Urea Key Prices ($/t) Nitrates Key Prices ($/t) STC has ...chem-courier.ru/download/85EBD99478156E4EC2257CF9004D5BC0/…The company is expected to book ... Ammonium Sulphate This week

Nitrogen Weekly +7 499 346 03 42 №24 (36) 12 June 2014

Market Brief

Urea ■ Urea demand in the global market is growing. Indian

STC has announced a long-awaited urea purchase tender that will be closed in H2 June. The company is expected to book about 1 million t of urea via the tender. This will increase competition in the international market as the lowest bids will probably be offered for Chinese-origin urea. Prices from the Middle East and CIS suppliers are unlikely to be competitive in the tender, so the suppliers will satisfy demand mostly in LAM and Turkey, respectively. …-> SUPPLY DEMAND

Ammonium Sulphate ■ This week prices for steel grade ammonium sulphate

have increased in China and Turkey. Demand for steel grade AS from fertilizer producers that use ammonium sulphate as feedstock has picked up in China. But prices for capro grade AS have been unchanged in the global market. The SE Asia’s market has been sluggish. …->

SUPPLY DEMAND

UAN ■ UAN demand remains seasonally soft in the main

consuming countries this week. As a result UAN international values have slipped. Besides, some producers (like Egyptian, Romanian and Lithuanian) have cut their production. Market participants expect that this will to stabilize prices for fertilizer in the coming weeks. …->

SUPPLY DEMAND

Ammonium nitrate/CAN ■ Russian producers inspired by demand in Brazil are

offering AN at higher than $260/t FOB Baltic Sea for shipments in H2 June. At the same time shutdowns of AN lines in Ukraine will likely cause a shortage in the Black Sea region. Turkish importers have booked a few cargoes of Georgian and Romanian AN to build stocks in June. Current demand for Russian AN in the country is moderate. CAN market in Northwestern Europe is calm and prices for the prompt sales are unchanged. Yara has already set up CAN prices for H2 July. …->

SUPPLY DEMAND

№24 (36) 12 June 2014

90

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Jan Feb Mar Apr May Jun

2014AN FOB Black Sea

AS (capro) FOB Black Sea

UAN FOB Black Sea

Nitrates Key Prices ($/t)

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300

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400


2014FOB Black Sea FOB ChinaCFR Brazil

Urea Key Prices ($/t)

See next page for nitrates prices


2

$/t 12.06.2014 05.06.2014 Change

UREA prilled

FOB Black Sea 296–300 290–300 3

FOB Baltic Sea 285–300 285–295 3

FOB China 250–275 270–278 -12

FOB Indonesia 286 285 1

FOB Middle East 295–305 285–300 8

CFR Brazil 320–330 315–330 3

CFR Gulf of Mexico 325–365 350–365 -13

CFR India 325–329 325–329 unch

CFR Turkey 320–325 305–330 5

UREA granular

FOB China 280–290 280–290 unch

FOB Egypt 325–331 325–328 2

FOB Indonesia 305 305 unch

FOB Malaysia* 285–300 285–300 unch

FOB Middle East 300–322 297–310 8

FOB NOLA 347–368 347–358 5

AMMONIUM NITRATE

FOB Black Sea 255–260 255–260 unch

FOB Baltic Sea 255–262 255–260 1

CFR Turkey 270–280 270–280 unch

CFR Brazil 290–298 290–298 unch

CAN

CIF Germany (€) 265 265 unch

UAN

FOB Black Sea 195–210 205–215 -8

FOB Baltic Sea 200–210 205–215 -5

FOB Damietta* 210–220 210–220 unch

FCA Rouen (€) 175–180 175–180 unch

CFR US Gulf 245–250 250–260 -8

AMMONIUM SULPHATE steel

FOB Black Sea 96–100 100–105 -5

FOB China 100–110 95–100 13

CFR Turkey 125–130 120–125 5

CFR SE Asia* 130–150 120–140 10

AMMONIUM SULPHATE capro

FOB Black Sea 115–118 115–118 unch

FOB S. Korea 120–130 120–130 unch

FOB China 115–125 115–125 unch



CFR SE Asia 150–155 140–145 10 *– estimated

Methodology


3

Market Highlights

Back to market brief

■Consumer activity has

increased in Brazil this

week …->

■ This week Dniproazot reports

having sold the remaining 50,000 t of the fertilizer …->

■ This week demand for ME-

origin urea has become stronger …->

■Buying interest in China is growing …->

■ Demand for CIS-origin urea

remains stable this week …->

■ Demand for urea in India

increases …->

■Persero closed urea sales tender on June 10 …->

■ The seasonal demand for

urea in the USA keeps

decreasing …-> $$228855––330000//tt FFOOBB BBaallttiicc SSeeaa

$$334477––336655//tt FFOOBB NNOOLLAA

$$228855––330000//tt FFOOBB MMaallaayyssiiaa*

$$332255––332299//tt CCFFRR IInnddiiaa

$$225500––227755//tt FFOOBB CChhiinnaa

$$332255––333311//tt FFOOBB Egypt

$$229966––330000//tt FFOOBB BBllaacckk SSeeaa

$$332200––333300//tt CCFFRR BBrraazziill

Interactive map to guide you through urea world market

Click and know the latest prices, deals and news

■Demand for urea in Turkey gets stronger …->

$$337700––338800//tt CCFFRR TTuurrkkeeyy


4

$/t 12.06.2014 05.06.2014 Change

FOB Black sea 296–300 290–300 3

FOB Baltic sea 285–300 285–295 3 Demand for CIS-origin urea stable Demand for CIS-origin urea remains stable this week. Market participants report sales of FSU’s prilled product, mostly to Turkey. Prices have not shown significant change after Kuibyshevazot’s sale at $297—300/t FOB Black Sea. This week Dniproazot reports having sold the remaining 50,000 t of the fertilizer to traders at around $300/t FOB Black Sea for June shipment. The entire volume will be delivered to Turkey during June. This week prices for prilled product were fixed in the range of $296—300/t FOB Black Sea, while Baltic Sea quotes were at $285—300/t FOB. Sudan’s importer is expected to announce a new purchase tender for 100,000 t of urea next week. The CIS producers may offer sizable volumes of the product in the tender.

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2014

FOB Black Sea FOB Baltic Sea

Urea Prices ($/t)

Ukraine urea exports

Producer Jan 14 Dec 13 Jan-Dec 13

'000 tonnes

Total 286,7 326,5 2743,4

Ostchem 22,8 15,2 1265,5

Albania 2,8 — 6,6

Switzerland 20,0 — 1,6

Italy — 0,1 209,2

Turkey — 9,6 169,8

Spain — 1,1 27,4

Portugal — 4,4 4,4

Others — — 854,7

Dniproazot 136,3 183,8 763,2

Turkey 18,4 30,9 279,7

Cyprus 83,3 116,6 116,6

Italy 12,0 — 37,6

Cuba — 11,6 31,6

Guatemala — — 25,0

Pakistan — 18,0 18,0

Spain 6,6 6,6 14,2

Nicaragua — — 13,8

Others 16,0 — 226,7

OPZ 127,6 127,5 714,7

Turkey 14,5 20,5 212,1

Switzerland 64,5 71,5 71,5

Italy — 4,0 35,5

Pakistan — 31,5 31,5

Guatemala — — 12,9

Albania — — 6,6

Others 48,6 — 344,6 Back to map Back to market brief

UREA SUPPLY


5

Belarus urea exports

Producer Country Apr 14 Mar 14 Jan-Apr 14

'000 tonnes

Total 1,8 1,9 414,5

Grodno Azot Lithuania — — 126,3

Grodno Azot Brazil — — 83,3

Grodno Azot Poland — 0,9 75,4

Grodno Azot Germany — — 43,2

Grodno Azot Mexico — — 25,1

Grodno Azot Great Britain — — 19,5

Grodno Azot Russia 1,6 1,0 14,9

Grodno Azot Senegal — — 11,0

Grodno Azot Belgium — — 7,6

Grodno Azot Côte d’Ivoire — — 5,0

Grodno Azot Others 0,2 — 3,2 Urea shipments from CIS producers scheduled for June 2014 Producer Quantity Delivery point Destination

