International ammonium sulfate market

Black sea

SBU Azot has already sold two 3,000-ton caprolactam-grade ammonium sulphate vessels, which will be shipped in April. A trader purchased ammonium sulphate at a price of FOB black sea  $121-126/tonne and was ready to ship to Samsun, Turkey. Kuibyshevazot has 3000-6000 tons of caprolactam-grade ammonium sulfate, which can be shipped from the Black Sea with a target price of US$130/tonne FOB.

Due to the decline in demand for NPK producers in the domestic market, Russian suppliers increased their exports in April.

Turkey

A 3,000-ton caprolactam-grade ammonium sulphate cargo was sold to Turkish at a price of $130/tonne FOB Black Sea, delivered at Samsun, which is equivalent to $144-149/tonne CFR. European producers will seek any spot goods with a minimum of CFR $150/ton, and it is unlikely that there will be further inquiries from China this quarter.

The data shows that Turkey imported 143,000 tons of ammonium sulphate in the first two months of 2019, an increase of 109,000 tons. China is still a major supplier, increasing from 71,000 tons to 97,000 tons. In the first two months of 2019, the US supply was 31,000 tons, up from 19,000 tons a year ago, while Ukraine is 15,000 tons, slightly lower than 19,000 tons a year ago.

Brazil

Before the arrival of Brazil's main demand season, buying interest began to emerge. It is reported that many goods will be loaded in April/May, and an estimated 220,000 tons of Chinese products will be transported through different traders, including Indagro's 60,000 tons of Wuzhoufeng particles, Nitron's 40,000 tons, and Dreymoor's 10,000 tons. Fubonte's 15,000 tons, Gavilon's 40,000 tons and Ameroba's 45,000 tons. In April this year, LANXESS will load 25,000 to 30,000 tons of ammonium sulphate to Brazil in Antwerp.

The compacted/granular ammonium sulfate price is in the range of $170-190/ton CFR, depending on the quality, China's compressed pellets are at the lower end of the price, while Europe is at the high end. The price of China's premium products is 180-185 US dollars / ton CFR, while European producers are seeking the price of 195 US dollars / ton CFR for the goods in May. The standard grade product, China's ammonium sulphate offer is about $140/ton CFR, while in Europe it is $5/ton higher.

The data shows that the import of ammonium sulphate in Brazil increased from 481,000 tons in January-March 2018 to 891,000 tons in the first quarter of 2019, an increase of more than 85%. The increased imports in the first quarter was mainly due to the extension of the demand season last year. China’s imports continued to grow, in the first quarter nearly doubling from 321,000 tons of last year to 625,000 tons. Imports from Belgium also increased significantly, from 75,000 tons to 142,000 tons, an increase of 89%.

Summary of Brazilian imports from January to March 2019

Unit: 10,000 tons

Importing country 2018 2019 China 32,162.5 Belgium 7,514.2 US 3,35.5 Netherlands 123.4 Poland 12.3 Other 31.2 Total 48.189.1

China

Due to a variety of factors, including plant parking, increased domestic demand, and increased export intentions to Brazil, caprolactam-grade ammonium sulfate prices remain unchanged at $110-113/tonne FOB. At present, the price of extruded granular ammonium sulfate is around US$145/ton FOB, depending on the quality. Granular ammonium sulfate is approximately $160/tonne FOB.

It is estimated that about 110,000 tons of extruded granular ammonium sulfate will be shipped to Brazil from Tianjin Port and Longkou Port in April. The strong demand for steel grade ammonium sulphate in domestic compound fertilizer production, as well as Brazil's demand for extruded granules, has begun to push up the price of steel grade ammonium sulphate. The steel grade is ￥630 yuan / ton (94 US dollars / ton), 35 yuan / ton higher than the end of March. And due to some equipment parking during the April-June period, the market will reduce about 220,000 tons of ammonium sulfate. In addition, on March 26, Jiangsu Haili's 300,000 tons/year ammonium sulphate plant was forced to stop and is expected to last for about a month.

Philippines

According to reports, Atlas will end its inquiry for 8,000 tons of caprolactam-grade ammonium sulfate next week, which will be shipped to Sanchi in late April/early May. La Filipina in the Philippines will hold a tender on April 5 to purchase 6,000 tons of caprolactam-grade ammonium sulfate, which will be shipped to Manila and Bacolod in the second/third week of May. The offer is valid until April 8. The last sale price was 134-139 US dollars / ton CFR, the net price fell to 106-110 US dollars / ton FOB, less than 110 US dollars / ton FOB China is no longer possible.

Data shows that in January 2019, the total import of ammonium sulphate in the Philippines was 52,000 tons, the same as the previous year. China accounts for 70%, 36,000 tons, and Australia 16,000 tons.

India

India will bid for 10,000 tons of ammonium sulphate on April 5, and the bid is valid until April 10.

Malaysia

China's MMA grade ammonium sulfate is priced at $118-120/tonne (CFR). East Asian (non-Chinese) caprolactam grade ammonium sulphate is being adjusted according to conventional agreements, priced below $130/ton (CFR)

Australia

Australia's ammonium sulphate imports fell to 103,700 tons in the first two months of 2019, from 161,860 tons in January-February 2018, China accounts for about two-thirds, slightly less than 69,000 tons. And a year ago was 73,000 tons. Other major imports (last year in brackets): 27,000 tons (25,000 tons) in Thailand and 3,000 tons (7000 tons) in Indonesia.

Sri Lanka

The Sri Lankan government announced that private sector importers bought the highest price of imported fertilizers in the second quarter of this year. The government raised the maximum CFR price of ammonium sulphate imports from $138 in the previous quarter to $146.72/ton, including a 180-day credit period.

Northwestern Europe

 For European buyers, the price index for ammonium sulphate standard grades has been stable at around $140 per ton FOB. The net price in the Brazilian market is at $120/ton FOB. Producers in northwestern Europe are accounting for shipping costs for loaded granulated cargo in the Baltic Sea. The four major European ammonium sulphate producers – BASF, Domo, Fubonte and LANXESS – have established their own departmental teams within the European Chemical Industry Council (Cefic) to promote the benefits of their products.