China's Potash Contract Signed
On July 9, 2024, the Chinese Potash Import Negotiation Team (comprising Sinochem, CNOOC, and CNAC) reached an agreement with Dubai-based Food Safety Supply Chain Co., Ltd. on the 2024 annual potash import contract price, set at $273/ton CFR. This is a decrease of $34/ton from the previous year, maintaining China's position as the global "price lowland" and benchmark for potash prices. The new contract will ensure the supply of potash for China's agricultural production in the upcoming fall and spring, boosting farmers' enthusiasm for planting and ensuring food security.
Bangladesh's 500,000 Tons DAP Tender Ends
The tender for 500,000 tons of diammonium phosphate (DAP) by the private sector in Bangladesh concluded on July 8. The tender attracted bids from 13 traders, with prices ranging from $645 to $695/ton CFR. There was also a smaller bid of 4,000 tons at $925/ton CFR. It is unclear how much support local traders have and whether Chinese producers will support the lower-end bids.
India's Tender Results Announced
On July 8, Indian fertilizer importer and supplier IPL concluded its urea procurement tender. The lowest bids received were $350.50/ton CFR West Coast and $365/ton CFR East Coast, with a total urea supply of 2.68 million tons. Historically, India has relied on imports to meet its vast agricultural demand but is steadily achieving self-sufficiency in urea production. The local urea market is undergoing significant changes, reducing its impact on global urea prices. Thus, the international market should not overemphasize India's urea import tenders.
Philippines to Sign Cooperation Agreement with Vietnamese Fertilizer Company
A delegation led by Philippine Agriculture Secretary Francisco P. Tiu Laurel met with executives from Vietnam's Binh Dien Fertilizer Joint Stock Company to explore cooperation areas, particularly the potential for Binh Dien to supply or produce fertilizers in the Philippines. Binh Dien is one of Vietnam's largest NPK producers, with a total capacity of 1 million tons, supplying about 30% of Vietnam's fertilizer needs. In January, the governments of the Philippines and Vietnam signed an agreement granting the Philippines an annual rice quota of 1.5 to 2 million tons for five years. As of June 27, the Philippines had imported 1.71 million tons from Vietnam, accounting for 74% of its first-half imports.
Pakistan's Urea Sales Expected to Reach 3.038 Million Tons in First Half
In the first half of 2024, Pakistan's urea sales are expected to reach 3.038 million tons, a 2% decrease from 3.101 million tons in the first half of 2023. Urea sales in June are projected at 483,000 tons, down 21% from 610,000 tons in June 2023. However, due to ongoing Kharif crop planting, urea sales are expected to increase by 21% month-on-month. Ending urea inventory in June 2024 is estimated at 474,000 tons, compared to 215,000 tons in June 2023 and 368,000 tons in May 2024, potentially reaching the highest level in 37 months.
Engro Fertilizers (EFERT) urea sales in June 2024 are expected to decline 26% year-on-year to 155,000 tons due to the shutdown of its Enven plant for maintenance, which resumed operations on June 18, 2024. Fauji Fertilizer Company (FFC) is expected to sell 240,000 tons in June, down 13% year-on-year; Fatima Group's sales are projected at 42,000 tons, down 44% year-on-year; and Fauji Fertilizer Bin Qasim (FFBL) sales are estimated at 18,000 tons, down 13% year-on-year.
Brazil's June MAP Imports Reach Annual High
GTT data shows that Brazil imported 441,000 tons of monoammonium phosphate (MAP) in June, the highest monthly total so far this year. June's intake increased by over 100,000 tons month-on-month and by 128,000 tons year-on-year. Brazilian MAP imports typically rise in the second quarter, peaking in August. First-half intake this year totaled 1.8 million tons, below last year's 2.3 million tons and the five-year average of 2 million tons. Unimar series data indicates that 464,000 tons of MAP will be delivered to Brazil in July, compared to 383,000 tons in the same period last year.
Brazilian buyers delayed phosphate purchases this year, expecting MAP prices to fall with softer Indian DAP CFR prices. In mid-May, MAP prices hit a low of $508/ton CFR. Although Indian DAP prices are currently firm, they are still below first-quarter levels. Over the past month, Brazilian MAP prices have steadily risen from $580-600/ton CFR in early June to $630/ton CFR. Continued low import supply during the 2024-25 soybean crop application window supports MAP prices.
Attention: The above 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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