Ammonium sulphate: International market trend of ammonium sulphate in the 4th week of March 2019
Source: Zhongyu Information Date: 2019-3-29 15:28:43
3.21-3.28 International market dynamics (from foreign sources)
Turkey: It is reported that a Chinese businessman sold 50,000 tons of ammonium sulphate goods to Turkish buyers late last week at a price of about US$130/ton (including freight) and did not pay the April tariff. It is unclear whether the shipment is a steel coke grade, an internal grade or a mixture.
China: China’s caprolactam-grade product prices have remained firm this week, with FOB prices of $110-113/tonne, despite rumors that last week’s prices were lower, at around $105 106/ton FOB. However, it is not possible to buy offshore prices below $110/ton this week, in part because of the scheduled recovery in the second quarter and because demand in Brazil and Southeast Asia is rising.
Jiangsu Haili closed after the chemical plant exploded: After a fatal explosion at a chemical plant near March 22, Haili was forced to close its Jiangsu plant in eastern China on March 26. Haili Jiangsu Branch produces caprolactam by-product ammonium sulfate, with an annual output of 300,000 tons of ammonium sulfate. The plant is expected to be shut down for a month or so, leaving approximately 25,000 tons to 30,000 tons out of the market.
According to news reports, Jiangsu Tianjiayi Chemical Co., Ltd. exploded, killing 78 people. Haili also has an unaffected 300,000 tonne/year caprolactam ammonium sulfate plant in Shandong.
In addition, China plans to shut down some of the major equipment for ammonium sulphate from April to June. According to Argus, there may be 220,000 tons or more of ammonium sulphate being withdrawn from the market during this period.
Brazil: The Brazilian market is beginning to recover. The buyer began to consider the goods delivered in April/May. China’s extrusion grade ammonium sulphate is priced at 172-180 US dollars / ton CFR, European grain price is 190-195 US dollars / ton CFR. The standard grade quote from China is about $140 per ton, and the European producer’s target is a mid-to-high end cost plus freight of $140 per ton.
Dreymoor will ship 10,000 tons of extruded grade ammonium sulphate cargo in MAP in April. The company sells ammonium sulphate in Brazil for $172/ton cfr. According to reports, a trader will load 60,000 tons of goods scheduled to be shipped to Brazil at the end of April/early May.
Philippines: La Filipina of the Philippines completed a 6,000-ton caprolactam-grade ammonium sulfate bid this week and will deliver it to Ilo Ilo and Davao by the end of April. One of the ships has a cost plus freight rate of $130/ton at the mid-high, and the buyer is reported to have bought it at $130/ton cost plus freight, with a net price below $110/ton FOB.
Black Sea: SBU Azot offers 3,000 tons of caprolactam-grade ammonium sulfate, and the FOB price of the Black Sea is $130/ton. The offer from Turkey is FOB price of $120 per ton. According to reports, Kuibyshevazot has some stocks in April, but it is not clear whether there will be exports. Schekinoazot sold out this month.
Indonesia: This week, traders have sold a large number of containers to Indonesia, including 3,000 tons to Surabaya, 3,000 tons to Palambang and 4,000 tons to Panjang. The selling price is at a low level of $130/ton cost plus shipping, and after deducting container shipping costs, it returns to about $120/ton FOB.
South Korea: It is reported that Hannong Farm purchased 3,000 tons of caprolactam ammonium sulfate for US$110/ton FOB China and delivered it in April.
Vietnam: It is reported that PVFCCO has won the bid on March 25 to sell 6,000 tons of caprolactam-grade ammonium sulfate to the Vietnamese trading company at a cost plus freight rate equivalent to US$122-123 per ton. Ammonium sulfate will be supplied from domestic stocks, not from imports.
Northwestern Europe: As the spring draws to a close, the market in northwestern Europe continues to pick up and most buyers have already bought it. Standard grade materials are available at a FOB price of €120/tonne in Northwest Europe.
