Eastern Cornbelt:
Potassium thiosulfate pricing dropped to $730/st FOB Terre Haute, down from the previous $780/st FOB level.
California:
The potassium thiosulfate market in California slipped to $730/st FOB Sacramento for the latest offers, down $50/st from last report.
Eastern Cornbelt:
A winter weather advisory was in effect for much of Illinois at midweek, with 2-4 inches of snow reported in northern areas of the state on Jan. 25. In central Illinois, areas north of Interstate 72 reported 2-6 inches of accumulation, while some areas south of the interstate reportedly picked up 4-7 inches.
Snow levels picked up as the system moved through Indiana, with Indianapolis picking up 5-8 inches and Lebanon reporting 6-10 inches of accumulation. In northern Indiana and southern Michigan, 4-6 inches of snow fell on Jan. 25. Snowfall totals across northern Ohio ranged from 3-6 inches.
Western Cornbelt:
Weather advisories warned of icy conditions and up to two inches of snow across eastern Iowa at midweek, while northern areas of the state were bracing for a dusting of snow later in the week. By the weekend, wind chills were expected to fall to well below zero across the state.
A winter storm watch was in effect for northern Nebraska late in the week, with forecasts warning of up to 8 inches of snow and 35-mph winds. Wet, heavy snow also blanketed parts of Missouri at midweek, with most areas catching 1-3 inches as the system worked its way through the state.
Northern Plains:
After light snow showers earlier in the week, much of Minnesota was bracing for another inch or two of accumulation on Jan. 26, followed by sub-zero temperatures over the weekend.
Similar conditions were reported in the Dakotas, where blowing snow caused a number of road closures at midweek. The gusty winds were expected to drop wind chills to well below zero across North and South Dakota late in the week and into the weekend.
Northeast:
A winter storm left thousands without power across New England as the work week began, and a second system brought more snow on Jan. 25.
The first storm pushed through Maine and New Hampshire on Jan. 23, bringing several inches of fresh snow to the area just a couple days after an earlier system dropped half a foot or more on the region. On Jan. 25, the second storm dumped up to a foot in parts of Maine and another 3-5 inches across a wide swathe of southern New England.
Much of Pennsylvania also picked up 1-4 inches of snow from the midweek storm, while northwestern areas of the state were bracing for up to six inches of fresh accumulation. A wintry mix of precipitation hit Maryland as well at midweek.
Eastern Canada:
Heavy snow and rain moved through Eastern Canada during the week, prompting weather warnings and statements across Ontario, Quebec, and the Maritimes.
Forecasts warned of 15-20 cm of snow in Ontario locations such as Toronto, London, and Kitchener, while areas along the St. Lawrence River were expecting 20-25 cm by Jan. 26. Southeastern Quebec was bracing for 15-25 cm of accumulation at midweek, along with 60-km/h wind gusts.
Nova Scotia and New Brunswick were under rainfall and wind warnings at midweek, with nearly all of Nova Scotia expecting 25-50 mm of rain by the end of the week. The Moncton region in New Brunswick was hit with 10-15 cm of snow followed by 15-20 mm of rain, while several regions in Newfoundland reported wind gusts up to 100-120 km/h.
US Gulf:
Calcasieu Lock was scheduled to begin regular travel closures on Jan. 30, blocking navigation through the site from 7:00 a.m. to 5:00 p.m., Monday through Friday, through least March 3. The project could be extended, sources said.
Work anticipated to begin on Feb. 6 at Bayou Boeuf Lock will see the site mostly closed to vessel traffic between 6:00 a.m. to 6:00 p.m., Monday through Thursday, through Feb. 16. Intermittent transit will be permitted during working hours, with 6-12 hour delays expected.
Ongoing guidewall replacement efforts at Bayou Sorrel Lock triggered intermittent weekday shutdowns between 6:30 a.m. and 5:00 p.m., triggering waits up to 19 hours through the week. The project is slated to continue into March 2023.
Colorado Lock maintenance and repair work was due to end on Jan. 27, concluding a period of daily navigation interruptions noted between 7:00 a.m. to 7:00 p.m. Delays were recorded in a wide 16-73 hour range on Jan. 25.
