Union Minister for Chemicals and Fertilisers JP Nadda has promised that 1.35 lakh metric tonnes of urea required for Karnataka will be supplied within the next 10 to 15 days, said former Chief Minister and MP Basavaraj Bommai.Speaking at a joint press conference held today in New Delhi, along with BJP MPs from Karnataka, he said that farmers in Karnataka are not receiving urea on time."This is not a sudden problem. Due to good monsoon and pre-monsoon rains this year, a large number of farmers are cultivating maize. The area under maize cultivation has increased by 1.5 per cent. The agriculture department is aware of this and has acknowledged it. Normally, the demand for urea starts from July and continues till August. But since the rains began in the third week of June itself, the demand for fertilisers also started early," Bommai said.He said usually, farmers apply urea once, adding, "But this time, after the first application, it rained again, prompting a second and even third round of applications. Repeated application of urea has placed a financial burden on farmers. In addition, due to weeds growing in maize crops, and a shortage of labourers, they are also having to spend on herbicides. This has further increased the financial burden on farmers. Moreover, long queues in front of fertiliser dealer shops during the day and night have caused frustration, prompting intense protests from farmers. This issue is acute in around eight districts and moderate in three or four others," he said.The former CM said the Agriculture Department should have anticipated the climatic changes and maintained a buffer stock.Bommai further said, "Based on the fertiliser usage of the previous year, the department should have calculated this year's requirement and stockpiled accordingly. While the Centre ensures the supply of fertiliser up to the nearest yard via railway wagons, it is the responsibility of the state government to handle distribution. Mismanagement has occurred in this distribution process. The Agriculture Department has failed to understand and assess the anticipated demand of farmers."
The MP stated that there is rampant corruption in the distribution of fertiliser in the state."Urea is available in Karnataka, but farmers are unable to access it. Wealthier farmers are purchasing urea at higher prices, while small and marginal farmers are forced to stand in queues in front of shops. Unauthorised hoarding and black-market sales of urea at inflated prices are taking place. There is significant corruption. Officials lack information on district-wise demand. Due to administrative lapses, farmers are facing severe distress," he said.Bommai said there are 1.35 lakh metric tonnes of urea stock in Karnataka."If managed properly, this can solve the urgent fertiliser crisis for farmers. The state government should distribute this through cooperative societies. The Centre has issued clear orders that no farmer should be compelled to buy other fertilisers in order to receive urea. Licenses of dealers who indulge in such link sales should be cancelled. However, the state government has not taken any action. Farmers are already in distress. The state government is imposing an additional burden on them. The state must supply urea without linking it to the purchase of other fertilisers," Bommai further said.He said the demand for fertilisers for the Kharif season is 11.17 lakh metric tonnes. By the end of July, 6.25 lakh metric tonnes should have been distributed."So far, 5.35 lakh metric tonnes have been supplied. Currently, Karnataka has 8.82 lakh metric tonnes of fertiliser, out of which the state government claims to have distributed 7.74 lakh metric tonnes. This suggests that they had a buffer stock. The Centre now has to supply the remaining 1.35 lakh metric tonnes. Today, they met Union Minister for Chemicals and Fertilisers J P Nadda and discussed the fertiliser issue in the state. The minister immediately held discussions with officials and assured that action would be taken to supply 1.35 lakh metric tonnes of urea to Karnataka," the former CM said.He said instructions will be given to companies like Coromandel and Madras Fertilisers, and that 1.35 lakh metric tonnes of urea will be supplied within 10 to 15 days. Today, 16,000 metric tonnes are being dispatched. A daily supply of 15,000 to 20,000 metric tonnes will continue.
