Iran tenders to sell more than 90,000t of granular urea
07 Apr 2025 16:42 (+05:00 GMT)
London, 7 April (Argus) — Iranian urea producers Pardis, Kermanshah Petrochemical Industries (KPIC) and Lordegan will close separate tenders on 9 April to sell a total of 90,000-110,000t of granular urea.
Pardis has issued a tender to sell 30,000-50,000t of urea for shipment from April-early May. The producer requested a minimum bid level of $360/t fob and the volumes will load from Assaluyeh.
KPIC issued a tender to sell 30,000t of granular urea. The producer requested bids on a fob Bandar Imam Khomeini port basis and a minimum bid level of $360/t fob.
Finally, Lordegan issued a tender to sell 30,000t of granular urea for shipment from 21 April-4 May. The producer requested bids on a fob Bandar Imam Khomeini port basis, but did not request any minimum bid level.
Iranian producers raised their granular offers over the weekend by $15/t to $360/t fob for this week. The tenders mark a resumption of typical export business after the extended holiday period, with little April- or May-loading spot tonnages having sold in recent weeks since Iranian plants ramped up output in the first half of March.
Morning. After the volatility following tariff news, mkts quieter to close the week; Nearby Nola phys moved higher on Fri, Int'l paper saw deferred month activity in Brazil at $370cfr. India to provide further colour this week.
AG
Apr $370//$388
May $360//$380
Jun $350//$370
Cfr Brazil
Apr $375//$395
May $360//$385
Jun $355//$368 – traded $370
Aug $355//$373 – traded $370
Sep $360//$380
Egypt
Apr $388//$405
May $370//$385
Jun $355//$375
Q3 $365//$390
Nola
Phys: Loaded traded $405, April $400, FH April $410-$413 1H May $392
Apr $390//$410
May $385//$400
Jun $350//$365
Jul $350//$365
Aug $335//$355
UAN Nola
Apr $325//$335
Q2 $330//$355
DAP Nola
Apr $605//$625
May $5600//$620
Jun $580//$600
MAP Brazil
Apr $670 Bid
Jun $685 Offer
Master delegate could add this in and IFA Bali, delete repeats
China has been hit with a 34% tariff, which stacks on top of the existing tariffs, giving them an overall 54% tariff on Chinese goods in the United States. As expected, China has retaliated and will now place a 34% tariff on top of the existing 15% tariff on soybeans.
This is not a great move from Trump, as it will make exports from the USA uncompetitive versus other origins, namely Brazil.
SKY Logistics Gen Trading
We hear a urea buyer has booked for PGA and RGE at $390 cfr
-UREA VALUES INCREASE ACROSS THE BOARD WITH THE INTRODUCTION OF TARIFFS AND COUNTERVAILING KEVIES BY THE TRUMP ADMINISTRATION WHICH COMES INTO EFFECT APRIL 5TH AND 9TH, RESPECTIVELY
-PROCESSED PHOSPHATE PRICES KEEP INCREASING DUE TO LACK OF SUPPLY AND INCREASED DEMAND IN MAJOR MARKETS
-POTASH PRICES ARE SET TO INCREASE IN BRAZIL AND SOUTH EAST ASIA ON THE BACK OF LIMITED SUPPLY AND INCREASED DEMAND. NO DUTIES ON POTASH FROM CANADA TO THE USA
-AMMONIA MARKETS ARE DORMANT WITH PRICES EXPECTED TO REMAIN SOFT WITH THE EXPECTATION OF PRICES DECREASING EAST AND WEST OF THE SUEZ
The Trump administration is set to impose a 10pct baseline levy on all imported goods starting on 5 April which would include urea and other nitrogen products. Higher reciprocal tariff rates will be imposed on certain countries but several major urea exporters to the US like Russia, Qatar, Saudi Arabia, Oman and Bahrain were not given an individual rate and should be subject to the 10% blanket levy. Some Russian producers think that they may even get away with no levy at all. Algerian and Nigerian imports on the other hand will be subject to 30pct and 14pct tariffs, respectively.
Urea imports from Canada will be able to enter the US duty free as long as the product is compliant with the US-Mexico-Canada Agreement.
Tariffs on urea from overseas will increase the price traders will have to pay for imported vessels and increase the price of urea barges at NOLA as well as boost prices for urea across most of the US.
There has indeed been a swift reaction to prices in NOLA with April barges traded at USD 410 per short ton FOB, up USD 40 per short ton form Wednesday this week. This is the highest the urea price has been FOB barge NOLA since September 2023.
In other regions, urea prices went up as well with Egypt prilled urea trading at USD 385 PMT FOB and granular urea at USD 400 PMT FOB. The latter is up USD 10 PMT in 24 hours and as much as USD 25 PMT from traded last week.
The Middle East saw a sale made at USD 390 PMT FOB with the earlier price sub USD 370 PMT FOB.