Monday-through-Friday travel shutdowns continued at Brazos Lock, blocking navigation between 7:00 a.m. to 7:00 p.m. and prompting intermittent 4-10 hour waits. The outages were scheduled to continue through Feb. 8.
A series of 8-24 hour shutdowns were expected at Miles 63-64 of the Port Allen Route in February due to planned bridge replacement work. Algiers Lock will face 5-7 days of daytime shutdowns in February or March for lock repairs.
Port Allen Lock delays ran up to 21 hours for the week, according to Corps lock data. Most Industrial Lock waits fell in a wide 9-29 hour range.
Mississippi River:
Improved water levels on the upper Mississippi River allowed for virtually restriction-free travel during the week, although conditions were expected to worsen in February. Normal seasonal weather patterns are likely to produce unstable navigating conditions through March, sources said.
Draft limits for dry barges were raised to 18 feet between St. Louis and Cairo, an improvement from the area’s 10-foot limit reported one week earlier. The St. Louis river gauge, posted at 2.94 feet and rising on Jan. 25, was forecast to recede below the 0.00-foot mark on Feb. 3-4.
Dredging operations continued at Mile 28.5 of the upper river, while similar work was heard wrapping up at Mile 39 early in the week.
Sources reported a lengthy closure at Mile 744 of the lower river over the weekend due to a grounded vessel, necessitating a roughly 24-hour travel shutdown while recovery operations were underway. Wait times ran up to 54 hours at Mel Price Lock on Jan. 25, while tows were delayed as high as 71 hours through Chain of Rocks Lock during the week.
Maintenance at the I-10 bridge, located at Miles 228-230 of the lower river, triggered a blanket safety advisory on travel through the area. Revetment operations at Miles 192-193 were expected to prompt sporadic travel outages through the end of January.
Illinois River:
Sources noted raised wickets at Peoria Lock and LaGrange Lock, necessitating lockages at both locations. Delays ran as high as 11 hours at Peoria, while boats waited up to 15 hours to pass LaGrange. Marseilles Lock wait times were posted in a wide 10-69 hour range.
Brandon Road Lock, Dresden Island Lock, and Marseilles Lock are slated to undergo a complete 120-day shutdown starting in June, effectively closing the Illinois Waterway to commercial travel through the end of September.
Ohio River:
Bellville Lock returned from hydraulic repairs on Jan. 20, ending a four-day run of daylight-hour stoppages causing 12-24 hour wait times. Bellville Lock and Racine Lock are schedule to undergo a round of secondary chamber shutdowns between Jan. 30 and Feb. 26, while Racine will follow with a primary chamber closure from Feb. 26 to March 12.
Intermittent JT Meyers Lock main chamber shutdowns are expected Jan. 30 through Aug. 20 due to floating mooring repairs. Greenup Lock will close its main chamber for repairs and maintenance March 12 through April 12, and the secondary chamber at Melville Lock will shut for repairs April 17 through Aug. 4.
On the Tennessee River, Kentucky Lock delays were noted up to 13 hours during the week. Wilson Lock waits ran as high as 20 hours.
Arkansas River:
Norrell Lock is scheduled to close to navigation for a full 48 hours on Jan. 30-31. No lockages will be performed during this time.
Tessenderlo Group, Brussels, on Jan. 16 announced that it has signed an agreement to acquire the marketing and sales activities for ammonium thiosulfate (ATS) fertilizers produced by Esseco Srl (part of Esseco Group) in Trecate, Italy.
These ATS fertilizers will be marketed by Tessenderlo’s business unit Tessenderlo Kerley International (TKI). Tessenderlo will also acquire the Esseco trademarks Secofit® TS and Agrifix®, which are used to market this product range for agricultural applications. The agreement is scheduled to become operational in March 2023.
“This agreement confirms Tessenderlo Kerley International’s commitment to the ammonium thiosulfate fertilizer market. Thanks to the production capacity of Esseco Srl, we will have additional volumes of ammonium thiosulfate fertilizers available. In addition to cooperating with a company which shares the same mindset towards continuous improvement in terms of both product and process, this agreement will also improve the service we offer to our customers,” said Geert Gyselinck, TKI Executive Vice President.
