FERTILIZER PRICE COMMENTS FOR MAY 2021

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NITROGEN

Algeria
AOA sold around five cargoes in the second week of May at increasing prices. Latest business was reported around $365/t fob Arzew for June shipment. In the first week of May, the producer sold 2 x 40,000t of granular urea to traders for first half June shipment at $355-356/t fob. Indagro loaded 35,000t of urea in Arzew 13-16 May for Sao Francisco do Sul and Rio Grande, Brazil. Traders booked several cargoes from AOA between $383-388/t fob for July shipment, with some business also for August. AOA reported bids in the high-$390s/t fob Arzew for August loading.

East Africa
Agromate loaded around 25,000t of granular urea in Bahrain towards the end of May for shipment to Beira, Mozambique. Keytrade sought a vessel to load 40,000t of granular urea prompt in Oman for Nacala and Beira. Mozambique, reportedly, sold to Meridian. Prices for granular urea are in the low-$390s/t cfr.

Egypt
No new fob sales was reported in the first week of May , but Fertiglobe sold four cargoes of granular urea for May shipment to Sudan and May-June shipment to Argentina on a cfr basis. The Sudan sales netted to around $355/t fob Adabiya. Fertiglobe was committed into June and had no Egyptian urea to load for India. A trader bid $340/t fob in the first week of May for 30,000t of granular urea for June shipment but could not find a seller. Price indications from producers remained around $350/t fob for
European markets. Mopco was not offering urea at present, awaiting clarification from the ministry of agriculture on the quantity for urea required for the domestic market in May-June. On 10 May, Mopco sold lots of 10,000t and 15,000t to separate traders at $355/t fob Damietta, subsequently sold another 15,000t at $359/t fob for end-May/June shipment. On 11 May, it sold 15,000t at $360/t fob for July shipment. Helwan invited bids on 11 May for 15,000t of granular urea for June shipment. It sold 25,000t to one trader at $365/t fob. It was sold out for June. On 12 May, Mopco sold 40,000t at $370/t fob to two traders for June-July loading from Damietta, while fellow producer Alexfert sold 10,000t for June shipment to Europe to one trader. Traders loaded two cargoes of urea in Egypt during May for India: 50,000t of Abu Qir prilled urea; and 50,000t of granular urea from KIMA. Granular urea prices climbed from $370/t fob to $400/t fob for July as traders-built positions, with June cargoes mostly sold out. Business included:
„.Helwan on Wednesday sold 10,000t of granular at $400/t fob for July shipment.
„.Mopco on Wednesday sold 20,000t of granular at $400/t fob for July shipment.
„.Alexfert on Monday sold 10,000t of granular to a trader at $375/t fob for June shipment to Europe. The producer sold out for June.
„.Mopco on Monday sold 5,000t of granular at $375/t fob for July.
„.Abu Qir, late last week, sold 40,000t of granular at $370/tfob for July shipment and 30,000t of prills at $350/t fob for June shipment.
Mopco sold 30,000t of granular at $408/t fob for August shipment on 27 May. Earlier in the last week of May, Kima sold 30,000t of granular for June shipment at an undisclosed price. Other producers sought $405/t fob and higher for July exports, though no trade was confirmed..

Malawi
The Smallholder Farmers Fertilizer Revolving Fund of Malawi issued a tender on behalf of the Government for the supply, warehousing, and retailing of 250,000t of NPKs and urea under the 2021-22 Affordable Inputs Programme. The fund was seeking to procure 125,000t of 23-10-5+6S+1Zn and 125,000t of urea. The tender closed on 27 May and offers are valid until 24 September, 120 days after the submission deadline. Products must be delivered in 50kg bags within eight weeks of contracts being signed..

Nigeria
Spot export availability was thin as domestic and regional demands were strong, absorbing most outputs from local producers. Indorama may have tons to export later in the third quarter of the year. Koch loaded around 40,000t of granular urea in Onne to be shipped early June for Brazil.

South Africa
Iranian urea was offered at the equivalent of $340/t cfr Durban, offered out by local companies in rand, showing a discount to other Middle East urea of $40-45/t..

Sudan
Fertiglobe sold two 25,000t cargoes of granular urea for May shipment to Sudan.

West Africa
A trader was seeking 30,000t of prilled urea for early-June arrival in Benin and a second inquiry circulated for 22,000t of prilled urea for June shipment.

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PHOSPHATE

Egypt
NCIC remained focused on loading cargoes for trading firms under prior sales, sources said. Prices for European markets were offered at around $575/t fob. There was no comment from NCIC. Argus assessed DAP prices at $593-602/t fob, reflecting higher netbacks in the US. But no new NCIC sales were reported, with the producer likely busy loading its previous commitments..

