Singapore (Platts)--21Sep2011/344 am EDT/744 GMT
China Petroleum & Chemical Corp, or Sinopec, cut its ex-works prices for butadiene in the eastern and southern provinces for a second time in September, by Yuan 1,000/mt (157/mt), or nearly 4%, to Yuan 26,000/mt, effective Wednesday, traders said.
In East China, Sinopec Yangzi Petrochemical, Sinopec Shanghai Petrochemical and Zhenhai Refining & Chemical lowered their ex-works butadiene prices to Yuan 26,000/mt, or about $3,410/mt on an import parity basis, down from Yuan 27,000/mt on September 14.
Similarly, in South China, Guangzhou Petrochemical and Maoming Petrochemical are both offering butadiene at Yuan 26,000/mt.
A trader cited poor local demand, concerns about growing inventory and returning supply as factors behind the price reduction.
BASF Yangzi Petrochemical Company, or BASF-YPC, plans to start up a new butadiene extraction unit at Nanjing, Jiangsu province, over the second half of September. The unit can make 130,000 mt/year of butadiene.
At the end of September, PetroChina's Dushanzi Petrochemical plans to restart its 130,000 mt/year butadiene unit after it completes a 45-day turnaround which began on August 12.
In Taiwan, Formosa Petrochemical is expected to restart its No. 1 steam cracker -- which can make 700,000 mt/year of ethylene and 350,000 mt/year of propylene -- in the second half of September. The cracker supports a 109,000 mt/year butadiene unit.
Thursday, September 29, 2011
Wednesday, September 28, 2011
Ammonia, DAP, MOP, SOP, Urea prices
New sale out of Black Sea at $588 fob for October For Ammonia
India buys another panamax of US DAP at a higher price of $690 cfr.
IPC sells Russian standard and granular MOP to SE Asia at $535 and $550
cfr for October-November shipment.
Compass Minerals announces $30/short ton increase for standard and
granular SOP.
Mopco awards 25,000 t granular urea at $545 fob.
Sabic sells granular urea cargo in the low $530s fob.
India buys another panamax of US DAP at a higher price of $690 cfr.
IPC sells Russian standard and granular MOP to SE Asia at $535 and $550
cfr for October-November shipment.
Compass Minerals announces $30/short ton increase for standard and
granular SOP.
Mopco awards 25,000 t granular urea at $545 fob.
Sabic sells granular urea cargo in the low $530s fob.
Steel billet prices
London (Platts)--26Sep2011/224 pm EDT/1824 GMT
Decreasing export prices for steel billets shipped out of the Black Sea gathered pace Monday with $20/mt wiped off the Platts assessment as traders negotiated lower prices with supplying mills in Ukraine for October delivery.
Traders and mills with unsold positions for loading in October could see no premium for prompt material as buyers held off from bidding firm in the current market or November supply.
Platts reduced its Black Sea billet assessment by $20/mt to $652.50/mt FOB as a $640-680/mt price range was heard from mills and traders. There was a far greater likelihood of trade activity at the lower end of the range following softening global financial markets.
The Platts Black Sea billet assessment fell from a peak so far this year of $682.50/mt FOB last seen September 15. October supplies said to be tied up with traders and end-users have seen a sudden unwinding and the backwardation with November collapsed.
One Russian supplier said to normally only sell direct to users and not to traders, is offering widely in the market at $650/mt FOB, but no one is buying, said a trading source, based on information from the group's Ukraine office. Other offers available are at $670/mt FOB, the trader said.
Some mills in the region however did not deem $655-660/mt FOB achievable and would take bids for November on this basis.
MARKET 'LONG' HAMPERS BIDS
A trader heard $650-660/mt FOB for November shipment on offer, and stated $650/mt was the maximum bid level. The source would not pay more for offers with October laycans, "as the market is long." Turkish billet offers are holding out for October, but these prices are unlikely to be met, the trader said.
The drop in prices may lead mills to slash output in response to reducing demand in the long steel complex, rather than let the correction extend much farther.
