Copyright 2014 Argus Media Ltd

Argus FMB Phosphates

Formerly FMB Weekly Phosphates Report
Issue 14-31 | Thursday 31 July 2014
PRICE GUIDE MARKET SUMMARY
Eid holidays minimise business in the east; US
domestic prices edge up but on thin trade
Trade has been limited with a large portion of the east
celebrating the Eid festival. One buyer in India, however,
secured 35,000t of DAP from Fertisul and there appears
to be general acceptance that cfr levels around $480/t
are where the market is at. In China, Kailin has confrmed
around 50-70,000t of its DAP stocks were damaged by
Typhoon Rammusan last week while another Chinese
producer reports 10,000t of DAP damage so far. No severe
subsequent loading delays have been reported. Chinese
DAP offers remain frm at the $450-460/t fob level basis
tight supply. Moving west, Turkey has purchased a total of
45,000t Jordanian DAP in the $540s/t cfr range. Low crop
prices continue to keep Brazil and Argentina out of the
market whilst Brazilian MAP offers are understood to have
come off further. US domestic prices have shown signs of a
revival after several fat weeks on thin supply - DAP barge
trades increasing marginally to $445-448/st fob Nola.
Outlook: frm overall
Headlines

Turkey buys 45,000t Jordanian DAP in $540s/t cfr

India buys 35,000t of Chinese DAP

US domestic DAP offer prices frm ahead of fall season
View the methodology used to assess phosphate prices
at www.argusmedia.com/methodology. Your feedback
is always welcome at fertilizer@argusmedia.com
hhh
300
350
400
450
500
550
600
8 Aug 13 17 Oct 13 3 Jan 14 13 Mar 14 22 May 14 31 Jul 14
Morocco Tampa US barge
DAP FOB PRICES
Raw material contracts
Phosphoric acid/t - P
2
O
5
cfr India $/t Q2-14 715 Q1-14 680
cfr Western Europe $/t Q3-14 875-900 Q2-14 820-850
cfr Brazil $/t Q2-14 765-795 Q1-14 730-740
Phosphate rock (% BPL)
fob Jordan (68-70) $/t Q2-14 105 Q1-14 100-105
cfr India (68-70) $/t Q2-14 120-125 Q1-14 128-130
cfr India (70-72) $/t Q2-14 130-135 Q1-14 130
fob North Africa (69) $/t Q1-14 95-130 Q4-13 85-130
Sulphur
cfr Tampa $/lt Q3-14 136 Q2-14 133
cfr north Africa $/t Q2-14 155-170 Q1-14 125-140
Ammonia
cfr Tampa $/t Aug-14 520 Jun-14 540
-
Spot prices
31-Jul 24-Jul
DAP/MAP/TSP fob bulk
DAP Tampa $/t 510-513 510-513
DAP Tunisia $/t 500-525 500-525
DAP Morocco $/t 500-523 500-523
DAP Baltic/Black Sea $/t 495-530 495-530
DAP China $/t 440-450 440-450
DAP Saudi Arabia (KSA) $/t 465-485 465-485
DAP Mexico $/t 500-505 500-505
DAP Australia $/t 475-490 475-490
DAP US Gulf domestic barge $/st 445-448 440-445
DAP Central Florida rail car $/st 430-440 430-440
DAP China ex-works $/t 405-410 405-410
DAP Benelux fot/fob duty paid/free $/t 545-550 545-550
MAP Baltic $/t 480-500 480-500
MAP Morocco $/t 510-525 510-525
TSP Tunisia $/t 395-400 395-400
TSP Morocco $/t 410-415 410-415
TSP China $/t 320-340 320-340
TSP Eastern Med (Lebanon/Israel) $/t 380-400 380-400
DAP /MAP cfr bulk
DAP/MAP Argentina/Uruguay $/t 535-544 535-544
MAP Brazil $/t 515-525 515-525
DAP India (contract) $/t 475-480 465-468
DAP Pakistan $/t 470-475 470-475
NPK 16-16-16 bulk
fob FSU $/t 360-370 360-370
cfr China $/t 410-415 410-415
cfr South East Asia $/t 410-415 410-415
Copyright 2014 Argus Media Ltd Page 2 of 11
Argus FMB Phosphates Issue 14-31 | Thursday 31 July 2014
MARKET ANALYSIS
Eid celebrations have put the majority of business in
the east on hold. This, coupled with the peak season for
summer vacations, has resulted in little market movement.
Brazil - the anomaly
Overall, the market remains stable-to-frm with the anomaly
being Brazil, where offer prices appear to have come
off slightly. Its understood Russian MAP for September
shipment is now being offered at $540/t cfr, down from
$550/t cfr last week. Offers for August shipment for Russian
and Chinese 11-52 are reported in the low-$520s/t cfr.
Argentinean demand continues to slow for another week
though the market seems to be immune to a downward
price trend and prices there are holdingfor now. Some
buyers indicate that their price ideas will drop due to the
price pattern in Brazil.
The question now is how long this blip in Latin America will
last? Some traders are banking on a rebound in crop prices
to boost demand but most players are taking a wait-and see
approach.
Chinese typhoon damage assessments ongoing
With a large portion of the east out on holiday, the main
focus in this region continues to be the damage sustained
to DAP port stocks in China from Typhoon Rammasun. Initial
assessments indicate that at least 110,000t of DAP have
been damaged (50-70,000t of Kailin DAP and 60,000t of
YUC DAP). Reports still suggest up to 200-250,000t of DAP
port stock may have been rendered useless but assessments
are ongoing and a clearer picture should emerge in the
coming weeks.
This reduced DAP supply is being used as ammunition for
Chinese producers to maintain higher offers, understood
to be at $450-460/t fob whilst $470/t fob is being foated
by those who are sold out for August. With the Indians and
probably the Pakistanis expected to buy fairly heavily in the
coming months, prices are likely to be held at the upper
end in the near-term. Indian cfr levels at $480/t cfr suggest
netbacks around $450/t fob China at least.
Chinese DAP/MAP shipments to the US and Latin America
do not appear to have been impacted severely with loading
delays of just 3-7 days.
US domestic shows signs of frming
After several static weeks, the US domestic DAP price
appears to be on the up amid buying ahead of the fall
application season. Trade has admittedly been thin on
limited supply with a couple of DAP barges moving at
$445-448/st fob Nola, up marginally on last week. This is
also partly driven by continued concerns that there will be
additional US phosphate import vessel diversions to Latin
America where prices still command theoretically a better
return.
August 2014 DAP/MAP/NPK commitments - main producers
Company 000t Destination
Saudi Arabia
DAP 35 Argentina
MAP 30 Argentina
DAP 30 Pakistan
DAP 33 India
DAP 15 East coast Africa
MAP 20 Africa
Total 163
PhosAgro
MAP 30 Latin America
MAP 30 Americas
MAP 130 Domestic/regional markets
NPKs 140 Domestic/regional markets
Total 330
OCP Morocco
DAP/MAP 180 US
15-15-15 25 Nigeria
DAP 15 Mali
Total 220
GCT
DAP 25 Turkey
DAP 25 Bangladesh
Total 50
Fertinal Mexico
MAP 60 US
DAP/MAP/TSP 40 Chile
DAP/MAP 25 Mexico
Total 125
Copyright 2014 Argus Media Ltd Page 3 of 11
Argus FMB Phosphates Issue 14-31 | Thursday 31 July 2014
HIGHLIGHTS THIS WEEK
Supply

Typhoon Rammasun damages 120-140,000t of Kailin...

...YUC, and another Chinese producers DAP stocks...