“We are very proud of this deal with Tessenderlo Group, which will guarantee and strengthen the leading position of the two companies in their respective roles, and support the growth of ATS use in the agricultural markets,” said Andrea Mangiarotti, member of the Esseco Srl Board of Directors and Marketing Director of Esseco Industrial, part of Esseco Group. “Esseco Industrial will continue its operations in the ATS markets in both the United Kingdom and Brazil through local independent production.”
Tessenderlo said the transaction will have no material impact on the results.
The Mellon Foundation has awarded a $1 million grant to Wake Forest University to create a model program for engaging scholars and the local community in advancing environmental justice.
Professor Corey D.B. Walker, who will lead the project, said the January 2022 Weaver fertilizer plant fire in Winston-Salem (GM Feb. 4, 2022) exposed the historic and ongoing legacies of race, racism, and environmental injustice in the local community and both shaped and gave urgency to the work the grant will fund.
The Jan. 31, 2022, fire at the Winston Weaver fertilizer terminal on the north side of Winston-Salem, N.C., completely destroyed the facility and prompted a three-day evacuation order for residents and businesses within a one-mile radius of the plant due to concerns about a possible explosion triggered by ammonium nitrate stored at the site.
“In many ways, Weaver served as a wake-up call to initiate, support, and sustain a model intellectual community built on the principles of collaboration, creativity, and commitment to our deepest values,” said Walker, who is Wake Forest Professor of Humanities, Director of the African American Studies Program, and Interim Dean of the School of Divinity.
Starting with a collaboration between Wake Forest’s African American Studies program and Environmental Studies program, the scope of the work will extend to departments across campus and into the community.
The three-year, multi-pronged effort–called “Environmental and Epistemic Justice: A Transformative Humanistic Model for Science and Technology Studies” – will help the University imagine, design, and develop a humanistic Science and Technology Studies curriculum that places environmental justice at the center. It will build on the STEM-focused programs in the local community supported by earlier Mellon grants.
The new grant will fund a variety of seminars, institutes, and public educational forums for citizens, environmental justice advocates, journalists, and public officials. It will also support paid research opportunities for undergraduate students and two new full-time positions: a project coordinator and a postdoctoral fellow.
US Gulf:
The NOLA UAN barge market was put in the $350-$360/st ($10.94-$11.25/unit) FOB range, a big drop from the week-ago $420-$440/st ($13.13-$13.75/unit) FOB. The numbers were reported to be in line with river terminals posted at $400/st FOB ($12.50/unit).
Eastern Cornbelt:
UAN-32 terminal prices continued to fall in the Eastern Cornbelt. New offers for January-February tons were reported at $400-$420/st ($12.50-$13.13/unit) FOB, with the low confirmed at Mount Vernon, Ind., reflecting an $80/st drop from the previous week.
The Cincinnati, Ohio, market was quoted at the $405/st ($12.66/unit) FOB level for UAN-32 and $350-$355/st ($12.50-$12.68/unit) FOB for UAN-28.
Western Cornbelt:
New UAN-32 offers for January-February were confirmed at $400/st ($12.50/unit) FOB Port Neal and St. Louis, and $405/st ($12.66/unit) FOB Muscatine, Iowa, down some $80/st or more from the previous week.
In the Northern Plains, spring UAN-32 pricing was pegged at $461/st ($14.41/unit) FOB Winona, Minn., down from the $546/st ($17.06/unit) level earlier in January.
California:
Postings for UAN-32 were confirmed at $570/st ($17.81/unit) FOB Stockton, $575/st ($17.97/unit) FOB Port Hueneme, and $580/st ($18.13/unit) FOB West Sacramento. Sources said the Stockton market was closer to $500/st ($15.63/unit) FOB as the week progressed, however, with rail-DEL prices confirmed at that level as well.
By Jan. 19, some were claiming reports of sub-$500/st offers at port terminals in the state. “It’s all over the place,” commented one contact.
Pacific Northwest:
The UAN-32 market in the Pacific Northwest dropped to $515/st ($16.09/unit) FOB most terminals, down from $535/st ($16.72/unit) FOB in late December. Rail-DEL UAN-32 pricing in the region was quoted at $480-$515/st ($15.00-$16.09/unit), below last month’s $535-$545/st ($16.72-$17.03/unit) DEL range.
