Price Changes of Urea, Ammonium Sulfate, Ammonium Phosphate, Triple Superphosphate, Potash Fertilizers, and Compound Fertilizers from January 26 - February 2.
Urea:
As demand rises, urea prices east of the Suez Canal are increasing again, and producers are becoming more optimistic about expectations for February.
Europe: CFR prices for urea have risen to $420-425 per ton.
Southeast Asia: FOB prices for urea have increased to $390 per ton, with two batches of large granules from Vietnam trading at this price.
Middle East: The latest FOB prices for large granule urea sales to Australia and Southeast Asia have risen to $380 per ton. Several Iranian factories have either shut down or reduced operations. The FOB price for large granule urea from Egypt has climbed to $405-410 per ton.
USA: CFR prices for Nola urea are $390 per ton. The rise in Nola prices has pushed Brazilian urea prices to a similar level, with the latest CFR prices reaching $385-390 per ton.
India: The Indian government plans to cut the import urea budget for the fiscal year 2024-2025, reducing funds by a quarter to INR 22.6 billion (USD 272 million). Domestic urea production subsidies will remain at INR 1 trillion, roughly in line with the previous year.
Tightness east of the Suez Canal will persist into the first half of March. Demand from the United States, Europe, Australia, and Southeast Asia, along with another round of urea procurement tenders in India, will provide support for the remaining time in the first quarter. However, the return of exports from China may suppress prices in April.
Ammonium Sulfate:
Northwest Europe: Overall liquidity for ammonium sulfate in Europe remains limited. FOB prices for standard caprolactam-grade ammonium sulfate are stable at $162-183 per ton, while squeezed granular ammonium sulfate's FOB prices range from $238 to $313 per ton.
China: FOB prices for standard ammonium sulfate have slightly increased to $140-145 per ton. FOB prices for MMA-grade ammonium sulfate are $130 per ton. FOB prices for squeezed granular ammonium sulfate are $150-160 per ton.
Malaysia: Most importers are no longer buying ammonium sulfate this week, opting for ammonium chloride as a substitute. FOB quotes for ammonium chloride from China are in the range of $90-100 per ton.
USA: Ammonium sulfate prices have risen in several regions, with FOB prices for Nola barges at $275 per ton. Quotes for ammonium sulfate from St. Louis, Missouri, the Delta region, and Ohio River terminals are FOB $325 per ton, while prices from the Upper Mississippi River and Illinois River are up to FOB $335 per ton.
Brazil: CFR prices for 25,000 tons of squeezed granular ammonium sulfate from China are $180-185 per ton.
Ammonium Phosphate:
India: The Indian government has reduced fertilizer spending for the fiscal year 2024-25 by 13%, to INR 1.64 trillion (USD 20 billion). The CFR price for diammonium phosphate in India this week is $595 per ton, with the latest trades totaling 165,000 tons. Indian importers purchased 465,000 tons of diammonium phosphate in January.
Pakistan: Engro is buying 25,000-30,000 tons of diammonium phosphate in the market. Due to issues in the Red Sea, longer shipping times, and a shortage of phosphate supply, Fauji's Port Qasim plant operated at lower capacity in January, reducing production by 40,000 tons, compared to the normal monthly output of 70,000 tons.
China: While quotes for diammonium phosphate have not yet appeared, some suppliers have offered prices for 11-44 granular monoammonium phosphate. The FOB price to Brazil is expected to be around $450 per ton, but no shipments have been approved through customs for export.
Australia: The CFR price for 10-50 granular monoammonium phosphate is approximately $620 per ton.
USA: Domestic prices for Nola phosphates have once again declined. FOB prices for diammonium phosphate have dropped from last week's FOB $590-605 per ton to FOB $575-588 per ton. FOB prices for monoammonium phosphate have decreased from FOB $630 per ton last week to $620-625 per ton.
Brazil: CFR prices for monoammonium phosphate remain stable at $560 per ton.
Argentina: Some buyers purchased around 20,000 tons of diammonium phosphate from traders at CFR $590-595 per ton.
Europe: Prices for diammonium phosphate have slightly increased this week. In the markets of Germany, Belgium, the Netherlands, and Luxembourg, prices for Russian diammonium phosphate have risen from EUR 595-605 per ton to EUR 605-610 per ton. The price for bulk diammonium phosphate in Austria is EUR 670 per ton. Prices for diammonium phosphate in France have increased from EUR 600 per ton to EUR 610 per ton. In Bulgaria, prices for diammonium phosphate from Morocco are EUR 620 per ton.
The disruption in raw material supply, at least until the first quarter, along with emerging demand both east and west of the Suez Canal, suggests that global phosphate prices are poised to rise.
Triple Superphosphate:
Brazil: CFR prices for triple superphosphate remain stable at $420-430 per ton.
Morocco: OCP sold less than 5,000 tons of triple superphosphate to Western Europe in January at prices of $475-480 per ton FOB, with freight costs of $25-30 per ton.
Tunisia: FOB prices for triple superphosphate from GCT remain stable at $395-435 per ton.
China: The price for 46% triple superphosphate is $435 per ton. A Chinese supplier has sold around 5,000 tons of 44% triple superphosphate to Indonesia at an FOB price of $410 per ton, with the shipment already loaded last month. This week, 44% triple superphosphate is set to be shipped to Indonesia, but the FOB price has dropped from around $420 per ton a week ago to $380 per ton.
Potassium Fertilizer:
The global potash fertilizer market is currently characterized by low demand and high inventories, putting pressure on prices, with CFR levels decreasing in Southeast Asia, Australia, South Africa, the USA, and Europe.
Pakistan's Barket Fertilizers plans to expand its potassium sulfate plant at the Muhammad Bin Qasim port by 12,000 tons/year in mid-February. The expansion will increase the total capacity to 34,500 tons/year.
In the short term, potash fertilizer supply may continue to exceed demand. With the onset of the Lunar New Year holiday this month, trade volumes in China and some Southeast Asian markets are expected to drop to a minimum. Brazil may also return in the late first quarter, as soybean barter prices for potassium chloride are particularly attractive compared to other fertilizer products.
Compound Fertilizers:
China: Compound fertilizer exports, after consecutive declines in 2021 and 2022, showed a recovery in 2023, with total exports reaching 726,000 tons, a growth of 14%.
Southeast Asia: Compound fertilizer prices have fallen this week due to increased supply from Indonesia. The CFR Southeast Asia prices for some 15-15-15/16-16-16 compounds have dropped to CFR $430-490 per ton.
However, with the approach of the demand season, demand in Europe has been steadily increasing, and sellers believe that prices will rise in the coming weeks.
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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