All posts by mickeybarb@charter.net

Tessenderlo Plans Exchange Offer for Picanol

Europe, News, News Briefs, Specialty

Tessenderlo Group NV, Brussels, and Picanol Group NV, Ypres (Ieper), plan to combine companies into one industrial group, eventually having one stock exchange listing and one Board of Directors, according to a joint statement.

By combining the cash flows of all business units, Tessenderlo and Picanol believe acquisitions and investments can be made more easily across the economic cycles.

Additionally, by combining both groups into one industrial group, the existing shareholders of the two groups will have the opportunity to participate directly in each new project, and there will no longer be a question of which group will realize which project, according to the statement.

The reference shareholders Luc Tack and Patrick Steverlynck will contribute the shares they hold in the Picanol Group in kind in Tessenderlo. The remaining Picanol shareholders (free float of 10.66%) will also be offered the possibility to become direct shareholders of Tessenderlo at the same exchange ratio, whereby one Picanol Group share can be exchanged for 2.43 Tessenderlo Group shares.

Tessenderlo is valued for the purposes of the exchange offer at €1.66 billion, while Picanol is valued at €830.8 million in relative terms. The exchange offer values Picanol at about €72.29 a share based on Tessenderlo’s closing price on July 7 (the day prior to the exchange offer announcement), representing a premium of about 17% to Picanol’s July 7 closing price, according to a Bloomberg report.

Picanol Group will be included as a business unit in Tessenderlo’s Machines & Technologies segment. The integrated group will thus consist of the following five business segments: Agro, Bio-valorization, Industrial Solutions, Machines & Technologies, and T-Power.

The new group will have sales of approximately €2.7 billion and an adjusted EBITDA of more than €430 million based on 2021 figures.

Tessenderlo’s headquarters will remain in Brussels and Picanol’s headquarters in Ypres. The two groups do not expect the combination of activities to impact on the current employment.

The Boards of Directors of both groups support the exchange offer, and the Tessenderlo Board will submit the issuance of new shares of Tessenderlo in the fourth quarter of this year for approval at an EGM.

Tessenderlo and Picanol expect the integration to become effective as of Jan. 1, 2023.

Kalium Lakes Set for First Commercial SOP Sales from Beyondie

Australia, News, News Briefs, Specialty, Sulfate of Potash

Australian sulfate of potash (SOP) junior Kalium Lakes Ltd., Balcatta, Western Australia, reported that it had achieved cumulative production of 1,000 mt of commercially saleable SOP as of June 29 at its Beyondie SOP project located 160 km southeast of Newman, in Western Australia.

In an operating and corporate activities statement on July 1, the company said the first commercial sales were scheduled for mid-July through offtake partner Germany’s K+S, with whom Kalium has a binding 10-year offtake agreement for the purchase of up to 90,000 mt/y (GM March 29, 2019).

Kalium Lakes is expecting Beyondie to be operating at an approximate 80,000 mt/y SOP production run rate by the first quarter of calendar year 2023, with a targeted 120,000 mt/y run rate to be established by the third quarter of calendar year 2024.

Beyondie produced its first batch of SOP on Oct. 4, 2021, during the product commissioning process, making Kalium Australia’s first SOP producer (GM Oct. 8, 2021).

All of the SOP fertilizer currently used in Australia is imported, and Germany’s K+S supplies around 60 percent of the import volume.

Bolivia to Build NPK Plant; Bulo Bulo Six-Month Urea Output Reported

News, News Briefs, NPK, South America

Bolivia’s President Luis Arce signed an agreement this past week for the construction of an NPK fertilizer plant in the country’s central Cochabamba province, which will use urea from the Bulo Bulo plant, according to a BNamericas report.

The proposed new fertilizer plant is seen as strengthening the country’s agricultural sector and will help reduce input costs.

