International Market Trend of Ammonium Sulfate in the 2nd Week of March 2019

Ammonium Sulfate: International Market Trend of Ammonium Sulfate in the 2nd Week of March 2019
Source: Zhongyu Information Date: 2019-3-15 14:37:55
3.7-3.14 International Market Trends (from foreign sources)

China: The price of caprolactam-grade products is 110-113 US dollars / ton FOB, the demand is gradually increasing, manufacturers are not willing to cut prices. The trader reported a price of 106-108 US dollars / ton of FOB, but so far this price has not been sold. The coking grade price remains unchanged at the export price of 500 yuan / ton, equivalent to 74 US dollars / ton. In the coming weeks, China’s domestic market and Southeast Asian demand will help support prices. China’s extrusion grades will increase and are being prepared for the April/May Brazilian procurement season. In the coming months, many caprolactam plants will begin to be overhauled, and the supply of internal products will be greatly reduced. These include Fujian Shenyuan’s April-June maintenance, Nanjing Oriental’s recovery in June, and Xuyang’s April maintenance. During this period, the market may reduce approximately 200,000 tons of ammonium sulfate.

Brazil: This week, suppliers have started to offer stocks for the summer, but it is not expected to start purchasing in May. The standard grade of ammonium sulphate in China is about $140/ton cfr, and the European seller’s target price is $145-147/ton cfr. China’s extrusion grade is 170 US dollars / ton cfr, the quality is poor, 180-185 US dollars / ton cfr, the quality is higher. European producers are seeking particulate grade ammonium sulphate at around $190/ton cfr.

In 2019, China’s ammonium sulfate exports dominated the Brazilian market. The latest data from the GTT shows that the total import volume almost doubled in the first two months of 2019, from 332,464 tons from January to February 2018 to 618,711 tons. Delayed purchases in the Saflinha field in 2019 were considered to be the reason for the higher level of ammonium sulphate imports. Among them, China supplied 429,000 tons, up from 201,000 tons in the same period last year. Imports also include (in the previous year in brackets): 86,000 tons (63,000 tons) in Belgium, 55,000 tons (33,000 tons) in the United States and 21,000 tons (7,000 tons) in the Netherlands. Lanxess will ship nearly 30,000 tons of ammonium sulphate to Brazil in Antwerp next week.

Indonesia: It is reported that Petrokimia Gresik (PKG) has reached an agreement with a number of dealers to sign an annual contract of 500,000-600,000 tons. Delivery time is required between April 2019 and March 2020.

Philippines: Buyers of ammonium sulphate including Taikoo are expected to enter the market in April. According to reports, Everland purchased 6,000 tons of internal cargo at $130/ton cfr Davao.

Vietnam: TVM requires 6,000 tons of powdered ammonium sulphate to be shipped to HCMC in March/April. The Vietnamese market price is 130s/t cfr in the middle class, 120s/t in the coking level and 120s/t cfr in the MMA level.

Malaysia: Sime Darby completed a tender of 100,000 tons of ammonium sulphate, or 15,000 tons of ammonium chloride, 22,000 tons of silica and 70,000 tons of phosphate on March 11. There are currently no details of the bid or winning bid. Delivery time is from July 2019 to June 2020.

Central America: Incofe requested 5,000 tons of caprolactam and 5,350 tons of extruded granular ammonium sulphate on March 13th, along with other fertilizers, to the St. Thomas of Guatemala, Pto Cortes of Honduras and the first half of April. Barranquilla, Colombia.

Northwestern Europe: European producers still performed well in March/April. OCI offers a 2mm grade with an inland CIF price of €190-195/tonne, which is equivalent to 175-180 Euro/ton FOB. The 3mm grade is quoted at around 220 Euro/ton, cif inland/cpt. Granular ammonium sulfate reported a FOB price of USD 165/ton in northwestern Europe.

US: The current high water level continues to limit the upward flow of rivers, and snowfall means that very few products flow to the farm. However, once the demand season comes, the market will be fast and intense.

Turkey: Turkish buyers continue to make inquiries but are not prepared to buy at current levels. There were two inquiries this week, one from Turkish importers of 15,000 tons and the other from traders of 30,000 tons. The recent in-house sales price was completed at $140/ton cfr. Buyers demand $140/ton cfr and below, and this price is currently not filled.

Mexico: Mexican importers and traders continue to look for goods. European producers are expected to ship approximately 60,000 tons of standard grade ammonium sulphate to East Coast buyers in early April/May. The price index for East Coast delivery is the mid-high price of the standard $150/ton cfr and the medium-high price of the granular $180/ton cfr.

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