Chile’s MAE has submitted an environmental impact study (EIS) for its $2.5 billion green hydrogen and ammonia Volta project located in the northern Antofagasta Region, according to Bloomberg, citing a company statement.
The project includes a plant to produce green ammonia from green hydrogen and a 600 MW photovoltaic park. At first the plant will produce 300,000 mt/y with shipments expected by 2027. Another 300,000 mt/y will be produced in a second stage.
South Africa’s Sasol Ltd. and Transnet Freight Rail (TFR), an operating division of the beleaguered Transnet SOC Ltd. (Transnet), the state-owned operator of South Africa’s railway, ports and pipeline infrastructure, on Feb. 28 announced a first-of-its-kind public-private partnership to improve rail transport reliability in South Africa.
Under the five-year agreement, Transnet will deliver ammonia from Sasol’s Secunda and Sasolburg facilities to the company’s customers through a dedicated fleet of 128 ammonia tankers. In turn, Sasol will fund Transnet’s maintenance and repair program for the fleet.
“Sasol’s partnership with Transnet is an investment in South Africa’s rail infrastructure network, a critical economic driver for the country and a key business enabler for Sasol,” said Sasol Vice President for Base Chemicals David Mokomela. “The result will improve service to our customers and give us the transport capacity and reliability we need to respond to growing market demand. As one of South Africa’s largest companies, we are proud of this public-private partnership, which signals progress in advancing the country’s growth objectives.”
“We appreciate Sasol’s support of this deal,” said Acting TFR Chief Executive Russell Baatjies. “It is a significant step toward addressing the industry’s current capacity challenges and protecting the ammonia rail supply, a critical material used in South Africa’s agriculture, mining, and chemical markets.”
TFR and Transnet Engineering (TE), who will execute the Sasol ammonia fleet’s maintenance and repair work, expect additional revenue generation from anticipated increased haul volume and the Sasol-funded maintenance and repair work.
Sasol Chemicals produces and sells more than 540,000 mt/y of ammonia. It is used to make a variety of fertilizers and industrial chemicals for the agriculture, mining, textile, and metalworking industries.
On Feb. 28, South Africa appointed Michelle Phillips as the new CEO of Transnet SOC Ltd., four months after the former head quit. Phillips, who is currently acting in the CEO position, has more than 20 years of experience at the company in various roles.
Transnet controls a nationwide rail network with routes stretching over 12,500 miles and runs all the commercial ports in Africa’s most industrialized nation. The monopoly became a target of corruption during President Jacob Zuma’s rule and deteriorated further after he stepped down in 2018. Portia Derby, who was picked as CEO in 2020, quit in October along with several other senior executives after failing to improve its performance.
Transnet has slowed deliveries of coal from mines to the coast, with export volumes falling last year to their lowest levels in three decades. Many companies have resorted to using trucks to get their produce to port, causing havoc on the roads.
The National Treasury estimates that rail inefficiencies cost the economy 411 billion rand ($21.3 billion) last year. South Africa’s ports are ranked among the worst in the world. Coal producer Thungela Resources Ltd., petrochemicals giant Sasol, and retailer Woolworths Holdings Ltd. are among a slew of companies that have complained about Transnet’s shoddy services.
The bottlenecks at South Africa’s ports prompted MSC Mediterranean Shipping Co. to impose a congestion surcharge of $210 per 20-foot container of dry cargo it handles. A.P. Moller-Maersk A/S dumped Cape Town as a stop on one of its Asia shipping routes.
In addition to operational problems, Transnet faces financial difficulties. The company lost 1.6 billion rand in the six months through September and the Treasury has agreed to provide it with 47 billion rand in new debt guarantees.
Besides overseeing a recovery plan, Phillips will have to support government efforts to draw private investment into providing logistics services, a strategy that is aimed at increasing efficiency and resolving bottlenecks.
Bayer AG’s Monsanto unit persuaded a California judge to slash by more than 90% of a $332 million jury award to a former land surveyor who blamed his cancer on the company’s Roundup weedkiller, according to Bloomberg. Judge Kevin Enright in San Diego rejected Monsanto’s bid for a new trial in Michael Dennis’ lawsuit but agreed to reduce the verdict to $28 million.
