Amoot Iranian Trading Company

Market looking forward to China’s return In spite of the Chinese Lunar New Year holidays been ended, their demand was still absent this week, with merely little interest in CFR delivery prices. West of Suez demand, Copebras and Mosaic kept the market go with their April shipment together with a May cargo for Argentinian Bunge. Having issued a purchase tender of 35,000-40,000 MT from east of Suez, India added some activity to the quiet market. All in all, the market is still waiting for the Chinese traders to come back in the upcoming week. Active Forces in the Market - The inactive Chinese demand which has not yet been back to market, limits the overall trade activity. - As reflections of spot tender of Muntajat, Middle East FOB prices have softened the week’s market price range to USD 104-108. Market Outlook in Next Month Chinese market demand returns: After a long holiday period, some spot price demand will be back to Chinese market which will be slightly firming spot prices. However, increase in spot demand is not expected to have impact on contract prices due to the short time till start of second season’s negotiations. Asia China No concluded business has been observed - not least confirmed - in China for sulfur this week, together with most participants noting that it is still too early for post-holiday purchases. For crushed lumps, offers remain limited because of an overall lack in availability. Available offers of crushed lumps are in small quantities and of Iran and Turkmenistan origin. Some offers have been placed in the mid-USD 110s/MT VFR. Some containerized crushed product of Russian origin is also being offered to the market, but prices for these were not confirmed close to press time. The reduction in prices has been linked to low demand levels because of ongoing maintenance at sulfuric acid producing plants across the river. Inventory levels at Chinese ports have increased by around 40,000MT, to around 1.35mn MT. Stocks at Fangcheng port are indicated to be very healthy and largely in the hands of end-users. There are around 300,000t of sulfur heard to be lined up to discharge at Zhenjiang port before the end of June. India Indian PPL has issued a tender to purchase 35k-40k MT of bright yellow crude granular sulfur getting closed on Feb 18th 2019. Chennai Petroleum plans a refinery shut down: India's state-controlled Chennai Petroleum (CPCL) will shut down a crude distillation unit (CDU) this August at its 210,000 b/d Manali refinery in Tamil Nadau on the southeast coast for nearly a month for maintenance. Middle East As mentioned previously, the Middle East FOB prices were assessed to be lower at USD 104-108/MT to get in line with new spot sales price of Qatari marketer, Munhajat. Iran IGCC, the Iranian Sulfur producer granted its tender of 30k MT granular sulfur at USD 90/MT for FOB delivery, to be loaded end of February at Assaluye. It has also re-opened negotiations for long-term contracts, which are still in their early stages. Qatar Qatari sulfur supplier and marketer, Munhajat, granted its tender of 35k MT of granular sulfur at USD 100 per MT for FOB delivery of Ras Laffan/Mesaieed. Africa Morocco As contract volumes of cargoes have vastly covered OCP, the spot demand in Morocco is significantly absent. Hence the spot demand is not probably going to be materialized until next season. South Africa There is absence of confirmed trades, Richard's Bay prices are indicated in the low/mid-USD120s/MT CFR with a freight range of USD 13-15 per MT. Tunisia Four cargoes are understood to have been sold in to Tunisia, at prices in the low/mid-USD120s/t CFR. Three cargoes are loading from the Mediterranean, and a fourth cargo of mixed product is understood to be loading from Poti, Georgia Freight Market Summary As new cargos have been introduced to the market, fertilizer freight rates have raised this week. However, since the market began from a very low base, the surge has just brought rates back to slightly above operating costs. Market activists suggest that characters’ resistance would push rates back close to equilibrium despite the owners’ push for higher levels. Voyage rates have been pushed higher than this by a continuing increase in the cost of fuel. Several fertilizer cargoes were booked this week at relatively low prices. Report By: Asieh Arbabi