Morocco
OCP sold 50,000-70,000t of MAP loading in May for Brazil. DAP remained priced at around $580-585/t fob for European markets, participants said, but there was no comment from OCP.
Morocco’s OCP focuses on African fertilizers in April
Moroccan fertilizer producer OCP prioritised shipments to destinations across Africa in April, Argus line-up data showed, as it was forced to adapt to changing trade flows in the global phosphates market. OCP loaded almost 800,000t of DAP, MAP, NPKs, NPS and TSP from its major production hub at Jorf Lasfar on the Atlantic coast, of which over 40pc headed to eastern and western Africa. Total loadings fell by 16pc from 947,000t in April 2020. There were no new sales to report in second week of May. OCP indicated DAP at around $600-605/t fob for European markets loading in June, participants said. But these levels were not reflective of current fca prices. Previously reported sales to an Indian buyer reflected around $530/t fob. DAP indications from OCP climbed through the week to $610/t fob for Europe, loading in June, before hitting $620/t fob Jorf at press time. No new sales at this higher level were reported. The producer was also linked to MAP sales into Brazil netting around the mid/high-$610s/t fob, but this could not be confirmed. OCP’s earlier offer levels in the third week of May reflected around $635-640/t cfr, or $613-618/t fob equivalent.
OCP increases earnings in 1Q
Morocco’s OCP increased revenues to 14.29bn Moroccan dirhams ($1.62bn) in the first quarter up from Md12.27bn a
year earlier. The firm increased earnings before interest, taxes, depreciation, and amortisation (ebitda) to Md5.34bn last quarter, up from Md3.3bn a year prior. OCP attributed the rise in earnings to higher volumes sold across all product categories, underpinned by improved prices. OCP had no fresh sales to report in the last week of May but has upped DAP offers to $625/t fob for European markets. Netbacks from Brazil at $655/t cfr equate to $630-635/t fob. But the producer was targeting around $5/t higher..

North Africa
A 35,000t MAP cargo for June loading remained under discussions with a selection of prospective buyers. Levels indicated have climbed from $630/t fob at the start of the week to above $640/t fob at press time. No conclusion was reported. There was no comment from the supply-side..

Senegal
Senegal’s ministry of agriculture has allocated 86,000t of various NPKs, 61,000t of urea and around 20,000t of DAP to around 50 distributors under its annual fertilizer tender issued earlier in May. Under the tender, the government awarded the following products at the below prices, all of which were on an exwarehouse basis:
„.6-20-10 at CFA 295,000/t
„.15-15-15 at CFA 335,500/t
„.15-10-10 at CFA 339,100/t
„.9-23-30 at CFA 450,000/t
„.10-10-20 at CFA 328,000/t
„.DAP at CFA 465,000/t
„.Urea at CFA 330,000/t
These prices were partly subsidised by the government, and distributors are tried to secure product from the international market for June-August delivery. But traders have indicated that the firm pricing trend for all these products means that it may be difficult to secure product that work with these price levels.

South Africa
Russia’s Phosagro planned to load a MAP vessel for South Africa in June and was offering the product in the $640s/t cfr I the third week of May. Reports of conclusions for 30,000t of MAP below this price level were denied on the sell-side. Domestic prices from Foskor’s MAP facilities were in the $610-615/t ex-works range.
Foskor undergoing maintenance
Producer Foskor was undergoing annual maintenance at its MAP plant, which was scheduled to last until 24 May. During that time, there was no MAP output at the unit. The producer has an annual capacity of around 400,000t of MAP. A Russian producer has reportedly sold 8,000t of MAP to buyers at around the equivalent of $680/t cfr. Producer Foskor ended annual maintenance at its MAP plant early in the last week of May.

Tanzania
The Tanzanian Fertilizer Regulatory Authority was planning to issue a purchase tender DAP in June. But current domestic selling prices, which were state controlled, were set when international phosphate prices were significantly lower, meaning the Government first needed to approve higher prices before TFRA can gauge demand and issue its tender. The Government has already rejected proposed prices and TFRA was preparing another round of price submissions, according to local sources. Quantities of the tender have not yet been determined, according to local sources. Domestic demand for DAP usually begins in November, lasting until February, with shipments normally arriving in August/September. Importer One Acre Fund closed a tender on 28 May to buy 19,650t of DAP for the Tanzanian markets. One Acre requested validity of offers until 7 June, with product arrival sought in July.

Tunisia
The DAP price was notionally raised by $5/t to $575-580/t fob, reflecting other north African origins. GCT has reportedly sold two MAP cargoes, both likely loading in June to two suppliers. A trading firm was in the freight market to ship a cargo with 35,000t of MAP and 5,000t of TSP to the US, loading in the first half of June. There was no comment from GCT or the buyers. The sales followed two MAP cargoes which loaded in April and May, similarly for the same two suppliers. Both June cargoes were likely loaded for the US.
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