According to the report, the Bolivian Industrialization and Hydrocarbons Co. (EBIH) and the construction company Sur Energy SRL have inked the construction contract for the plant, which is to be located in the Santivañez Industrial Park, in the Santivañez municipality.

The value of the construction contract is put at $8.9 million, according to a Bloomberg report, citing state media, which in turn cited Bolivia’s Hydrocarbons and Energy Minister Franklin Molina.

EBIH will manage the new production facility, which is expected to start operations in July 2023, and have a potential production of 60,000 mt/y, according to Molina.

Bulo Bulo is Bolivia’s only nitrogen fertilizer production facility. Also located in Cochabamba province, it has a nameplate capacity of 2,100 mt/d of granular urea.

The plant, which is operated by the country’s state-run oil and gas company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), restarted production last September after an almost 22-month hiatus (GM Sept. 10, 2021).

The Bulo Bulo plant produced 273,688 mt of urea in the six months to June 30 this year, Bloomberg reported, citing a YPFB press release. Some 85% of the output was exported, and 15% sold in the domestic market. The total value of the six-month urea exports was put at more than $160 million.

The main markets are Brazil and Argentina, according to the report.

ICL, Aleees Taiwan, Ink MOU for Production of LFP Battery Materials

Israel, Lithium, News, News Briefs, Taiwan

ICL Group Ltd., Tel Aviv, has signed a Memorandum of Understanding (MOU) with Aleees, a Taiwanese manufacturer of lithium iron phosphate (LFP) battery cathode materials.

As part of the understanding, Aleees will grant licensed technology on LFP to ICL and will also provide the company with technical information and support services to accelerate the development of cathode material production in the U.S., ICL said in a statement announcing the MOU.

Plans call for ICL to establish production of 30,000 mt, and also future ramp up, for LFP battery cathode materials at its manufacturing campus in St. Louis, Mo., which is also ICL’s North American headquarters and where the company has a global R&D center.

“ICL is excited to lead the establishment of a localized, integrated, sustainable supply chain of LFP battery materials for U.S.-based customers and to reduce the risk for U.S. companies currently dependent on foreign supply of LFP materials,” said ICL Phosphate Specialties President and ICL North America Managing Director Philip Brown.

“The global energy storage market has clearly shifted toward LFP batteries as the dominant, more sustainable, safer, and cost-effective solution, and we expect our future production to be exclusively dedicated to this area, with our demand estimated to surpass 170,000 mt by 2025, and 500,000 mt by 2028,” said Aleees President Edward Chang.

Aleees has customers in Japan, South Korea, and Europe, as well as the U.S.

Uzbekistan Ramps Up Chemicals/Fertilizers Output

Asia, News, News Briefs, Nitrogen, Phosphate, Potash

Uzbekistan in the second half of this year is targeting to increase its production of fertilizers, including up to 650,000 mt of nitrogen fertilizers, up to 120,000 mt of potash, and up to 70,000 mt of phosphate, according to a bne IntelliNews report, citing plans by the country’s chemical regulator.

Most of the Uzbek potash exported goes to China and Ukraine, according to Trade Data Monitor statistics. India last imported Uzbek potash in 2017, importing 27,487 mt, according to TDM.

In the first half of 2022, the country increased its output of chemical products (which is presumed to include fertilizers and raw materials) by 11%, with the value of total production increasing to almost $636.3 million. The value of chemical products exports in the six-month period reached $218 million, according to the chemical regulator, as cited by the report.

Uzbekistan’s chemical/fertilizer sector historically has operated with chronic losses, but was able to achieve profitability last year.

The country is targeting production to reach $1.3 billion by the end of 2022, with export revenue projected to hit $425 million, according to the chemical regulator.

BCI Minerals Mardie Salt/SOP Project Faces Delays, Mulls Asset Sales

Australia, News, News Briefs, Specialty, Sulfate of Potash

Australian junior salt and sulfate of potash (SOP) producer BCI Minerals Ltd., West Perth, expects the first shipment of salt from its 100% owned Mardie salt and potash project on the Pilbara coast of Western Australia to be delayed after the company revealed the project is experiencing “significant” cost increases.