A source at a large international trader said offers for October production are now down to $645-655/mt FOB Ukraine from one mill for 10,000 mt.
He said there were a number of buyers reneging on contracts to buy, and said it could be that lower prices are being seen as a result of mills and traders having to find new business.
"They didn't accept $655/mt FOB bids last week. Well now everything is $10 lower."
REBAR OFFERS DROP IN TURKEY, UAE
Rebar markets heard of a decrease in Turkish export offers to $710/mt FOB, from $715-720/mt FOB last week.
At Monday's IREPAS international rebar exporters' group meeting in St. Petersburg, sentiment was bearish. The UAE's integrated producer Emirates Steel was said to have reduced its prices for October production sales by around $20/mt.
Platts Turkish export rebar assessment fell $5 to $705/mt FOB.
In the meantime, ferrous scrap price levels were said to be holding up, but with no deals heard done and pressure admittedly on the downside. European suppliers want to sell HMS I/II (80/20 blend) at $450/mt CFR Turkey, and with the euro falling the price can more easily come down in dollar terms, said a Benelux-based supplier. US prices for HMS 80/20 were said to hold at around the last trades, at about $470/mt CFR Turkey, scrap traders said.
Platts regional scrap assessment fell $5 to $467/mt CFR Turkish ports to reflect a weaker buying outlook from Turkish mills.
The A3 scrap assessment fell by $3 to $435/mt FOB Black Sea on a likely increase in material available should export demand fall and capacity be cut at regional mills. European scrap prices held at $417.50 FOB Rotterdam.
While the supplier trader said that "scrap is in a delicate balance," the sentiment in billet and rebar would indicate prices of the raw material are under pressure to lower and ensure the metal spread is maintained.
"Scrap is still steady.. what are the Turkish [scrap buyers] going to do, they would need the price to fall to $440/mt CFR to maintain margins," commented a billet trader.
Decreasing export prices for steel billets shipped out of the Black Sea gathered pace Monday with $20/mt wiped off the Platts assessment as traders negotiated lower prices with supplying mills in Ukraine for October delivery.
Traders and mills with unsold positions for loading in October could see no premium for prompt material as buyers held off from bidding firm in the current market or November supply.
Platts reduced its Black Sea billet assessment by $20/mt to $652.50/mt FOB as a $640-680/mt price range was heard from mills and traders. There was a far greater likelihood of trade activity at the lower end of the range following softening global financial markets.
The Platts Black Sea billet assessment fell from a peak so far this year of $682.50/mt FOB last seen September 15. October supplies said to be tied up with traders and end-users have seen a sudden unwinding and the backwardation with November collapsed.
One Russian supplier said to normally only sell direct to users and not to traders, is offering widely in the market at $650/mt FOB, but no one is buying, said a trading source, based on information from the group's Ukraine office. Other offers available are at $670/mt FOB, the trader said.
Some mills in the region however did not deem $655-660/mt FOB achievable and would take bids for November on this basis.
MARKET 'LONG' HAMPERS BIDS
A trader heard $650-660/mt FOB for November shipment on offer, and stated $650/mt was the maximum bid level. The source would not pay more for offers with October laycans, "as the market is long." Turkish billet offers are holding out for October, but these prices are unlikely to be met, the trader said.
The drop in prices may lead mills to slash output in response to reducing demand in the long steel complex, rather than let the correction extend much farther.
A source at a large international trader said offers for October production are now down to $645-655/mt FOB Ukraine from one mill for 10,000 mt.
He said there were a number of buyers reneging on contracts to buy, and said it could be that lower prices are being seen as a result of mills and traders having to find new business.
"They didn't accept $655/mt FOB bids last week. Well now everything is $10 lower."
REBAR OFFERS DROP IN TURKEY, UAE
Rebar markets heard of a decrease in Turkish export offers to $710/mt FOB, from $715-720/mt FOB last week.
