All posts by hlancey@bloomberg.net

Bayer Provision for Glyphosate Litigation at $6.3 B

News Briefs, U.S.

Bayer’s provision for the glyphosate litigation totaled $6.3 billion as of Dec. 31, 2023, the company said in its quarterly report, according to Bloomberg.

As of Jan. 31, 2024, Bayer’s Monsanto unit had reached settlements and/or was close to settling in a substantial number of claims. Of the roughly 167,000 claims in total, approximately 113,000 have been settled or are not eligible for various reasons.

As of Jan. 31, there have been 19 Roundup trials concluded before both federal and state courts in California, Missouri, Oregon, and Pennsylvania. In 10 of those trials, the juries reached verdicts in favor of Monsanto. In the other nine trials, the plaintiffs were awarded compensatory damages and a multiple thereof in punitive damages.

Bayer said it believes it has meritorious defenses and intends to vigorously defend the safety of glyphosate and glyphosate-based formulations.

Atlas Agro Gets Tax Exemption for Green Complex

CAN-17, Clean Ammonia, green nitrogen, U.S.

The Richland City Council in Washington State on March 5 voted 7-0 to approve a ten-year property tax exemption valued at $19.6 million for Atlas Agro North America’s planned green fertilizer plant. The Council said the project supports the City’s plans to attract clean energy and advanced manufacturing to north Richland.

Atlas Agro’s Pacific Green Fertilizer Corp. is eyeing the construction of a 625,000 mt/y green nitrogen fertilizer facility (GM Nov. 22, 2023). Products under consideration include CAN-17, CAN-27, ANSol-20, and CN-9.

The project will be located on a 150-acre site at 1500 Horn Rapids Road in the Northwest Advanced Clean Energy Park. The site will include approximately 518,864 square feet of new improvements to the property valued at $1.1 billion. The project will create some 158 new direct jobs per shift for a 24/7 business operation, and an additional 504 indirect non-construction jobs for the community. The direct jobs will meet or exceed the state’s living wage definition, according to the Council.

Yara Invests in Electrolysis Tech Provider

Clean Ammonia, Denmark, Hydrogen

Yara Growth Ventures, the investment team within Yara International ASA, reported that it has invested in Denmark-based Dynelectro, which provides electrolysis technology for low-cost renewable hydrogen. The investment is part of Yara’s ambition to decarbonize fertilizer production and enable the hydrogen economy.

Yara said Dynelectro’s approach dramatically increases the lifetime of solid oxide electrolysis (SOE) systems from typically two to 10 years, and also allows for integration of SOE with intermittent renewable electricity, a key requirement for large scale adoption.

While SOE has the best potential for low cost, it suffers a niche existence due to system lifetime issues, explained Björn Heinz, Investment Director and part of the Yara Growth Ventures team. “We believe Dynelectro will overcome these issues and pave the way to make low-cost renewable hydrogen a reality,” he said.

Dynelectro CEO Sune Lilbæk said the addition of Yara Growth Ventures is a significant milestone as they are the first industrial investor to demonstrate market readiness and pull for innovation within clean sustainable technologies.

The investment follows the company’s seed investment round, which was led in May 2023 by The Export and Investment Fund of Denmark (EIFO), Denmark’s national promotional bank and export credit agency, with contributions from Vsquared Ventures, a European deep-tech fund, and further local venture investors. The funding will be used for demonstration projects and further technology development.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Canada, Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, Northwestern Europe, U.S. Gulf, Western Cornbelt

US Gulf:

NOLA ammonium sulfate pricing continued to climb, fueled by firming nitrogen prices across the board. New barge indications were quoted at $310-$325/st FOB during the week, up from last week’s $300-$310/st FOB range, with the high reported for confirmed trades at midweek.

Eastern Cornbelt:

Granular ammonium sulfate in the Eastern Cornbelt continued to strengthen in the wake of firming ammonia and urea prices. Sources quoted the latest pricing at $350/st FOB Illinois River terminals and $360-$365/st FOB Cincinnati, reflecting a roughly $5-$10/st increase from last week.