BCI said in a July 7 statement the first salt shipment “indicatively” will sail in the second half of 2025. The company as recently as this past February had been targeting first salt sales in late 2024 (GM Feb. 25, p. 32).

The cost increases also may result in asset sales to fund the Mardie project, BCI said in its statement.

The company said the cost increases due to current market conditions are being compounded by a potential design restructure to the project to comply with third-party approvals and delays to secondary approvals, as well as recent weather effects and ongoing COVID-related labor pressures.

BCI continues to assess further value engineering opportunities, conduct reviews of design assumptions, and advance design maturity of all packages to reduce risk and partially offset the cost increases, the company said in its statement.

It said it will confirm the projected net impact of market conditions, design changes, remaining approvals, and cost saving initiatives when the reviews have been sufficiently advanced to produce a reliable cost estimate.

Once a reliable cost estimate has been established, the company said it will discuss funding solutions with shareholders and lenders. It said these funding solutions “may include asset sales.”

The salt and SOP junior is developing what will ultimately include a 100 km2 evaporation pond and crystallization system, two processing plants, and a new export facility, and will be designed to produce about 5.35 million mt/y of high-purity salt and about 140,000 mt/y of SOP.

Indonesian Farmer Platform AgriAku Raises $35 M

Indonesia, News, News Briefs

AgriAku, a Jakarta, Indonesia-based agritech firm, has secured $35 million in a Series A funding round led by Alpha JWC Ventures, with participation from Gojek investment arm Go-Ventures, as it looks to expand its team and product range, Nikkei Asia reported, citing a Singapore-based financial news website DealStreetAsia interview with an Alpha JWC Ventures’ executive.

Founded in May 2021, AgriAku is a B2B marketplace that connects retailers of farming equipment with suppliers of agricultural input such as seeds, fertilizers, and agrochemicals.

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, Market Watch, Middle East, North Africa, Northern Plains, Northwestern Europe, Southeast Asia, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf/Tampa:

A New Orleans ammonia barge was reported to have traded at $1,000/st, which would reflect a $1,102/mt CFR Tampa equivalent. Tampa ammonia for July was $960/mt CFR, with August to be concluded later this month.

Sources expect more U.S. product to go to Europe in the near term as the continent’s own production is idled or threatened by high natural gas prices. As a result, what had earlier been tabbed as long inventories in NOLA will be reduced.

While most sources are bullish for Tampa in the near term, others said there has been much demand destruction since the earlier run-up to $1,625/mt CFR. As a result, they said prices may go up, but a huge jump is not anticipated.

U.S. Imports:

May ammonia imports were reported at 324,423 st, according to data released by the U.S. Census Bureau, a 28.7% increase from the year-ago 252,102 st. July-May volumes were noted at 2.51 million st, up 5.7% from the year-ago 2.38 million st.

U.S. Exports:

Ammonia exports were up 76.0% in May, to 71,203 st from the year-ago 40,462 st. July-May exports softened 26.7%, however, to 370,038 st from the year-ago 504,625 st.

Eastern Cornbelt:

Ammonia fill pricing in the Eastern Cornbelt remained at $950/st FOB terminals in Illinois, Indiana, and Ohio for 3Q delivery, with sources reporting offers still on the table during the week.

Western Cornbelt:

Ammonia fill offers in the Western Cornbelt remained in a broad range at $825-$950/st FOB, with the low reported at Hoag, Neb., and the high reflecting reference prices at Palmyra, Mo. Sources also reported some fill tons offered at the $925/st level FOB Wever, Iowa.

Northern Plains:

Ammonia fill offers were reported at $900/st FOB Velva, N.D., in early July. Delivered fill pricing covered a much broader range at $825-$950/st in the Northern Plains, depending on supplier, with the low confirmed in North Dakota from at least one producer.