...and causes loading delays of around 3-7 days

Phosagro still has September MAP cargo

Small DAP parcels on offer in Thailand
Demand

Indian DAP August deliveries surpass 500,000t

Poor crop prices keep Latin American demand subdued

RCF tenders for 35,000t of gMAP/gDAP

...as well as 15,000t powdered MAP

Pakistani DAP July imports at 160,000t

Prices

Gubretas buys 45,000t DAP in the $540s/t cfr

US DAP barge sales higher at $445-448/st fob

Chinese DAP offers frm at $450-460/t fob

West Europe buys Polish DAP at $540-550/t fob
PRODUCTION COSTS
US
Mosaic and PotashCorp (PCS) reported third quarter molten
sulfur contracts have been concluded at $136/lt del Tampa
basis, representing a $3/lt increase from the second quarter
price. Pending expected confrmation of the settlement by
the sell side of the market, the third quarter Tampa sulfur
price will be offcially assessed at $136/lt del.
Argus FMB Spot Sales Selection 31 July 2014
Product Seller Buyer Destination 000t $/t bulk Shipment
DAP Keytrade Gubretas Turkey 30 540s cfr August
DAP Aries Fertilizer Gubretas Turkey 15 mid-540s cfr July
DAP Fertisul TBC WC India 35 TBC August
MAP 11-52 Trader Tepeyac Mexico 15 TBC TBC
MAP Quantum TBC Mexico 25 TBC August
THE PHOSPHATES WORLD THIS WEEK
US - US barge price frms
marginally following trades at
$445/st fob and $448/st fob
Central America Incofe
in the market for 11-44,
20-20-0 and DAP
India - DAP cfr prices close in on
$480/t cfr
Mexico - Tepeyac reportedly
buys 15,000t of Chinese 11-
52 from a trader
China - Fertisul sells
35,000t of DAP to west
coast Indian buyer; typhoon
stock damage assessments
ongoing
Turkey - Gubretas buys
45,000t of DAP in the $540s/t
cfr
Copyright 2014 Argus Media Ltd Page 4 of 11
Argus FMB Phosphates Issue 14-31 | Thursday 31 July 2014
N. AMERICA
US export
Mosaic again reports no export sales this week and
is concentrating on executing existing domestic and
international business. Nominally the producer remains at
$510/t fob Tampa for DAP but no offers of US material are
seen in the market. The producer says it is tight on supply
through August.
Domestic
The US domestic market was again thinly traded on limited
availability coupled with a seasonal slowdown. Bids and
offers are few and far between. In terms of trade, tight
supply and a gradual realisation that eventual imports
may be lower than initially anticipated have seen the DAP
barge price frm marginally to $445-448/st fob Nola with
two trades reported at the low and high of this range. For
September, one Chinese DAP cargo traded at $435/st fob.
Domestic producers are tight through August and September.
No US DAP has been seen on offer into the spot export
market this week. There is concern too that more planned
imports of DAP and MAP may be pulled away to Latin
American markets where netbacks are better. The impact
of the typhoon in China delaying MAP movements has been
limited, but has added to the general concern that the
window of opportunity for imports is closing. Few barges
from these cargoes are actually on offer, and most tonnage
seems to be going into importers own distribution systems.
Northbound barge availability is limited due to an unusual
infux of imported urea, phosphates and industrial salts,
prompting spot barges to command signifcantly higher
freight rates. With warehouse prices yet to catch up with
Nola values, the ability to make margin is limited, in turn
dampening interest in further barge trade currently.
CENTRAL AND LATIN AMERICA
Brazil
Russian MAP is reportedly on offer by a trader for September
shipment at $540/t cfr Brazil according to at least two
sources. This is down from $550/t cfr last reported. For
August, Russian and Chinese 11-52 MAP offers are reported
at $520/t cfr.
Low grain prices continue to depress fertilizer demand.
Sentiment is bearish, and some believe that lower offers will
still not stimulate interest.
Unconfrmed reports indicate Chinese 10-50 MAP is
reportedly on offer in the high-$450s/t cfr, which is
signifcantly down on last reports but broadly in line with
business concluded at the beginning of July.
Chinese 11-44 offers are at $400/t cfr. No recent business is
reported.
The Paranagua line up of MAP totals around 55,000t so
far for early August arrival. This comprises the King Beans
bringing in 25,000t MAP on 6 August ex-Koch/Russia and the
San Felice arriving 9 August with 30,000t US MAP ex-Mosaic.
Meanwhile the Seastar Endurance is eta Paranagua 1 August
with 28,000t NPs/TSP ex-Morocco.
Argentina
Demand remains subdued due largely to the softening grain
prices and most buyers are holding back and taking a wait-
and-see approach. Offers remain stable at $540-545/t cfr for
MAP.
Central America
Incofe is in the market for 45,000t phosphates for delivery to
west coast central America as follows:

18,000t 11-44-0

17,000t 20-20-0

10,000t DAP
Mexico
Quantum has sold 25,000t of Australian MAP to a Mexican
buyer. No further details have been divulged. Reports also
suggest that Tepeyac has purchased 15,000t of Chinese 11-52
from a trader.
EUROPE/FORMER SOVIET UNION (FSU)
Russia
PhosAgro still has its early September MAP cargo for deep
sea markets.
UralChem is expected to provide an update on any potential
restart to operations at Voskressensk later this week or early
next.
The plant had previously been shutdown until at least 31
July on rock supply issues.
Domestic
EuroChem has moved close to 50,000t MAP in July. This
comprises nearly 15,000t to Ukraine and 19,000t to Germany
via Sillamae.
PhosAgro has moved over 160,000t from Balakovo
and Cherepovets in July. Of this, 66,000t has moved
Copyright 2014 Argus Media Ltd Page 5 of 11
Argus FMB Phosphates Issue 14-31 | Thursday 31 July 2014
domestically. There has been 86,000t moved to Murmansk
and St Petersburg. This is likely to include the 25,000t MAP
vessel for Koch/Brazil.
Poland
Grupa Azoty has limited quantities of DAP on offer at $540-
550/t fob. It is understood that a sale has taken place to
western Europe at this level.
Turkey
It is understood that Gubretas has bought 30,000t DAP from
Keytrade (for August shipment) and 15,000t DAP from Aries
Fertilizer for July shipment. This has been sourced from
Jordan. The price is in the $540s/t cfr range.
AFRICA/MIDDLE EAST
Saudi Arabia
Saudi DAP is understood to be on offer in India at slightly
above $480/t cfr, which would provide a netback of around
$465-470/t fob.
INDIAN SUB-CONTINENT
India
A west coast Indian buyer has purchased 35,000t of Chinese
DAP from Fertisul for August shipment. Unconfrmed reports
indicate the price to be close to $475/t cfr.
Black Sea
Baltic Sea
A
d
r
i
a
t
i
c

S
e
a
8,152t
1,078t
248t
4,749t
1,974t
513t
2,037t
2,210t
988t
18,873t
650t
51,122t
35,371t
1,972t
512t
9,682t
Russia
Ukraine
Belarus
Hungary
Moldova
Bulgaria
Germany
Poland
Slovakia
Latvia
Azerbaijan
Kingisepp plant
St. Petersburg
Tuapse
Sillamae
NW Europe
Murmansk
Balakovo plant
Belorechensk plant
Domestic market:
Eurochems Belorechensk plant: 3,394t
Eurochems Kingisepp plant: 263t
Phosagros Balakovo plant: 52,673t
Phosagros Cherepovets plant: 14,141t
18,873t
Cherepovets plant
RUSSIAN REGIONAL MAP EXPORTS 1-27 JULY
Copyright 2014 Argus Media Ltd Page 6 of 11
Argus FMB Phosphates Issue 14-31 | Thursday 31 July 2014
Saudi DAP is understood to be on offer at slightly above
$480/t cfr. Whilst no deals have been confrmed at this
level, there is frm interest in prices close to $480/t cfr.
Our latest line-up shows that Indian buyers have booked just
over 500,000t of DAP for August delivery.
Currently there is around 170,000t of DAP awaiting berthing
or arrived at various Indian ports in the last week, as
follows:

Kandla 2 August Teng Hang 33,000t DAP ex-Nantong for
Sunfert

Mundra 28 July Rafaelo 55,000t DAP ex-Fangcheng for
Chambal

Mundra 29 July Audacious 38,000t DAP ex-Ras al Khair
for Kribhco

Mumbai 20 July Zy Hi Sheng 21,000t MAP ex-Nantong
for RCF

Mumbai 26 July Sun Prince 22,000t MAP ex-Yantai for
RCF
Kailin has shipped two 40,000t cargoes at the end of July
for Chambal and TATA and is currently loading a 55,000t
vessel for IPL which will set sail shortly. Kailin has two more
cargoes scheduled for delivery to India for PPL and IPL, and
MCFL in August. Meanwhile, JPMC is due to deliver 35,500t
of DAP to the port of Mundra for IPL on 7 August.
RCF has issued a tender for 2 x 17,500t of granular MAP/
granular DAP or 1 x 35,000t granular MAP/granular DAP, as
well as 15,000t of powdered MAP, for September-15 October
delivery to Mumbai. The tender closes on 11 August.
Monsoon
Rainfall during 17-23 July for the country was 24pc above
normal, according to the Indian Meteorological Department.
This is the highest level of rainfall reached so far during
this monsoon season and compares with the previous
week which had 15pc below normal rainfall. However, the
monsoon has weakened this week with patchy rainfall that is
reportedly around 30-50pc below normal.
India DAP Shipments July-August 2014
Supplier Buyer Name of Vessel Fertilizer Quantity (MT) Load Port
Discharge
Port
ETA
July
Kailin TCL Lorentzos DAP 35,000 China Vizag 02.7.14
Blue Deebaj Transfert Fertichem Capital DAP 33,033 China Mundra 02.7.14
SABIC TCL Triton Wind DAP 32,994 Ras Al Khair kakinada 12.7.14
Mosiac Mosiac Port land DAP 49,120 Tampa Mundra 06.7.14
Maa'den Krihbhco Star Masaya DAP 38,493 Ras Al Khair Vizag 08.7.14
Dreymoor IFFCO Nicolaos A DAP 41,327 China Kandla 13.7.14
Rare Earth RCF Zy Hi Sheng MAP 21,408 Nantong Mumbai 20.7.14
Wilson RCF Sun Prime MAP 22,000 Yantai Mumbai 27.7.14
Maa'den IPL Ikan Jubail DAP 31,975 Ras Al Khair Kandla 22.7.14
SABIC Zuari Ionic Huntress DAP 30,000 Ras Al Khair Kakinada 27.7.14
Maa'den Krihbhco Audacious DAP 38,496 Ras Al Khair Mundra 29.7.14
YUC Chambal Rafaelo DAP 55,255 Feng Chang Mundra 30.7.14
Total 429,101
August
Sunfert Sunfert Teng Hang DAP 32,775 China Kandla 03.8.14
Maa'den IPL Lady Celine DAP 35,000 Ras Al Khair Kandla 07.8.14
JPMC IPL Daxia DAP 35,500 Aqaba Mundra 07.8.14
Kailin TATA Kayu Ramin DAP 40,000 China Kandla 08.8.14
Kailin Chambal Alianca Sky DAP 40,000 China 12.8.14
YUC Chambal Ermis DAP 39,085 Feng Chang
Fertisul IPL Four Emerald DAP 33,000 China
Mosaic Mosaic Georgianur Bo DAP 50,760 Tampa Mundra 22.8.14
Maa'den Krihbhco DAP 40,000 Ras Al Khair 2nd Half August
Kailin IPL Braveheart DAP 55,000 China Kandla 2nd Half August
Rare Earth IPL DAP 40,000 China 2nd Half August
Kailin IPL/MCFL DAP 40,000 China End August
Fertisul TATA DAP 35,000 China End August
Total 511,240
Copyright 2014 Argus Media Ltd Page 7 of 11
Argus FMB Phosphates Issue 14-31 | Thursday 31 July 2014
Pakistan
As anticipated in the partial demand vacuum created by the
uncertainty over the potential implementation of the DAP
subsidy, offtake of DAP plummeted in June by nearly 60pc
year-on-year to just 60,000t. This brought down offtake
levels for the kharif season so far by 27pc to 207,000t.
DAP production reached a steady 67,000t at the Fauji plant
in June, in line with expectations.
DAP imports soared in June to 109,000t as import deals
fnally showed up in offcial numbers.
Total DAP availability during June was 304,000t comprising
an opening balance of 128,000t, hence taking into account
production and imports the closing balance built to 241,000t.
The overall situation for kharif shows DAP availability of
630,000t, with demand at 607,000t leaving a small balance.
However, the NFDC data again shows zero imports for July-
September. Argus FMB reported an additional 160,000t of
DAP import business during July, which should bring stocks
up to close to 200,000t.