“Plaintiff’s award of $325 million in punitive damages violates due process by lacking a ‘reasonable relationship’ to the $7 million in compensatory damages awarded and exceeds the constitutional threshold” laid out by the US Supreme Court, Enright wrote in his Feb. 26 decision.
The ruling is welcome news for Bayer, which has been hammered recently with big verdicts in cases over the top-selling herbicide. A jury in Philadelphia last month ordered Monsanto to pay $2.3 billion to a former Roundup user.
“We are pleased with the court’s decision to significantly reduce the unconstitutionally excessive damage award,” Bayer said in a Feb. 28 statement. It said it would appeal in hopes of getting the whole verdict thrown out. Attorneys for Dennis didn’t immediately return an email seeking comment on the verdict’s reduction.
Until November, Monsanto had won nine Roundup cases in a row, but the company then lost three consecutive cases. Bayer, which maintains the product is safe, has reserved $16 billion to deal with the costs of the litigation.
New Bayer CEO Bill Anderson has been reviewing the company’s strategy and structure since taking over in June. The Texas native has said nothing is off the table as he seeks to win back investors’ trust and navigate the company out of a thicket of legal and other challenges.
The jury in Dennis’ case concluded that Monsanto had defectively designed Roundup, failed to properly warn the surveyor about its health risks, and deserved to pay punitive damages over its mishandling of the product. Bayer argued that the size of the award violated Supreme Court guidance on punitive damages.
Monsanto is facing a spate of new Roundup cases after settling more than 100,000 suits. A jury in Delaware state court is weighing a woman’s claims the product caused her landscaper husband’s death. Another jury in state court in Philadelphia is hearing evidence in a similar case.
Crop protection supplier Sipcam Agro USA Inc., Durham, N.C. on Feb. 20 announced that it has expanded its crop and turf protection products into the Canadian market, bringing its North American formulation capabilities and years of crop and turf protection product experience.
“This is an exciting time for Sipcam Agro as we increase our customer base in another country and bring quality alternative solutions to the Canadian market,” said Brent Marek, CEO/COO of Sipcam Agro and a Canadian native. “We are very knowledgeable and experienced in crop, turf, and ornamental agriculture and are ready to deliver superior, proven products to Canadian growers for improved crop yield and harvest quality.”
Sipcam also announced that Winnipeg-based Howie Zander has been named the National Account Manager in Canada. The company said he has developed an extensive knowledge of Canadian agriculture and was most recently with BASF for over 20 years, mainly as the Director of Sales & Accounts. He also held numerous positions with both Aventis and Rhone Poulenc.
“This is a great opportunity to be on the ground floor of Sipcam Agro’s venture into Canada,” said Zander. “Sipcam Agro is back integrated with group partners in numerous active Ingredients (AI’s) globally, with synthesis and formulation plants in several countries and offers a quality portfolio that can bring value to Canadian customers.”
Sipcam Agro said it recently acquired the assets of Waynesboro, Miss.-based Odom Industries, including a plant with formulation, packaging, and warehousing. It said the company is now fully integrated from synthesis through formulation and packaging to make end-use products, and is focused on being a high-quality, competitively priced and reliable supplier of crop protection and turf and ornamental products.
Sipcam Agro USA Inc. is owned by the Sipcam-Oxon Group, a privately-owned Italian company, and has been in the global agricultural industry since 1946.
The US EPA announced on Feb. 26 that three New England-based companies have agreed to pay penalties to settle claims that they violated the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) for failure to file required annual pesticide production reports.
Seaman Paper Co. of Massachusetts Inc., Gardner, Mass., Ferti Technologies CT Corp., Wallingford, Conn., and Exoban LLC, Thomaston, Conn., failed to file production reports for the reporting year 2021, EPA said, and were issued Notice of Warnings. All three again failed to file production reports for the reporting year 2022, which led to the enforcement actions and penalties.
The assessed penalties were based, in part, on the size of the respective company and were as follows: Seaman $1,400; Ferti $1,000; and Exoban $500.
