Urea prices soften further west of Suez

: Fertilizers
24/11/05

Granular urea prices have dipped again today, with levels in Brazil trending down to about $360/t cfr and Nigeria's Dangote having concluded business in the $330s/t fob.

Offers to Brazil have dropped to $360/t cfr, with bids heard in the $350s/t cfr and below. One supplier was heard to be offering 30,000t of urea for loading in the first half of November at $360/t cfr Paranagua. Sluggish demand and unsold incoming tonnage are weighing on the market, with the November urea line-up surpassing 1mn t. Argus assessed granular urea at $365-375/t cfr Brazil on 4 November.

Nigeria's Dangote is understood to have sold two urea cargoes following its scrapped tender last week. The producer sold one mid-November loading cargo in the low to mid-$330s/t fob. A prompt-loading cargo was also likely to have been sold. Dangote was heard to be offering the mid-November lot at $345/t fob. A trading firm was in the freight market to ship 30,000t of urea from Lekki to either the US or Brazil, loading on 10-20 November.

Meanwhile, prices in Argentina have also slipped, with an offer heard in the mid- to high $380s/t cfr and indications at $380-385/t cfr. The Dangote business could soon pressure levels to the $370s/t cfr Argentina. And granular urea to west coast Mexico was indicated at about $385/t cfr.

A lack of overall demand in the Americas and Europe is weighing on international urea prices. But levels east of Suez have remained comparatively insulated by continued demand from India and tighter supply from the Middle East.

By Harry Minihan

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/11/05

Port of Vancouver grinds to halt as picket lines form

Calgary, 5 November (Argus) — Commodity movements at the port of Vancouver have halted as a labour dispute could once against risk billions of dollars of trade at Canada's busiest docks. The International Longshore and Warehouse Union (ILWU) Local 514 began strike activity at 11am ET on 4 November, following through on a 72-hour notice it gave to the BC Maritime Employers Association (BCMEA) on 1 November. The BCMEA subsequently locked out workers hours later that same day, 4 November, which the union says is an overreaction because the union's job action was only limited to an overtime ban for its 730 ship and dock foreman members. Natural resource-rich Canada is dependent on smooth operations at the British Columbia port of Vancouver to reach international markets. The port is a major conduit for many dry and liquid bulk cargoes, including lumber, wood pellets and pulp, grains and agriculture products, caustic soda and sodium chlorate, sugar, coal, potash, sulphur, copper concentrates, zinc and lead concentrate, diesel and renewable diesel liquids and petroleum products. These account for about two-thirds of the movements through the port. Canadians are also reliant on the port for the import of consumer goods and Asian-manufactured automobiles. The two sides have been at odds for 19 months as they negotiate a new collective agreement to replace the one that expired in March 2023. Intervention by the Canada Industrial Relations Board (CIRB), with a hearing in August and September, followed by meetings in October with the Federal Mediation and Conciliation Service (FMCS), failed to culminate in a deal. The BCMEA's latest offer is "demanding huge concessions," according to the ILWU Local 514 president Frank Morena. The BCMEA refutes that, saying it not only matches what the ILWU Longshore workers received last year, but includes more concessions. The offer remains open until withdrawn, the BCMEA said. A 13-day strike by ILWU longshore workers in July 2023 disrupted C$10bn ($7.3bn) worth of goods and commodities, especially those reliant on container ships, before an agreement was met. Grain and cruise operations are not part of the current lockout. The Westshore coal terminal is also expected to continue operations, the Port of Vancouver said on 4 November. The Trans Mountain-operated Westridge Marine Terminal, responsible for crude oil exports on Canada's west coast, should also not be directly affected because its employees are not unionized. In all, the port has 29 terminals. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US railroad-labor contract talks heat up

24/11/04

US railroad-labor contract talks heat up

Washington, 4 November (Argus) — Negotiations to amend US rail labor contracts are becoming increasingly complicated as railroads split on negotiating tactics, potentially stalling operations at some carriers. The multiple negotiating pathways are reigniting fears of 2022, when some unions agreed to new contracts and others were on the verge of striking before President Joe Biden ordered them back to work . Shippers feared freight delays if strikes occurred. This round, two railroads are independently negotiating with unions. Most of the Class I railroads have traditionally used the National Carriers' Conference Committee to jointly negotiate contracts with the nation's largest labor unions. Eastern railroad CSX has already reached agreements with labor unions representing 17 job categories, which combined represent nearly 60pc of its unionized workforce. "This is the right approach for CSX," chief executive Joe Hinrichs said last month. Getting the national agreements on wages and benefits done will then let CSX work with employees on efficiency, safety and other issues, he said. Western carrier Union Pacific is taking a similar path. "We look forward to negotiating a deal that improves operating efficiency, helps provide the service we sold to our customers" and enables the railroad to thrive, it said. Some talks may be tough. The Brotherhood of Locomotive Engineers and Trainmen (BLET) and Union Pacific are in court over their most recent agreement. But BLET is meeting with Union Pacific chief executive Jim Vena next week, and with CSX officials the following week. Traditional group negotiation is also proceeding. BNSF, Norfolk Southern and the US arm of Canadian National last week initiated talks under the National Carriers' Conference Committee to amend existing contracts with 12 unions. Under the Railway Labor Act, rail labor contracts do not expire, a regulation designed to keep freight moving. But if railroads and unions again go months without reaching agreements, freight movements will again be at risk. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Kuwait's KPC lifts November sulphur price to $135/t fob