'000 tonnes

Total 607,1

Russia 477,7

Acron 8,4 Baltic Sea ports EcuadorAcron 0,5 Baltic Sea ports IsraelAcron 1,9 d/c FinlandAcron 19,4 Muuga-Port BrazilEurochem 40,9 Baltic Sea ports GermanyEurochem 2,5 d/c UkraineEurochem 2,0 Novorossiysk Port ParaguayEurochem 106,1 Tuapse port SyriaKuibyshevazot 0,5 d/c TajikistanKuibyshevazot 14,7 Tuapse port TurkeyPhosagro 33,3 Baltic Sea ports SwitzerlandPhosagro 40,7 d/c SwitzerlandSalavat 28,7 d/c FinlandSalavat 25,1 Tuapse port BulgariaSBU Azot 0,5 Baltic Sea ports BrazilSBU Azot 30,8 d/c FinlandSBU Azot 0,2 d/c KyrgyzstanSBU Azot 0,4 d/c TajikistanTogliattiazot 4,0 d/c PolandTogliattiazot 0,7 d/c SlovakiaTogliattiazot 5,0 Reni port SerbiaTogliattiazot 10,0 Tuapse port SerbiaTogliattiazot 9,0 Yuzhny Port BrazilUralchem 91,2 Baltic Sea ports BrazilUralchem 0,4 d/c FinlandUralchem 0,7 d/c TajikistanUkraine 129,4

Ostchem 35,1 Nika Terra accumulation

Ostchem 10,3 Yuzhny Port accumulation

Dniproazot 1,4 d/c Slovakia

Dniproazot 82,6 Yuzhny Port accumulation

d/c — delivery to country

Kuibyshevazot sells urea to Turkey ■ Russia, Turkey Kuibyshevazot reports to have sold 12,000 t of prilled urea (in small lots) in late May—early June. The fertilizer changed hands at $297—300/t FOB Tuapse. According to Chem-Courier information, all cargoes will be shipped to Turkey.

Back to map Back to market brief

UREA SUPPLY


6

Grodno Azot to hold urea sales tender ■ Belarus Belarus’ urea producer Grodno Azot has announced a sales tender for 30,000 t of prilled and granular urea. The product is offered on DAP Belarus/Lithuania, DAP Belarus/Poland border, or FOB Klaipeda basis for shipment in June—July. The bids are to be submitted by June 16.

Urea production Producer Apr14 Mar14 Change

'000 tonnes

Russia 536,1 586,6 -9%

Acron 15,4 23,4 -34%

Eurochem 173,7 186,7 -7%

Nevinnomyssk 44,7 47,7 -6%

Novomoskovsk 129,0 139,0 -7%

Salavat 56,8 62,1 -9%

Kuibyshevazot 21,9 29,0 -24%

Phosagro 72,0 88,2 -18%

SBU Azot 51,2 53,7 -5%

Togliattiazot 39,7 44,0 -10%

Uralchem 105,4 99,5 6%

Berezniki 48,0 40,0 20%

Perm 57,4 59,5 -4%

Apr14 Mar14 Change

Ukraine 230,1 280,3 -18%

Dniproazot 66,4 68,8 -3%

OPZ 33,2 82,5 -60%

Osthem 130,5 129,0 1%

Cherkasy 52,3 52,4 0%

Concern Stirol 40,8 39,0 5%

Severodonetsk 37,4 37,6 -1%

May14 Apr14 Change

Belarus 93,4 85,9 9%

Grodno Azot 93,4 85,9 9%

$/t 12.06.2014 05.06.2014 Change

FOB Middle East (prill) 295–305 285–300 8

FOB Middle East (gran) 300–322 297–310 8

FOB Egypt (gran) 325–331 325–328 2

Urea prices recover in MENA ■ Middle East This week demand for ME-origin urea has become stronger, mostly due to upturn in prices in LAM. However, availability of spot tonnages is low because of numerous commitments of producers. Besides, one of the major suppliers — QAFCO — is currently running at reduced rates. This week urea quotes have increased to reach $300—322/t FOB Middle East. The high end of the price range was fixed after SABIC’s sale of a granular urea cargo to Brazil at $320—322/t FOB Saudi Arabia. That was the first deal done after FERTIL’s sale at $297/t FOB UAE.

■ Iran Iranian producers have not concluded any spot deals this week. Market participants report that availability of spot volumes will be limited in June and July. Producers prefer to ship the product to Iraq and fulfill their commitments under contracts concluded earlier. However, this week Swiss Singapore has loaded about 35,000 t of the product from KPIC at $270/t FOB Iran. The cargo is understood to be sold to a Turkish importer at $302/t CFR Turkey.

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2014

FOB Middle East (gran) FOB Egypt (gran)

Urea Prices ($/t)


UREA SUPPLY


7

■ North Africa Demand for Egyptian-origin urea has been low this week. According to market participants, demand is decreasing in Europe, which is traditionally the key market for Egyptian suppliers. Upturn in buying interest in EU is not expected before September. Meanwhile, suppliers will continue to ship the product to the domestic market. Producers will also start turnarounds at their production lines.

No new spot deals have been concluded this week. The information about last week’s sales of granular urea by HFC to CHS has not been confirmed. According updated information, last week around 24,000—25,000 t was booked by Trammo at $328/t FOB and about 3,000 t of urea was purchased by Agrium at $331/t FOB Egypt.

Sorfert's urea shipment in June 2014

Trader Vessel Q-ty

OCI Nicole C 6,400

OCI Karla C 5,000

Helm Taha 4,100

OCI Dinteldijk 4,500

OCI CMB Liliane 32,000

Vinoc bookes urea from KPIC ■ Iran KPIC confirms the sale of 30,000 t of granular urea to Dubai-based trader Vinoc. The producer reports the fertilizer has changed hands at $280/t FOB Iran. The cargo will be shipped to South America in June.

MOPCO to stop for maintenance ■ Egypt MOPCO is planning to conduct maintenance works in June. According to the company officials, the facilities will be stopped for a 10-day turnaround on June 14.

$/t 12.06.2014 05.06.2014 Change

FOB China (prill) 250–275 270–278 -12

FOB China (gran) 280–290 280–290 unch

FOB Indonesia (prill) 286 285 1

FOB Indonesia (gran) 305 305 unch

FOB Malaysia (gran) 285–300 285–300 unch

Demand for Chinese urea increases Buying interest in China is growing in line with consumer activity in the global urea market. International trading companies are seeking for tonnages mostly for July shipments. It is expected that sizable volumes of prilled product will be offered in India’s purchase tender. Market participants report that prilled urea stocks have reached 1 million t, while by the time the low export tax window opens in July inventories are expected to increase to around 1.8 million t. This week prilled urea for July shipment has been offered at $250—265/t FOB China.

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2014

FOB China (prill) FOB Indonesia (gran)

Urea Prices ($/t)


UREA SUPPLY


8

However, market participants also report new offers below $250/t FOB China. Meanwhile, prices for Fudao’s product reach $270s/t FOB China at the high end. The supply of granular product in July is expected to be lower than that of prilled, as huge volumes will be shipped under contracts to LAM and US consumers. Quotes of granular urea have stayed in the range of $280—290/t FOB China.

Demand for urea in China has become stronger this week. Consumer activity has increased particularly in the North of the country, where farmers apply the fertilizer at corn planting. Almost all producers have ramped up urea output. Some of them are getting ready for the low export tax window opening in July, while others are going to satisfy demand in the domestic market. Prices for urea this week have gained CNY 90—120/t.

