Ammonium sulphate: International market trend of ammonium sulphate in the 5th week of August 2018
Source: Zhongyu Information Date: 2018-8-31 18:06:37
8.23-8.30 International Market Trends (from foreign sources)
The tight supply in Europe and China has kept the price of ammonium sulphate firm this week. It is expected that the Brazilian market will start looking for goods in October next month. The only problem that may arise is that Turkey’s purchases may fall due to the currency crisis.
Northwestern Europe: Granular ammonium sulphate remains tense in northwestern Europe. Buyers are keen to book in advance as demand in Europe and beyond remains strong. Buyers in the quarter will start considering purchases in the fourth quarter at the end of September. According to reports, the G2 ammonium sulphate pellets shipped in September are worth €170/tonne FOB ($198/tonne). The latest offer for G3 ammonium sulphate pellets is around €210/tfca. Traders continue to supply China’s ammonium sulphate granules for 195-197 euros/ton Fca Ghent, both old and fresh, available from November to December.
Baltic/Black Sea: The supply of ammonium sulphate in the Black Sea and the Baltic Sea was very tight throughout August, and it seems to be the same in September. Suppliers will focus on the domestic market rather than export. Traders bid below $130/ton FOB Black Sea. Sales in Turkey were suspended due to weak currency and the buyer’s intention to export. Both Kuaz and SBU are expected to discuss prices with local buyers around the next week. Both companies are unlikely to have exports in September.
Turkey: The purchasing power of Turkish fertilizer continues to be hampered by the weakening of the lira against the US dollar. On Thursday, the lira against the US dollar closed at 6.745, down from 4.908 on July 31, 95% lower than a year ago. Some Turkish buyers are trying to re-export their ammonium sulfate stocks to withdraw funds. The European standard grade ammonium sulphate is quoted at $155-160/tonne FOB Marmara. Dealers said that farmers are not buying fertilizers at the moment, and consumption of fertilizers may fall by 10% or more. Toros is looking for 3-3.5 million tons of ammonium sulphate – 15,000 tons of coked ammonium sulphate and 20,000 tons of caprolactam-grade ammonium sulphate, shipped at the end of September. It is said that Toros has taken 1.5-17,000 tons of caprolactam-grade ammonium sulfate from other importers’ stocks. Gubretas is looking for 10,000 tons of caprolactam-grade ammonium sulphate, which will be shipped in September. Agrofertrans continues to offer caprolactam-grade ammonium sulfate at a price of $140/ton cfr excluding taxes, plus a 270-day letter of credit for autumn shipments.
China: This week, the ammonium sulphate market is quieter, with less inquiry and sales. Due to overhaul and environmental factors, China’s ammonium sulfate is still relatively tight. Demand for coked ammonium sulphate is strong as Chinese manufacturers are producing large quantities of extruded granular ammonium sulphate for Brazil. The price of caprolactam-grade ammonium sulfate is still 117-120 US dollars / ton fob. Declining demand from Turkey may limit opportunities for current price increases. The price of extruded granular ammonium sulfate is $155-159/tonne FOB.
Indonesia: Golden Barley has sold 10,000 tons of Chinese caprolactam-grade ammonium sulphate to Indonesian buyers for container shipments, delivered in September/October, at a price of US$130/tonne CFR. Shipping costs are approximately $12/ton.
Philippines: It is expected that regular buyers such as Swire, Atlas and La Filipina will see new demand next week and ship in October.