Western Canada:
The UAN-28 market in Western Canada was pegged at C$575-$595/mt (C$20.54-$21.25/unit) DEL for January-April tons, down from the last reported range of C$620-$645/mt (C$22.14-$23.04/unit) DEL.
US Gulf:
NOLA potash barge prices fell again. By late Thursday, sources were calling the market $410-$430/st FOB, down from the week-ago $440-$445/st FOB. Sources said that the updated NOLA numbers were in line with the lower inland numbers that resulted from recently-announced producer fill programs.
Eastern Cornbelt:
Potash pricing in the Eastern Cornbelt was pegged at $465-$480/st FOB regional warehouses for fill offers during the week.
Western Cornbelt:
The potash market slipped to $455-$475/st FOB in the Western Cornbelt. Some fill offers in the Southern Plains were reported as low as $435/st FOB during the week.
California:
Potash fill pricing ranged from $585-$615/st FOB in California, depending on grade and location, with the low confirmed for 60% MOP and the high for 62%.
Pacific Northwest:
Fill offers for potash were reported at $530-$560/st FOB in the Pacific Northwest, with delivered pricing quoted at $532/st in Montana, $542/st in Idaho, and $552/st in Washington and Oregon. Intrepid’s potash prices FOB Moab and Wendover, Utah, dropped at mid-month to $505/st for 60% white standard and $515/st for 60% white granular.
Western Canada:
Fill prices for potash reportedly dropped to C$715/mt FOB Saskatchewan mines for February-March, although several sources said those initial offers expired during the week and were followed by new pricing in the C$735-$775/mt FOB range, depending on grade and time of shipment.
Brazil:
Sellers were hoping potash prices would move higher as demand picked up. However, those hopes were dashed by players offering sanctioned material from Belarus, leaving the market at $500-$520/mt CFR.
The Rondonopolis price was down to $600-$660/mt FOB ex-warehouse on limited activity. Farmers were noted wrapping up their 2022/23 soybean needs, and have not yet committed to their full 2023/24 corn needs. At the same time, an influx of material from Belarus provided lower-priced potash.
South Korea:
Imports of potash for 2022 were reported at 652,000 mt by Trade Data Monitor, a15% decline from 771,000 mt noted for 2021. The market’s main supplier was Canada with 494,000 mt, followed by Israel with 95,000 mt.
December imports were 31,000 mt – with 30,000 mt coming from Canada – compared to the year-ago 53,000 mt. Fourth-quarter imports were clocked at 86,000 mt, falling from 198,000 mt in the same period of 2021, while Canada again dominated the market with 82,000 mt. South Korean buyers brought in 283,000 mt through the last six months of 2022, off from 380,000 mt in second-half 2021.
Tampa:
The Tampa molten sulfur market’s largest buyer reported settling first-quarter supply contracts at $130/lt CFR, a $40/lt increase from $90/lt CFR in the fourth quarter. The market’s second largest buyer reported that it too was in the process of settling with suppliers at $130/lt CFR during the week.
The $40/lt increase, a 44% jump on the prior contract, came as no surprise to the market. International prices have continued to recover from price instability triggered by the war in Ukraine, in which the US Gulf export market was seen dropping to as low as $10/mt FOB in third-quarter 2022. The market’s revival throughout the fourth quarter led players to predict a larger $50-$70/lt increase as late as mid-December, although subsequent softening witnessed in a number of key international markets pushed Tampa speculation lower before the end of the year. By last week, expectations had settled on a likely $30-$45/lt increase on the prior contract.
Players agreed that the settlement price was indicative of the broader sulfur landscape. “The 1Q price increase is simply an exercise in keeping North American markets on par with international markets,” a source said.
Looking ahead, a mix of lingering cold weather-related production outages and planned refinery turnarounds could interact with perceived lower consumption rates from some US phosphate producers in the short-term, sources said, potentially making for an unpredictable market going forward.
“(The) molten market is actually tightening up quite a bit, as there is a substantial amount of maintenance work ongoing with (the) supply-side and refineries,” said one source. “(It) appears the market will be quite volatile in terms of matching up supply/demand timing as we move forward.”
