Ammonium sulphate: International market trend of ammonium sulphate in the third week of March 2019
Source: Zhongyu Information Date: 2019-3-22 16:16:47
3.14-3.21 International Market Trends (from foreign sources)
Turkey: Buyers in the south of the country have been looking for 6,000 tons of ammonium sulphate to be shipped to ports such as Iskenderun by the end of April. According to reports, Samsung will purchase a batch of 45,000 tons of ammonium sulphate from South Korea in early April, the price is 145-146 US dollars / ton CFR. The buyer bargained to $140/ton. Agrofertrans offers a 30,000 to 45,000 tons of Chinese ammonium sulphate freighter for a price of $130/tonne CFR and a credit period of 180 to 270 days. It is estimated that China’s FOB price is about US$105/ton. The coking level is 100-105 US dollars / ton CFR China. However, Turkish buyers are often keen to buy premium white caprolactam grades. The most recent purchase of caprolactam in Turkey was $140/tonne CFR. At present, buyers have no choice but to buy Chinese or Korean goods. Since the orders of European producers have all been booked, and because of Russia’s demand for NPK production, Black Overseas has almost no available.
China: China’s caprolactam producers offer $110-113/tonne CFR, with a bid price of $105-108/ton. The lower quality caprolactam grade is likely to be under pressure, with a FOB price of $110/ton due to the lack of demand in Southeast Asia due to the effects of dry weather. The mill-grade price stabilized at 500 yuan/ton this week, equivalent to $74/ton. Some Chinese installations began to be overhauled from April to June. It is estimated that the capacity of China’s ammonium sulphate is currently 8.5 million tons / year, so these shutdowns are equivalent to about 2.5% of this year’s capacity. According to customs data, China’s exports in 2020 were 6.8 million tons. Therefore, due to the impact of maintenance, the amount of exports reduced from the market is equivalent to 3.2% of commercial ammonium sulfate imported from China.
Indonesia: It is reported that Petrokimia Gresik’s annual contract totals between 60,000 and 700,000 tons to 900,000 tons. The following traders got the contract: Samsung, Golden wheat, Aries, Sunshine, (Agrostar, Agrifert Agrofertrans. Delivery time is from April 2019 to March 2020. Some small buyers bought this market this week. Many 2,000-ton containers are being shipped to Surabaya and Belawan. It is reported that the FOB price in China is about US$120/ton, while the freight rate is US$10-12/ton, and the CIF price is low-$130/ton CFR.
Vietnam: Pvfcco will hold a bid on March 25 to purchase 6,000 tons of caprolactam-grade ammonium sulphate and deliver it before April 10. The offer is valid until March 28. The market price in Vietnam is stable, the caprolactam grade is at low-intermediate $130/ton cfr, the coking grade is high at $120/ton and the MMA level is at low-$120/ton cfr. Domestic fertilizer purchases are mainly concentrated in the Mekong Delta. Vietnam has less rainfall this season. It usually starts in March and starts in April, but the transaction has not yet started.
South Korea: Farmhanong expects 3,000 tons of standard grade ammonium sulfate to arrive in April. In the first two months of 2019, the export volume of ammonium sulphate in Korea increased from 101,164 tons from January to February 2018 to 138,423 tons, according to GTT data. Sales to Mexico more than doubled from 27,500 tons a year ago, reaching more than 55,000 tons. Due to anti-dumping measures, Mexico cannot import from China. Other major exports include (in the previous year in brackets): Turkey 53,000 tons (45,000 tons); the United States 22,000 tons (0); India 8,000 tons (22,000 tons).
Philippines: Buyers are expected to return to the market next week to buy new products. The last bulk sale was done at a low price of $140/ton CFR.
Brazil: Summer quotes remain unchanged this week. Buying interest is not expected to rise until May. The Chinese standard grade price is around $140/ton CFR, and the European seller’s target is medium/high – $140/ton CFR. In terms of particle size, European producers offer $190-195/ton cfr, while China compresses $175-175/ton cfr, costing $185 per ton, depending on quality. According to reports, a key buyer in the market is bidding to buy 25,000 tons of granular ammonium sulfate, which will be delivered in May. Fibrant plans to open a ship to Brazil for loading in the second half of April.
Mexico: Importers say they will need to ship another shipment to smaller buyers in the next few weeks. According to reports, the two vessels of South Korea’s raw materials have been scheduled, European producers may ship some standard grade products totaling 60,000 tons in April or early May. The East Coast delivery price index is $150/ton cfr at the mid to high end and $180/ton cfr for the granularity.
United States: Over the past week, demand for ammonium sulfate has increased as weather conditions have improved. Fibrant will sell 2.5-2.7 million tons of ammonium sulphate at a FOB price of $205 per ton, which is expected to arrive in April, about $3-4 higher than the previous week. There have already been two European cargo ships: Oborishte – 25,000 tons Ghent to Fibrant and Chestnut – 25,000 tons from Antwerp to LANXESS. Fibrant is preparing the second shipment, which will be shipped to Nora in mid-April.
Baltic/Black Sea: Exports from the Black Sea and the Baltic Sea are still very limited due to strong demand from the local market this spring. A trader is discussing 4,000 tons of caprolactam-grade ammonium sulphate with SBU Azot and Kuibyshevazot producers, which will be shipped in April. Manufacturers’ quotations are $140/tonne Black Sea FOB and $147/ton Black Sea FOB. Turkey’s cost plus freight rate is equivalent to about $130/tonne to the FOB price in the Black Sea, and the lowest price of $120/ton FOB from Brazil to the Baltic Sea.
Benelux Economic Union (Belgium, Netherlands, Luxembourg): Belgium’s exports fell in January 2019 due to the economic recovery. According to GTT data, Belgium exported 59,022 tons of ammonium sulphate in January 2019, down from 169,856 tons exported in January 2018. In January of this year, the largest buyer of Belgian ammonium sulphate was Brazil, which carried a total of 33,025 tons of cargo, up from 25,040 tons in the same period last year. However, in January 2019, China did not export to the United States, the United Kingdom and other Western European markets. In January of this year, Belgium exported 11,000 tons to Mexico, up from zero in the same period last year.
