Ammonium Sulfate: The International Market of Ammonium Sulfate in the 2nd Week of August 2018
Source: Zhongyu Information Date: 2018-8-10 16:46:17
8.2-8.9 International Market Trends (from foreign sources)
Northwestern Europe: Demand for ammonium sulphate began to pick up somewhat this week, especially in Germany and the UK. Bullish urea prices, strong nitrates, and the feeling of tight supply of ammonium sulfate on the market, there is already a large demand for ammonium sulfate in the market. European buyers who have been paying attention to September-November delivery are trying to lock in tonnage. The price of the North West European standard ammonium sulfate shows about 115 Euro/ton fob ($133/ton fob). Compound fertilizer producers are expected to re-enter the ammonium sulfate market in September. Due to stable demand in Brazil in the fourth quarter and tight supply of ammonium sulphate in China, European producers expect strong demand for the rest of the year, so they are reluctant to provide too much supply. According to the Brazilian cfr level, the net price of ammonium sulphate in Europe is 165-172 US dollars / ton.
Turkey: Although it is currently off-season, Turkish buyers will need to re-enter the market for ammonium sulphate soon and import it before the spring of October-December. Agrofertrans continues to offer Chinese caprolactam-grade ammonium sulphate, excluding tax prices above $140/tonne below $150/tonne CFR, depending on port and credit. The buyer’s intent price does not include tax below $135-140/ton. The freight rate of 30,000 tons of goods from China to Turkey is estimated to be 28-30 US dollars / ton, which will reduce the fob price to 110-112 US dollars / ton, which is currently not feasible.
Baltic/Black Sea: The supply of ammonium sulphate in the Black Sea and the Baltic Sea is still very tight as suppliers continue to supply the local market. Most of the manufacturers sold out in August, and the goods in September are not yet ready for sale. It is estimated that the FOB price of the Baltic Sea is 120-128 US dollars / ton. In August, SBU did not provide any export goods, and its last 4,000 tons of caprolactam-grade ammonium sulfate was shipped from Kotka at the end of July at a price of US$120/ton. KuAz August has been sold out and has not yet started to supply September. Schekinoazot has supplied 4,000 tons of granular ammonium sulphate and 9,000 tons of standard ammonium sulphate to domestic buyers in August. The domestic market will also digest all of its cargo in September. NLMK and Altai-Koks will ship their ammonium sulphate to the Russian plant in Lithuania and Phosagro in August. NLMK is sold at $100/ton cpt Draugyste and Altai-Koks is sold at $114/ton cpt Draugyste. Phosagro purchased the price at 5000 – 5300 rubles / ton cpt Koshta.
Brazil: Sellers expect demand in Brazil to be strong as buyers want to meet the demand for ammonium sulphate from October to December. Sold out in August, European sellers are working hard to achieve a granular ammonium sulfate price of $200/ton cfr in the next sale. The freight from Antwerp is about $24/ton, which will allow it to sell at a net price of $170/tonne FOB before other costs. Buyers and importers are still looking for European price of ammonium sulphate at $190-195/ton cfr. The high quality Chinese extruded granular ammonium sulfate is sold to importers at a price of US$190-195/ton cfr. The European standard grade ammonium sulfate price is stable at 150-155 US dollars / ton cfr. This week, China’s caprolactam-grade ammonium sulfate is quoted at $148-150/ton cfr; due to some changes in China, supply is still relatively tight.