Price Changes of Urea, Ammonium Sulfate, Ammonium Phosphate, Triple Superphosphate, Potash Fertilizers, and Compound Fertilizers from May 3 to May 10.
Urea:
The urea market continues to be constrained by soft demand, but some traders' short-covering has supported parts of the supply market, with bearish sentiment still prevailing.
The main downward pressure remains concentrated on North African suppliers, with May supply exerting pressure on prices, leading to a decline to FOB $280 per ton.
Middle East: Urea prices are sliding due to new transactions, with FOB prices for multiple batches ranging from $268 to $275 per ton, with possible destinations being Australia.
Indonesia: With limited exports from China, Southeast Asia remains a relatively high-end market. Indonesian company Pupuk has conducted two tenders for small granular urea, with selling prices around FOB $306-312 per ton.
Argentina: Import duties on urea and urea ammonium nitrate have been abolished, previously at 5.4% and 3.6%, respectively.
India: The latest provisional data confirms that urea supply in India is becoming more stable, with production slightly exceeding 2.5 million tons in April, higher than the 2.345 million tons in the same period last year, with sales of 1.05 million tons.
Considering weak demand and the return of Chinese exports, it is expected that the market situation will remain soft in June. However, from July onwards, demand in major markets is expected to gradually strengthen, with some buyers speculating whether the market will rebound soon.
Ammonium Sulphate:
Europe: The overall ammonium sulfate market appears soft. FOB prices for caprolactam-grade ammonium sulfate remain at $151-162 per ton, while granular ammonium sulfate prices have slightly decreased, ranging between $194-285 per ton. Despite the ongoing sulfur shortage issue, the market is gradually stabilizing.
China: Due to the impact of weak international urea prices, the latest inquiries from Brazil and Southeast Asia are relatively limited. Standard ammonium sulfate prices have slightly increased, with FOB prices at $123-128 per ton. MMA-grade ammonium sulfate is in tight supply, with FOB prices around $110-115 per ton. FOB prices for granular ammonium sulfate remain at $140-145 per ton.
Philippines: An importer has successfully bid for the purchase of 8,000 tons of standard ammonium sulfate at a price of $150-155 per ton, to be shipped to Sangi port before June 10.
South Korea: Punnong Company has issued a tender to purchase 6,000 tons of standard ammonium sulfate, to be shipped to Janghang port by the end of May. The deadline for bidding is expected to be May 9.
Vietnam: An importer has received a bulk quote for MMA-grade ammonium sulfate from China, priced at CFR $132-134 per ton.
Mexico: A 35% tariff is imposed on imported ammonium sulfate.
United States: The price of ammonium sulfate in Nola has slightly decreased this week, but upstream prices remain stable due to continued tightness in inland supply. The FOB Nola price has decreased by $2.50 per ton to $400-410 per ton.
Brazil: The CFR price for granular ammonium sulfate is $160-170 per ton. Brazil is preparing its procurement plan for the third quarter, so they may wait for several months. Market participants mention that inquiries from Brazil are increasing. However, the soft urea market in the country may compel suppliers to slightly lower their prices.
Ammonium Phosphate:
India: Despite Hindalco's purchase of approximately 40,000 tons of diammonium phosphate (DAP) earlier this week at around CFR $508 per ton, competitive bids in subsequent tenders, driven by Chinese producers, have maintained prices at CFR $515 per ton.
Nepal: KSCL has issued a tender to purchase 25,000 tons of bagged diammonium phosphate, with a deadline of May 27. KSCL expects delivery within 107 days after opening the letter of credit. The quantity allocation for each destination is as follows: Biratnagar/Sonapur/Itahari-7,500 tons, Birgunj-9,000 tons, Bhairahawa-8,500 tons.
China: This week, China sold granular monoammonium phosphate (MAP) to Brazil at a CFR price of $550-555 per ton, reflecting an FOB price of $520 per ton with freight rate at approximately $28 per ton. Limited supply has led to an increase in MAP prices this week, with the price of 60% granular monoammonium phosphate rising to FOB $480-490 per ton. Additionally, due to increased domestic demand in China, the price of Tech grade monoammonium phosphate has also risen. A trading company reported that the selling price of technical-grade MAP in April was $800 per ton. Export prices have increased from $770-780 per ton at the end of April to $790-800 per ton. The price of diammonium phosphate continued to decline this week to FOB $500-510 per ton.