Urea ex-factory prices in China

Province Jun 11 Jun 05 Change

CNY/t

Shandong 1540 1430 110

Hebei 1500 1400 100

Henan 1530 1430 100

Anhui 1570 1480 90

Jiangsu 1670 1550 120

*1 CNY = 0.16 USD

Urea stocks in Indonesia

Producer Stocks Updated on

'000 t

Total 216,1

Pupuk Iskandar Muda 85,8 09.06.2014

Pursi Palembang 31,0 09.06.2014

Pupuk Kujang 4,0 09.06.2014

Petrokimia Gresik 1,7 10.06.2014

Pupuk Kaltim 93,6 10.06.2014

Persero closes urea sales tender ■ Indonesia Persero closed urea sales tender on June 10. The company offered a total of 20,000 t of urea: two 5,000 t lots of prilled and the same quantity of granular product for June shipment. Persero targeted $285/t FOB and $304/t FOB Indonesia as minimum prices. According to Chem-Courier information, Fertcomm was awarded 10,000 t of prilled product at $286/t FOB, while Ameropa booked 6,000 t of granular product at $305/t FOB Indonesia.

China urea exports Country Apr 14 Mar 14 Jan-Apr14

'000 tonnes

Total 1314,3 651,3 3273,1

India 911,0 89,1 1320,1

USA 26,0 120,0 424,5

Bangladesh 31,0 32,0 284,3

S. Korea 111,6 56,8 209,7

Pakistan — 30,2 196,9

Mexico 6,8 77,9 105,2

Philippines 14,2 7,5 102,4

Taiwan 25,3 14,0 52,9

Malaysia 28,9 18,7 51,7

Vietnam 9,5 7,5 38,9

Brazil — — 36,7

Japan 3,7 4,6 27,5

Others 146,3 193,0 422,4

Indonesia urea exports

Mar 14 Feb 14 Jan-Mar14

Total 88,7 109,7 319,7

USA 0,8 67,8 69,1

Australia 23,9 — 56,9

Brazil 44,2 30,7 74,9

Philippines 5,1 — 24,4

Thailand 12,2 4,5 22,1

Others 2,4 6,7 72,3

Malaysia urea exports

Feb14 Jan 14 Jan-Feb 14

Total 113,2 58,1 171,3

USA 59,8 — 59,8

Thailand 20,7 27,3 48,0


Japan 12,1 11,1 23,2

S. Korea — 6,1 6,1

Others 2,2 1,0 3,2



9

$/t 12.06.2014 05.06.2014 Change

FOB NOLA 347–368 347–358 5

US urea quotes inch up The seasonal demand for urea in the USA keeps decreasing. However, this week activity of buyers seeking for prompt shipments from NOLA has rebounded. Pick up in buying interest has been triggered by arrival of new volumes of the product. NOLA quotes for granular urea are currently settled at $347–368/t FOB. However, due to increase in supply of Chinese-origin urea that is expected to arrive soon, NOLA prices are likely to move down. Urea quotes in NOLA are settled at $325—336/t FOB for late June shipment.

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420

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460

480


2014

FOB NOLA

Urea Prices ($/t)

USA urea FOB NOLA equivalent indicators derived from key FOB prices

Origin Availability DealsCurrent

FOBFreight

Trans-

shipment

Estimated

FOB NOLA

Current

FOB NOLA

$/t

Black Sea available not concluded 296–300 33-34 8—15 337—349

Baltic Sea available not concluded 285–300 33-34 8—15 326—349

Indonesia available not concluded 305 40-45 8—15 353—365

Middle East available not concluded 300–322 29-31 8—15 337—368

Egypt available not concluded 325–331 24-26 8—15 357—372

China available concluded 280–290 22-33 8—15 310—338

347–368

USA urea imports

Country Apr14 Mar14 Jan-Apr14

'000 tonnes

Total 964 1172 3236,7

Qatar 98,1 192,3 537,8

China 143,3 114,5 338,9

Canada 72,2 93,2 336,0

Saudi Arabia 113,9 60,5 301,6

UAE 65,1 120,9 274,0

Oman 89,8 143,9 267,0

Trin & Tobago 60,1 71,9 191,9

Bahrain 43,9 44,0 172,5

Kuwait 43,5 43,3 171,0

Russia 65,2 90,1 155,3

Others 168,6 197,5 490,8


UREA DEMAND


10

$/t 12.06.2014 05.06.2014 Change

CFR Brazil 320–330 315–330 3

CFR Gulf of Mexico 325–365 350–365 -13

Brazil's urea market recovers Consumer activity has increased in Brazil this week. Demand in the country is rising. At the same time, supply, particularly from the Middle East, is limited due to numerous commitments of producers. This puts upward pressure on the quotes for granular product in Brazil. According to Chem-Courier information, this week SABIC has sold a cargo of granular product for shipment to the country at low $320s/t FOB Saudi Arabia, which is equal to about $349—351/t CFR Brazil. Other sources report that granular product cargoes were quoted as low as $340/t CFR Brazil. Prilled product prices remain stable. Koch is heard to offer prilled urea at $330/t CFR Brazil.

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330

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370

390

410


2014

CFR Brazil CFR Gulf of Mexico

Urea Prices ($/t)

Brazil urea CFR equivalent indicators derived from key FOB prices


FOBFreight

Estimated

CFR Brazil

Current CFR

Brazil

$/t

Black Sea available not concluded 296–300 29-30 325—330

Baltic Sea available not concluded 285–300 28-29 313—329

Indonesia available not concluded 286 23-25 309—311

Middle East available concluded 300–322 28-29 328—351

China available concluded 250–275 34-37 284—312

320–330

Urea line-ups in ports of Brazil Supplier Origin Product Quantity Date

'000 tonnesParanagua

Berthed vessels 21,0

Ameropa UAE Urea 21,0 14.06.14

Awaited vessels 59,5

Yara – Urea 20,0 25.06.14Yara Qatar Urea 14,7 28.06.14Keytrade – Urea 24,8 11.07.14

Brazil urea imports

Country May14 Apr14 Jan-May14

'000 tonnes

Total 370,9 305,0 1550,1

Qatar 108,4 76,0 315,1

Russia 25,3 84,0 298,2

Kuwait 48,8 37,0 157,6

Venezuela 30,9 31,6 147,4

Oman — 47,4 123,4

Argentina 19,0 — 119,8

UAE 18,5 — 106,5

Indonesia 74,2 29,0 103,3

China — — 91,6

Others 45,8 — 87,2


UREA DEMAND


11

$/t 12.06.2014 05.06.2014 Change

CFR Turkey 320–325 305–330 5

Demand for urea in Turkey gets stronger Turkey’s consumer activity remains high in early June. According to market participants, sizable volumes of urea have been contracted for shipment to Turkey. At least 50,000 t of Iranian, 50,000 t of Chinese and 78,000—80,000 t of CIS-origin product will be supplied to the country in June, Chem-Courier learns. The quotes for CIS-origin prilled product are in the range of $320—325/t CFR Turkey (with 180 days credit). Chinese product is offered at $300—315/t CFR Turkey, while the Iranian-origin urea is available at $290—302/t CFR Turkey (with 180 days credit). It should be noted that Swiss Singapore is understood to be the seller of 50,000 t of Iranian urea to Turkey at $302/t CFR Turkey (with 180 days credit). Market participants believe Igsas is the buyer in this deal, but the information about the purchase of the Iranian cargo has not been confirmed by the company.