US Gulf/Tampa:
NOLA ammonia prices, Caribbean prices, and truck pricing out of Gulf Coast terminals remained unchanged with Tampa’s March rollover of $445/mt CFR.
Eastern Cornbelt:
Prompt ammonia continued at $575-$590/st FOB terminals in the Eastern Cornbelt for the last offers, with spring pricing pegged at $590-$625/st FOB in the region, depending on location. Sources said prices were pulled at multiple locations during the week, however.
Western Cornbelt:
Early preplant ammonia movement continued across the Western Cornbelt in late February, tightening supply at some terminals and resulting in allocations. Pricing continued at $575-$615/st FOB most regional terminals, with the low for prompt and the high for spring tons.
California:
Ammonia list prices in California fell to $670/st DEL for anhydrous and $186-$196/st FOB for aqua, below the prior $795/st DEL and $217-$227/st FOB ranges, respectively.
Pacific Northwest:
Ammonia pricing in the Pacific Northwest remained at $625/st FOB, with reports of rail-DEL offers at the $620-$625/st level at some locations. The aqua ammonia market was unchanged at $160/st FOB in the region.
Western Canada:
The latest spring ammonia offers in Western Canada were quoted at C$1,100-$1,110/mt DEL or FOB, depending on location, up from C$975/mt FOB and C$1,050/mt DEL at last report.
Northwest Europe:
Despite a slight rebound of around 2% in natural gas price (TTF), feedstock costs remain at a level not seen since April 2021, at the outset of the energy crisis. With such a low-cost base, European producers are motivated to make ammonia domestically rather than import it.
Once again, no CFR transactions were reported this week, prompting market participants to concede to lower indications of $450-$460/mt CFR. In fact, some say that prices need to go below the $400/mt mark for liquidity to be found, but Tampa rolling over for March still provides some support for the ambitions of CFR sellers.
India:
Pricing ideas into India were noted at $350/mt CFR for first-half April delivery. While talks are taking place at that price, sources said no business has been confirmed at that level. The lack of any public deals left prices unchanged at $320/mt CFR.
Middle East:
Sources are talking about lower prices out of the Arab Gulf for late March and early April loadings. While no new deals have been confirmed, all the discussion seems to be focused at the $300-$310/mt FOB level. As talks drag on, reserves of unsold ammonia are building in producers’ storage tanks, sources said.
Iranian producers have reportedly cut back on production due to limited access to natural gas. According to reports, the gas is being diverted for residential use.
Southeast Asia:
Indonesia’s Pupuk Kaltim closed a selling tender this week, but the company has not revealed the bids. Sources put the going price for ammonia in the area at a $300/mt FOB low.
A sale at $380/mt FOB ex-Indonesia to a Far East destination was confirmed at the end of last week, resulting in the price assessment moving up to $380/mt FOB on the high end. No further spot business was confirmed this week, resulting in a wide assessment of $300-$380/mt FOB, with the low end reflecting OCP’s Indonesian cargo ex-Bontang.
Indonesian line-ups suggest more than 130,000 mt exported in February, most of which represent contract commitments.
Thailand imported 31,000 mt of ammonia in January, Trade Data Monitor reported, a decline of about one-third from the 46,000 mt received in January 2023. Australia sent 16,000 mt, for 51% of the imports, while Malaysia added 12,000 mt.
US Gulf:
NOLA urea prices strengthened again this week, fueled by tightening supply and an early start to spring application in the US market.
A high of $390-$398/st FOB was reported for prompt and first-half March business, with full-March spanning a wide range from $363/st to the low-$390s/st FOB. Last week’s range was $330-$366/st FOB for February-March business. April trades ranged from the low-$360s/st up to $385/st FOB during the week.
Eastern Cornbelt:
Urea prices moved up significantly in the Eastern Cornbelt in late February, fueled by rapidly firming NOLA barge values, early spring demand, and tightening supply.
Urea prices began the week at a low of $420-$430/st FOB before firming to $440-$450/st FOB on Feb. 29, up sharply from the prior week’s $400-$410/st FOB range. Illinois River terminals reportedly moved from $420/st to $430-$440/st FOB, while the Cincinnati, Ohio, urea market was quoted firmly at $440-$450/st FOB as the week progressed.