Southeast Asia: Due to a lack of new transactions, the CFR price of diammonium phosphate in Southeast Asia remains between $530-535 per ton, with ample domestic market inventory.
Philippines: An importer has issued a tender to purchase 8,000 tons of diammonium phosphate, to be shipped to Sangi before June 15, with a deadline of May 13-14. The latest trade data shows that from January to March of this year, the Philippines imported a total of 15,300 tons of diammonium phosphate, higher than the 7,600 tons in the same period last year. During the same period, Vietnam supplied 14,800 tons, higher than the 700 tons in the same period last year, while China's supply plummeted from 7,000 tons in the same period last year to 500 tons. Export restrictions from China have forced Philippine importers to turn to other suppliers for procurement.
United States: The domestic ammonium phosphate market remains sluggish, with the price range for DAP narrowing at Nola. DAP prices at FOB Nola have declined to $505-535 per ton, while MAP prices have risen by $7.50 per ton to $520-530 per ton.
In Germany, the price of DAP is approximately €585-590 per ton. In the UK, the price for DAP is £565 per ton for bagged delivery. In Rouen, France, the price for DAP is €615 per ton. The price for DAP in Spain is $600-610 per ton. Turkey's import demand for DAP may not recover until the third quarter.
Morocco: OCP sold 6,000 tons of DAP and 5,000 tons of MAP to Latin America (excluding Brazil) in May, with a MAP FOB price of $545-570 per ton.
East Africa: Demand for DAP is increasing, especially in Tanzania. Negotiations for the shipment of approximately 35,000 tons of DAP from Saudi Arabia in May are underway.
South Africa: The CFR price for imported MAP is $570-575 per ton. Domestic demand is low, but imports continue as dealers prepare for the next quarter.
Once the domestic demand in China ends, more DAP will be exported. However, buyers from India and other parts of Asia will enter the market, potentially stabilizing DAP prices. Brazil's demand for MAP will temporarily stabilize prices.
Triple Superphosphate:
China: A factory has reported a deal for 10,000 tons of with 45%TSP. This batch will be shipped to Brazil in June at an FOB price of $370 per ton, with freight costs to Brazil's bulk carriers amounting to approximately $28 per ton. The FOB price for TSP (44%-45%) bound for Indonesia remains stable at $380-385 per ton, and CFR is at $400-410 per ton.
Brazil's CFR price for TSP is in the range of $410-425 per ton. Morocco's TSP is specifically priced at CFR $425-427 per ton, with the lowest bid at CFR $400 per ton.
In the UK, the FCA price for TSP is stable at £405-410 per ton and £415-420 per ton for bagged delivery. The price for TSP in Rouen, France, is €415 per ton, with weak demand. Spot prices in Germany, Belgium, the Netherlands, and Luxembourg are at FOB €485 per ton.
Potassium Fertilizer:
The global potassium fertilizer market continues to face challenges of weak demand and low liquidity. This week, standard muriate of potash prices in Southeast Asia have declined, while others remain stable.
Agrium International has revised its production target for 2024 from the previous 2.8-3.0 million tons to 1.8-2.0 million tons, as the company has postponed the start-up of its third facility to the first quarter of 2025.
Cinis Fertilizers in Sweden has commenced production of potassium sulfate at its 100,000 tons per year plant located in Ornskoldsvik, with full-scale production expected in the second half of this year.
The closure of the port of Aregrir due to flooding in Brazil may result in reduced fertilizer usage for soybean crops in the state for the 2024-25 season.
With minimal activity in the global market, this week's focus remains primarily on the fundamentals, particularly regarding the potential railway strike in Canada, the flooding in Brazil, and their impact on crop prices.
Compound Fertilizers:
The prices of imported NPK (15-15-15)/(16-16-16) in Southeast Asia have increased by $10 per ton. Due to early summer demand exceeding expectations, there has been a slight increase in the price of domestic NPK (15-15-15) in China.
In most parts of Europe, the NPK market has closed, which is a seasonal and normal phenomenon.
Increased supply from China and developments in raw material markets are expected to result in softening prices for most compound fertilizers.
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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