Ammonium sulphate: International market trend of ammonium sulphate in the third week of October 2018
Source: Zhongyu Information Date: 2018-10-19 17:10:32
10.11-10.18 International Market Trends (from foreign sources)
Due to the delivery arrangements of traders and importers in November/early December, it is clear that demand from Brazil (mainly demand for granular ammonium sulphate) has started to heat up. The delayed safrinha will allow time for more Chinese goods. With the start of the investigation of ammonium sulphate in China, some new demand has emerged in Mexico.
Northwestern Europe: European buying interest has begun to resurface, and some fertilizer producers are beginning to consider the demand for standard ammonium sulphate delivered from December to January. The European standard grade ammonium sulphate is still relatively tight as Russian manufacturers focus on domestic sales of granular ammonium sulphate. In addition, this month’s BASF caprolactam factory overhaul, supply is tight. This week’s sales include 3,000 tons of crystalline products entering the UK market through traders, and December/January delivery prices are slightly below $150/ton fob North West Europe. The most recent sale price is $140/ton FOB. Manufacturers are looking for November delivery prices above $150/ton FOB. The standard ammonium sulfate from Brazil is still around $130/ton FOB northwest. European pellet producers are looking forward to completing shipments to Brazil in November. The net price is $180-185/ton fob northwest, while the last sale price was $205-210/ton cfr. This week’s price for Europe is as low as $170/ton FOB Antwerp. The OCI G2 grade is promised to be available until February, but it still has a G3 rating available for sale.
France: OCI’s G3 granular ammonium sulphate price is 238 euros / ton cip, and the CAN 27 price provided by OCI is 240 euros / ton cip. A trader sold China’s extruded granular ammonium sulphate at a price of 225 euros/ton fca La Pallice, which arrived in December. It is understood that the ship is now sold out.
Germany: The domestic price of granular G3 is 220-225 euros/ton CIF, and the G2 grade is around 190 euros/ton.
Turkey: Due to the political and economic situation in Turkey, purchases remain sluggish. However, due to the high urea prices, traders have investigated the price of ammonium sulfate. This week’s offer is about 125 euros / ton FOB North West Europe, the current price level, importers are not willing to pay.
Morocco: Moroccan buyers bought 2-3 boxes of approximately 4,000 tons of standard ammonium sulphate on the market this week.
China: China’s extruded granular ammonium sulfate has strong demand for standard ammonium sulphate because China’s granular ammonium sulphate needs to meet Brazilian orders, which keeps China’s prices strong. Turkish buyers and importers have also been asking about prices in the fourth quarter. Although some producers are offering a new offer for the new singles at $120/tonne FOB, the current price is $116-119/ton FOB China. Coking ammonium sulphate is quoted at $113-114/tonne FOB. Depending on the quality, extruded pellets are priced at $155-165/t fob. The scheduled contract continues to be shipped to Petrokimia Gresik, Indonesia. A shipment related to Samsung was sent to Belawan in Qingdao and Rizhao from November 5th to 10th, requesting 20,000 tons.
Philippines: Atlas last week ordered 8,000 tons (excluding China) of caprolactam-grade ammonium sulphate. It is understood that Universal Harvester has recently booked 6,000 tons of caprolactam-grade ammonium sulfate loaded in October and another batch in November. Both are goods from Fuzhou to Bataan. The latest price in the Philippines is around $140/ton CFR.
Malaysia: China’s MMA grade ammonium sulphate continues to be priced at just under $120/tonne CFR.
South Korea: The caprolactam company was inspected throughout October and exports were restricted. In the context of rising urea prices, the new singles are priced at more than $125/ton fob. Official information about providing potential fertilizer assistance to North Korea remains. South Korea’s ammonium sulphate exports fell by 13% in the first nine months of 2018, from 463,569 tons in January-September 2017 to 404,589 tons. Exports to the two key markets, Turkey and Mexico, have increased, while sales to the Asian market have fallen sharply.
Sri Lanka: Sri Lankan importers Baurs and CIC have issued tenders to purchase 10,000 tons and 7,000 tons of ammonium sulphate respectively to meet their fourth quarter demand. The government has set the highest price paid by the importer for ammonium sulphate in the fourth quarter to $145.50/ton cfr plus a 180-day letter of credit. This has not changed with the third quarter.
Vietnam: It is reported that the container price in Vietnam is around US$130/ton CFR.
Brazil: After the presidential election, Brazilian buyers have returned to the market, hoping to determine shipments in November/early December. The postponed safrinha extended the purchase period by about one month, which means that there is still a high probability of Chinese goods. The price of pellets in Europe is $210/ton cfr, and some sellers sell for $215/ton cfr. Before the arrival of the spring season, producers will look for higher prices for the last batch of goods shipped to Brazil. The higher urea price makes ammonium sulphate relatively cheaper, and the next batch of producers raise prices. Premium Chinese extruded granulated ammonium sulphate is priced above $200/tonne CFR. The lower level remains at around $190/ton CFR. The European standard ammonium sulfate price is about $155/ton, and the seller said the next sale price is $160/ton CFR. As of mid-November, about 460,000 of the 14 ships had reached the Brazilian port. Lanxess will load 30,000 tons of ammonium sulphate for Brazil this week to make up for the lack of sales in October.
Mexico: Some buyers in Mexico are concerned about possible anti-dumping cases against nitrogen-potassium compound fertilizers from China, which have been sold in the ammonium sulfate market this week. In addition, the supply of ammonium sulphate is tight because local producers do not have enough ammonia to keep their plants running at full capacity. Nitron has 1-1.5 million tons of OCI standard ammonium sulfate and shipped to Mexico in November. The importer estimates that by the end of this year, Mexico will need 2-3 shipments.
Canada/USA: Fibrant has sold 27,000 tons of premium pellets to buyers in Canada and the United States. It will be loaded in Antwerp around October 20.