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Writer's pictureAntonia Z

Changes in international fertilizer prices from November 3rd - November 10th.

Price Changes of Urea, Ammonium Sulfate, Ammonium Phosphate, Triple Superphosphate, Potash Fertilizers, and Compound Fertilizers from November 3rd - November 10th.


Urea


Due to weak demand and slow transactions in nitrogen fertilizers, urea prices have generally fallen again this week.


The supply of urea in Brazil and the United States continues to exceed purchasing demand, leading to a decrease in prices in the Americas by 15-20 USD per ton. The Asian market has insufficient trading volume, with prices lower than last week.


The European market is also quiet, with only a few importers receiving quotes at CFR415-420 USD per ton, resulting in minimal transaction activity.


Although the current market is clearly soft, seasonal demand in the Mediterranean and South Asian markets should stabilize the market.


Ammonium Sulfate


Despite tight supply from caprolactam producers, the mood in the European market remains subdued this week.


Northwest Europe: The FOB price for standard ammonium sulfate rose to 220 euros per ton this week. Due to weak demand, the FOB price for granular ammonium sulfate slightly decreased to 278-338 USD per ton in Northwest Europe. In Germany and the Benelux region, Domo continues to offer granular ammonium sulfate at an ex-factory price of 277 euros per ton.


China: The FOB price for standard ammonium sulfate dropped to 138-145 USD per ton this week, lower than the previous week. The FOB price for MMA-grade ammonium sulfate is 125-130 USD per ton. Due to weak demand from Brazilian importers for November loading, pressure from granule manufacturers further reduced export quotes, and this week the FOB price for pressed granular ammonium sulfate dropped to 165-175 USD per ton.


Vietnam: This week, MMA-grade ammonium sulfate originating from China is offered to local importers at CFR145-148 USD per ton for December delivery.


United States: From October to November, the total variable cost of ammonium sulfate production increased by about 7%, reaching 187 USD per ton. With the progress of fall applications, ammonium sulfate is expected to remain stable this quarter.


Central America: Incofe has awarded two tenders to purchase 37,500 tons and 25,000 tons of fertilizer, respectively, for delivery to several ports in Latin America from December 5th to 15th.


Brazil: Due to weak demand, the CFR price for pressed granular ammonium sulfate in Brazil has dropped to 190-200 USD per ton. Farmers are waiting for lower corn barter prices before entering the spot market.


Ammonium Phosphate


India: The CFR price of diammonium phosphate (DAP) is stable at 590 USD per ton. According to the procurement tender on November 6th, NFL received quotes for 50,000 tons of DAP at a CFR price of 595.10 USD per ton. After importing 569,000 tons in October, India's total DAP imports for November will reach 818,000 tons.


Pakistan: The price of diammonium phosphate remains unchanged. The buying price is around CFR610 USD per ton. A batch of 27,000-28,000 tons of diammonium phosphate from China is scheduled to arrive in Karachi on November 21st.


Thailand: Recent import demand for diammonium phosphate has been sluggish, with no new transactions or quotes. Despite the start of the irrigation season, fertilizer demand remains slow.


China: The FOB price of diammonium phosphate is generally stable at 575-585 USD per ton, with no recent transactions. Most producers have stopped supplying this week, citing a shortage of remaining export quotas and tight export supplies. Strong domestic demand has pushed up domestic prices this week, prompting producers to focus on the domestic market rather than exports.


United States: Domestic demand weakens, and this week, Nola diammonium phosphate prices have slightly fallen. The FOB price of DAP dropped from 523-540 USD per ton last week to 525-535 USD per ton.


Also this week, Mosaic stated that it expects its fourth-quarter phosphate sales to be between 1.6 million and 1.8 million tons, with an average selling price for diammonium phosphate at FOB530-580 USD per ton. From October to December 2022, Mosaic sold 1.6 million tons, with an average selling price for diammonium phosphate at FOB722 USD per ton. Mosaic's third-quarter phosphate sales were flat compared to the same period last year, at 1.65 million tons. The average selling price for diammonium phosphate dropped from FOB809 USD per ton in the same period last year to 487 USD per ton. Mosaic's phosphate finished product production in this quarter decreased from 1.66 million tons in the same period last year to 1.59 million tons. The production capacity utilization rate also dropped from 67% to 64% in the same period.