In the Great Lakes region, urea prices jumped to $445-$480/st FOB, up from last week’s $430-$450/st FOB range, depending on location, with delivered prices in Michigan pegged at the $455-$465/st range, depending on time of shipment.
Western Cornbelt:
Urea prices jumped to $420-$450/st FOB in the Western Cornbelt, up from the prior week’s $400-$410/st range, with the higher numbers confirmed as the week advanced. The St. Louis, Mo., market was quoted firmly at the $440-$450/st FOB level on Feb. 29.
In the Southern Plains, the latest urea offers at Catoosa/Inola, Okla., fell in a broad $440-$470/st FOB range for the week, while prices in the Northern Plains strengthened to $450-$470/st FOB St. Paul, Minn. New offers in the South Central region included $420/st FOB Convent, La., up from $385-$395/st FOB at last report.
California:
Granular pricing in California strengthened to $535/st FOB Stockton, up $25/st from last report, with prilled urea remaining at the $580/st level FOB San Diego. Rail-DEL urea prices were confirmed in the $500-$520/st range in the state in late February.
Pacific Northwest:
Urea prices were up slightly in the Pacific Northwest. The latest offers firmed to $500/st FOB Rivergate, Ore., and $505/st FOB Aurora, Ore., up $20/st from last report, with delivered pricing pegged in the $515-$540/st range in the region, depending on location.
Western Canada:
The urea market in Western Canada edged up to C$720/mt FOB and C$750-$765/mt DEL, up from recent lows of C$690/mt FOB and C$720/mt DEL.
Mediterranean:
The Mediterranean granular urea market slipped to $410-$425/mt CFR, with sources adamant that the prior week’s high end is no longer workable in any market.
In Spain, demand was scarce so import offers of $435-$440/mt CFR were met with little to no enthusiasm. Similarly, the Italian import market was muted, with no tons changing hands despite lower offers of $410/mt CFR. Yara Ferrara’s expected restart in March is also likely to deter the appetite for offshore product.
Turkey has seen a flurry of cheaper Iranian material, which is not included in this week’s range. In nearby Romania, bids were reported to have slipped to sub-$400/mt CFR levels, while offers remain some $20/mt higher.
Prilled urea in the Mediterranean moved to a wider range this week. While no transactions were confirmed, indications by Italian buyers around $380/mt CFR reflected the low end of the range, with offers by traders into Spain at $440/mt CFR reflecting the high.
Domestic producer Fertiberia is reportedly offering prills ex-Huelva at €385-€390/mt FCA, equivalent to around $417-$422/mt at midweek exchange rates.
Black Sea:
Prilled urea softened marginally in the Black Sea. Sources now put prices from the area at $300-$320/mt FOB.
India:
Speculation surrounding the date of India’s next urea tender is now centered on March 15 or later. Throughout the week, traders reported hearing from Indian sources that the tender will be called on March 15-20.
However, some have noted rumblings that the Indian government may push back the tender until the end of March or first week of April. The argument for the delay, said sources, is that a later tender call could result in lower offer prices.
China also appears to be paying close attention to when the tender is called, traders noted. In China’s case, the government is looking to ensure the price does not rise in a way that could spill over into the domestic market.
At the same time, the Chinese government does not want the price to crash and cause a hardship for producers. If Chinese urea is not released for export until May, as some rumors claim, sources estimated that only one or two cargoes of Chinese material might find their way into India. India would then be forced to depend on the Arab Gulf, and possibly Russia, to meet its needs.
Southeast Asia:
Pupuk Kaltim closed a granular urea tender with Koch last week at $386.25/mt FOB. Since then, Kaltim made another deal for a shipment to Australia at the same price.
The deal followed the usual pattern in Indonesia. Pupuk will often close a tender before entering into private talks to sell additional cargoes at the tender price. Sources expect to see several additional deals closed in the near future.
Urea in the Southeast Asia market remains tight, although some easing was felt with Indonesia back in the export market, having awarded its 25,000 mt tender. The country could supply up to 150,000 mt in the coming weeks, provided that no changes occur to export permitting.