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2014

CFR Turkey

Urea Prices ($/t)

Turkey urea CFR equivalent indicators derived from key FOB prices


FOBFreight

Estimated

CFR Turkey

Current CFR

Turkey$/t

Black Sea available concluded 296–300 27 323—327Baltic Sea available not concluded 285–300 24-28 309—328Egypt available not concluded 325–331 13-14 338—345Algeria available not concluded 331–331 15-17 346—348

China available concluded 280–290 23-24 303—314

320–325

Turkey urea imports

Country Apr 14 Mar 14 Jan-Apr 14

'000 tonnes

Total 119,8 46,0 403,8

Ukraine 69,3 24,2 173,7

Egypt 5,2 0,6 15,4

Russia 29,1 14,7 144,3

Romania 10,7 5,2 32,0

Uzbekistan 0,4 0,5 6,0

Croatia — — 11,6

Libya — — 6,0

Others 5,1 0,8 14,8


UREA DEMAND


12

$/t 12.06.2014 05.06.2014 Change

CFR India 325–329 325–329 unch

India’s demand for urea increases Demand for urea in India increases. In previous weeks farmers did not buy the fertilizer because of unfavourable weather conditions for urea application. However, now agricultural producers need the fertilizer mostly for rice planting, and the government of India has decided to build up urea stocks. STC has announced a urea purchase tender, which will be closed on June 18. According to Chem-Courier estimations, the company may contract around 0.95—1 million t of urea. The bids in the tender are expected to be in the range of $260—275/t CFR India. The tender volumes are likely to be covered mostly by China-origin product. Offers of Iranian urea are less probable as producers in the country have a lot of commitments for June/July.

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330

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350


2014

CFR India

Urea Prices ($/t)

India urea CFR equivalent indicators derived from key FOB prices


FOBFreight

Estimated

CFR India

Current CFR

India$/t

Black Sea available not concluded 296–300 34-35 330—335

Baltic Sea available not concluded 285–300 39-41 324—341

China available not concluded 250–275 15-23 265—298

Iran available not concluded 280 12-16 292—296

Middle East available not concluded 295–305 16-17 311—322

Indonesia available not concluded 286 10-12 296—298

325–329

Urea shipments to India (01.06—09.06)

Country Delivery port Quantity Price

'000 tonnes, $/t

Total 45,2

Oman Kandla 42,0 283

China Jawaharlal 0,3 368

Uzbekistan Mundra 0,1 366

Jawaharlal 1,6 328–387

UAE Jawaharlal 0,9 328–359

New Delhi 0,4 348–403

South Korea urea imports

Exporter Apr 14 Mar 14 Jan-Apr14

'000 tonnes

Total 118,1 58,2 246,5

China 115,2 56,0 203,7

Qatar — — 27,0

Japan 0,6 0,8 2,6

Malaysia 0,1 0,1 6,4

Indonesia 0,5 0,5 9,4

Other 1,7 0,8 3,5

Urea market indicators in Pakistan

Indicator Mar 14 Feb 14 Change

'000 tonnes

Production 385 362 6,35%Imports — 19 —

Consumption 384 378 1,59%

India urea imports

Exporter May14 Apr14 Jan–May14

'000 tonnes

Total 696,3 170,1 2258,5

China 507,7 0,3 1330,9

Oman 130,0 160,8 789,0

Iran 54,1 — 114,9


Others 2,6 — 6,6


UREA DEMAND


13

STC announces urea purchase tender ■ India STC has announced a urea purchase tender that will be held on June 18. According to the tender list, volumes are not limited. The buyer requires FOBT and C&FFO basis (CIF for Iranian cargoes) for shipment to India’s West and East coast ports (except Haldia and Kolkata) till July 31. Bids are accepted till June 18 and should stay valid till June 25. Market players report that the company will purchase around 0.9—1 million t of urea.

France urea imports

Country Mar14 Feb14 Jan-Mar14

'000 tonnes

Total 152,5 107,8 428,1

Russia 42,2 31,3 100,1

Egypt 29,7 33,1 79,5

Algeria 43,3 14,4 78,6

Oman — — 49,4

Netherlands 17,7 9,5 46,8

Others 5,6 8,1 27,3

Belgium 8,8 6,5 21,8

Germany 5,1 5,0 19,8

Venezuela — — 4,8 UK urea imports


'000 tonnes

Total 61,2 31,9 193,0

Germany 21,8 4,7 39,8


Russia 13,1 5,8 33,2

Egypt — 26,0 26,0

Belarus 7,7 — 21,5

Poland 7,5 5,6 20,8

Others 1,9 0,1 17,8 Germany urea imports


'000 tonnes

Total 69,9 49,7 228,0

Russia 30,7 26,0 102,7


Venezuela 9,0 — 27,5

Poland 4,1 5,4 16,3

Lithuania 7,0 3,6 11,1

Egypt — — 11,0

Belarus 3,0 3,1 6,0

Others 6,2 2,9 11,5

Italy urea imports


'000 tonnes

Total 61,9 110,8 278,2

Egypt 28,8 51,4 117,0

Ukraine 27,4 31,9 97,0

Croatia — 14,3 27,7

Russia 5,6 — 9,6

Romania — 6,6 7,4

Austria — 2,4 4,6

Others 0,1 4,2 14,9

Spain urea imports


'000 tonnes

Total 33,1 79,2 249,9

Oman 15,3 44,9 74,3

UAE — 0,2 29,9

Ukraine — — 27,5

Egypt 12,2 2,9 27,4

Russia — 8,4 23,8

Libya — 2,5 18,7

Germany — 10,4 13,8

Netherlands — 2,3 10,8

France — 4,2 6,4

Algeria — — 2,1

Others 5,7 3,5 15,3



14

Market Highlights


■. Traders in Brazil book

Russian AN for June …->

■ Prompt demand for AN in

Turkey weak …->

■ NF Trading has reported no

new deals this week …->

■ This week Yara has announced

new CAN prices …->

$$229900––229988//tt CCFFRR BBrraazziill

$$225555––226622//tt FFOOBB BBaallttiicc SSeeaa

$$227700––228800//tt CCFFRR TTuurrkkeeyy


Interactive map to guide you through AN/CAN world market


■ Uralchem resumes AN sales

to Brazil …->

€€226655//tt CCIIFF GGeerrmmaannyy


15

$/t 12.06.2014 05.06.2014 Change

FOB Black sea 255–260 255–260 unch

FOB Baltic sea 255–262 255–260 1

Uralchem resumes AN sales to Brazil The last Uralchem’s sale from the Baltic Sea to Brazil pushed offers of Russian-origin AN in the region by a few dollars up to $260—262/t FOB for shipments in June. This week Uralchem has sold a 30,000 t cargo of AN to Brazilian trader. NF Trading has reported no new deals this week. Besides the trader does not have available volumes of Ukrainian-origin AN for export this month. Currently only Azot (Cherkassy) is producing AN in Ukraine, as plants located in Gorlovka and Severodonetsk are still shutdown and AN/CAN lines in Rovno are under maintenance. AN prices in the Black Sea ports are unchanged and range at $255—260/t FOB.

