All posts by mickeybarb@charter.net

Tessenderlo Breaks Ground on Ohio Plant

Eastern Cornbelt, Europe, Featured, News, Specialty

Tessenderlo Kerley Inc. (TKI), a unit of the Brussels-based Tessenderlo Group, broke ground on Aug. 31 at its new liquid fertilizer plant in Defiance, Ohio, serving the eastern Great Lakes region (GM Dec. 31, 2021). The facility will focus on the company’s sulfur-based crop nutrition brands – Thio-Sul, KTS, and K-Row 23 – as well as sulfite chemistries for the industrial markets. The Tessenderlo Group said Aug. 25 that the plant is now expected to become operational in first-half 2024 instead of first-quarter 2024.

Tessenderlo Kerley International is slated to start construction of a new Thio-Sul plant in fourth-quarter 2022 in Geleen, The Netherlands, a push-back from the initial April 2022. It is now expected to be operational in first-quarter 2024, rather than second-quarter 2023.

Tessenderlo Group noted that its Violleau business, which is also a part of its Agro segment, is in the process of building a new organic fertilizer production plant at Tessenderlo’s Akiolis plant site in Venerolles in Aisne, France. The new production line is expected to be operational in second-quarter 2023.

In the meantime, Tessenderlo Group’s acquisition of the B.V. Fleuren Tankopslag, a tank storage and transshipment company (GM Dec. 31, 2021), closed in the second quarter and has been integrated into Tessenderlo Kerley International.

Oman Project to Produce Liquid Fertilizer; Ammonium Sulfate Eyed for Future

Ammonium Sulfate, Middle East, News, News Briefs, Specialty

Oman’s Sohar Freezone announced on Aug. 25 that it has signed a landlease agreement with Integrated Solutions Plant and Land Services (FZC) LLC for 15,000 sqm within the Freezone to establish a liquid fertilizer plant. The project represents an initial investment of OMR 2.2 million (US$5.7 million) and includes the potential for future expansion, which would see the plant produce ammonium sulfate to strengthen Oman’s export sector, especially in Pakistan and Tanzania.

“The addition of a new liquid fertilizer plant, in partnership with Integrated Solutions Plant and Land Services (FZC) LLC, enhances Sohar’s ability to serve the local, regional, and global markets with high-quality agents for industrial production,” said Omar bin Mahmood Al Mahrizi, Sohar Freezone CEO and Deputy CEO of Sohar Port.

“Sohar can offer companies in all sectors a world-class integrated logistics and industrial hub with direct shipping to key markets and broadening our tenant profile to Egypt for the first time is a key step in our ongoing expansion,” he added.

Air Products, Associated British Ports Partner on Green Hydrogen for UK

Green Ammonia, Green Hydrogen, News, News Briefs, Northeast, United Kingdom

Air Products, Allentown, Penn., and Associated British Ports (ABP), London, announced on Aug. 30 their intention to partner in bringing the first large-scale, green hydrogen production facility to the UK. The facility would import green ammonia from production locations operated by Air Products and its partners around the world. This would be used to produce green hydrogen, which would decarbonize hard-to-abate sectors such as transport and industry.

The UK government has plans for 10GW of low-carbon hydrogen to be in production or construction by 2030. Currently, there is no significant domestic production of such hydrogen in the UK. Air Products, as a first mover, aims to help drive progress towards the government’s target.

The two are working together to bring the new green hydrogen facility to the Port of Immingham. They said the location will provide the required maritime infrastructure and offers good proximity to markets and the required utilities. ABP will invest in new infrastructure, with a new jetty to service the import and export handling of liquid bulk products.

In addition to handling green ammonia, the jetty is being designed so that it can accommodate other cargoes connected to the energy transition, including the import of liquefied carbon dioxide (CO2) from carbon capture and storage projects for sequestration in the North Sea – thereby playing a significant role in the UK’s energy transition.

Immingham also sits within the UK’s largest industrial cluster and in proximity to proposed offshore transport and storage networks for CO2. The scheme follows on from an existing Air Products’ plan to develop the UK’s largest blue hydrogen facility in Immingham.

Heringer Investigating Possible Fraud

Brazil, News, News Briefs

Fertilizantes Heringer SA, Viana, Brazil, on Aug. 18 said it is investigating possible fraud in the contracting of maintenance services. It said internal investigations have preliminarily identified the main irregularities reported through its ethics channels refer to maintenance services to the company’s equipment and facilities that were possibly overpriced.