At Monday's IREPAS international rebar exporters' group meeting in St. Petersburg, sentiment was bearish. The UAE's integrated producer Emirates Steel was said to have reduced its prices for October production sales by around $20/mt.
Platts Turkish export rebar assessment fell $5 to $705/mt FOB.
In the meantime, ferrous scrap price levels were said to be holding up, but with no deals heard done and pressure admittedly on the downside. European suppliers want to sell HMS I/II (80/20 blend) at $450/mt CFR Turkey, and with the euro falling the price can more easily come down in dollar terms, said a Benelux-based supplier. US prices for HMS 80/20 were said to hold at around the last trades, at about $470/mt CFR Turkey, scrap traders said.
Platts regional scrap assessment fell $5 to $467/mt CFR Turkish ports to reflect a weaker buying outlook from Turkish mills.
The A3 scrap assessment fell by $3 to $435/mt FOB Black Sea on a likely increase in material available should export demand fall and capacity be cut at regional mills. European scrap prices held at $417.50 FOB Rotterdam.
While the supplier trader said that "scrap is in a delicate balance," the sentiment in billet and rebar would indicate prices of the raw material are under pressure to lower and ensure the metal spread is maintained.
"Scrap is still steady.. what are the Turkish [scrap buyers] going to do, they would need the price to fall to $440/mt CFR to maintain margins," commented a billet trader.
CAUSTIC SODA PRICES
London (Platts)--28Sep2011/625 am EDT/1025 GMT
Caustic soda sources said they were bullish going into the fourth quarter despite a deteriorating macroeconomic backdrop and falling prices in many commodities because tighter supplies are supporting contract prices in Europe and the US.
Sluggish demand for polyvinyl chloride as well as slower demand for other other chlorine applications such as polycarbonates and toluene diisocyanate /diphenylmethane diisocyanate (TDI/MDI) used in the manufacture of polyurethanes, is causing chlorine production to be scaled back, sources said.
European chlorine utilization rates fell from 82.1% in July to 77.3% in August, according to figures from Euro Chlor.
"Margins are being affected by poor chlorine demand and the increase [in the price of caustic] is needed to obtain reasonable electrochemical unit returns," a producer said.
Caustic and chlorine, used in the manufacture of PVC and other petrochemicals, are co-products.
While demand on the caustic soda side of the chlor-alkali chain is not booming, falling chlorine output is causing the caustic soda market to tighten.
Production issues or planned turnarounds have also caused a reduction in caustic soda stocks in recent weeks.
European caustic soda export prices were heard increasing this week to $385-400/mt FOB NWE and $400-410/mt FOB the Mediterranean, while export volumes continued to be limited, sources said.
"We are still receiving inquiries, some from the Nordics, the UK, US East Coast and in an instance South Africa," a producer said Tuesday, adding: "However, we are tight and since we don't have any additional volume we don't even bother discussing numbers."
The supply shortage is also supporting contract price increases going into Q4. During ongoing negotiations Ineos and Dow Chemical revised their target increases to Eur100/mt ($136/mt) last week, while Netherlands-based AkzoNobel announced Tuesday that it would also be pursuing an Eur100/mt. increase in Q4. The contract price for Q3 was assessed at Eur400/mt in July.
"Many suppliers are decreasing production, and as a result contracts are also being set with a maximum consumption level," another producer said.
The US caustic soda market was also in a bullish mood. In the contractual market some producers said that the $65/mt price hike posted last August has been fully implemented due to low inventory levels. In the spot markets, one trader reported selling an October cargo to Latin America $50/mt higher than in August.
Sources attributed the bullish sentiment to recent unplanned outages from US chlor-alkali manufacturers Olin and Oxy, and lower operating rates in the chlorine production for inventory control purposes because downstream PVC demand is still weak.
A recent report from the Chlorine Institute said US chlor-alkali operating rates reached 85% in July, a seven-percentage-point fall from the previous month, and was expected to continue falling in the coming months.