The overall sentiment is that trade flows will change and Brazil appears to benefit from this with more cargoes coming in from Nigeria and Algeria. A trading firm is reported to have sold a cargo to southern Brazil at USD 390 PMT CFR which is up around USD 5-10 PMT from the latest sales. In addition, Iran is producing urea at full blast and the latest sale is reported at USD 345 PMT FOB.
On another note, the Russian government has extended and increased its export quotas for shipments of selected finished fertilizers. The new quota will total about 20 million MT of which nitrogen fertilizers amount to 12.3 million MT. The new quota will expire November 30th rather than May 31st whilst it started on December 1st 2024.
Predicting the L1 urea price on the India tender will now be very difficult since we have yet to see the full fallout from the tariffs and reciprocal tariffs introduced by the US government.
Confusion prevails if Russia will be subjected to the baseline tariffs on processed phosphate sales to the US. The latest countervailing duty on Russian phosphate fertilizers was set in November 2024 for the calendar year 2022, including an 18.21pct rate on products from Phosagro. Morocco is in the new baseline 10% tariff group and the executive order states that the 10% is in addition to any other duties, fees, taxes, exactions, or charges. As a result, without any further exemptions, Moroccan DAP, DAP, TSP, and NP face the current prevailing countervailing duty of 16.60pct plus the baseline 10pct for a total of 26.50pct.
China has long left the US phosphate import market after previously facing a 25pct duty. China now faces an additional 34pct tariff on top of the 25pct.
In other markets, MAP price assessment in Brazil has increased to USD 660-670 PMT CFR up from USD 660 flat. This is the highest level since October 2022.
India's DAP price assessment has also increased despite lack of business. The new range of USD 648-650 PMT CFR is the highest level since February 2023.
China is still absent from the export market and it is now most likely this could last until June.
The outlook for processed phosphate prices is bullish.
Potash prices advanced in Brazil and Southeast Asia as limited May volumes supported the market, while potash in the US remained unaffected during the recent round of tariffs on imports into the US. The US market took centre stage this week as market players braced for the worst ahead of US President Donald Trump’s “liberation day” tariffs. Potash managed to remain unaffected, with exemptions from all locations. The market experienced a slowdown in activity as a result this week. With prices having surged in recent months amid the looming tariffs, a slight price correction may follow. Prices at NOLA firmed to $320/st FOB this week, up $5/st.
Brazil's granular MOP prices surged by $10/t to $345-350/t CFR for May loading, as the market picked up slightly following a period of resistance to higher prices. In response, producers have started to increase price offers, with distributors now taking long positions. Prices are likely to rise as demand increases for the soybean season.
Southeast Asian prices increased by $5/t for sMOP and $10/t for gMOP as producers push for higher prices. The market remains somewhat slow, aside from the current tender, as Indonesia and Malaysia finalise their Eid celebrations. Prices are expected to rise in the coming weeks, with rumours suggesting levels of $330-340/t CFR for April loading. A flurry of tenders is likely to support prices until Pupuk Indonesia releases its key tender, which is anticipated in the coming weeks. Producers are pushing for higher prices in the region as the 2025 Chinese potash settlement progresses.
There remains very little upside to ammonia pricing at present, with markets both east and west of Suez generally still facing healthy supply and limited demand. All eyes were fixed on the US this week as President Trump announced wide-ranging import tariffs on products coming into the country. The decision to impose 10% tariffs on imports from Trinidad, from where the US sourced 42% of its total 2.07 Mt ammonia import requirements in 2024, should facilitate a knock-on impact on domestic prices, though it is likely suppliers will pass these costs onto end-users in the form of finished products. At present, supply out of the US Gulf remains healthy, though there is talk that the 1.3 Mt/year Gulf Coast Ammonia (GCA) facility in Texas, which finally loaded its first export cargo last week after years of delays, is facing further production hiccups.
The upside for global pricing remains limited, though tariffs on US imports of Trinidadian ammonia could generate some support for inland values in North America.
Stein Chingen Haugan
Managing Director
fertiMetrics pte ltd
Mobile / Whats App: +65 8328 7681 – Singapore
Email: stein@fertimetrics.com
Skype: steinhaugan1955
WeChat: stein0813
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www.fertimetrics.com
Council Member World Agriculture Forum
Morning. Significant volatility and trading activity y'day following US tariffs announcement, particularly in Nola, as uncertainty still remains on the impact across mkts.
AG weekly index = $377.50
Apr $373//$388
May $360//$380
Jun $350//$370
Cfr Brazil weekly index = $380
Apr $385//$395
May $377//$390
Jun $360//$375 – traded $370
Aug $360//$375 – traded $370
Sep $365//$385
Egypt weekly index = $390
Apr $390//$400 – traded $395-85-90-95
May $370//$390
FH May $375//$389
Jun $360//$380
Q3 $365//$395
Nola
Phys: Loaded $410-$400, FH April $400, $405, 1H May $405-$390
Apr $390//$410 – traded $400-$425 -$400
May $380//$395 – traded $372-$401
Jun $350//$360 – traded $350-$360-$355
Jul $350//$365 – traded $355
Aug $335//$355
UAN Nola weekly index = $312.50
Apr $325//$350
Q2 $330//$355
DAP Nola weekly index = $620
Apr $605//$625
May $590//$615
Jun $580//$600
MAP Brazil weekly index = $660
Apr $670 Bid
Jun traded $675
US tariffs – an analytical roller coaster! Here is the CRU #fertilizers quick take…
The 'WAIT… WHAT?' observation. No #Russia in the list of tariffed countries.