It said that if such are confirmed in the future, it is possible that there may be an impact or impairment on the value of certain fixed assets, consequentially reducing the company’s book equity. Heringer reiterated that every effort will be made to quickly conclude the investigations and confirm any accounting impacts.

UAN

Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf:

NOLA UAN barge prices shot up, with sources citing new, higher postings by CF. The price range spanned a broad range at $460-$520/st ($14.28-$16.25/unit) FOB, up from the week-ago $420-$430/st ($13.13-$13.44/unit) FOB.

Eastern Cornbelt:

UAN-32 terminal prices were ramping up quickly, with reports of new offers in the Eastern Cornbelt jumping to $530-$555/st ($16.56-$17.34/unit) FOB for limited tonnage, up from the prior week’s $470-$485/st ($14.69-$15.16/unit) FOB range. Most prompt tons out of Illinois and Ohio River terminals were pegged firmly at the $535/st ($16.72/unit) FOB level or higher at midweek.

Western Cornbelt:

The UAN-32 market moved up in the Western Cornbelt. Sources quoted new offers at $510-$535/st ($15.94-$16.72/unit) FOB, with the low reported at Port Neal for a few deals early in the week. Most locations were firmly at the higher end of the range as the week progressed.

Southern Plains:

UAN-32 prices jumped dramatically in the Southern Plains. While the previous week had reportedly seen offers down to $460/st ($14.38/unit) FOB production points in Oklahoma and Kansas, new pricing this week was confirmed at $505-$525/st ($15.78-$16.41/unit) FOB, depending on location.

UAN-32 prices out of Gulf Coast terminals in Texas were pegged firmly at the $540/st ($16.88/unit) FOB level as of Aug. 30, with rail-DEL offers into eastern Texas reported at $545/st ($17.03/unit). The higher prices have reportedly halted any new buying after what several sources described as steady business sparked by the recent rains in Texas.

“Many are balking at the run-up in nitrogen pricing amidst making plans for next year,” said one Texas contact. “Very few are coming to the table for prepay right now.”

South Central:

UAN-32 terminal prices were ramping up quickly, with reports of limited offers in the $525-$535/st ($16.41-$16.72/unit) range FOB South Central terminals, up from the last confirmed $455-$470/st ($14.22-$14.69/unit) FOB range.

Southeast:

UAN-32 pricing in the Southeast jumped to $520-$525/st ($16.25-$16.41/unit) FOB port terminals for new offers, up dramatically from the last $475-$485/st ($14.84-$15.16/unit) FOB range.

Ammonium Nitrate

Ammonium Nitrate, France, Market Watch, South Central, Southern Plains, Western Cornbelt

Western Cornbelt:

Ammonium nitrate prices were moving up in the Western Cornbelt. New offers were reported at $640-$650/st FOB in Missouri, up from the prior week’s $525-$535/st FOB range.

Southern Plains:

The last ammonium nitrate business was pegged at the $525-$550/st FOB level in Oklahoma.

South Central:

Ammonium nitrate prices were reportedly pulled at Yazoo City, Miss., but sources said indications point to $550/st FOB as the likely price when offers are once again on the table, up from the previous $450/st FOB level. New pricing FOB El Dorado, Ark., was confirmed at the $600/st level during the week.

France:

Yara raised prices for ammonium nitrate in France for September and October deliveries, and is offering limited volumes for €960/mt CPT.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains, Thailand, Turkey, U.S. Gulf, Western Cornbelt

U.S. Gulf:

New NOLA ammonium sulfate barge pricing continued to move up, firming to $405-$415/st FOB from the week-ago $390-$405/st FOB range.

Eastern Cornbelt:

The granular ammonium sulfate market was steady at $460-$480/st FOB in the Eastern Cornbelt, depending on location. In the Great Lakes region, Michigan sources pegged the market at $475-$490/st FOB, depending on location and time of shipment.

Western Cornbelt:

Granular ammonium sulfate pricing remained at $450-$480/st FOB in the Western Cornbelt, with the low confirmed at St. Louis. The Caruthersville market was reported at $450/st FOB at midweek. Delivered pricing was quoted at $465-$480/st in the region.