Despite the fact that this year Shintech and Formosa Plastic Corporation USA started additional chlor-alkali capacities, caustic soda prices remained stable as the new production was for captive consumption and both manufacturers have their vinyl chain production fully integrated, sources said.
The increase is supported by firm demand from the pulp and paper, automotive, textile and soap and detergent production in Latin America, sources said. Caustic soda export prices were talked this week at around $440-450/mt FOB USG, while the contract value was heard close to $500-510/mt.
In Asia too, caustic soda prices have been increasing, especially in China, as producers have cut operations due an extremely weak chlorine market. Caustic soda prices went up despite Q4 contract prices between Northeast Asian producers and customers in Australia being heard concluded at $350-370/mt FOB NE Asia, down $95/mt, or around 21% from settlements for Q3 of $450-460/mt FOB, industry sources said.
Alumina producers, who are a major end-user for contractual caustic soda supplies from Asia, have been facing downward pressure on prices, with FOB Australia alumina prices closing at $363/mt FOB as of Tuesday, down $2/mt from $365/mt from September 1 and down $15.50/mt from August 1.
However, despite the lower contract prices for Q4 and falling alumina prices, caustic soda spot prices have rebounded, as exports from China have been drying up due to tight supplies. Since August 23, caustic soda prices have rebounded by $30 to around $375/mt CFR Northeast Asia as of Tuesday.
Domestic prices in eastern China jumped Yuan 300/mt week on week to Yuan 3,200/mt, equating to $502/mt.
Caustic soda prices are rising as producers in China cut rates due to low prices for the co-product chlorine.
Part of the problem in China is structural, with new capacity coming on line for the purpose of producing caustic soda, but no demand for the chlorine co-product, with not many producers having built integrated downstream plants.
Nevertheless, some producers in Europe have expressed concerns about existing tightness. At least one source said that negotiations for October were being done agreeing on a maximum volume.
Some sources expressed concern that if the situation prevailed the availability of caustic stocks could be restricted going forward, potentially affecting ability to meet demand. "If chlorine demand continues slowing down, thus further limiting production in the chlor-alkali chain, it could come down to putting contractual customers on allocation," a source said.
Caustic soda sources said they were bullish going into the fourth quarter despite a deteriorating macroeconomic backdrop and falling prices in many commodities because tighter supplies are supporting contract prices in Europe and the US.
Sluggish demand for polyvinyl chloride as well as slower demand for other other chlorine applications such as polycarbonates and toluene diisocyanate /diphenylmethane diisocyanate (TDI/MDI) used in the manufacture of polyurethanes, is causing chlorine production to be scaled back, sources said.
European chlorine utilization rates fell from 82.1% in July to 77.3% in August, according to figures from Euro Chlor.
"Margins are being affected by poor chlorine demand and the increase [in the price of caustic] is needed to obtain reasonable electrochemical unit returns," a producer said.
Caustic and chlorine, used in the manufacture of PVC and other petrochemicals, are co-products.
While demand on the caustic soda side of the chlor-alkali chain is not booming, falling chlorine output is causing the caustic soda market to tighten.
Production issues or planned turnarounds have also caused a reduction in caustic soda stocks in recent weeks.
European caustic soda export prices were heard increasing this week to $385-400/mt FOB NWE and $400-410/mt FOB the Mediterranean, while export volumes continued to be limited, sources said.
"We are still receiving inquiries, some from the Nordics, the UK, US East Coast and in an instance South Africa," a producer said Tuesday, adding: "However, we are tight and since we don't have any additional volume we don't even bother discussing numbers."
The supply shortage is also supporting contract price increases going into Q4. During ongoing negotiations Ineos and Dow Chemical revised their target increases to Eur100/mt ($136/mt) last week, while Netherlands-based AkzoNobel announced Tuesday that it would also be pursuing an Eur100/mt. increase in Q4. The contract price for Q3 was assessed at Eur400/mt in July.
"Many suppliers are decreasing production, and as a result contracts are also being set with a maximum consumption level," another producer said.