24/11/04

Kuwait's KPC lifts November sulphur price to $135/t fob

London, 4 November (Argus) — Kuwaiti state-owned KPC has set its November sulphur price at $135/t fob, up by $11/t from October. This implies a delivered price to China of $158-164/t cfr at current freight rates, which were assessed on 31 October at $23-25/t to south China and $27-29/t to Chinese river ports for a 30,000-35,000t shipment. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Port strike to halt Vancouver sulfur exports

24/11/01

Port strike to halt Vancouver sulfur exports

Houston, 1 November (Argus) — Sulfur exports could be halted early next week following the announcement of a strike notice by the International Longshore and Warehouse Union (ILWU) Local 514. The union issued a notice for a strike to begin on 11am ET on 4 November after rejecting a final offer from the British Columbian Maritime Employers Association (BCMEA) for a new labor contract. The two parties have been in talks for a new contract since the previous labor agreement expired in March 2023. The BCMEA responded early this morning with a lockout notice, set at the same time as the ILWU Local 514's strike on 4 November. The work stoppage at the port will impact all commodities aside from grains, according to sources. No sulfur handling operations —rail unloading and vessel loading— will take place for the duration of the strike. Logistics providers and shippers will have three days to load vessels, and will likely expedite railcar unloadings before railroad operators make sure cargoes are stored safely. Shippers at the port of Vancouver have exported around 2.47mn t of sulfur from January-September this year, up by 5pc on the year with increased deliveries to China, Indonesia and the US. The Canadian government has the power to intervene and force the parties back to the negotiating table, albeit with a federally appointed mediator. This would also require employees to return to work and for operations at the terminals to resume. By Chris Mullins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Rise in phosphoric acid price to hit Indian producers

24/10/31

Rise in phosphoric acid price to hit Indian producers

London, 31 October (Argus) — Higher phosphoric acid prices for the fourth quarter will push India to rely more heavily on DAP imports and domestic production using imported phosphate rock and sulphur to build its DAP stocks. The Indian government said in a document issued in September that it will cover the losses incurred on imports over September 2024-March 2025, but it has not committed to covering the losses incurred on domestic production. Domestic DAP producers using imported phosphate rock and sulphur are achieving profits, but those using imported phosphoric acid are facing negative margins. Phosphoric acid price hike lifts cost of production Indian fertilizer importer and producer Coromandel this week agreed to a price of $1,060/t P2O5 cfr India for phosphoric acid in the fourth quarter with Jordanian supplier JPMC, which is up by $110/t P2O5 from the third-quarter phosphoric acid contract price. No other producer or importer has yet confirmed settling their respective phosphoric acid contract requirements for the fourth quarter. Argus calculates that importing phosphoric acid at $1,060/t P2O5 cfr and ammonia at $460/t cfr will bring the total cost of DAP production up to $647/t. Adding variable costs brings the total to about $684/t. This means that domestic DAP producers using imported phosphoric acid and ammonia will face negative margins of $64-65/t given the current maximum retail price (MRP) of 27,000 rupees/t ($321.12/t), nutrient-based subsidy (NBS) of Rs25,411/t — including the Rs3,500/t special additional package — and US dollar to rupee exchange. Without the Rs3,500/t special additional subsidy — due to expire at the end of December — the loss would rise to about $106/t. Meanwhile, with the delivered price at $635/t cfr, importers of DAP would currently face a loss of about $92/t, given the current MRP, NBS and exchange rate, and without the additional government support. Domestic DAP producers importing 67 BPL (30.66pc P2O5) phosphate rock at $145/t cfr and sulphur also at $145/t cfr will make a profit of about $47/t in current conditions. Firm interest in phosphate rock and disruptions to Syrian exports have supported prices for Jordanian product. Indications for 66-68 BPL (30.2-31.1pc P2O5) phosphate rock are now in the $130s/t fob Aqaba. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more