertilizers:
European Market: Due to seasonal demand and supply pressures, the prices of 15-15-15 compound fertilizers in the European market have once again increased.
Southeast Asia: Although bulk NPK prices have experienced some upward movement, the extent of the increase is primarily influenced by the previous rise in shipping costs. The price hike for some high-end products is approximately $10 per ton.
Many markets remain relatively stable due to the influence of Chinese holidays. Meanwhile, the import market in India continues to stagnate. The uncertain subsidy policies have led to a subdued market performance. Despite existing demand, a significant rebound in trade activities may be contingent on a substantial recovery in overall trade.
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