The US caustic soda market was also in a bullish mood. In the contractual market some producers said that the $65/mt price hike posted last August has been fully implemented due to low inventory levels. In the spot markets, one trader reported selling an October cargo to Latin America $50/mt higher than in August.
Sources attributed the bullish sentiment to recent unplanned outages from US chlor-alkali manufacturers Olin and Oxy, and lower operating rates in the chlorine production for inventory control purposes because downstream PVC demand is still weak.
A recent report from the Chlorine Institute said US chlor-alkali operating rates reached 85% in July, a seven-percentage-point fall from the previous month, and was expected to continue falling in the coming months.
Despite the fact that this year Shintech and Formosa Plastic Corporation USA started additional chlor-alkali capacities, caustic soda prices remained stable as the new production was for captive consumption and both manufacturers have their vinyl chain production fully integrated, sources said.
The increase is supported by firm demand from the pulp and paper, automotive, textile and soap and detergent production in Latin America, sources said. Caustic soda export prices were talked this week at around $440-450/mt FOB USG, while the contract value was heard close to $500-510/mt.
In Asia too, caustic soda prices have been increasing, especially in China, as producers have cut operations due an extremely weak chlorine market. Caustic soda prices went up despite Q4 contract prices between Northeast Asian producers and customers in Australia being heard concluded at $350-370/mt FOB NE Asia, down $95/mt, or around 21% from settlements for Q3 of $450-460/mt FOB, industry sources said.
Alumina producers, who are a major end-user for contractual caustic soda supplies from Asia, have been facing downward pressure on prices, with FOB Australia alumina prices closing at $363/mt FOB as of Tuesday, down $2/mt from $365/mt from September 1 and down $15.50/mt from August 1.
However, despite the lower contract prices for Q4 and falling alumina prices, caustic soda spot prices have rebounded, as exports from China have been drying up due to tight supplies. Since August 23, caustic soda prices have rebounded by $30 to around $375/mt CFR Northeast Asia as of Tuesday.
Domestic prices in eastern China jumped Yuan 300/mt week on week to Yuan 3,200/mt, equating to $502/mt.
Caustic soda prices are rising as producers in China cut rates due to low prices for the co-product chlorine.
Part of the problem in China is structural, with new capacity coming on line for the purpose of producing caustic soda, but no demand for the chlorine co-product, with not many producers having built integrated downstream plants.
Nevertheless, some producers in Europe have expressed concerns about existing tightness. At least one source said that negotiations for October were being done agreeing on a maximum volume.
Some sources expressed concern that if the situation prevailed the availability of caustic stocks could be restricted going forward, potentially affecting ability to meet demand. "If chlorine demand continues slowing down, thus further limiting production in the chlor-alkali chain, it could come down to putting contractual customers on allocation," a source said.
Wednesday, September 14, 2011
Tuesday, September 13, 2011
Feedstock prices, ethylene prices
Houston (Platts)--12Sep2011/436 pm EDT/2036 GMT
US ethylene cracker margins dipped nearly 10% week on week to levels not seen since early August on the back of falling spot prices.
Margins using ethane/propane mix as feedstock dropped 3.31 cents/lb, or 9.8% to close Friday at 30.40 cents/lb, according to Platts data.
Margins using ethane were also down 2.92 cents/lb, or 9.6% to 27.49 cents/lb.
Spot ethylene fell 3.375 cents/lb week on week, assessed Friday at 59.75-60.25 cents/lb on a 3- to 30-day basis that reflected backwardation in the market. The assessment was the lowest since July 21, when spot ethylene was also assessed at 60 cents/lb, according to Platts data.
One veteran trader attributed the drops to weaker-than-expected demand from downstream markets despite two producers initiating tunarounds in the US Gulf Coast region this month.
In feedstocks for the week, ethane shed .50 cents/lb to close at 71.25 cents/gal, while propane rose 1.60 cents/gal to 158.70 cents/gal.
Light naphtha was again the lowest-yielding feedstock and posted the biggest drop, down 5.35 cents/lb to 9.47 cents/lb.