Northwest Europe:

Europe remains an expensive bubble in the global ammonia market. Sources said the recent hike in natural gas prices pushed the estimated production cost of ammonia to $1,900/mt. While no one is paying this, the estimated high price just added strength to the desire to import ammonia instead of manufacture it.

Sources are reporting a deal out of Northwest Europe at $1,250/mt C&F. The price reflects gas prices from a couple of months ago. The impact of the current gas price increase is not expected to be felt until September. However, the price rise did increase the frequency of rumors that more ammonia plants will be closing in the next 6-8 weeks.

With the threat of higher production costs, sources said imports of ammonia will look more attractive. Even with higher freight rates related to the longer distances the ammonia has to travel, said one trader, the imported price should be less than local production.

Sources noted that there is plenty of ammonia available around the world – except in Europe – because of steady production and reduced demand. Reportedly, Arab Gulf and Indonesian producers are building up excess tons that could be sent to Europe at rates well below the European production cost.

Middle East:

Sources said the only product moving out of the region was tied to long-term contracts. No new spot business was reported, leaving the price at $900-$950/mt FOB.

The lack of spot deals has not prevented people from talking about pricing, however. Sources said producers are struggling to hold the line at $900/mt FOB in informal talks with potential buyers. The bidding price is in the $890s/mt FOB and lower. So far, the two sides have not bridged the gap.

This past week was slow in the region because of the EID holiday and the lack of any spot inquiries.

Producers are also facing requests from major buyers in Asia to slow down shipments as much as possible due to reduced demand, especially in Taiwan and South Korea. This desire by the buyers to slow down deliveries and to take the minimum required under contracts is said to be building up excess product in the Arab Gulf.

Southeast Asia:

Sources said Indonesia has at least one ammonia cargo looking for a home in August. So far, there has been limited interest from buyers in the region.

Demand for ammonia in Asia has slowed down as industrial output in the region wanes. Reportedly, buyers are telling their suppliers, especially in the Arab Gulf, to delay any contracted shipments as long as possible. These same buyers are also pushing back against suppliers looking to send extra material with each cargo.

Rumors are circulating that China has stopped all ammonia imports. Sources said it would not take much for China to drop to near zero imports. The last figures available through Trade Data Monitor showed January-May 2022 imports at 100,000 mt, down almost 80% from the 469,000 mt imported during the same period in 2021.

Reportedly, China is not only slowing down its imports, but sources said some of the tonnage recently received is being packaged for re-export to Southeast Asian buyers. The need for ammonia in China has waned as industrial output slows down. Much of the ammonia needed for industries is being supplied by domestic producers.

North Africa:

Phosphate giant OCP continues to take its regular tonnage from a variety of sources. Traders said OCP does not seem to be in the market for any tonnage above and beyond its current contracts. The lack of spot inquiries is helping keep the global market on the long side of supplies.

Black Sea:

The continued closure of Ukrainian ports because of Russia’s invasion means no new tons are able to flow out of the Black Sea. Traders said any prices being discussed are merely speculation.

Urea

Africa, Black Sea, Brazil, China, Eastern Canada, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Urea, Western Cornbelt

U.S. Gulf:

NOLA granular urea prices perked up during the week, firming to $515-$558/st FOB from the week-ago $495-$525/st FOB. The new business occurred before India announced a tender for 500,000 mt of urea versus the expected 1.5 million mt, however, which many saw as putting a damper on the market.

U.S. Imports:

May urea imports totaled 603,981 st, up 2.3% from the year-ago 590,160 st. July-May totals were reported at 5.74 million st, up 22.0% increase from the year-ago 4.70 million st.

July-May imports from Qatar stood at 1.09 million st. Russia’s 186,516 st total for May moved that country into second place with 903,448 st, ahead of Oman’s 866,523 st. Saudi Arabia added 832,757 st through the period.