Morning. Quiet start to the week on Int'l paper, but further detail emerged from recent Nigeria/Indonesia sales tenders. In Nola, Sep urea barges repeat traded $457-$460, while DAP values continued to see gains. Mkts framed:
AG
Jul $465//$477
Aug $478//$500
Sep $470//$490
Q4 $435//$470
Cfr Brazil
Aug $472/$488
Sep $472//$488
Oct $450//$480
Egypt
Aug $480//$500
Sep $460//$490
Nola
Phys: Sep traded $457-$460 (buyer’s)
Paper:
Aug $450//$460 – traded $455
Sep $450//$460
Oct $425//$450
Nov $420//$430
Q4 $410//$435
Q1 $410//$435
UAN Nola
Aug $265//$300
Sep $255//$300
Oct $250//$300
DAP Nola
Phys: Sep traded $790
Aug $780//$790
Sep $785//$790 – traded $786
Q4 $710//$730 – traded $720
Q1 $685//$710
MAP Brazil
Aug $740//$765
Sep $735//$760
On July 27, 2025, the Phosphorus Fertilizer Industry Association will announce the prices of phosphate ammonium products (standard common varieties):
· 64% diammonium phosphate: East China region (first arrival point), 3,950 yuan/ton
· 57% diammonium phosphate: North China region (first arrival point), 3,600 yuan/ton
· 55% granular ammonium nitrate: Central China region (ex-factory), 3,350 yuan/ton
· 58% granular ammonium nitrate: East China region (ex-factory), 3,650 yuan/ton
· 60% granular ammonium nitrate: Southwestern China (factory price), 3,850 yuan/ton
Oil prices rose 2% on Monday after a trade deal between the U.S. and the European Union, and U.S. President Donald Trump's announcement that he would shorten the deadline for Russia to end its war in Ukraine or face sanctions.
Brent crude futures were up $1.60, or 2.3%, at $70.04 a barrel. U.S. West Texas Intermediate crude rose $1.55, or 2.4%, to $66.71.
Brent touched its highest price in 10 days after Trump said he was reducing the 50-day deadline he gave Russia over its war in Ukraine to 10-12 days.
The deal between the U.S. and EU and a possible extension of the U.S.-China tariff pause are also supporting global financial markets and oil prices, said Tony Sycamore, a market analyst at IG.
The framework trade pact with the EU announced on Sunday sets a 15% U.S. import tariff on most EU goods. Trump also said the deal called for $750 billion of EU purchases of U.S. energy in the coming years.
"Europe is going to have to give up a big percentage of everything they’re getting from Russia," said Phil Flynn, senior analyst with Price Futures Group. "Not only does it (the trade pact) give U.S. producers a huge boost with this commitment, it also puts more pressure on (Russian President Vladimir) Putin to come to the table."
Senior U.S. and Chinese officials are meeting in Stockholm on Monday to try to extend their tariff truce before an August 12 deadline.
The U.S.-EU deal removed another layer of uncertainty and the focus seems to be shifting back towards fundamentals, said Tamas Varga, an analyst at PVM, adding that a strong dollar and falling Indian oil imports have weighed on crude prices.
On the supply side, an OPEC+ panel on Monday stressed the need for full compliance with oil production agreements, ahead of Sunday's separate gathering of eight OPEC+ members to decide on increasing oil output for September.
ING expects OPEC+, the group that includes the Organization of the Petroleum Exporting Countries and allies such as Russia, to at least complete the full return of 2.2 million barrels per day of additional voluntary supply cuts by the end of September.
LONDON (ICIS)—In Nigeria, Dangote sold 2 x 30,000 tonnes of granular urea in the low-mid $470s/tonne FOB for H2 August shipment to undisclosed destinations. Price is $7-10/tonne higher than Friday last week.
Monday, 28 July 2025 (Acerto)
Urea
Nigeria : Dangote has sold two spot cargoes of 30,000t granular urea each in the low-mid $470s/t FOB Lekki for 2H August shipment.
It follows its 23 July tender award in the mid-high $460s/t FOB for 30,000t granular urea for mid-August loading.
LONDON (ICIS)–In the US, the Tampa ammonia contract price has been settled for August at $487/tonne CFR. The price, agreed between contract partners Yara and Mosaic, represents a $70/tonne increase from the July settlement of $417/tonne CFR. Ammonia supply is tight due to maintenance and production issues in several countries.
China Fertilizer Industry Chain Morning Report 2025-7-28
*❤ Sulfur: Last week, the domestic port spot market operated with weak stability, with a price range reference of 2,350-2,355 yuan/ton, and the mainstream reference price increased by 10 yuan/ton compared to the previous working day. During this period, port inventories continued to accumulate, market weakness and volatility sentiment continued to ferment, with most participants mainly watching from the sidelines. Additionally, given the limited price difference between USD and RMB currently, some end-users purchased USD to supplement supplies. Domestic market trading activity was moderate, and terminal purchasing nodes became increasingly dispersed. Domestic resources showed stability with slight increases, particularly affected by the rapid price rise of local refineries in Shandong, leading to varying degrees of price adjustments for solid and liquid sulfur in East China, North China, and Northeast regions. Focus on port destocking, terminal purchasing dynamics, and Qatar’s August contract pricing during this period.
