-Nitrogen Fertilizer Market
India IPL issued an import tender of 1 million tons of nitrogen fertilizer, and the tender will be opened on March 3, valid until March 13. The latest shipping date is June 1.
-Phosphate Fertilizer Market
1) Russia Phosagro sold 25,000 tons of DAP to India at $659/ton CFR and the vessel is currently on its way to Tuna port.
2) DAP prices in northwest Europe are basically stable. European farmers have started to apply nitrogen fertilizer and there is a small demand for phosphate fertilizer. Most of the current offers to Belgium, Netherlands and Germany are in the range of 700-730 EUR/ton FCA (750-780 USD/ton), mainly from Russia and Morocco.
3) China’s export market of MAP has been quiet this week as demand from Brazil remains slowly lifting. China's central bank has signed a preliminary agreement with Brazil's central bank to establish RMB clearing in Brazil, which will facilitate cross-border transactions using RMB. Brazil is a major importer of fertilizers from China of mainly ammonium sulfate (amsul) and MAP. It is about 5.19 million tons of fertilizers are exported from China to Brazil each year. The adoption of RMB clearing arrangements may boost China's fertilizer exports to Brazil this year.
-Potash Market
1) Indonesia is expected to issue a tender for up to 250,000 tons of standard potassium chloride next week.
2) A large Indian contract is likely to be signed around the end of February or later. The current market forecast for the high end is still no higher than $500/ton CFR, but the low end forecast has been updated to $440-450/ton CFR, slightly decreased from the previous forecast.
3) Recent drop in Brazilian large grain potassium chloride has slowed down and prices are still falling in the Southeast Asian market, but the price difference between the high and low end is a bit too wide and the trend is not completely clear. The focus of the worldwide potash market is on the big contracts in India.
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