No further deals were heard ex-Malaysia, where Petronas has both its Bintulu and Gurun plants down. Granular urea was quoted at $386-$405/mt FOB this week, with the low end reflecting the Indonesian tender and the high reflecting last week’s Vietnam cargo to Latin America.
Thailand imported 245,000 mt of urea in January, according to Trade Data Monitor, asignificant increase from the year-ago 62,000 mt. Saudi Arabia accounted for 56% of the imports, sending 137,000 mt.
The size of the Saudi shipment is of no surprise. In past years, Saudi urea has accounted for about half of all urea imports into Thailand. Sources noted that SABIC often gives Thai buyers extremely favorable rates in order to remain the country’s dominate source of urea.
Middle East:
No new spot deals were reported from the area, leaving the granular price in the upper-$370s/mt FOB. Most new discussions were noted firming into the low-$380s/mt FOB, however, with producers pushing hard for $385/mt FOB.
The drive for higher prices comes as some regional buyers expressed concern that the US might step into the market for a series of major purchases. That concern ebbed by the end of the week, however, giving buyers in Southeast Asia in particular an edge in talks with producers.
Circulating rumors placed discussions for Egyptian product around $395-$400/mt FOB. No new deals have been announced, however, leaving prices at the last-done $406/mt FOB level. The market’s most recent price is down from early February, when deals were cut at $410/mt FOB.
Iranian producers are now said to be quoting $335/mt FOB while noting that supplies are limited. Output is reportedly down from at least three plants as natural gas is being diverted for residential use.
China:
Industry watchers seem resigned to the notion that no Chinese urea will hit the market until May. The process to clear product for export might begin in mid-April, sources speculated, but the first vessels are unlikely to load until the first week of May.
Reports of rising domestic urea prices offered the latest indication that China will delay permission to export urea. The purpose of China’s restrictive export policy was to ensure cheap and plentiful urea to the domestic market, one trader noted. Any upward movement in the domestic price could signal the need to continue building local reserves.
The government was also said to be watching what India does with its upcoming tender. To avoid a rush of product in the tender, sources said China may wait until India calls the tender and then decide when exports may be allowed. Even if the tender is called soon, the current May shipping estimate could mean that only one or two cargoes might be included in the tender.
Brazil:
Brazil urea prices rebounded 5.2%, to $394-$395/mt CFR from last week’s $370-$380/mt CFR, though product originating from sanctioned countries remained available at $390/mt CFR. Following a handful of small-volume transactions in the mid-$390s/mt CFR, new offers firmed to the $395-$400/mt CFR range.
Despite limited demand in Rondonópolis, urea prices narrowed to the $500-$520/mt FOB ex-warehouse range, with players citing low market activity, a push for discounts, and bullish signals in the CFR market.
Argentina:
January urea imports to Argentina stood at 150,000 mt, Trade Data Monitor reported, up sharply from 3,600 mt in January 2023. Nigeria supplied 56% of the tonnage with 86,000 mt, followed by Algeria with 42,000 mt.
US Gulf:
The NOLA UAN barge market remained at $240-$245/st ($7.50-$7.66/unit) FOB based on the latest indication, though no new transactions were confirmed during the week. Sources said firming inland terminal prices and a perception of tight supply suggests the next barge business will be at a higher level, however.
Eastern Cornbelt:
UAN offers were pulled at many Eastern Cornbelt terminals during the week. The prices that were reported were up another $5-$10/st, to $300-$310/st ($9.38-$9.69/unit) FOB for UAN-32.
Sources quoted the Mount Vernon, Ind., market firmly at the $310/st ($9.69/unit) FOB level for March-April tons, while the Cincinnati market was pegged at $300-$310/st ($9.38-$9.69/unit) FOB for UAN-32 and $260-$275/st ($9.29-$9.82/unit) FOB for UAN-28.
Western Cornbelt:
UAN-32 was pegged at $290-$310/st ($9.06-$9.69/unit) FOB terminals in the Western Cornbelt, up another $10/st, depending on location.