❤ Urea: Last week, the domestic urea market experienced volatile upward movement. At the beginning of the week, influenced by policy news regarding “anti-involution and elimination of backward capacity” across multiple industries, market sentiment drove spot price increases. Subsequently, based on current supply-demand contradictions, on-site trading improvement was insufficient, and urea prices loosened and declined. Currently, market stalemate and wait-and-see sentiment is strong. Without obvious positive developments, the urea market may consolidate downward in the short term.
❤ Synthetic Ammonia: Last week, the synthetic ammonia market was mainly characterized by widespread increases. Southern markets experienced continuous maintenance and failures, combined with increased demand, leading to tight market supplies and significant price increases. Northern markets were supported by positive sentiment from maintenance expectations, and prices improved marginally through regional coordination. The synthetic ammonia market is expected to continue its upward trend this week, with northern markets relatively stronger.
❤ Ammonium Chloride: Last week, the domestic ammonium chloride market operated with temporary stability. Due to some facility maintenance, individual ammonium chloride companies made small upward price adjustments. Currently, downstream compound fertilizer companies are still mainly focused on just-in-time restocking, with no significant increase in demand. Therefore, as maintenance facilities resume production, the ammonium chloride market is expected to maintain stable operation.
❤ Ammonium Sulfate: Last week, the domestic ammonium sulfate market continued to decline, with poor high-level transactions. International market demand was weak, with continued suppression of high-price negotiations, damaging dealer business sentiment. Recently, India’s new round of urea tenders has shifted market sentiment from pessimistic to cautious. The ammonium sulfate market is expected to continue narrow adjustment and wait-and-see trends in the short term.
❤ Melamine: Last week, the domestic melamine market operated with narrow consolidation. Market fundamentals performed moderately, with varying company attitudes, mainly focusing on orderly shipments. In the short term, without obvious positive market guidance, market conditions may continue with stability amid fluctuations.
❤ Phosphate Fertilizer: Last week, the domestic monoammonium phosphate market maintained strong operation, with good inquiry atmosphere. Combined with pending shipment support, some manufacturers continued to withhold sales, with few maintaining high quotations. Downstream autumn fertilizer production raw material stocking demand still exists, though pursuit of higher prices remains cautious. Short-term stable operation is expected, with potential for small upward exploration if demand continues to improve. Last week, the domestic diammonium phosphate market continued stalemate consolidation, with companies actively executing pending orders. Hubei region 64% ex-factory prices maintained at 3,800-3,850 yuan/ton, with actual orders maintaining negotiation. Market wait-and-see sentiment persisted, 57% prices loosened slightly, while 64% prices remained firm but both supply and demand sides showed insufficient trading willingness, with limited actual transaction volumes. The market maintains narrow consolidation in the short term.
❤ Potash Fertilizer: Last week, the overall domestic potash fertilizer market trend was relatively flat, with major large potash traders mostly continuing low-price sales to downstream factories, ensuring downstream factory raw material needs. Overall market transaction volumes were relatively limited. The potassium sulfate market trend was weak, with new order transactions not being active.
❤ Compound Fertilizer:* Last week, the compound fertilizer market continued its consolidation trend. Upstream raw material prices showed loosening under various news guidance, and compound fertilizer costs also declined slightly. Downstream dealer purchasing sentiment was cautious, market trading atmosphere was moderate, compound fertilizer price adjustments were limited. Companies continued to focus on promoting shipments in the short term, with compound fertilizer maintaining temporary stability.
Gd
Iranian producers announced $430/mt as official price this week.
The Chinese caprolactam industry is currently facing an oversupply situation, with production exceeding demand. This oversupply is driven by a combination of factors, including increased domestic production capacity, reduced demand from key downstream sectors like textiles and automotive, and global market pressures. The situation is causing downward pressure on caprolactam prices and impacting profitability for manufacturers.
Factors Contributing to Oversupply:
Increased Production Capacity:
China has significantly expanded its caprolactam production capacity in recent years, aiming for self-sufficiency in nylon 6 production. This overexpansion has led to a situation where supply outstrips demand.
