Price Changes of Urea, Ammonium Sulfate, Ammonium Phosphate, Triple Superphosphate and Potash Fertilizers from November 10th to November 17th.
Urea
Due to low demand suppressing the market, prices in most international urea markets fell by 15-25 USD per ton this week.
Supply from China tightened noticeably, with some factories canceling export quotes. Prices in the United States and Brazil dropped by 15-20 USD per ton to CFR 350 USD per ton. European prices generally stood at CFR 400 USD per ton, a decrease of 15-20 USD per ton from the previous week, but with few transactions.
However, bid quotes from Ethiopia and Pakistan were relatively positive.
The impact of Panama Canal capacity led to a significant increase in freight costs for goods passing through the canal, reducing net profits, particularly for Russian producers shipping to Central/South American west coasts.
While urea prices may undergo transitional adjustments during the decline, the market seems likely to continue due to cautious importers' attitudes.
Ammonium Sulfate
Northwest Europe: Due to weak downstream demand for caprolactam-grade ammonium sulfate, production in Europe is still decreasing. Standard ammonium sulfate prices in Northwest Europe ranged from FOB 190-220 EUR per ton this week. Prices for granular ammonium sulfate remained stable for European buyers, lacking sufficient purchasing power. A shipment of 25,000-30,000 tons of granular ammonium sulfate is planned to be shipped from the Benelux countries to the United States in January.
China: FOB prices for standard ammonium sulfate in China were 135-140 USD per ton, lower than the previous week. FOB prices for MMA-grade ammonium sulfate were 120-125 USD per ton, but no transactions were concluded due to buyers' bids being below the current levels. FOB prices for squeezed granular ammonium sulfate were 160-175 USD per ton, with continued weak demand. Most buyers withdrew from the market due to high inventory levels.
Philippines: An importer completed the purchase of 8,000 tons of standard ammonium sulfate at a bid price of 150 USD per ton, scheduled to arrive in Sangi before December 15th.
Brazil: CFR prices for squeezed granular ammonium sulfate dropped to 180-185 USD per ton due to limited demand and the continued pressure from weak urea values. Due to low liquidity, standard ammonium sulfate prices sharply declined to CFR 155-170 USD per ton.
Triple Superphosphate
Triple Superphosphate prices showed no significant changes this week.
Tunisia: TSP prices fell, with CFR prices dropping to 400-450 USD per ton.
Morocco: TSP prices ranged from 400-440 USD per ton.
Europe: TSP quotes from Israel were CIF 500-505 USD per ton to Northern Europe.
Potash Fertilizers
There were no major changes in the potassium chloride market compared to the previous week. Due to weak demand, prices for granular potassium chloride in Brazil and South Africa saw a slight decrease. In Europe, there was a relatively stable period in prices during the international sulfur price increase.
This week, potassium sulfate prices rose in Europe, with FOB prices for granular potassium sulfate in Northwest Europe increasing to 560-635 USD per ton and powder potassium sulfate rising to 500-550 USD per ton. Global supply constraints may inhibit a downward trend in European prices.
Germany's K+S and Chile's SQM released third-quarter reports, with both companies experiencing increased sales. However, due to recent softness in potassium fertilizer prices, revenue decreased. Currently, both companies' sales progress aligns with 2023 expectations.
The continued delay in demand in Brazil is the current cornerstone of market stability, potentially leading to soft prices in the long term. Meanwhile, tight global potassium sulfate supply and strong demand are expected to ensure potassium sulfate prices only rise.
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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