Price Changes of Urea, Ammonium Sulfate, Ammonium Phosphate, Triple Superphosphate, Potash Fertilizers, and Compound Fertilizers from November 17th - November 24th.
Urea
This week, the price of urea in Brazil plummeted by $50 per ton. The current surplus of urea in Brazil has led to a soft market, impacting global markets. Urea prices have decreased in most regions globally, especially in the United States, where the price for one transaction fell below FOB Nola $300 per ton.
The rapid decline suggests that the bottom is approaching, but before reaching it, the Brazilian market needs stabilization. In October, Indian factories produced a record high of 2.85 million tons of urea. With news of declining sales in November, the possibility of a new round of tenders in India has diminished.
Ammonium Sulfate
Northwest Europe: Trade in Europe is still at a seasonally low level, and producers expect purchases to pick up only in January. Due to reduced production limiting spot supply, producers are generally satisfied with the situation in December but face weak demand. This week, FOB prices for caprolactam-grade ammonium sulfate dropped to €180-205 per ton. Granular ammonium sulfate market is soft, with prices at FOB $261-337 per ton.
China: Demand was relatively weak this week. The FOB price for standard ammonium sulfate is $125-130 per ton, a $5 per ton decrease from the previous week. The FOB price for MMA-grade ammonium sulfate remains stable at $120-125 per ton. The FOB price for squeezed granular ammonium sulfate is $150 to $160 per ton.
Philippines: An importer issued a tender to purchase 8,000 tons of standard ammonium sulfate, destined for Sangi Port, with the bidding expected to end on November 28th.
Sri Lanka: The CFR quote for standard caprolactam-grade ammonium sulfate for December shipment is $185-190 per ton.
United States: Due to weak demand, the price of ammonium sulfate in Nola remains stable at FOB $270-285 per ton. Domestic production is seasonally slowing, with more imports expected in January. However, producers doubt whether the price of ammonium sulfate will change significantly in the short term in a relatively balanced supply and demand situation.
Brazil: The CFR price for squeezed granular and caprolactam-grade ammonium sulfate is $160-170 per ton. A deal for approximately 50,000 tons was made at CFR $160 per ton. The reference price for standard ammonium sulfate is CFR $145-155 per ton, mainly in the southern region where demand is concentrated.
Ammonium Phosphate
Due to tight supply and scarce market transactions, prices will remain basically unchanged. However, there may be pressure on prices due to weak demand. In India and Pakistan, stocks of diammonium phosphate are rapidly decreasing. The supply situation in China remains tight. Brazilian buyers may enter the market from December to January.
India: On November 18th, NFL's tender for diammonium phosphate in India is still ongoing, with buyers considering a trading company's quote of CFR $590 per ton.
Brazil: Diammonium phosphate is temporarily stable, with a CFR price of $565 per ton.
United States: The FOB price for monoammonium phosphate dropped from $600-610 per ton last week to $590 per ton, while diammonium phosphate rose to FOB $540-545 per ton.
Triple Superphosphate
The CFR price for Triple Superphosphate in Brazil remains stable at $430-440 per ton.
Morocco's OCP sold 30,000 tons of Triple Superphosphate to the Latin American market (excluding Brazil) at FOB $395-420 per ton, with shipment dates from December to January.
Tunisia's GCT offers Triple Superphosphate at FOB $420-440 per ton.
Potassium Fertilizer
The recent decline in prices in Brazil has led to bearish sentiment affecting other markets, including the United States and Southeast Asia, where the price of potassium chloride has fallen this week. Some suppliers have shifted their focus from Brazil to the United States, with prices dropping to FOB Nola $315-335 per ton. Meanwhile, standard, and granular potassium chloride prices in Southeast Asia have both fallen as buyers in the region request lower prices in response to the drop in Brazilian prices.
On November 1st, potassium chloride stocks in India reached about 1 million tons, an increase of 68,000 tons compared to the same period last year. China's potassium chloride port stocks currently stand at 3.02 million tons, an increase of 581,000 tons compared to last year.
The sustained weak demand in Brazil will continue to exert downward pressure on prices, while high inventories in India and China may hinder contract settlements.
Compound Fertilizer
The global compound fertilizer market remained sluggish in the fourth quarter, with prices temporarily stable. Demand in Europe for spring applications has not truly recovered, and most of India's demand for nitrogen-phosphorus-potassium and compound fertilizers for the rabi season has been met. In addition, Chinese suppliers are focusing on the domestic market, resulting in minimal trade with Southeast Asian countries.
By the end of 2023, compound fertilizer prices will remain relatively stable and may continue into early 2024. First-quarter demand will provide some support for prices, but developments in the raw material market may exert opposite pressures.
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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