Weakened Downstream Demand:
The textile and automotive industries, major consumers of caprolactam, have experienced sluggish demand in China. This has further exacerbated the oversupply issue.
Global Market Fluctuations:
Global market conditions, including trade policies and geopolitical risks, also play a role in the caprolactam market. Fluctuations in demand from other regions and potential disruptions to supply chains can impact the Chinese market.
Reduced Export Orders:
While there have been some improvements in export orders, the overall market remains cautious, with limited international inquiries.
Impact of Oversupply:
Price Declines:
The oversupply has led to a decrease in caprolactam prices as sellers compete to move inventory.
Profit Margin Compression:
Reduced prices and weak demand are impacting the profitability of caprolactam manufacturers.
Potential for Plant Closures:
Some companies have already announced or are considering plant closures due to the oversupply and challenging market conditions.
Looking Ahead:
Restructuring Needed:
Some industry experts suggest that the global nylon market, including China, needs restructuring with potential plant closures and consolidation to address the oversupply.
Focus on Demand Recovery:
A significant recovery in downstream demand, particularly in the textile and automotive sectors, is needed to alleviate the oversupply situation.
Potential for Increased Exports:
While China has become a net exporter of nylon 6, increased exports may be an option to help absorb some of the excess capacity.
In summary, the Chinese caprolactam industry is grappling with an oversupply situation due to increased production capacity and weak demand. This has led to price declines and profitability challenges. Restructuring and a recovery in downstream demand are seen as key to resolving the oversupply issue, potentially through a combination of plant closures and increased export activity.
Export Volume
Jan–Jun total: 17.13 million tonnes (mmt), up 35.9 % year-on-year.
– Ammonium sulfate led at 8.33 mmt.
– NP compound (8-40-0) jumped to 2.18 mmt, up 1.73 mmt and the fastest-growing P-based fertilizer.
Top 5 exports in June alone
1. Ammonium sulfate – 1.86 mmt
2. NP compound – 0.76 mmt
3. DAP – 0.51 mmt
4. Ammonium chloride (fertilizer grade) – 0.17 mmt
5. MAP – 0.17 mmt
Import Volume
Jan–Jun top 5 by volume
1. Potassium chloride (other than pure) – 6.28 mmt
2. Sulfur – 5.34 mmt
3. Un-ground phosphate rock – 0.77 mmt
4. NPK compound – 0.55 mmt
5. Ammonia – 0.26 mmt
June alone
Sulfur 0.99 mmt
Potash 0.66 mmt
NPK compound 0.10 mmt
Ammonia 0.08 mmt
Weekly FOB prices
UREA
Prilled Urea(Bulk): FOB $400
Granular Urea(Bulk):FOB $435
Automotive Urea(Big Bag): FOB $445
Ammonium Sulfate
Ammonium Sulfate (Capro grade):175 (Bulk)-Tianjin Port or FOB $175 (Bulk)-River Port
Ammonium Sulfate (Mixed grade Granular):FOB $180(Bulk)-Tianjin Port
Ammonium Sulfate (Capro grade Granular):FOB $187(Bulk)-Tianjin Port
Phosphate
MAP11-44: FOB $575 (Bulk)-Zhenjiang Port
NP8-40:FOB $480 (Bulk)-Fangcheng Port
NP 20-20 : FOB $365 (Bulk)-Tianjin Port or Nanjing Port
Water-soluble
Calcium Nitrate Granular: FOB $175(Container/Break Bulk)-Tianjin Port
TMAP: FOB $980-Tianjin Port
SOP(9.5kg): FOB $690-Tianjin Port
Morning. India's sooner than anticipated return to mkt on Thurs saw an immediate reaction of Urea paper firming, but activity more subdued at close of week. In Nola, away from Urea, DAP values marched higher last week (Sep +$30).