The US administration said Russia was not included on the list as sanctions already "preclude any meaningful trade". We beg to differ – Russia was the largest supplier of urea to the US in 2024 (see chart). WILD!
Tariff exemptions? #Potash! Potash from Canada is USMCR compliant (so no tariff) and imports from elsewhere will be exempt. It seems the administration has noticed the US doesn't produce significant volumes of potash.
The price response? We expect to see an increase in urea and phosphate prices, while potash may be pulled lower.
Clients of ours have an insight with all the detail – link in the comments
This is Kun from ChinaFert. We will be attending the Argus Asia in Bali and IFA in Monaco. Please feel free to arrange a meeting in advance.
Weekly FOB prices
Ammonium Sulfate (Capro grade):FOB $150-153(Bulk)-Tianjin Port or River Port
Ammonium Sulfate (Mixed grade Granular):FOB $160(Bulk)-Tianjin Port
Ammonium Sulfate (Capro grade Granular):FOB $167(Bulk)-Tianjin Port
Potassium Sulfate (SOP) Powder: FOB $650(Break Bulk)-Tianjin Port
Potassium Sulfate (SOP) Granular: FOB $660 (Break Bulk)-Tianjin Port
NP 20-20 : FOB $350 (Bulk)-Tianjin Port or Nanjing Port
Calcium Nitrate Granular: FOB $185(Container/Break Bulk)-Tianjin Port
Prilled Urea (9.5kg Bag):375FOB
Automotive Urea (9.5kg Bag): 385FOB
Financial Options: we can offer credit terms of 30-120 days for long-term stable clients. The interest rate will around 6% (annualized)
Upcoming Conference we will attend:
Argus-Asia-Bali,2025 (April 22nd-24th,2025)
IFA-Monaco,2025 (May12th-14th,2025)
Market Analysis and Summary
UREA
As of April 2, 2025, the total inventory of urea enterprises in Longzhong Data was 754,200 tons, a decrease of 113,600 tons from last week, a month-on-month decrease of 13.09% and a year-on-year decrease of 9.64%. This week, the number of enterprises under maintenance increased slightly, with a daily output of 190-195k, but demand weakened slightly, mainly compound fertilizers, and the inventory of enterprises continued to decrease but at a reduced rate. The market was strong at a high level, with the mainstream delivery area in the range of RMB1880-1930.
Ammonium Sulfate
This week, the price of ammonium sulfate (AMSUL) has seen a increase. The mainstream delivery price for mixed compacted ammonium sulfate from factories in Hebei, Shandong, and Inner Mongolia to Tianjin Port now ranges from 158–162USD FOB. Offers for standard AMSUL have increased around 150-155FOB Tianjin Port; 145-150FOB River Port. As of Mar 28th, port inventories have reached 1,055,000 metric tons.
The Australian Fertilizer Corporation (AFC) is pleased to announce that MOUs have been signed on the licensing/engineering of the ammonia and urea technology, with an EPC provider as well as off-take for export and the domestic Australian market for the entire annual production of 200,000 MT. This will enable AFC to bring this most compelling alternative energy/non-conventional gas input world first AdBlue urea gasification project based on blue ammonia and zero carbon dioxide emission to the next step towards completion by the middle of 2028.
Syntex seeking fob bid on
15kt sulphur pastilles
Turkmeni origin
Fob Baltic
https://www.reuters.com/world/us/trump-unveils-global-reciprocal-tariffs-2025-04-02/
LONDON (ICIS)—In Egypt, Abu Qir sold 15,000 tonnes of prilled urea at 385 FOB and another 5,000 tonnes of granular urea at 400 FOB for April loading .
Morning. April Brazil paper traded high-$380s y'day prior to news of phys sold at $390cfr, while May AG slipped under $380. In Nola, values stepped up after tariffs announced, as further reaction awaited.
AG
Apr $373//$385
May $372//$382 – traded $378
Jun $350//$370
Cfr Brazil
Apr $380//$395 – traded $388-87
May $380//$395
Jun $355//$370
Aug $365//$380
Sep $365//$385
Egypt
Apr $395//$410
May $390//$405
Jun $360//$380
Q3 $365//$395
Nola
Phys: Loaded $395, $400; April $390, $392
Apr $385//$395 – traded $379 (early)
May $345//$365
Jun $340//$355
Aug $330//$345
Q3 $330//$350
Options:
Apr $390 Call $7
Apr $400 Call $5
Jul $335 Straddle traded $28
UAN Nola
Apr $322//$330
Q2 $325//$335
DAP Nola
Apr $605//$625
May $590//$615
Jun $575//$600