Following Tampa higher, first-quarter NOLA molten sulfur indications moved up to $119/lt CFR from $79/lt CFR. Tons delivered to Houston were indicated at $115/lt CFR for 1Q, firming from $75/lt CFR in the prior period.
Operable refining capacity pressed higher for the week ending Jan. 13, according to data released by the US Energy Information Administration (EIA), notching a second consecutive period of increased operations since Winter Storm Elliott forced production outages at a large number of US refineries in late December.
Refineries operated at 85.3% of nationwide capacity through the period, a 1.2 percentage point increase from 84.1% reported one week earlier. Despite the improvement, utilization for the period trailed both the year-ago 88.1% and five-year average of 88.4%.
Crude inputs were also higher, the EIA data showed, climbing to an average 14.853 million barrels/d, up 202,000 barrels/d from the week-ago 14.651 million barrels/d.
US Gulf:
Genscape reported numerous unit startups at the TotalEnergies Port Arthur, Texas, refinery during the week, including the plant’s 165,000 barrel/d ACU-1 crude distillation unit (CDU); a 55,000 barrel/d vacuum distillation unit (VDU); an 80,000 barrel/d fluidic catalytic cracking unit; and a number of hydrotreaters, catalytic cracking units, and coking units. The units had been reported offline since Dec. 23 due to Winter Storm Elliott. An 80,000 barrel/d CDU and 52,000 barrel/d VDU shut since Dec. 13 remained offline on Jan. 18.
With lower pricing reported into Brazil during the week, the US Gulf sulfur market softened to $130-$135/mt FOB from $148-$153/mt FOB reported previously.
Brazil:
New import pricing out of Brazil was quoted at $155/mt CFR, down from $172-$176/mt CFR in the prior report.
Sources described minimal contract activity for the first quarter, with as few as two vessels reportedly purchased under contract for January-March. Pricing for the period was believed to land in a general $172-$186/mt CFR range, above $119-$138/mt CFR noted for the fourth quarter.
Vancouver:
Recent pricing on sulfur exported from Vancouver was reported falling to $135-$140/mt FOB, a decline from $150-$155/mt FOB at last check.
Alberta:
Based both on the rising contract price of molten sulfur at Tampa and softer values noted out of Vancouver, netbacks to producers in Alberta moved to an indicated $15-$70/mt FOB range, a change from (-)$25-$85/mt FOB in the prior report. Tons contracted into the US market set the low, while prilled material selling offshore through the Vancouver export market established the range’s top end.
West Coast:
West Coast price indications followed Vancouver lower to $135-$140/mt FOB, off from $150-$155/mt FOB.
Molten sulfur contracts for tons loading from West Coast locations were reported in a $125-$135/lt FOB range for the first quarter, rising from $75-$79/lt FOB in the fourth quarter.
China:
Sources reported no new business out of China, citing proximity to the country’s upcoming Jan. 22 Lunar New Year holiday. Last-done continued to be called $155-$165/mt CFR.
ADNOC:
Abu Dhabi National Oil Co. postings for January were heard at $160/mt FOB Ruwais, a $20/mt decrease from $180/mt FOB in the prior period.
Qatar:
January offers for sulfur loading from Qatar were noted at $155/mt FOB Ras Laffan. Qatar tonnage was reported at $185/mt FOB in December, a $30/mt FOB difference.
Kuwait:
Kuwait solid sulfur cargoes were offered at $154/mt FOB for January lifting, sources said, off $29/mt from $183/mt FOB reported for December.
Junior company Gensource Potash Corp., Saskatoon, on Jan. 19 reported that Helm AG has confirmed that it will withdraw its proposed 33% ownership offer in KClean Corp., the entity created to own and operate the Tugaske Potash Project in Saskatchewan. Helm had offered C$50 million for its stake in 2021 (GM Sept. 3, 2021). Gensource said that currently KClean and the Tugaske Project are, and continue to be, 100% owned by Gensource.
Gensource explained that the Helm investment in KClean resulted in an unappealing risk-return ratio for new investors, since the investment for all parties only occurs at financial close of the full project financing. Gensource thanked Helm for its action, which now provides the opportunity for Gensource and potential investors to work with an open capital structure to complete the financing of the project.