AG
Jul $465//$477
Aug $478//$500
_[Aug traded $488-$490 last week]_
Sep $468//$490
Q4 $435//$470
Cfr Brazil
Jul $450//$465
Aug $475//$485
_[Aug traded $467-$460 l/w]_
Sep $475//$485
_[Sep traded 465 l/w]_
Oct $450//$480
Egypt
July $475//$490
Aug $480//$500
Sep $460//$493
Nola
Phys: Jul traded $447
Paper:
Aug $450//$460
Sep $447//$460
Nov $420//$430 – traded $425 Fri
Q4 $410//$435
Q1 $410//$435
UAN Nola
Aug $265//$300
Sep $255//$300
Oct $250//$300
DAP Nola
Phys: Sep traded $785
Aug $772//$785
Sep $775//$785 – traded $770, $775, $780 Fri
_[Sep traded $750 Weds]_
Q4 $700//$720
Q1 $660//$695
MAP Brazil
Jul $747//$765
Aug $740//$765
Sep $735//$760
Here's a concise update on global sulphur market :
🇨🇳 China
CFR prices for molten, crushed, and granular sulphur rose slightly to $130–280/t (from $130–278/t). Granular imports are up at $276–280/t CFR. Middle East shipments are pricing at the lower end, while a small Formosa cargo sold at $285/t CFR river. Most market feedback suggests a range of high $270s to $280/t CFR remains workable.
🇮🇳 India
Stable at $277–281/t CFR for granular sulphur. PPL is seeking an August spot cargo. Smaller buyers on the west coast are seeing offers at $260–low $270s/t CFR depending on origin.
🌍 Middle East
FOB values are steady at $255–260/t. Cargoes were shipped to China, Indonesia, and African storage hubs. QatarEnergy Marketing is closing a 35,000t granular sulphur tender on July 23.
🇮🇷 Iran
FOB prices slipped slightly to $225–235/t, with crushed sulphur at the low end. A 60,000t sale to China netted near the high end, while congestion at Bandar Abbas is impacting smaller shipments. Turkmen sulphur via Iran is pricing slightly lower at $220–225/t FOB.
🌍 North Africa
Spot prices are steady at $255–274/t CFR, with granular-only offers at $265–274/t. Q3 contracts concluded at $259–274/t CFR — up $19/t over Q2. Middle East cargoes in larger vessels are landing at low $260s/t, while smaller vessels are priced in the low $270s/t.
🇪🇬 Egypt
Black Sea crushed lump cargoes (Kazakh & Romanian) are trading in the high $260s/t CFR, although buyers are resisting, with expectations around the mid-$240s/t CFR.
🌍 Sub-Saharan Africa
Prices are stable at $284–288/t CFR to ports like Richards Bay, Dar Es Salaam, and Beira. Storage space is tightening in Tanzania due to backlog and export delays from DRC. A Kuwait-origin cargo (52,000–65,000t) is scheduled for Dar delivery by late July.
🇿🇦 South Africa
Foskor’s reduced sulphur consumption continues as maintenance persists. 70,000t of sulphur are arriving in July, to be held in storage.
🌊 Mediterranean
FOB softened to $240–245/t, while CFR declined to $260–268/t from last week’s $274–280/t.
🇪🇺 East Europe
• Baltic & Black Sea: FOB unchanged at $220–240/t.
• Crushed lump sulphur trades at $220–225/t FOB Black Sea.
• Rail shipments to ports fell 3% in H1 2025 to 2.95mn t.
• Russian exports up 3% to 654,000t, but Kazakh exports fell 5% to 2.3mn t. Kashagan shipments rose, while TCO volumes declined 25% due to maintenance and pipeline outages.
🇧🇷 Brazil
CFR spot prices fell to $278–280/t (from $285–289/t). A US Gulf cargo was sold to Mosaic. CMOC's 38,000t tender for August may now source from the Middle East instead of the Baltic due to delays.
🔍 Conclusion
Global sulphur markets remain generally stable, with modest firming in China and softening in Brazil and the Mediterranean.
Since the China Agricultural Input Circulation Association organized a symposium on the market situation of potash fertilizer on July 15, and seven leading potash fertilizer circulation enterprises issued the "Proposal on Increasing Potash Supply, Reducing Prices, and Making Profitable Sales to Promote the Potash Price to Return to a Reasonable Level as Soon as Possible," many agricultural input enterprises have responded positively. The sales prices of potash fertilizer from the seven key agricultural input circulation enterprises on July 27 will now be publicly disclosed. Enterprises looking to purchase potash fertilizer are encouraged to contact these enterprises. If you discover any enterprise selling potash fertilizer at a price higher than the posted price in the relevant region, please contact the Association.