The U.S. Census Bureau released corrected import data for Qatar, reducing April imports originating from Qatar to 109,128 st, down from 600,207 st reported previously.

U.S. Exports:

May urea exports moved 318.3% higher year-over-year, to 160,879 st from 38,460 st. July-May totals were up 11.5%, to 804,319 st from 721,277 st.

Eastern Cornbelt:

A firming NOLA barge market pushed urea terminal prices up roughly $15-$20/st from last week, to $565-$590/st FOB in the Eastern Cornbelt, depending on location. Sources quoted the Cincinnati, Ohio, market at $565/st FOB early in the week before firming to $575-$580/st FOB as the week progressed.

Western Cornbelt:

Urea prices were up roughly $20/st, to $555-$580/st FOB in the Western Cornbelt, with the low confirmed at St. Louis, Mo., and the high in Iowa.

Northern Plains:

Fueled by a firming NOLA market, urea pricing moved up to $610-$680/st in the Dakotas, depending on location and supplier, up from the last reported range of $545-$610/st. Sources confirmed the bulk of new offers in the $630-$690/st DEL range in North Dakota, with the Carrington, N.D., market pegged at the $640/st FOB level.

The St. Paul, Minn., urea market was quoted at $565-$575/st FOB for the last offers, but sources said most of the tons there had been cleaned up by mid-July. In the Pacific Northwest, urea prices firmed $30/st on June 13, moving to $625/st FOB Rivergate, Ore.

Northeast:

The Northeast urea market was up slightly at $600-$630/st FOB Baltimore, Md., and other regional terminals, with the East Liverpool, Ohio, market pegged at the $615/st FOB level at midweek.

Eastern Canada:

The urea market in Eastern Canada was reported in a broad range at C$1,180-$1,300/mt FOB during the week, depending on location and supplier, down considerably from the last C$1,240-$1,465/mt FOB offers confirmed in June.

India:

IPL called a urea tender to close on July 20 with a shipping deadline of Aug. 31. The Indian company also said it would be buying only 500,000 mt in this tender.

For more than a month, sources have been saying that the next Indian tender would need to secure at least 1.5 million mt to allow the country to keep up with demand. Two follow-up tenders would also have to pull in similar amounts to ensure that the country closes out the application season without any shortages and has enough urea in reserve to start the next season.

The move to buy only 500,000 mt is expected to have a dampening effect on global prices. Sources noted that Arab Gulf and Indonesian producers have been holding back on spot deals to ensure plenty of material for a tender designed to take more than 1 million mt.

International traders said the surplus of product left over from the tender could push down prices. In general, sources all agreed that prices offered in the tender will be lower than the $716-$721/mt CFR achieved in the last tender. A lot of discussion focused on $650/mt CFR, with others arguing for even lower prices.

Traders also said the most likely scenario will have another urea tender for 500,000 mt called soon after the IPL awards are made and letters of intent to buy are accepted. Prices could still be lower than the current price, but not below the price from the July 20 tender. By the third 500,000 mt tender that many anticipate, prices are expected to have most likely rebounded to at least current levels.

Sources said they expect to see mostly Arab Gulf and Indonesian urea offered in the latest tender. One trader said maybe one cargo from China might be involved, but he would not bet on it.

The Indian government has been talking with Russia about securing its fertilizers needs. The most commonly heard vehicle for the trade would be either barters of grain for fertilizer or payment through a rupee-ruble exchange program. This latter plan is already in place for smaller deals. Reportedly, it is being ramped up to handle oil and natural gas purchases as well.

Sources said any deal for urea outside the current tender process bumps up against Indian law and regulations. Purchases of DAP and MOP can be handled in a multitude of ways that can allow the importers to avoid U.S. and E.U. sanctions. Agricultural urea, however, must be imported only through public tenders, according to Indian regulations.