240

260

280

300

320

340


2014


Ammonium Nitrate Prices ($/t)

AN shipments from CIS producers scheduled for June 2014

Producer Quantity Delivery point Destination '000 tonnesTotal 437,4Russia 398,7Acron 1,8 Baltic Sea ports EcuadorAcron 6,1 Baltic Sea ports PeruAcron 1,6 d/c KyrgyzstanAcron 0,4 d/c LatviaAcron 97,8 Muuga-Port BrazilEurochem 35,0 Baltic Sea ports BrazilEurochem 5,2 Baltic Sea ports ColombiaEurochem 2,3 Baltic Sea ports IndonesiaEurochem 5,0 d/c AzerbaijanEurochem 5,4 d/c UkraineEurochem 34,8 Novorossiysk Port BrazilEurochem 24,3 Baltic Sea ports GermanyKuibyshevazot 3,8 Baltic Sea ports GhanaKuibyshevazot 1,9 d/c AzerbaijanMendeleevskazot 0,1 d/c KazakhstanMinudobreniya (Rossosh) 15,0 Nika Terra SwitzerlandPhosagro 7,4 Baltic Sea ports SwitzerlandSBU Azot 2,0 d/c BelarusSBU Azot 0,1 d/c KazakhstanSBU Azot 1,1 d/c KyrgyzstanSBU Azot 7,1 Nahodka Port IndiaSBU Azot 6,1 Novorossiysk Port IndiaUralchem 63,5 Baltic Sea ports BrazilUralchem 3,3 Baltic Sea ports NorwayUralchem 8,0 Baltic Sea ports PeruUralchem 0,3 d/c KyrgyzstanUralchem 0,1 d/c MoldovaUralchem 1,1 d/c UkraineUralchem 11,0 Novorossiysk Port PeruUralchem 17,5 Novorossiysk Port TurkeyUralchem 20,0 Baltic Sea ports BrazilUralchem 10,0 Baltic Sea ports Sweden Back to map Back to market brief

AN/CAN SUPPLY


16

Producer Quantity Delivery point Destination '000 tonnesUzbekistan 3,8Maxam-Chirchiq 3,8 Black Sea ports TurkeyUkraine 34,9Ostchem 10,6 Nika Terra accumulationOstchem 4,1 d/c PolandOstchem 6,6 Izmail Port BulgariaOstchem 12,1 Yuzhny Port accumulation

Ostchem 1,0 Yuzhny Port Nigeria

Ostchem 0,1 Yuzhny Port Saudi Arabia

Ostchem 0,4 Yuzhny Port UAE

d/c — delivery to country CAN shipments from CIS producers scheduled for June 2014

Producer Quantity Delivery point Destination

'000 tonnes

Total 34,6

Russia 31,0

Uralchem 25,0 Baltic Sea ports Ireland

Uralchem 6,0 d/c Finland

Ukraine 3,6

Ostchem 1,6 d/c Hungary

Ostchem 2,0 d/c Poland

d/c — delivery to country Ukraine AN exports

Country Jan 14 Dec 13 Jan-Dec 13 '000 tonnes

AN 12,7 25,1 655,8Malaysia 9,9 14,6 143,0

Turkey — 5,0 131,1

Marocco — — 74,0

Brazil — — 52,2

Australia 1,6 3,6 46,4

Egypt — — 40,3

Others 1,2 1,9 168,8

CAN 43,3 57,7 217,4Kenya 22,0 — 26,0

Poland 2,5 — 10,6

Romania 1,5 — 7,5

Italy — — 6,2

Others 17,3 57,7 167,1

Lithuania AN/CAN exports

Country Mar 14 Feb 14 Jan-Mar14 '000 tonnes

AN 42,3 50,9 143,4UK 15,8 29,9 69,7

France 8,7 8,0 25,1

Poland 9,0 6,3 24,3

Estonia 3,4 2,4 8,4

Latvia 0,3 2,2 5,5

Others 5,2 2,0 10,4

CAN 40,4 43,5 131,4Germany 5,1 9,6 36,1

Ireland 4,2 7,4 15,7

Poland 5,3 7,6 18,1

UK 8,4 10,9 21,6

Others 17,4 7,9 39,9 Back to map Back to market brief

AN/CAN SUPPLY


17

Bulgaria AN imports

Country Mar 14 Feb 14 Jan-Mar14

'000 tonnes

Total 8,4 29,3 67,6

Georgia 5,6 17,6 43,1

Serbia 2,5 6,6 17,0

Ukraine — 2,3 2,3

Romania — 1,0 2,1

Others 0,3 1,7 3,1

Acron increases its stake in Grupa Azoty ■ Russia, Poland This week Norica Holding (a subsidiary of Acron) announced increasing its stake in Poland’s Grupa Azoty to 20%. Previously, Acron owned 15.34% of the Polish company that produces nitrogen and NPK fertilizers.


India imports AN from Russia in June ■ Russia, India During June 1—9 a 6,599 t cargo of Russian-origin ammonium nitrate was delivered to Indian port Vizag. The product is understood to be supplied by SBU Azot. The company has already shipped to India over 48,000 t of AN since January 2014 from the ports in Novorossiysk and Nakhodka.

Russia: maintenance schedule for 2014

Plant Product Period

Uralchem (Berezniki)

Concentrated

nitric acid mid July-mid August

Uralchem (Berezniki) Nitric acid mid July-mid August

Uralchem (Berezniki) AN mid July-mid August

Uralchem (Berezniki) tech grade AN end June-end July

Acron (Dorogobuzh) Nitric acid mid September-mid October

Acron (Dorogobuzh) AN mid September-mid October

Eurochem (Novomoskovsk) AN mid May-end May

SBU Azot (Kemerovo) AN line 1 July

SBU Azot (Kemerovo) AN line 2 August

SBU Azot (Angarsk) AN mid July-end July

Kuibyshevazot AN mid July-end July

Salavat (Meleuz) AN August-September

Mendeleevskazot AN July

AN/CAN production

Producer Apr14 Mar14 Change

'000 tonnes

Russia AN 714,8 812,1 -12%

Acron 130,5 128,7 1%

Acron 51,4 39,6 30%

Dorogobuzh 79,1 89,1 -11%

Eurochem 183,8 196,7 -7%

Nevinnomyssk 60,8 65,7 -7%


SBU Azot 112,0 104,1 8%

Angarsk 20,4 21,1 -3%

Kemerovo 91,6 83,0 10%

Uralchem 108,3 187,4 -42%

Berezniki 108,0 119,4 -10%

Kirovo-Chepetsk 0,3 68,0 -100%


Meleuz 17,5 21,9 -20%

Mendeleevskazot 30,9 30,1 3%

Rossosh 47,8 50,1 -5%

Phosagro 35,3 41,9 -16%

Apr14 Mar14 Change

Ukraine AN 80,6 174,1 -54%

Ostchem 80,6 174,1 -54%

Cherkasy 16,1 46,5 -65%

Stirol 25,9 42,3 -39%

Rivneazot 37,3 42,8 -13%

Severodonetsk 1,3 42,5 -97%

Ukraine CAN 34,6 46,1 -25%

Rivneazot 34,6 46,1 -25%

Apr14 Mar14 Change

Kazakhstan AN 27,3 30,0 -9%

Kazazot 27,3 30,0 -9%


18

$/t 12.06.2014 05.06.2014 Change


Prompt demand for AN in Turkey weak This week AN offers are in the range of $270—280/t CFR Turkey. Traders expect better demand during July—September in Turkey and book AN to build up stocks. Last week they purchased around 75,000 t of the product that will be supplied from Georgia and Romania. This week the market is calm. Importers are not in hurry to buy additional volumes of AN coming weeks considering urea and AS purchase to be more profitable.

260

280

300

320

340

360


2014

CFR Turkey

Ammonium nitrate Prices ($/t)

Turkey AN/CAN imports

Country Apr 14 Mar 14 Jan-Apr 14 '000 tonnes

AN 11,2 26,8 275,9Russia 0,1 7,8 119,7

Georgia — — 38,5

Iran — — 37,9

Egypt 4,5 3,8 19,1

Romania — — 19,9

Sweden 4,2 7,9 22,1

Ukraine — 1,5 9,5

Bulgaria — 2,8 2,8


Others 0,4 1,9 3,3

CAN 0,8 1,3 46,2

Greece 0,3 1,3 15,4

Algeria 0,5 — 2,0

Chroatia — — 12,3

Italy — — 16,5


AN/CAN DEMAND


19

$/t 12.06.2014 05.06.2014 Change


Traders in Brazil book Russian AN for June This week buying activity has increased in Brazil following the cancelation of restrictions on port storage of fertilizer grade AN. Uralchem has sold a 30,000 t cargo of ammonium nitrate at $290/t CFR Brazil for shipment from Riga in June. Traders are offering the product at high $290s/t CFR Brazil.