“Although 2022 was one of the most challenging years in recent memory, we see a great opportunity with an appropriately balanced capital structure for KClean Potash Corp., which will allow Gensource to proceed with the required financing for the Tugaske Project,” said Stephen Dyer, Gensource Chairman.
Gensource said Helm remains supportive of the project and is committed as an offtaker of 100% of all granular fertilizer (250,000 mt/y) to be produced at the project pursuant to a binding 2021 offtake agreement (GM May 14, 2021). In addition, Gensource said KfW IPEX-Bank and Société Générale, the project’s mandated lead arrangers for the senior debt financing, remain engaged and fully supportive of the project.
Gensource said it continues to progress its short-term financing, which it anticipates will advance the near-complete bridge engineering work for the project. Looking forward into 2023, Gensource expects to complete financing with private equity and strategic investors to move the project into construction.
“The potash industry remains strong, and Gensource is determined to bring the Tugaske Project into production, bringing the efficiencies of its modular approach to market.” said Mike Ferguson, Gensource CEO. “In addition, the moderation of fertilizer prices to more sustainable levels is a positive sign for the agricultural producers, who drive the need for new and sustainable fertilizer production.”
CF Industries Holdings Inc. on Jan. 17 announced that it has signed a Memorandum of Understanding (MOU) with JERA Co. Inc., Japan’s largest energy generator, regarding the supply of up to 500,000 mt/y of clean ammonia beginning in 2027. The MOU establishes a framework for the two to assess how CF would best supply JERA the ammonia under a long-term offtake agreement.
The companies expect to evaluate a range of potential supply options, including a JERA equity investment alongside CF to develop a greenfield clean ammonia facility in Louisiana, and a supplementary long-term offtake agreement from CF’s Donaldsonville Complex in Louisiana
“We are pleased to continue to build our relationship with JERA as we advance our shared commitment to accelerate the world’s transition to clean energy,” said Tony Will, CF President and CEO. “Our leading ammonia production network and disciplined investments in clean energy initiatives have positioned CF Industries at the forefront of clean ammonia supply. We look forward to helping JERA and Japan meet its clean ammonia requirements, which represent the first significant volume of what we believe will be substantial global demand for clean ammonia as a clean energy source.”
“We are pleased to work together with CF Industries on this significant journey towards decarbonizing the industry, and I am confident that CF Industries’ reliable operational capabilities that formed its track record for safe and efficient production as the world’s largest ammonia producer will profoundly contribute to JERA’s structuring of the clean fuel ammonia value chain,” said Yukio Kani, JERA Corporate Vice President.
“JERA will continue its own efforts as well as to take hands with our partners in pursuit of our endeavor to realize and accelerate not only the decarbonization of the Japanese energy industry, but also to solve the energy-related issues that the world is facing,” he added.
The MOU results from a supplier comparison and evaluation process for the procurement of clean ammonia that JERA initiated in February 2022 for the world’s first commercial scale ammonia co-firing operations. The ammonia, which will be required to be produced with at least 60% lower carbon emissions than conventionally produced ammonia, will be co-fired with coal at JERA’s Hekinan Thermal Power Station in order to reduce CO2 emissions from the facility. JERA said it has successfully concluded an ammonia co-firing pilot test and will begin a demonstration project during its fiscal year 2023 at its Hekinan power plant.
Since 2020, CF has advanced projects to decarbonize its ammonia production network. This includes leveraging carbon capture and sequestration (CCS) technologies at its Donaldsonville Complex, where CF is constructing a CO2 dehydration and compression facility to enable the capture and permanent sequestration of up to 2 million mt/y of CO2, which is expected to begin in 2025 (GM Aug. 12, 2022). CF said this project could result in up to 1.7 million tons of blue ammonia per year.
CF has also commenced a front-end engineering and design study (FEED) to construct a greenfield blue ammonia facility utilizing CCS in Ascension Parish, La. (GM Aug. 19, 2022). This $2 billion, 1.7 million t/y project is with Mitsui & Co. Ltd.
In addition, CF is constructing North America’s first commercial scale green ammonia capacity at its Donaldsonville Complex, enabling up to 20,000 st/y of green ammonia production beginning in 2024 (GM Oct. 30, 2020). CF has put the cost of this project at $100 million.