Margins using propane as feedstock dropped more than 21% -- 4.33 cents/lb -- to 15.70 cents/lb.
The cracker margin estimates use the current spot price and yields of the various cracker products from cracking various light and heavy feedstocks.
On Monday, spot ethylene was heard talked at 59.75-60.50 cents/lb, with October slightly lower at 59.50-60.125 cents/lb.
US ethylene cracker margins dipped nearly 10% week on week to levels not seen since early August on the back of falling spot prices.
Margins using ethane/propane mix as feedstock dropped 3.31 cents/lb, or 9.8% to close Friday at 30.40 cents/lb, according to Platts data.
Margins using ethane were also down 2.92 cents/lb, or 9.6% to 27.49 cents/lb.
Spot ethylene fell 3.375 cents/lb week on week, assessed Friday at 59.75-60.25 cents/lb on a 3- to 30-day basis that reflected backwardation in the market. The assessment was the lowest since July 21, when spot ethylene was also assessed at 60 cents/lb, according to Platts data.
One veteran trader attributed the drops to weaker-than-expected demand from downstream markets despite two producers initiating tunarounds in the US Gulf Coast region this month.
In feedstocks for the week, ethane shed .50 cents/lb to close at 71.25 cents/gal, while propane rose 1.60 cents/gal to 158.70 cents/gal.
Light naphtha was again the lowest-yielding feedstock and posted the biggest drop, down 5.35 cents/lb to 9.47 cents/lb.
Margins using propane as feedstock dropped more than 21% -- 4.33 cents/lb -- to 15.70 cents/lb.
The cracker margin estimates use the current spot price and yields of the various cracker products from cracking various light and heavy feedstocks.
On Monday, spot ethylene was heard talked at 59.75-60.50 cents/lb, with October slightly lower at 59.50-60.125 cents/lb.
Wednesday, September 07, 2011
Styrene Prices
London (Platts)--6Sep2011/751 am EDT/1151 GMT
European styrene prices dropped $15/mt Monday as the market tracked weaker benzene and crude futures.
Styrene prices were assessed by Platts at $1,445/mt FOB Rotterdam on Friday.
The energy complex reacted to further financial market turbulence as European stocks plunged by about 5% in mid-afternoon trading on Monday, hit by tensions over the risk of recession in leading economies and debt in the eurozone.
Market activity was reduced due to a holiday in the US which closed the markets there.
In Europe, with benzene prices lower, both September and October values were seen priced at $1,430-1,450/mt FOB ARA but later prices moved lower, with October easing further on the suggestion that the market had become backwardated due to supply likely to be tighter in September than in October.
Sources reported that September was pricing at $1,425-1,435/mt FOB ARA, while October was seen at $1,405-1,430/mt FOB ARA.
A 1,000 mt parcel for September was heard done at $1,430/mt FOB ARA but details could not be confirmed.
Despite the notion that a backwardation implies firmer demand, sources said that this was only due to the unscheduled cuts made in late August in addition to the scheduled turnarounds that are due to start in September.
"October may well stay backwardated as it has less pressure on it...that should mean September should be higher as it is the tighter month," a trader said.
Despite this, sources said that weaker demand from September onwards could lead to lower benzene and styrene prices.
"Most [styrene] players are covered. Looking at the macroeconomic picture and production indicators there is a weakness," a second trader said.
"Most people have been looking at supply but not demand, and demand is the weakest link," the same trader added.
Sources also pointed to the inflationary effect of crude and how styrene was pricing against it.
"Crude oil is much more expensive compared to styrene; Brent should be lower. The relationship to Brent, styrene is undervalued, while benzene was overvalued. Based on fundamentals, Brent should be at around $70-80/barrel," the second trader said.
Monday, September 05, 2011
caustic soda prices
Tokyo (Platts)--26Aug2011/229 am EDT/629 GMT
Japan's Showa Denko will increase its local list prices of caustic soda by Yen 12/kg ($156/mt) for shipments from September 15 to reflect rising fuel costs since early this year, the company said Friday without providing effective prices.