Southern Plains:

Granular ammonium sulfate pricing remained at $450-$460/st FOB Catoosa/Inola and Houston in late August.

South Central:

Ammonium sulfate pricing was quoted at $440-$460/st FOB in the South Central region, with the low confirmed at Memphis and the high in Arkansas.

Southeast:

Ammonium sulfate prices FOB Hopewell, Va., remained at $450/st FOB for granular, $410/st FOB for mid-grade, and $390/st FOB for standard. Pricing in the Florida market was steady as well at $395/st FOB/DEL for standard and $490/st FOB/DEL for granular.

China:

Soft demand in Southeast Asia is pushing ammonium sulfate prices down. Pushing back is continued strong demand from Brazil and growing interest from European buyers for a substitute for urea in blending. Product could also be in shorter supply as plants take planned turnarounds.

Prices are quoted at $190-$200/mt FOB for caprolactam-grade amsul, with most of the business taking place in the middle of that range.

Thailand:

Imports of ammonium sulfate for January-July 2022 were reported at 275,000 mt by Trade Data Monitor, down from the +309,000 mt imported during the same period in 2021. China was the main supplier at 224,000 mt.

July 2022 imports were reported at 60,000 mt, double the 30,000 mt imported during July 2021. China supplied 57,000 mt of the July 2022 product.

Turkey:

Imports of ammonium sulfate for January-July 2022 were reported at 731,000 mt by Trade Data Monitor, up 26% from the 579,000 mt imported during the same period in 2021. China was the main supplier with 597,000 mt.

July 2022 imports were reported at 38,000 mt, down by more than a third from the 60,000 mt imported during July 2021. China was the sole supplier in July.

Brazil:

Ammonium sulfate prices in Brazil edged upward to $280-$320/mt CFR. The higher prices were expected because of the rising urea prices. Additional price increases are also expected as Chinese producers take scheduled turnarounds.

Brazilian buyers are also facing some new competition from Europe. The high price of urea is causing some buyers to look for nitrogen substitutes. Amsul traditionally is used as a substitute for urea in blending once the urea prices get too high.

Rondonopolis also reacted to market forces, with prices now quoted at $390-$420/mt FOB ex-warehouse.

DAP/MAP

Brazil, Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Market Watch, Saudi Arabia, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

Central Florida DAP truck postings softened to $770/st FOB during the week, a $30/st fall from the previous $800/st FOB level. MAP loaded to trucks moved $40/st lower, to $790/st FOB from $830/st FOB at last report.

North Florida MAP offers were quoted at $820/st FOB, unchanged from one week earlier.

U.S. Gulf:

NOLA DAP and MAP barge prices moved higher during the week, sources said. DAP barge trades started the week in the $745-$750/st FOB range, building on the week-ago $745/st FOB top, before registering $760/st FOB business on Aug. 31 and $765/st FOB on Sept. 1.

Sources generally attributed the firmer values to perceived tight supply. Domestic producers were reportedly nearing a sold-out position for DAP barges loading in the third quarter, while rumors of DAP production cuts persisted during the week, due in part to ongoing elevated ammonia prices.

MAP barges also pressed higher, with sources typically quoting a $770/st FOB floor, an increase from the prior $760/st FOB bottom. Trades were confirmed up to $780/st FOB through Aug. 31, followed by an additional move up to $785/st FOB on Sept. 1, up from the prior week’s $779/st FOB high. A $765/st FOB barge rumored trading early in the week went unconfirmed on Sept. 1.

The nearby NOLA DAP barge market was noted in a wide $745-$765/st FOB range for the week, rising from $735-$745/st FOB in the prior report. MAP barges tracked in the $770-$785/st FOB range, above the week-ago $760-$779/st FOB.

U.S. Exports:

No new business was reported in the U.S. Gulf phosphate export market. Last-done continued to be noted in the $910-$925/mt FOB range.

Eastern Cornbelt:

DAP pricing was pegged at $795-$810/st FOB in the Eastern Cornbelt, with the Cincinnati price reported in the $795-$805/st FOB range, down from $800-$810/st FOB last week. MAP was quoted at $810-$825/st FOB regional terminals, with the Cincinnati range at $810-$820/st FOB.

In the Great Lakes region, DAP offers in Michigan were reported at $820-$835/st FOB, depending on location and time of shipment.