California:
UAN-32 pricing in California remained at $340-$350/st ($10.63-$10.94/unit) FOB Stockton, with rail-DEL tons quoted at $355-$365/st ($11.09-$11.41/unit) in the state, depending on location.
Pacific Northwest:
UAN-32 firmed to $330-$340/st ($10.31-$10.63/unit) FOB regional terminals in the Pacific Northwest, up from a flat $320/st ($10.00/unit) FOB in early February. Delivered pricing was pegged in the $325-$350/st ($10.16-$10.94/unit) range in the region, with the low confirmed for unit trains.
Western Canada:
UAN-28 prices in Western Canada remained at C$455-$480/mt (C$16.25-$17.14/unit) DEL, with the low for February-March tons and the high for April-May shipments.
France:
UAN prices in France were flat at €250-€260/mt FCA, with tanks remaining full as delayed application has prevented inventories from being drawn down. End users believe they can afford to wait for a further price correction, given the overall bearishness in natural gas and ammonia, and the rainy weather seems to be working in their favor.
About 200,000-250,000 mt of France’s over 2 million mt of consumption are believed to not yet be covered. Sources speculated that summer offers, which could appear as early as March, will have to be significantly lower to reflect the current environment of low grain prices and subdued natural gas prices.
Western Cornbelt:
Ammonium nitrate pricing was pegged at $340-$350/st FOB Missouri terminals in late February.
France:
Ammonium nitrate prices in France have stagnated, with little to no liquidity. Yara’s March turnaround at its southwestern France facility may aid in propping up current prices for a while longer, however.
US Gulf:
The ammonium sulfate barge market firmed to $300-$310/st FOB, up from last week’s $290-$300/st FOB range, with the high confirmed for a brokered first-half March trade that was concluded late in the week.
Eastern Cornbelt:
Granular ammonium sulfate prices moved to $340-$360/st FOB in the Eastern Cornbelt, up from last week’s $330-$350/st FOB range, with the low confirmed out of Illinois River terminals. The Cincinnati market was quoted at $350-$360/st FOB in late February.
Ammonium sulfate pricing in the Great Lakes region edged up to $345-$360/st FOB and $370/st DEL in the Michigan market.
Western Cornbelt:
The granular ammonium sulfate market firmed to $330-$350/st FOB in the Western Cornbelt, with the low confirmed at St. Louis.
California:
Ammonium sulfate prices in California moved up again, climbing to $370-$395/st FOB from the prior $345-$355/st FOB range, depending on grade and location. The high was confirmed at French Camp for granular tons, with offers firming to $385/st FOB Lathrop, Woodland, Richvale, and Helm. Rail-DEL pricing was quoted at $360-$390/st in the state in late February.
Pacific Northwest:
The ammonium sulfate market remained at $330-$350/st FOB or DEL for the latest offers in the Pacific Northwest.
Western Canada:
The ammonium sulfate market in Western Canada firmed to C$490-$500/mt DEL, up from the prior C$475-$490/mt DEL range, depending on location and time of shipment.
Northwest Europe:
Standard ammonium sulfate prices in Northwest Europe slipped to $156-$175/mt FOB, with market participants noting a subdued buyer appetite given lower feedstock prices.
China:
The price for caprolactam grade amsul remained at $145-$150/mt FOB, sources said. While producers are pressing for $155/mt FOB, buyers are reportedly pushing back hard and walking away from offers at that level.
A number of small lots sold to buyers in Southeast Asia carried netbacks in the upper-$140s/mt FOB. Chinese NPK producers are also looking to secure what tonnage they can for their product. At the same time, Brazil remains a steady client.
For now, producers are enjoying a stable price. Sources are expecting supply to outstrip demand by August, however, putting downward pressure on prices.
Thailand:
Amsul imports to Thailand totaled 20,000 mt for January, according to Trade Data Monitor, doubling the country’s January 2023 import total. China supplied 19,000 mt for the month.
Brazil:
Ammonium sulfate imports were stable at $175-$180/mt CFR. Attempts by sellers to lift the market to $190/mt CFR have been unsuccessful, sources said. Rondonópolis prices held steady in the $290-$305/mt FOB ex-warehouse range.
