All posts by Dan Cole

Oakley Fertilizer Acquires U.S. Assets of Oxbow Fertilizer

Oakley Fertilizer Inc., a wholly-owned subsidiary of Bruce Oakley Inc., North Little Rock, Ark., announced on Nov. 1 that it has acquired the U.S. assets of Oxbow Fertilizer LLC, a wholly-owned subsidiary of Oxbow Sulphur Inc., The Woodlands, Texas.

The purchase includes Oxbow fertilizer distribution facilities at Cincinnati, Ohio, Ottawa and Seneca, Ill., and St. Louis, Mich.  “Oakley expects the transition to be seamless and will be business-as-usual,” Oakley said in a brief statement. “As part of the purchase, Oakley will be required to change the name of the company. We will notify everyone when this is completed.”

Oakley said all questions about day-to-day operations should be directed to Bubba Vance, Oakley Fertilizer vice president. Oakley Fertilizer currently operates fertilizer facilities at Catoosa, Okla., Caruthersville, Mo., Shreveport, La., and at Arkansas locations at North Little Rock, Morrilton, Beebe, and Pendleton.

Indian Urea Tender Offers Up More than $40/mt

The IPL tender closed on Sept. 25 with more bad news for the Indian treasury. The lowest offer in the tender came from Transagri at $285/mt CFR for only 10,000 mt into the port of Kandla on the West Coast. The next lowest West Coast offer was Koch with 42,000 mt at $286/mt CFR. The lowest East Coast offer came from Aries at 284.66/mt CFR for 120,000 mt. The bulk of the offers were in the $290s/mt CFR, with a few at $300-$330/mt CFR.

The prices leapt more than $40/mt CFR from the IPL tender that closed earlier in September, when final prices fell in the $241-$245/mt CFR range. In the run up to the latest tender, industry watchers expected higher prices, including a few predictions of $300/mt CFR. Many, however, argued that the price jump would be smaller, and were surprised at the strength of the final offers.

The buying house will now review the offers and make counter bids. The most likely outcome will be East Coast prices at $285-$288/mt CFR and West Coast prices at $285-$290/mt CFR.

The higher prices have been attributed to the absence of Chinese urea in the global market and Iran finding more markets, breaking them of their dependence on India. In addition, some Arab producers are taking routine maintenance shutdowns, limiting the amount of urea available on the spot market.

India needs about 1.5 million tons to close out the current season. After IPL makes its awards, another tender is expected to help fill out the balance.

United Suppliers Sells Henry, Ill., Facility to Unity Envirotech

United Suppliers, Ames, Iowa, announced on Sept. 21 that it has sold its fertilizer facility in Henry, Ill., to Unity Envirotech of Illinois LLC. The sale was completed on Sept. 19, with both parties also agreeing to a 100 percent offtake agreement for United Suppliers to receive all of the ammonium sulfate produced at Henry. Unity Envirotech said it plans to make ammonium sulfate and several products at the site.

“We are looking forward to this new relationship with Unity Envirotech,” said Todd Minnihan, vice president for Crop Nutrients at United Suppliers. “They have access to unique technology, are focused on continued investment in the Henry facility, and are a good long-term collaborator.”

United Suppliers noted that it will soon be merging with the WinField United business within Land O’ Lakes Inc. The Henry location is the first production facility for Unity Envirotech, a company that specializes in “bringing new technology to market to enhance the nutrient value of dry granule fertilizers.”

“Unity Envirotech is excited to be the new owner of the Henry complex and looks forward to the continued production of high-quality, environmentally sound fertilizer products at this strategic facility located in the heart of the country’s agricultural region,” said Hermann H. Wittje, Unity’s chairman and CEO. “United Suppliers will remain the key customer for materials from this facility and we look forward to our continued partnership with United for many years to come.”

Mosaic Details Production Losses Related to Irma

The Mosaic Co. said on Sept. 21 that it expects approximately 250,000-350,000 mt of lower production in September due to the impact of Hurricane Irma on the company’s Florida phosphate operations. Together with the damage sustained to Mosaic’s Bartow warehouse (GM Sept. 15, p. 1), Mosaic said Irma could result in a loss of up 400,000 mt of finished phosphate products.

Mosaic said that prior to the hurricane, profitability metrics were tracking ahead of the company’s third quarter guidance due to good demand and strong operational performance.

Mosaic earlier reported that its finished fertilizer warehouse at Bartow had been damaged by the storm, and posted a picture showing large sections of the roof and siding missing from the structure. The company said it was “fortunate to have avoided significant damages in connection with Hurricane Irma.”

Potash Ridge to Spin-Off Quebec SOP Project

Junior sulfate of potash company Potash Ridge Corp., Toronto, reported on Sept. 20 that it plans to spin-off its Valleyfield project in Quebec as a separate publicly traded company. Valleyfield is one of two Potash Ridge SOP projects, and at a projected 40,000 mt/y is smaller in size to the company’s Blawn Mountain project in Utah.