SE ASIA/OCEANIA
China
Fertisul has sold 35,000t of DAP to west coast India for
August shipment at a rumoured $475/t cfr which would bet
back to around $450/t fob before margin. No further details
are available. A trader has also reportedly sold 15,000t of
Chinese 11-52 to Tepeyac at a price which would netback to
$485/t fob.
With India and Pakistan out of the market due to Eid
celebrations, most producers attentions are placed frmly
on the assessment of damages sustained from Typhoon
Ramassun.
According to its latest assessments, Kailin has around 50-
70,000t of damaged DAP at Beihai and Fangcheng resulting
from Typhoon Rammasun, which swept across southern
Chinese ports during 18-20 July. Total fertilizer stock damage
is estimated to be around 100,000t for Kailin, including some
TSP and MAP at Beihai.
Another major phosphate producer reports it has lost
10,000t DAP as a result of last weeks Typhoon Rammasun.
This is in addition to the 60,000t of damaged YUC DAP
at Fangcheng reported last week. Wengfu also reported
damage to its DAP stocks in Fangcheng though this has still
not been quantifed.
Argus FMB is expanding its London-based
fertilizer editorial team
We are looking for bright, confdent and determined
individuals with an inquisitive mind to join our fast-
growing London team. You will be responsible for
reporting on deals and price movements, while also
contributing to our expanding range of fertilizer
publications. Our weekly price reports and analysis are
widely respected around the world.
Argus FMB provides essential information to the global
fertilizer market through our editorial teams based in
London, Beijing, Singapore, Moscow, Houston and Brazil.
This is an excellent opportunity for someone looking to
build a career and a reputation in the economically and
politically infuential sector of global fertilizers. You will
apply and develop your skills across daily news reporting,
market analysis and report writing to the highest
standards of journalistic independence and integrity.
We provide training and opportunities to travel. You
will join a well-established, knowledgeable and highly
respected team.
You will be a graduate with an understanding of numbers
and the ability to write. You will need to be suffciently
confdent to handle a variety of contacts with frmness,
tact and diplomacy, and you will learn to share market
information with trusted contacts as you build and
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to grow into a role where you will provide analysis and
insight refecting your deepening understanding of the
market.
If you are interested in joining a dynamic and fast-growing
publishing company then please send a covering letter
and your CV to Gemma Crozier, HR Manager at: gemma.
crozier@argusmedia.com. Or call 44 207 780 4344.
Deadline for application: Monday 1 September 2014.