Western Cornbelt:

DAP was quoted at $795-$810/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and Caruthersville and the high in Iowa. MAP pricing was pegged at $810-$825/st FOB in the region, with the St. Louis market reported at $810-$820/st FOB.

Southern Plains:

DAP pricing was pegged at $795/st FOB Houston and $800-$810/st FOB Catoosa/Inola. The MAP market in late August was quoted at $825-$830/st FOB Catoosa/Inola and $825-$835/st FOB Houston.

South Central:

DAP prices fell to $800-$810/st FOB in the South Central region, down $10/st at the high end of the range. Sources pegged the Memphis DAP market at $805-$810/st FOB in late August.

Southeast:

MAP pricing from Nutrien remained at $820/st level FOB Aurora, N.C., and White Springs, Fla. DAP is currently unavailable at Aurora.

Saudi Arabia:

Ma’aden is on track to complete Phase 1 and Phase 2 of the company’s planned Phosphate 3 complex, located in the industrial city of Ras Al-Khair, by 2025 and 2027, respectively, Zawya reported. The $6.4 billion Phosphate 3 project is expected to lift Ma’aden’s total nameplate production capacity from 6 million mt/y to 9 million mt/y when completed.

Recent phosphate business at Saudi Arabia was reported in the $800-$850/mt FOB range.

India:

Buyers continue their direct talks with producers in China and the Arab world. Sources reported a major deal between OCP and Indian buyers. The Moroccan phosphate giant will send 14 cargoes of DAP in September and October. The price is a reported at $820/mt CFR with 60 days credit.

International traders estimated that should cover India’s DAP needs for the year and should also provide a floor on prices. Reportedly, the deal also eases pressure on Morocco to find buyers.

Imports of DAP for the first half of the year were reported at 2.2 million mt by Trade Data Monitor, up 37% from the 1.6 million mt imported during the same semester in 2021. Saudi Arabia, Morocco, China, and Russia accounted for 1.9 million mt of the DAP imported during the period.

Second-quarter DAP imports were reported at 847,000 mt, down 40% from the 1.4 million imported during the same period of 2021.

June 2022 imports were reported at 169,000 mt, down dramatically from the 847,000 mt imported during June 2021. The drop was not surprising. The rising cost of DAP, largely because of the withdrawal of Chinese product from the global market, caused India to hold back on purchasing until new and better deals could be arranged.

China:

Exports out of China remain limited and usually handled quietly between buyers and producers. Sources said the latest India purchase from Morocco at $820/mt CFR with 60 days credit moves the China-equivalent price to $790-$795/mt FOB.

Brazil:

The MAP price in Brazil remained stable at the ports at $800-$860/mt CFR. Sources reported the possibility of some smaller deals taking place at sub-$800/mt CFR levels, but not enough to shift the market.

Trading is way down in Rondonopolis. Sources said prices softened to $880-$960/mt FOB ex-warehouse.

TSP

Eastern Cornbelt, Market Watch, South Central, Triple Superphosphate, U.S. Gulf, Western Cornbelt

U.S. Gulf:

Sources reported widening NOLA TSP barge values during the week, with trades quoted in the $675-$710/st FOB range, a shift from $690-$695/st FOB at last report. Most business was heard landing at $680-$695/st FOB.

Eastern Cornbelt:

The TSP market remained at $725-$745/st FOB Cincinnati.

Western Cornbelt:

The TSP market slipped to $725-$760/st FOB for the last confirmed offers in Missouri, with the low reported at St. Louis and the high at Caruthersville.

South Central:

TSP warehouse pricing in the South Central region slipped to $755-$760/st FOB from the prior $770-$775/st FOB range.

Phosphoric Acid

Eastern Cornbelt, India, Market Watch, Phosphoric Acid, Southern Plains, Western Cornbelt

Eastern Cornbelt:

September phos acid postings in the Eastern Cornbelt remained at $14.00/unit rail-DEL, unchanged from August.

Western Cornbelt:

Phos acid prices were steady at $14.00/unit rail-DEL in the region for September tons, unchanged from the August price.

Southern Plains:

September pricing for phos acid remained at $14.00/unit rail-DEL level in the Southern Plains, unchanged from August.

India:

Phosphoric acid contracts between Jordan and India were valued at $1,715/mt P2O5 CFR for the second and third quarters, increasing $185/mt from $1,530/mt P2O5 CFR in the first quarter.