Several US fertilizer suppliers today are heard to have withdrawn spot offers throughout the domestic supply chain, as industry uncertainty stemming from Russia's invasion of Ukraine roils markets.
Domestic phosphate and potash producer Mosaic this morning retracted DAP, MAP and MOP barge offers as industry participants await clarity on potential supply impacts, sources said. Various nitrogen suppliers also withdrew offers throughout the domestic supply chain, sources added, but direct confirmation was not immediately available.
Uncertainty surrounding mounting tension throughout the week minimized phosphate liquidity at port. While US import duties levied against Russian phosphate production in 2020 already halted most shipments to US shores, an upset to global trade flows could have a knock-on effect on US supplies if fertilizer movement is hindered.
Russia is the largest supplier of offshore MOP to the US, accounting for roughly 7pc of all MOP imports since January 2019, according to US Census data. With US sanctions on Belarus set to halt MOP shipments via Belarusian Potash (BPC) from 1 April, domestic market participants have widely expected to rely on a combination of increased imports — from origins including Russia — and elevated domestic production to fill the void.
Market participants agreed this morning that spring availability would be spared any potential supply consequences, but the potential for a jump in values — already seen on Nola urea — has minimized urgency to conduct business.
