Views:19 Author:Site Editor Publish Time: 2018-09-03 Origin:Site
The tight supply in Europe and China kept the price of ammonium sulphate firm this week. The Brazilian market is expected to search for goods of October next month. The only problem that may arise is that Turkey’s purchases may fall due to the currency crisis.
Granular ammonium sulphate remains tense in northwestern Europe. Buyers are keen to book in advance, and demand in Europe and elsewhere remains strong. Buyers in the quarter will begin to focus on fourth quarter purchases as of the end of September. According to reports, the price of the port of Benelux shipped in September was 170 euros / ton FOB (198 US dollars / ton). The final price of G3 granular is about 210 Euro/ton fca. Traders focus on China's extruded pellets, whether it's corporate stocks or November-December stocks, with prices ranging from €195-197/tonne Fca Gent.
Baltic and Black Sea
The oil supply to the Black Sea and the Baltic Sea was very tight throughout August and it seems to be the same in September. Suppliers will focus on the domestic market rather than export.
Traders are bidding on the Black Sea offshore price of around $130 per ton. Turkey’s trading has stagnated due to the weak Turkish currency and the lack of sales of buyers who wish to re-export goods. Both Kuaz and SBU are expected to bargain with local buyers next week. Both companies are unlikely to be able to export in September.
The weakness of the lira against the dollar continues to hamper the purchasing of Turkish fertilizer. The lira against the US dollar closed at 6.745 on Thursday, down from 4.908 on July 31, 95% lower than a year ago.
Some Turkish buyers are trying to re-export their ammonium sulfate stocks to raise funds. The price of the European standard ammonium sulfate is 155-160 US dollars / ton FOB Marmara. Dealers said that farmers will not buy fertilizer at present, and the annual consumption rate of fertilizer may drop by 10% or more.
Toros is currently seeking 3-3.5 million tons of steel grade and 20,000 tons of caprolactam grade, which will be shipped at the end of September. According to reports, Toros has obtained 1.5-17,000 tons of caprolactam grade from the inventory of other importers. Gubretas is looking for a 10,000-ton caprolactam grade to ship in September. Agrofertrans continues to offset the shipments in the fall at a medium-to-high cost of $140 per ton plus 270 days.
This week, the ammonium sulphate market is quieter, with less inquiry and sales. China's ammonium sulphate supply is still relatively tight due to maintenance shutdowns and environmental shutdowns. As Chinese pelletizers produce extruded pellet stocks for the Brazilian market, demand for steel grades is strong.
The caprolactam grade price remains at $117-120/tonne FOB. The decline in demand in Turkey may limit the possibility of price increases. The price of granular ammonium sulfate is 155-159 US dollars / ton FOB.
Golden Barley has sold 10,000 tons of Chinese ammonium sulphate to Indonesian buyers, to be delivered in September/October, with a cost plus shipping cost of $130/ton. Shipping costs are approximately $12 per ton.
It is expected that regular buyers such as Swire, Atlas and La Felipina will have new demand and will ship next week for October.
Demand in Brazil is expected to pick up soon and is expected to remain strong for the rest of the quarter. In order to guarantee supply, buyers need to load in early October. The upcoming elections in October and concerns about freight/transport costs add up to the delay in the start of the purchase.
The price of ammonium sulphate in China's extruded granules is between 190-195 US dollars / ton CFR. European supplier pellets have reached $200-202/tonne CFR, and if the market is acceptable, the next sale will reach $205/tonne CFR.
Brazil's list shows that in the next few weeks, Brazil will have nine ships carrying 185,000 tons of ammonium sulfate to Santos, Paranagua and Grande (Rio de Rio). Of these, 32,000 tons were from China, accounting for 72%.