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Copyright 2014 Argus Media Ltd Page 8 of 11
Argus FMB Phosphates Issue 14-31 | Thursday 31 July 2014
The conveyor belts at the port of Fangcheng are understood
to have been damaged and work is underway to fx this. But
all ports affected are open and assessments are ongoing. A
number of vessels have encountered loading delays of a few
days and no severe delays have been reported.
Chinese DAP offers continue to hover in the $450-460/t
fob range though most producers are understood to be
sold out until early September. Those that are sold out are
reportedly offering at $470/t fob.
Chinese 11-44 is also on offer at around $355-360/t fob for
shipment to Latin America but interest is thin currently.
Typhoon Matmo, which hit eastern China late last week
is not thought to have caused any damage and was
downgraded to a tropical storm.
Vietnam
Cfr prices appear to be heading north with a Chinese
phosphate producer placing 6,000t of DAP at $475/t cfr
for September shipment. Offer prices are now nearing
$480/t cfr. Traders report inquiries from Vietnam for August
cargoes, but offers are thin due to damage to stocks at
Chinese ports following the typhoon tightening supplies.
Thailand
DAP is on offer above $475/t cfr in small lots but no deals
have been closed. Wengfu is shipping in an 8,000t 16-
20 cargo in containers for its own distribution from its
warehouses.
TSP
Bulgaria
AGP will ship 15-20,000t TSP in the local market during
August plus a full vessel for Iran. It will ship 10-15,000t to
the local market in September plus another vessel for Iran.
NPKS
India
MMTCs tender for 30,000t 20-20-0-13S attracted just one
offer from Ameropa. Prices have not yet opened. The parcel
has been requested for prompt delivery to Tuticorin, India.
COMPANY NEWS
Phosagro reports 1H 2014 results
Phosagro released its results for the frst half of 2014 show-
ing both year on year and quarter on quarter growth. Quar-
terly results for January to March 2014 show that revenue
increased by 26pc to Rbs 29,416 mn on the last quarter of
2013. Revenue increased by 2pc to Rbs 29,416 mn on the
same January to March period for 2013.
Revenues from chemical fertiliser sales amounted to Rbs
22,964 mn, an increase of 3pc on the same quarter for 2013.
The chemical fertiliser segment remained at around 78pc of
total consolidated revenue for the company.
Export revenue per tonne across all phosphate fertilizers
and rock were down for the comparable period in 2013. The
average revenue per tonne of DAP/MAP exports was $447/t
compared to $494/t for the frst quarter 2013. Exported
rock revenues lost around 29pc and NPKs were down by
around 12pc on the same quarter 2013. Domestic revenues
for DAP and MAP were around $8/t lower than export val-
ues. The revenue differential between imports and exports
of phosphate rock was around $16/t. The only product that
generated higher revenues per tonne on the domestic mar-
ket was NPKs, which was around $17/t higher than exported
volumes.
Regional sales of fertilizer products changed dramatically
from the frst quarter 2013 compared to Phosagros latest
results. Favourable market conditions and demand led to
a substantial increase in sales of both concentrated fertil-
izers and NPKs to Latin America and Russia; sales volumes
to these markets increased year-on-year by more than 70pc
and over 20pc respectively, during 1H 2014. Export volumes
of MAP increased substantially to 373,000t following early
demand from Brazil, while exported volumes of DAP were
down to 128,000t, while NPKs fell to 278,000t for the frst
quarter 2104. Domestic sales of NPK grew dramatically to
192,000t and dwarfed sales of other phosphate fertilisers for
the frst quarter 2014.
August 2014 TSP commitments - main producers
Lebanon Chemical
TSP 38 Bangladesh
Total 38
OCP
TSP 10-15 Ghana
TSP 10-15 Algeria
Total 20-30
Agropolychem
TSP 25 Iran
TSP 15-20 Domestic/Regional markets
Total 40-45
GCT
TSP 60 Bangladesh
Total 60
Copyright 2014 Argus Media Ltd Page 9 of 11
Argus FMB Phosphates Issue 14-31 | Thursday 31 July 2014
Focus Ventures publishes initial results for Pe-
ruvian phosphate rock project
Focus Ventures released results of initial drill tests for its
Bayovar 12 project in northern Peru. Preliminary results
show that the feld hs an average grade of 15pc P2O5,
which is consistent with beds in the producing Bayovar mine