Western Cornbelt:

The granular ammonium sulfate market firmed to $345-$350/st FOB in the Western Cornbelt, with both the high and low confirmed at St. Louis during the week. In the Southern Plains, granular offers at Houston, Texas, reportedly jumped to the $340-$350/st FOB level, up from $325/st FOB in late February.

Great Lakes:

Granular ammonium sulfate offers in the Michigan market were pegged at $365-$370/st FOB and up to $400/st DEL in early March.

Northern Plains:

Delivered granular ammonium sulfate offers ranged broadly at $370-$430/st in the Dakotas, depending on supplier, up from the prior $340-$370/st DEL range. Terminal prices were also reported in a wide range at $335-$375/st FOB in the Northern Plains, depending on location and supplier.

Northeast:

Granular ammonium sulfate pricing strengthened to $355-$380/st FOB and $365-$375/st DEL in the Northeast, up roughly $10-$20/st from mid-February.

Eastern Canada:

The ammonium sulfate market continued at C$545-$590/mt FOB in Eastern Canada, unchanged from last report.

Northwest Europe:

Suppliers reported steady liquidity for standard ammonium sulfate in Northwest Europe this week, with prices range-bound at last week’s level. Granular offers were heard at €215/mt FOB, equivalent to $230-$235/mt FOB.

China:

Sources in and out of China are now putting the caprolactam grade amsul price at $140-$145/mt FOB, with expectations of softer prices to come. Some buyers are already putting forward bids in the mid-$130s/mt FOB, one trader said, though no deals have been confirmed at that level so far.

One of the driving factors in the price drop is the steady decline in urea prices, said one trader. Another is a reluctance from several major international buyers to secure product in the current market. Many, including buyers in Brazil, are said to be waiting for China to restart exports of DAP and MAP. Once these phosphates are allowed to ship, sources said a number of buyers will be ready to add amsul tonnage to the vessel load.

Brazil:

Ammonium sulfate sellers have been unsuccessful in their efforts to lift ammonium sulfate prices to $190/mt CFR, sources said, leaving imports stable at $175-$180/mt CFR.

Facing limited demand, sellers intensified offers at Rondonópolis during the week. Negotiations were concluded down to $275/mt FOB ex-warehouse, sources said, $15/mt below last week’s $290/mt FOB floor, while other indications continued in the $280-$300/mt FOB range.

Phosphoric Acid

Eastern Cornbelt, Market Watch, Northern Plains, Phosphate, Phosphoric Acid, Western Cornbelt

Eastern Cornbelt:

March phosphoric acid moved to $12.50/unit rail-DEL in the Eastern Cornbelt, reflecting a $0.35/unit increase from February.

Western Cornbelt:

The phos acid market was quoted at $12.50/unit rail-DEL in the Western Cornbelt for March tons, up $0.35/unit from February.

Northern Plains:

A $0.35/unit increase on March 1 pushed phos acid postings to $12.50/unit rail-DEL in the Northern Plains.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Phosphate, Western Cornbelt

Eastern Cornbelt:

10-34-0 continued at $530-$540/st FOB for the latest offers in the Eastern Cornbelt.

Western Cornbelt:

10-34-0 remained at $530-$550/st FOB in the Western Cornbelt, depending on location and time of shipment, with the high reported in Iowa.

Northern Plains:

The 10-34-0 market firmed to $535-$555/st FOB in the Northern Plains, depending on location and time of shipment.

Northeast:

March posted increases for phos acid pushed 10-34-0 prices up another $10/st in the Northeast, to $550/st FOB in New York.

Muriate of Potash

Brazil, Eastern Canada, Eastern Cornbelt, Great Lakes, India, Market Watch, Northeast, Northern Plains, Northwestern Europe, Potash Muriate, Southeast Asia, U.S. Gulf, Western Cornbelt

US Gulf:

The NOLA potash market was described as flat, and continued to be reported at $315-$320/st FOB based on limited new business.

Eastern Cornbelt:

Potash was steady at $365-$395/st FOB in the Eastern Cornbelt, depending on location, with the low reported at Illinois River terminals and the high out of inland warehouses in Ohio. The Cincinnati market remained at $365-$375/st FOB in early March.

Western Cornbelt:

Potash slipped slightly to $360-$385/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and reflecting a $5/st drop from last report.