Showa Denko has a 100,000 mt/year caustic soda plant in Kawasaki, eastern Japan.
According to Platts data, the FOB Singapore 380 CST high sulfur fuel oil price averaged $659.64/mt in July, compared with $479.57/mt in January. --Fumiko Dobashi, fumiko_dobashi@platts.com
Japan's Showa Denko will increase its local list prices of caustic soda by Yen 12/kg ($156/mt) for shipments from September 15 to reflect rising fuel costs since early this year, the company said Friday without providing effective prices.
Showa Denko has a 100,000 mt/year caustic soda plant in Kawasaki, eastern Japan.
According to Platts data, the FOB Singapore 380 CST high sulfur fuel oil price averaged $659.64/mt in July, compared with $479.57/mt in January. --Fumiko Dobashi, fumiko_dobashi@platts.com
Urea prices, DAP prices
New Delhi, Aug 18 (PTI) The average global price of urea has gone up by 48 per cent to USD 507.5 a tonne in the last four months leading to increase in subsidy bill of the government, Parliament was informed today.
In a written reply to the Lok Sabha, Minister of State for Chemicals and Fertilisers Srikant Jena said the average urea price in the international market has risen to USD 507.5 per tonne in July against USD 343.25 per tonne in April.
He pointed out that the prices of other important crop nutrients like di-ammonium phosphate (DAP), muriate of poatsh (MOP) have also risen in the global markets.
"As a repercussion of increase in international prices, India is buying at higher cost and consequently leading to higher subsidy and increased selling prices," Jena said.
At present, the maximum retail price (MRP) of urea stands at Rs 5,310 per tonne, while, under the nutrient-based subsidy (NBS) regime introduced from April 1, 2010, firms can fix the retail prices of 22 varieties of decontrolled potassic and phosphatic (P&K) fertilisers.
International prices of DAP rose by 6 per cent to USD 701.92 per tonne in July this year compared to USD 663.75 per tonne in April in the same year, while prices of MOP rose by six per cent to USD 462.50 per tonne against USD 437.50 per tonne in the same period.
Prices of phosphoric acid, an important industrial acid used in making of fertilisers, in the global markets in July 2011 rose by seven per cent to USD 1,050 per tonne against USD 980 per tonne in April 2011.
Rock phosphate -- a raw material used in making triple super phosphate and ammonium phosphate fertilisers -- rose by five per cent to USD 178.13 per tonne in July this year compared to USD 168.88 per tonne in April of the same year.
In a written reply to the Lok Sabha, Minister of State for Chemicals and Fertilisers Srikant Jena said the average urea price in the international market has risen to USD 507.5 per tonne in July against USD 343.25 per tonne in April.
He pointed out that the prices of other important crop nutrients like di-ammonium phosphate (DAP), muriate of poatsh (MOP) have also risen in the global markets.
"As a repercussion of increase in international prices, India is buying at higher cost and consequently leading to higher subsidy and increased selling prices," Jena said.
At present, the maximum retail price (MRP) of urea stands at Rs 5,310 per tonne, while, under the nutrient-based subsidy (NBS) regime introduced from April 1, 2010, firms can fix the retail prices of 22 varieties of decontrolled potassic and phosphatic (P&K) fertilisers.
International prices of DAP rose by 6 per cent to USD 701.92 per tonne in July this year compared to USD 663.75 per tonne in April in the same year, while prices of MOP rose by six per cent to USD 462.50 per tonne against USD 437.50 per tonne in the same period.
Prices of phosphoric acid, an important industrial acid used in making of fertilisers, in the global markets in July 2011 rose by seven per cent to USD 1,050 per tonne against USD 980 per tonne in April 2011.
Rock phosphate -- a raw material used in making triple super phosphate and ammonium phosphate fertilisers -- rose by five per cent to USD 178.13 per tonne in July this year compared to USD 168.88 per tonne in April of the same year.
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