located to the south of Bayovar 12. Multiple phosphate bear-
ing layers were found from 36m depth. Focus is initially tar-
geting around 100-150mn t of rock with a grading of 12-18pc
P2O5. However, drilling also identifed substantial thickness
of lower grade phosphate rock in the lower half of all test
holes. The company plans to start its prefeasibility study of
the project in Q2 2015.
Strata Minerals completes Utah Diamond Moun-
tain drill programme
Strata Minerals drill programme for the Utah-located Dia-
mond Mountain project was completed on 22 July. A total
of 2,367m of core drilling was completed over 17 holes.
Drilling was conducted on fve parcels of its State Phosphate
Lease 52441, totalling 510 ha. Phosphate mineralization
was encountered at depths ranging from 120-286m. Initial
interpretation through core observation indicates a miner-
alized zone ranging between 4.1-5.2m thick and averaging
4.7m. Strata expects to receive assay results and expect
to have an initial NI 43-101 resource report on the Project
completed by the end of September 2014. The target of the
2014 drill campaign was to confrm the historic phosphate
resource of 53mn st at an average grade of 20pc P2O5 as
well as to defne additional phosphate mineralisation on
Stratas State Lease areas.
Sumykhimprom cuts net losses in 1H 2014
Ukrainian NPK producer Sumykhimprom reduced its net
losses for 1H 2014 by UAH 74.5 mn compared to the same
period in 2013 - to UAH 55.7 mn, the company has reported.
Net income decreased by 11pc (UAH 91.4 mn) - to UAH
741.7 mn. In the frst half of 2014 Sumykhimprom reduced
production of mineral fertilizers by 21.4pc - to 66,900t, but
increased its sales by 4.7pc, to 83,700t.
EIA update on Don Diego project
Odyssey Marine Exploration released an update on the
Environmental Impact Assessment (EIA) for the proposed
Don Diego project, off the coast of Mexico, which is cur-
rently undergoing fnal reviews prior to government fling.
The project to extract phosphate sands on the Oceanica
concession will be approximately 40 km offshore and at
water depth between 70-90m. The latest assessment adds
166.4mn t inferred ore at 18.9pc P2O5 to the measured and
indicated resource assessment which estimated a total of
273.5 mn t ore of 18pc P2O5 phosphorite.
Mosaic profts down 42pc on lower nutrient prices
Mosaic posted a second quarter proft of $248mn on sales
revenue of $2.44bn. Sales revenue was 7pc lower than the
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Copyright 2014 Argus Media Ltd Page 10 of 11
Argus FMB Phosphates Issue 14-31 | Thursday 31 July 2014
same quarter of 2013, and net income was 42pc lower,
because of reduced prices for potash and phosphate based
fertilizers.
Phosphate sales totalled 3.38mn t in the second quarter, a
16pc rise from last year. North American sales (excluding Mi-
croEssentials and other blended products) totalled 948,000t
- up 39pc on 2013. International sales of 806,000t were in
line with the previous year. Sales of MicroEssentials fertil-
izers totalled 337,000t, up 5pc on 2013. Sales of blended
products totalled 792,000t - a signifcant rise of 21pc. Feed
phosphate sales totalled 324,000t, up 29pc from 2013.
Realized prices for DAP were 3pc lower than the second
quarter 2013, averaging $465/t fob plant. Average prices for
blends were 19pc lower than the previous year at $456/t fob
destination.
For the third quarter, the company expects to sell 3.3-
3.6mn t from its phosphates segment. The average realized
DAP price is expected to range from $440-470/t fob plant,
suggesting falling prices. In the potash segment, sales are
expected to total 1.8-2mn t with an average price (of both
international and north American sales) of between $275-
295/t fob plant - at least an $8/t increase from the average
in this quarter.
Larry Stranghoener, interim chief executive, said that We
saw strong global demand for phosphates and were well
positioned to meet the demand, in part because of our re-
cent CF Industries phosphate acquisition. We believe strong
demand will continue throughout the year, and we expect
to operate at high rates in the second half of 2014.
Argus FMB releases new strategy report:
World Potash Outlook to 2028
In recent years, international potash markets have been thrown
into disarray. This new report examines the future prospects for the
industry, new projects, supply and prices.