Russia: Phosagro produced over 8.5 million tons of fertilizer, a 3.7% increase from the same period last year. Driven by the capacity expansion of the Volkhov plant, the production of monoammonium phosphate increased by 19.4%. The production of phosphate fertilizer and feed-grade phosphoric acid in the third quarter reached 6.4 million tons, an increase of 3.4%, with 2.17 million tons in the July-September period, a growth of 1.8%. Phosagro stated that sales to Brazil (mainly monoammonium phosphate) grew nearly fourfold year-on-year. Phosagro also mentioned an increase in sales in Western Europe, supported by the recovery of seasonal demand.


Brazil: The CFR price of monoammonium phosphate remains at 560-565 USD per ton. This week, the price of monoammonium phosphate 11-44 is expected to rise, with a CFR quote of 480-485 USD per ton. According to DirectHedge's data in the futures market, the November monoammonium phosphate futures are maintained at CFR540-560 USD per ton, while the December monoammonium phosphate futures are stable this week at CFR530-560 USD per ton. The January monoammonium phosphate futures are priced at CFR550-560 USD per ton.


Argentina: The CFR price for monoammonium/ diammonium phosphate is 575-580 USD per ton. Dry weather in Uruguay has forced farmers to delay planting, restricting fertilizer demand. Uruguay may import an additional 20,000 tons of monoammonium phosphate by the end of the year to meet the needs of summer crop planting.


Central America: Incofe has conducted two tenders to purchase 37,500 tons and 25,000 tons of fertilizer, respectively, for delivery to several ports in Latin America from December 5th to 15th. Importers have purchased 5,000-6,000 tons of diammonium phosphate at a net price of FOB575 USD per ton from China.


Israel: ICL's revenue from phosphoric acid decreased by 64% compared to the same period last year, as falling fertilizer prices hit overall revenue. ICL's latest annual report shows that the company, after processing 1.04 million tons of phosphoric acid at its Rotem plant in Israel last year, saw declining profits.


East Africa: The price of diammonium phosphate has risen to 600-630 USD per ton.


South Africa: Domestic demand for monoammonium phosphate has increased, leading to tight supply. Ships docked in Mozambique's Durban and Beira ports have been delayed for a long time, and some goods may not arrive on time this season.


The demand for phosphates in the Benelux countries is small. The price of diammonium phosphate is basically 660 USD per ton. In Germany, the FCA price of bulk diammonium phosphate from Morocco is 620-625 euros per ton. The price of monoammonium phosphate 11-52 in Poland is about 640 euros per ton. Despite strong demand and sales for fertilizers, Grupaazoty in Poland reported increasing losses in the third quarter.


India's demand is slowing down, but in the first quarter of 2024, diammonium phosphate stocks will be at a low level. Supply in China is tight, but usually, as companies focus on ensuring domestic supply, Chinese exports tend to decrease towards the end of the year and the first quarter. Demand for soybeans in Brazil and Australia is relatively stable, supporting the price of monoammonium phosphate.


Triple Superphosphate


The price of TSP in Brazil has declined, with CFR prices falling to 430-440 USD per ton, a decrease of 10 USD per ton.


In France, the price of TSP is 507-510 euros per ton.


The bagged TSP price in the UK is 440 pounds per ton, with deliveries this week.


In Europe, TSP quotes from Israel are CIF490-500 USD per ton to Northern Europe.


Potash Fertilizers


Due to weak demand, potassium chloride prices in Brazil have fallen again. Brazil's fertilizer imports reached a record 11.2 million tons from January to October, but consumption of potassium chloride did not keep pace. Standard potassium chloride prices in Southeast Asia also saws a slight decline.


Uralkali's potassium chloride exports rebounded to 2021 levels. From August to October, Uralkali's average monthly railway transportation of potassium chloride was 792,795 tons, higher than the 2021 monthly average of 783,402 tons.


Due to tight supply, liquidity in the granular potassium chloride market is expected to be generally low, but continued delayed demand in Brazil will still put downward pressure on prices. Prices may remain stable in other regions.


Compound Fertilizers


The global compound fertilizer market overall remains stable, while demand in Europe has been limited.


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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