Great Lakes:

Potash pricing was unchanged at $395-$423/st FOB in the Great Lakes region, with most Michigan warehouses quoted at $415/st FOB for red and $423/st FOB for white MOP.

Northern Plains:

Potash was steady at $390-$400/st FOB St. Paul, with delivered tons reported at the $400-$410/st level in the Northern Plains. The latest prices FOB Saskatchewan mines for post-fill offers were quoted at $390-$395/st FOB, depending on grade.

Northeast:

Potash pricing in the Northeast was pegged at $365-$380/st FOB, depending on location, with the low reported at Fairless Hills and the high at East Liverpool. Rail-DEL prices remained in the $390-$410/st range in the region.

Eastern Canada:

Potash firmed to a solid C$625/mt FOB regional warehouses in Eastern Canada, up from January fill offers at the C$580/mt FOB level.

Northwest Europe:

Wet weather continues to hamper application as well as buyer appetite, resulting in poor liquidity and unchanged prices for granular potash in Northwest Europe. While buyers continue to push for price reductions, suppliers are pausing amid the recent momentum seen for potash prices in Brazil.

India: 

Potash imports to India firmed markedly in 2023, Trade Data Monitor reported, to 3.2 million mt from 2.7 million mt, an 18% increase. Canada led suppliers with 1.2 million mt, Russia sent 951,000 mt, and Jordan added 419,000 mt. December imports were pegged at 205,000 mt, up 48% from the 139,000 mt noted one year earlier.

Southeast Asia:

Standard potash prices in Southeast Asia were up slightly at the low end of the range following reports of the Indonesian tender last week, which received offers in the $302-$307/mt CFR range. While no award could be confirmed, sources reported that suppliers are now reluctant to entertain levels below $295-$300/mt CFR. Volumes in the tender were not disclosed, but the buyer is reportedly seeking up to 250,000 mt for shipment through June.

No further development was seen on granular potash prices in the region, leaving the range unchanged at $345-$355/mt CFR.

Brazil:

Potash prices in Brazil increased again, to $295-$300/mt CFR from last week’s $290/mt CFR. With domestic players having covered their positions – and even some future needs – at low prices, liquidity has dried up at the market’s new, higher levels. However, more product will be available in April from multiple producers.

Rondonópolis prices remained strong throughout the week, though new deals are largely on hold while growers digest the market’s recent price increases. While most farmers continued to bid at $380/mt FOB, discussions were largely centered around the $400-$420/mt FOB ex-warehouse range. Some predicted the market firming to $415-$425/mt FOB in the near-term.

Sulfur

ADNOC - Abu Dhabi, Alberta, Brazil, Market Watch, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa:

Second-quarter Tampa molten sulfur negotiations continued during the week, with players expecting prices to move up from the current $69/lt CFR contract. The fourth-quarter 2023 contract was valued at $102/lt CFR.

US Gulf:

Citing balanced market conditions, sources pegged sulfur pricing at $69-$71/mt FOB out of the US Gulf, unchanged from one week earlier.

Brazil:

Brazil import prices were noted at $105-$110/mt CFR, firming from $95-$100/mt CFR in the prior week.

Vancouver:   

Vancouver prilled sulfur exports were steady at $77-$80/mt FOB.

Alberta:

Alberta sulfur netbacks were estimated at (-)$46-(-)$1/mt FOB. The range included molten sulfur cargoes contracted into the US market and solid tons shipped internationally through the Vancouver export market.

West Coast:

Solid sulfur loading from the West Coast was stable at $77-$80/mt FOB. Molten sulfur contracts were valued at $50-$55/lt FOB for first-quarter loading, below $85-$90/lt FOB in the prior period.

China:

While China sulfur imports were unchanged in the $100-$105/mt CFR range during the week, some players predicted softer pricing ahead.

ADNOC:

Sulfur produced by the Abu Dhabi National Oil Co. (ADNOC) was reported at $69/mt FOB Ruwais for February, down 10.4% from the $77/mt FOB reported in January. March pricing is expected to rise in line with the Qatar market.

Qatar:

Muntajat posted prices firmed 13% for March loading, to $78/mt FOB Ras Laffan from $69/mt FOB in February.