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Issue 14-31 | Thursday 31 July 2014 Argus FMB Phosphates
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Argus FMB Phosphates Methodology
Argus uses a precise and
transparent methodology to
assess prices in all the markets
it covers. The latest version of
the Argus FMB Phosphates
Methodology can be found at:
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LAST UPDATED: MAY 2013
The most up-to-date Argus FMB Phosphates methodology is available on www.argusmedia.com
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ARGUS FMB PHOSPHATES
www.argusmedia.com
Contents:
Introduction 2
Publication frequency 2
General methodology 2
Assessing price ranges 2
Spot, contract and formula pricing 3
Terms 3
Units 3
Lot and cargo sizes 3
Products and specifcations 3
Price guide how prices are defned 4
Ethics and compliance 8
Corrections to assessments 8
FIS Cash Settled swaps 31 July 2014
Month Bid Offer Mid
DAP fob Nola (st)
Aug 445 450 448
Sep 440 445 443
Oct 430 435 433
Nov 410 420 415
DAP fob Tampa (metric tonne)
Aug 485 510 498
Sep 480 500 490
Oct 470 485 478
Nov 460 480 470
Phosphate freight
Loading Destination Tonnage
Rate ($/t)
Low/High
Finished Phosphates
Tampa WC India 55-60 40 45
Morocco Brazil 25-35 14 15
Tampa Brazil 25-35 21 22
Baltic Brazil 25-35 30 35
Baltic India 25-35 45 45
KSA EC India 25-35 14 16
Phosphate Rock
Morocco South Brazil 30 14 15
Red Sea WC/EC India 25-35 20 26
Red Sea Indonesia 25-35 27 30