Over five month of 2014 Russia was the only supplier of AN to Brazil. In May 2014 Brazil imported 93,400 t of ammonium nitrate, ten times more than in May 2013. During January—May 2014, 258,600 t of AN were delivered to the country, a 6.6% decrease y-o-y.

280

300

320

340

360

380


2014

CFR Brazil

Ammonium Nitrate Prices ($/t)

Brazil AN imports


'000 tonnes

AN 93,4 102,9 258,9

Russia 93,3 102,9 258,7

Others 0,2 — 0,2

CAN 29,0 21,9 89,4


AN line-ups in ports of Brazil

Supplier Origin Product Quantity Date

'000 tonnes

Paranagua


Uralchem Russia NP 33:3 14,0 06.06.14


Uralchem Russia NP 33:3 28,9 03.07.14 CAN line-ups in ports of Brazil Supplier Origin Product Quantity Date

'000 tonnes

Paranagua


Yara Netherlands NPK/CAN 12,9 30.06.14


AN/CAN DEMAND


20

€/t 12.06.2014 05.06.2014 Change

CAN

CIF Germany 265 265 unch

Yara sets new CAN prices This week Yara has announced new CAN prices at €228/t CIF inland Germany and Benelux for shipments H2 July.

220

230

240

250

260

270

280


2014

CIF Germany

CAN Prices (€/t)

Germany CAN imports


'000 tonnes

Total 182,2 182,3 543,5


Czech Republic 28,8 29,1 86,5

Austria 32,6 34,9 85,6


Poland 14,6 14,6 40,4

France 7,4 9,3 30,6

Russia 3,2 3,8 9,9

Others 37,8 28,8 83,1

UK AN/CAN imports


'000 tonnes

AN 42,8 41,4 125,1

Lithuania 17,7 25,1 65,3

Poland 19,7 10,0 38,4

Belgium 5,2 2,1 13,4

Spain — — 3,4

Others 0,2 4,2 4,6

CAN 51,7 62,9 188,1


Belgium 2,0 12,6 17,6

Germany 4,4 17,6 22,0


France 6,7 — 10,8

Spain — 3,5 8,1

Others 2,8 3,2 23,1

Ireland CAN imports


'000 tonnes

CAN 72,9 49,4 173,0

Belgium 7,2 19,4 29,9

UK 22,2 5,0 27,3

Greece — 5,5 5,5

Portugal — 3,4 3,4

Russia 16,2 3,6 41,4

Netherlands — 3,5 7,9

France 8,7 9,0 26,7

Lithuania 11,6 — 11,6

Spain 7,0 — 19,3



21

Market Highlights


■Prices of CIS-origin UAN have

slipped further …->

■Demand for UAN in the

United States remains soft …->

■Consumer activity in the

European market is low …->

■Abu Qir has reduced its UAN

operation rates to 50% …->

■Prices in the Black/Baltic Sea

decrease …->

$$224455––225500//tt CCFFRR UUSS GGuullff

€€117755––118800//tt FFOOTT RRuueenn

$$221100––222200//tt FFOOBB Damietta*


$$220000––221100//tt FFOOBB BBaallttiicc SSeeaa

Interactive map to guide you through UAN world market



22

$/t 12.06.2014 05.06.2014 Change

FOB Black sea 195–210 205–215 -8

FOB Baltic sea 200–210 205–215 -5

Prices in the Black/Baltic Sea decrease Prices of CIS-origin UAN have slipped further. Eurochem sold 27,500 t of the fertilizer to Argentina’s Bunge at $235/t CFR Argentina late last week. Thus, due to sales to Argentina and the USA prices in the Black Sea decreased to $195—210/t FOB. Grodno Azot’s June 2 tender resulted in sale of 25,000 t UAN at about $210/t FOB Klaipeda. So, prices in the Baltic Sea have declined to $200—210/t FOB. Demand for UAN will remain soft in the coming weeks. But prices are expected to stop falling as production cutbacks in Lithuania and Romania will limit spot tonnage in the international market.

200

220

240

260

280

300


2014


UAN Prices ($/t)

UAN shipments from CIS producers scheduled for June 2014

Producer Quantity Delivery point Destination

'000 tonnes

Total 146,4

Russia 146,4

Acron 75,7 Baltic Sea ports USAEurochem 4,1 d/c UkraineEurochem 66,6 Novorossiysk Port USABelarus 2,0

Belneftekhim 2,0 d/c Russia

Belarus UAN exports


'000 tonnes

Total — 0,7 29,0

France — — 17,4

Great Britain — — 9,9

Ukraine — 0,7 1,7

UAN production


'000 tonnes

Russia 186,3 185,3 1%

Acron 82,6 84,1 -2%

Eurochem 103,7 101,2 2%

Nevinnomyssk 76,7 73,2 5%


Apr14 Mar14 Change

Ukraine 64,2 69,6 -8%

Ostchem 64,2 69,6 -8%

Cherkasy 45,2 42,6 6%

Stirol 19,0 27,0 -30%

Apr14 Mar14 Change

Belarus 66,5 69,5 -4%

Grodno Azot 66,5 69,5 -4%


UAN SUPPLY


23

$/t 12.06.2014 05.06.2014 Change

FOB Damietta 210–220 210–220 unch

Egyptian UAN production cuts Abu Qir has reduced its UAN operation rates to 50% due to low demand worldwide. Besides, there has been no information about fresh sales at the press time. Chem-Courier estimates the price for Egyptian UAN should be in the range of $210—220/t FOB Damietta to prompt buying interest.

210

220

230

240

250

260

270

280

290


2014

FOB Damietta

UAN Prices ($/t)



24

$/t 13.02.2014 06.02.2014 Change

CFR US Gulf 315–330 315–325 8

Demand for UAN soft in USA Demand for UAN in the United States remains soft. Consumers buy small quantities for side-dress application. It is early for importers for the summer fill program. Thus the US Gulf price slipped to $245—250/t CFR within the softening international values. Demand for UAN in the USA is unlikely to pick up in coming weeks and prices are expected to stabilize.

240

260

280

300

320

340

Oct Nov Dec Jan Feb Mar

2013 2014

CFR US Gulf

UAN Prices ($/t)

USA UAN import

Country Apr 14 Mar 14 Jan–Apr 14

'000 tonnes

Total 283,2 273,9 1121,8

Russia 161,0 105,4 547,0

Trin & Tobago 46,8 62,6 270,6

Canada 31,9 29,0 114,2

Bulgaria 35,5 34,1 69,6

Romania — 37,8 37,8

Others 8,0 5,0 82,6

€/t 12.06.2014 05.06.2014 Change

FCA Rouen 175–180 175–180 unch

Demand in Europe seasonally thin Consumer activity in the European market is low. Few sales have been reported in France at the higher end of the €175—180/t FCA Rouen range. Sources say about 500,000 t of UAN have already been booked for delivery to France for autumn application. Demand in June will remain soft.