Potash Ridge said a thorough review of assets and operations determined that the 225,000 mt/y Blawn Mountain SOP project in Utah “better reflects the value of the company’s assets moving forward.” Potash Ridge said Blawn Mountain is in the final stages of completion, with all major environmental and regulatory permits in place. Blawn Mountain plans to produce SOP by processing an alunite material, while the Valleyfield project is slated to use the Mannheim process for SOP production.

Potash Ridge said it is considering a number of options for the spin-off, including an equity spin out in favor of the company’s shareholders, a sale for cash and equity, or a joint venture. “We will be looking to solidify the deal that has the best possible upside and return on investment for all our stakeholders,” said Andrew Squires, Potash Ridge president and CEO. “We are focused on full execution of the above over the next 60-120 days.”

Potash Ridge said Valleyfield’s engineering, regulatory approval, and permitting process have advanced to “a high level of completion,” and the project is now awaiting financing for site acquisition, final permitting, and construction. Potash Ridge said it has seen “a high level of local interest” in Valleyfield, making it better suited as stand-alone company based in and focused on the Quebec market.

PotashCorp Announces Production Curtailments

Potash Corp. of Saskatchewan Inc. announced on Sept. 20 that it will temporarily idle two potash mines toward the end of the year. Their Allan mine will shut down for 10 weeks starting Nov. 19, and the Lanigan mine for eight weeks beginning Dec. 3. PotashCorp said the move was consistent with its strategy of matching supply to market demand while utilizing its lowest cost Rocanville facility.

According to the Green Markets Global Potash Quarterly, the Allan mine has an estimated nameplate capacity of 3.9 million mt and operational capacity of ~3.2 million mt, while the Lanigan mine has an estimated nameplate capacity of 3.8 million mt and operational capacity of ~2.2 million mt. Neil Fleishman, Green Markets Senior Industry Analyst, said the shut-ins will likely reduce production by just under 1 million mt.

PotashCorp said the number of temporary layoffs associated with the shutdowns has not yet been determined, as the company is assessing opportunities for reassigning affected employees to essential services, capital projects, and maintenance activities.

Yara Suspends N Orders in Europe

Yara Europe announced on Sept. 18 that in light of rapidly rising international prices, it has decided to stop taking orders for nitrogen-based products in Europe, effective immediately.

On Sept. 11, Yara posted a €15/mt increase for new deliveries of CAN in Germany, raising the price to €194/mt CIF bulk inland ports. That was Yara’s fifth price increase for CAN in Germany so far this season. On the same day, it also released its fifth increase for ammonium nitrate deliveries in France, raising the price by €15/mt, to €250/mt CPT bulk.

IPL Calls Urea Tender

The industry was surprised on Sept. 16 when IPL called a urea tender to close on Sept. 25. It is unusual for a company to call a tender so close after it closed an earlier tender for the same product. Usually one of the other three buying houses would call a tender if the government approves the rapid call.

When the previous IPL tender resulted in only 327,000 mt being purchased against offers of 709,000 mt, industry watchers said another tender could be called quickly, but most likely would wait until all the awarded material in the first tender was booked with vessels all nominated.

India needs about 1.5 million tons to close out the year. Sources said securing the necessary tonnage has become difficult. China has withdrawn from the international market, as has Ukraine. This leaves the Arab Gulf and Iranian producers, sources said. Demand has been growing worldwide for Iranian product, however, leaving India to compete with buyers in Latin America and Europe.

New India Tender Under Discussion

Sources reported late Friday, Sept. 15, India time that discussions are currently underway to call another urea tender. The new tender could be called as soon as this weekend, but more likely after Monday, Sept. 18. The news was received after the Green Markets Sept. 15 issue went to press.

Sources said STC will most likely call the next tender. The poor showing of available tonnage in the IPL tender that closed on Sept. 8 has left India with a urea shortfall of about 1.5 million tons for the rest of the year.

It is unusual for any of the Indian buying houses to call a tender before the ship-by date of a recent tender. Award winners in the IPL tender have until Oct. 23 to ship their product. Sources reported, however, that the bulk of the tonnage awarded to one trader is already being loaded. Other award winners are also reportedly lining up prompt shipments of their cargoes. If the full 327,000 mt gets loaded soon, sources said a new tender would not compete with the cargo awarded under the IPL tender.

AdvanSix Raises AS Postings Again

AdvanSix on Sept. 14 announced another increase to its ammonium sulfate prices. Midwest terminal prices for granular firmed to $225-$235/st FOB in Illinois, $230-$235/st FOB in Wisconsin, $230/st FOB Roseport, Minn., and $240/st FOB Sioux City, Iowa. Mid-grade postings moved up as well, to $210/st FOB Roseport and $210-$215/st FOB in Illinois. AdvanSix’s rail-DEL postings in Illinois, Wisconsin, Iowa, and Minnesota firmed to $240/st for granular and $220/st for mid-grade.

The increase is the second announced by AdvanSix in the last week, and reflects a $10/st hike from the company’s Sept. 7 list prices (GM Sept. 8, p. 7) in the Midwest. American Plant Food Corp. also announced a $10/st increase to its granular ammonium sulfate postings, with prices firming on Sept. 11 to $185/st FOB Freeport and Houston, Texas.