170

180

190

200

210

220

230


2014

FCA Rouen

UAN Prices (€/t)


UAN DEMAND


25

France UAN imports


'000 tonnes

Total 236,2 173,7 480,7


Belgium 29,9 13,1 53,4

Lithuania 53,6 49,7 137,9

Egypt 29,9 14,5 44,4

Trinidad&Tobago 28,1 22,1 50,2

Belarus – 20,0 20,0

Romania – 3,5 3,5

Poland 10,7 0,1 10,8

Others 33,9 7,4 41,6



26

Market Highlights


Interactive map to guide you through AS world market


■ Prices for Chinese steel

grade AS increase …->

■ Ammonium sulphate

market seems to be calm

this week …->

■ Activity of Turkish buyers has

increased a bit …≥

■ There are still no changes in

the Brazilian market …->

■ Parcel of Russian AS sold to

Turkey …->

$$111155––111188//tt FFOOBB BBllaacckk SSeeaa ((ccaapprroo))

$$115500––115555//tt CCFFRR BBrraazziill ((ccaapprroo))

$$113355––113388//tt CCFFRR TTuurrkkeeyy ((ccaapprroo))

$$110000––111100//tt FFOOBB CChhiinnaa ((sstteeeell))

$$115500––115555//tt CCFFRR SSEE AAssiiaa ((ccaapprroo)) $$112255––113300//tt CCFFRR TTuurrkkeeyy ((sstteeeell))

$$9966––110000//tt FFOOBB BBllaacckk SSeeaa((sstteeeell))

$$113300––115500//tt CCFFRR SSEE AAssiiaa* ((sstteeeell))


27

$/t 12.06.2014 05.06.2014 Change

FOB Black sea (steel) 96–100 100–105 40,5

FOB Black sea (capro) 115–118 115–118 unch

Parcel of Russian AS sold to Turkey Market activity has not been high this week. Prices for steel grade ammonium sulphate produced in CIS have decreased. Magnitogorsk plant has sold its June volumes at $87/t CPT Kherson, i.e. about $96/t FOB Black Sea. The cargo is to be delivered to Turkish buyers. Belarusian producer of nitrogen-based fertilizers Grodno Azot has scrapped its sales tender for 25,000 t of capro grade ammonium sulphate. So, on the whole supply of capro grade product is still limited in the region. Prices for capro grade AS have remained at the same level — $115—125/t FOB Black Sea.

90

100

110

120

130

140

150

160


2014FOB Black Sea (capro)FOB Black Sea (steel)

Ammonium Sulphate Prices ($/t)

Ukraine AS exports

Country Jan14 Dec13 Jan-Dec13

'000 tonnes

AS 43,0 27,1 257,7

Turkey 20,5 13,1 179,5

Egypt 3,0 — 28,3

Serbia 4,9 2,3 23,6

Poland 0,8 1,3 15,1

Others 13,9 10,4 11,2

Belarus AS exports


'000 tonnes

AS 0,1 10,6 57,5

Brazil — 6,6 41,7

Turkey — — 5,5

Russia — 3,9 5,0

Lithuania — — 4,5

Others 0,1 0,1 0,8

AS shipments from CIS producers scheduled for June 2014

Producer Quantity Delivery point Destination '000 tonnes

Total 70,0Russia 39,6EVRAZ 3,4 Baltic Sea ports BrazilEVRAZ 5,8 Novorossiysk Port TurkeyKuibyshevazot 0,1 d/c LatviaKuibyshevazot 3,0 Novorossiysk Port TurkeyMechel 2,5 Kherson Port TurkeyMMK 1,5 Kherson Port TurkeyNLMK 2,0 Baltic Sea ports BrazilNLMK 0,2 d/c KazakhstanNLMK 6,0 Kherson Port TurkeySBU Azot 13,8 Yuzhny Port BrazilUral Steel 1,3 Kherson Port Turkey


AMMONIUM SULPHATE SUPPLY


28

Producer Quantity Delivery point Destination '000 tonnes

Ukraine 30,4ISD 8,6 Kherson Port TurkeyArcelorMittal 3,7 Kherson Port accumulationMETINVEST 3,0 Kherson Port TurkeyMETINVEST 4,1 Reni Port SerbiaMETINVEST 1,8 Kherson Port accumulationDonetskcoke 0,4 Kherson Port accumulationEnakievo Coke and Chemical Plant 1,5 Kherson Port TurkeyEVRAZ 3,2 Kherson Port accumulationDonetsksteel 1,1 Kherson Port TurkeyDonetsksteel 1,4 Kherson Port accumulationZaporozhcoke 1,7 Kherson Port accumulationd/c — delivery to country

Kuibyshevazot sells AS parcel ■ Russia, Turkey This week Kuibyshevazot has sold 6,000 t of capro grade ammonium sulphate at $119/t FOB Black Sea. The cargo is to be delivered to Turkey. Grodno Azot scraps AS sales tender ■ Belarus Grodno Azot has scrapped its sales tender for 25,000 t of capro grade ammonium sulphate. The product will be used to serve the domestic market.

AS production


'000 tonnes

Russia 94,6 115,8 -18%

EVRAZ 9,8 10,0 -2%


Magnitogorsk 3,0 3,1 -3%

Mechel 3,2 3,5 -9%

NLMK 11,0 11,4 -4%

SBU Azot 17,0 28,2 -40%

Severstal 3,7 3,6 3%

Shchekinoazot 7,3 13,5 -46%

Ural Steel 1,9 1,8 6%

Apr14 Mar14 Change

Ukraine 22,1 23,9 -8%

Alchevsk Plant 5,0 5,2 -4%

ArcelorMittal 1,6 1,6 0%

Cherkasy — — —

Donetskcoke 0,5 0,6 -17%

Donetsksteel 2,7 2,9 -7%

EVRAZ 2,7 2,7 0%

METINVEST 7,9 9,2 -14%

Zaporozhcoke 1,7 1,7 0%

May14 Apr14 Change

Belarus 25,8 33,0 -22%

Grodno Azot 25,8 33,0 -22%




29

$/t 12.06.2014 05.06.2014 Change

FOB China (steel) 100–110 95–100 13

FOB China (capro) 115–125 115–125 unch

FOB South Korea (capro) 120–130 120–130 unch

Prices for Chinese steel grade AS increase Demand for steel grade ammonium sulphate has been strong in the domestic market and prices have picked up. On the whole, the price rise was trigged by several factors. Firstly, Chinese NPS fertilizer producers have ramped up operation rates in order to boost exports. Secondly, due to political tensions between China and some countries in the SE Asia freight costs have increased, which affected sales to this region. Some factories have already reduced AS capacity utilization. As a result, stocks of steel grade ammonium sulphate are quite low in the region. The prices for the product have reached $100—110/t FOB China. No new capro grade AS deals have been heard. Thus, prices have been unchanged since last week and range at about $115—125/t FOB China.

110

120

130

140

150


2014

FOB S. Korea (capro) FOB China (capro)


China AS exports

Country Apr 14 Mar 14 Jan-Apr14

'000 tonnes

Total 276,0 362,9 1215,1

Malaysia 54,3 94,7 202,6

Vietnam 49,9 56,0 198,9

Indonesia 45,6 68,1 190,4


Turkey 27,0 4,0 59,6

El Salvador — 18,1 55,7

Thailand 4,7 4,5 41,2

Brazil 5,9 28,1 34,4

Mozambique 9,9 9,3 25,8

Sri Lanka 2,4 11,6 23,1

North Korea 2,0 6,0 19,5

Mexico — 5,3 16,0

Australia 1,9 1,8 12,2

Others 53,4 42,1 209,1

S. Korea AS exports


'000 tonnes

Total 34,0 33,7 108,7

Indonesia 26,8 27,5 81,3Malaysia 7 6 26,4

Others 0,2 0,2 1,0




30

Japan AS exports


'000 tonnes

Total 55,1 55,8 231,9

Vietnam 36,0 43,7 132,7

Malaysia 6,0 6,0 49,0


Thailand — — 6,0

Indonesia — — 6,0

Others 0,1 0,1 0,2

Netherlands AS exports


'000 tonnes

Total 2,6 108,8 170,2

Brazil — 53,2 53,2

Norway — — 2,2

South Africa 1,6 0,1 1,7

Zwitzerland 0,4 — 0,4

France — 15,4 30,5

Belgium — 8,9 28,7

Finland — 19,0 19,0

Germany — 5,5 10,9

Others 0,6 6,8 23,8

Belgium AS exports


'000 tonnes

Total 40,3 82,9 196,9

Brazil 27,0 65,3 154,2

Norway 6,8 9,8 16,6

South Africa 1,9 2,6 11,4

Algeria 3,3 4,0 10,4

Others 1,3 1,2 4,3

Canada's April AS exports increase m-o-m ■ Canada, USA In April 2014, Canada exported 30,927 t of ammonium sulphate to the USA and 778 t to Indonesia. A total export volume is 31.5% up from March 2014 and 14.3% down from April 2013.



31

$/t 12.06.2014 05.06.2014 Change


Brazilian market calm There are still no changes in the Brazilian market. It has been sluggish for almost two months. So the prices for capro grade crystal AS are believed to be unchanged and range at about $150—155/t CFR Brazil. Granular capro grade ammonium sulphate offers average about $210/t CFR Brazil.

140

150

160

170

180

190


2014

CFR Brazil


Brazil AS imports


'000 tonnes

Total 212,6 165,3 828,6

Belgium 78,7 23,2 274,5

United States 41,6 95,6 224,9


Poland — — 63,2

China 15,4 0,7 46,5

Australia — 23,6 23,6

Germany 4,5 3,5 21,5

Russia 0,5 — 18,3

S. Korea 12,1 — 18,1

Belarus — 0,1 0,2

Others 0,1 — 26,9

AS line-ups in ports of Brazil

Supplier Origin Product Quantity Date

'000 tonnesParanagua


K+S Germany KCL/AS 19,5 09.06.14Comexport – AS 23,8 18.06.14Indagro China AS 27,5 20.06.14


Fitco – AS 20,4 15.06.14Fitco Belgium AS 13,2 19.06.14Indagro China AS 27,5 29.06.14


AMMONIUM SULPHATE DEMAND


32

$/t 12.06.2014 05.06.2014 Change

CFR Turkey (capro) 135–138 135–138 unch

CFR Turkey (steel) 125–130 120–125 5

Prices for steel AS pick up Activity of Turkish buyers has increased a bit, nevertheless, demand remains weak. After Toros’ purchase of two lots of steel grade ammonium sulphate from traders, prices have moved up to about $125/t CFR Turkey. New purchases of capro grade AS have not been heard this week. Thus, prices for this ammonium sulphate grade have been unchanged and range at the same level of $135—138/t CFR Turkey.

120

130

140

150

160

170

180


2014

CFR Turkey (steel) CFR Turkey (capro)


Turkey AS imports


'000 tonnes

Total 73,8 66,5 257,8

Russia 10,3 20,7 109,9

Ukraine 17,7 13,9 53,2

Belgium 2,1 — 9,6

Belarus 4,1 23,8 33,8

South Korea 2,0 — 4,0

China 37,0 7,5 44,8

Others 0,6 0,6 2,5

Toros buys two AS cargoes ■ Turkey Toros has bought two parcels of steel grade ammonium sulphate from Trammo and AFT at about $125/t CFR Turkey. The volume of each parcel is about 5,000—6,000 t.




33

$/t 12.06.2014 05.06.2014 Change

CFR SE Asia (steel) 130–150 120–140 10

CFR SE Asia (capro) 150–155 140–145 10

SEA ammonium sulphate market calm Ammonium sulphate market seems to be calm this week. Increasing freight rates keep buyers from buying additional volumes of ammonium sulphate. Prices for Chinese product are expected to move up, so buyers won’t be able to accept increased quotes coupled with higher freight costs. Despite rumours, TCCC has not issued a tender yet.

120

130

140

150

160

170


2014

CFR SE Asia (steel) CFR SE Asia (capro)


Indonesia AS imports


'000 tonnes

Total 51,3 47,7 166,5

China 24,2 41,7 105,4

South Africa 27,1 — 27,1

South Korea — — 26,1

Japan — 6,0 6,0

Others — — 2,0

Malaysia AS imports

Country Feb14 Jan14 Jan-Feb14

'000 tonnes

Total 56,8 54,8 111,6

Japan 8,0 26,5 34,5

China 21,0 8,7 29,7

South Korea 13,8 12,3 26,1

Taiwan 13,8 6,3 20,1

Others 0,4 0,9 1,2

France AS imports


'000 tonnes

Total 55,3 41,0 156,8

Belgium 17,3 6,7 42,4


Spain 8,4 7,5 25,7

Germany 4,9 2,7 17,8

Italy 3,4 3,9 7,9

Egypt 3,2 1,2 5,7

Others 6,7 1,8 16,9

UK AS imports

Country Mar14 Feb14Jan-Mar14

'000 tonnes

Total 10,9 32,0 68,9


Belgium 4,5 6,8 14,8

Spain — 3,3 5,8

Poland — — 2,2

Others 0,6 5,1 12,5




34

USA hikes AS exports ■ USA, Canada In April 2014, the USA exported about 443,550 t of ammonium sulphate, almost 5 times as much as in the previous month and 11 times as much as in a year-earlier period .Canada was the main destination in April, accounting for about 72% of the US total export volume.

Pakistani buyer purchases a parcel of Chinese AS ■ China, Pakistan Premium Group has bought 2,500 t of capro grade ammonium sulphate from a Chinese trader at about $149/t CFR Karachi. The product was manufactured by Sinopec.



35

Methods of price assessment of mineral fertilizers and raw materials for the global market

Frequency Prices are assessed of the data obtained from Friday (last week) through Thursday (current week) (before deals are closed at 04:00 PM Kiev time) Information sources Prices are based on survey of suppliers (traders, producers) and importers. Offers from suppliers and actual deals on certain payment basis are taken into account. Prices are in US dollars per metric ton, except cases specified in the table. Delivery time Within 3-6 weeks from the date of price publication.

Products specifications, contract basis and standard quantity of parcels

Product Quality

specifications

Contract basis Quantity,

‘000 tonnes

Terms of payment

Urea granular FOB Black sea

granular FOB China ≥ 5 100% prepayment, LC

granular FOB Egypt ≥ 5 100% prepayment

granular FOB Indonesia ≥ 5 100% prepayment, LC

granular FOB Malaysia ≥ 5 100% prepayment, LC

granular FOB Middle East ≥ 5 100% prepayment, LC, CAD

granular FOB NOLA ≥ 5 100% prepayment

prilled FOB Baltic sea ≥ 5 100% prepayment

prilled FOB Black sea ≥ 5 100% prepayment

prilled FOB China ≥ 5 LC, T/T, 100% prepayment

prilled FOB Indonesia ≥ 5 100% prepayment, LC

prilled FOB Middle East ≥ 5 CAD, LC

prilled CFR Brazil ≥ 5 100% prepayment

prilled CFR Gulf of Mexico ≥ 5 LC, 100% prepayment

prilled CFR India ≥ 5 LC

prilled CFR Turkey ≥ 5 LC

Ammonium Nitrate 34% FOB Black Sea ≥ 5 100% prepayment

34% FOB Baltic Sea ≥ 5 100% prepayment

34% CFR Turkey ≥ 5 LC

34% CFR Brazil ≥ 5 100% prepayment

CAN 27% CIF Germany ≥ 3 100% prepayment

UAN 32% FOB Baltic Sea ≥ 5 100% prepayment

32% FOB Black Sea ≥ 5 100% prepayment

32% FOB Damietta ≥ 5 100% prepayment

28% FOT Ruen (€) ≥ 5 100% prepayment

32% CFR US Gulf ≥ 5 100% prepayment

Ammonium Sulphate steel FOB Black Sea ≥ 5 100% prepayment

steel FOB China ≥ 5 100% prepayment, LC

steel CFR Turkey ≥ 5 LC

steel CFR SE Asia ≥ 5 100% prepayment, LC

capro FOB Black Sea ≥ 5 100% prepayment

capro FOB South Korea ≥ 5 100% prepayment, LC

capro CFR Brazil ≥ 5 100% prepayment

capro CFR Turkey ≥ 5 LC

capro CFR SE Asia ≥ 5 100% prepayment, LC



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