Reportedly, the government is moving to make the necessary changes that would allow for government-to-government urea deals to take place outside the usual tender process. However, implementing those changes could still take months.

The Indian government requires all urea imported for farm use to be coated with neem. This coating helps delay absorption into the soil and makes the urea unusable for industrial buyers. The steps were taken to ensure that the highly subsidized urea for farmers was not being diverted to industrial buyers, who must pay the market rate for their urea.

Local media reported that some companies have worked out a way to remove the neem coating and divert subsidized urea to industrial use. According to the government, about 1 million mt/y has been diverted to industrial use, costing the government about $750 million in subsidies.

The Department of Fertilizer created a “Fertilizer Flying Squad” to conduct surprise inspections of urea handling facilities to end the black marketing of subsidized urea. The squad is also investigating reports of urea smuggling to Nepal.

Groundbreaking occurred for the first nano urea plant by IFFCO. The product is expected to replace standard urea, which could lead to an end to urea imports by 2025. The new plant is expected to be turning out nano urea in the second half of 2023.

Indian media reported that a storm at an RCFL bagging facility damaged 50,000 bags of urea, or about 2,250 mt. The bags were prepped and ready for loading on a train for delivery to local distributors.

China:

Availability of urea for export is a question international traders cannot answer. Sources said the official line from Beijing is that the severe restrictions on urea exports will remain in place through April 2023. At the same time, however, there are reports that some cargoes are being exported.

With an Indian tender closing soon, sources would normally begin calculating how many tons will be offered from China, Russia, the Arab Gulf, and Indonesia. This time, however, few think Chinese material will be offered.

Sources said talk of an export price of $550/mt FOB would not be out of line, given the estimated domestic price and the price out of the Arab Gulf. However, there is no evidence of new prices paid by traders or end users, leaving the last public price of $685-$690/mt FOB still in place. Once awards are issued in the IPL tender, sources said market watchers can calculate new estimated netbacks for Chinese urea.

Indonesia:

No new deals have moved the urea price from the $547/mt FOB mark from late last month. Sources said Kaltim is gearing up for a tender next week. The most likely timing will allow for the material sold to be included in the Indian tender. That would mean August shipments.

Middle East:

Opportunities to check prices this week were limited due to a quiet global market and the EID holiday. Sources said some small spot deals were done at $580/mt FOB, but without confirmation of buyer or seller.The price, however, fits with rumors of the price out of China and the $547/mt FOB out of Indonesia.

Ethiopia:

Imports of urea for the first half of 2022 were reported at 345,000 mt by Trade Data Monitor. This is marginally up from the 343,000 mt imported during the same period of 2021.Second-quarter imports were reported at 345,000 mt, up from the 155,000 mt imported during April -June 2021.

June 2022 imports totaled 194,000 mt, dramatically up from the 43,000 mt imported in June 2021. Egyptian urea dominated the market with 150,000 mt for 77% of the imports. The United Arab Emirates came in second with 44,000 mt for the remaining 23% of imports.

Brazil:

Urea prices slipped to $610-$630/mt CFR, down from the prior week’s $650-$680/mt CFR range. Sources reported rumors of Russian material being offered at the $600/mt CFR level, but without confirmation. International sources said the low price could be seen as an incentive to bypass the U.S. and E.U. sanctions against Russia.

Whatever the price, Brazilian sources said demand for urea is down. Reportedly, farmers are waiting for better crop prices before stepping up to make any major purchases.

The lack of interest in buying urea is also being felt inRondonópolis. Sources said prices drifted lower to $730-$780/mt FOB ex-warehouse.

Black Sea:

Sources report the estimated price for urea out of the Black Sea has moved up to $520-$545/mt FOB. The lack of transparency in the deals done with Russia makes confirming the price difficult. The upper end of the price range represents where prices could be based on prices from the Arab Gulf. The lower end fits with reports that some countries are trying to work out deals below the existing market price.

One trader noted that if Russia is able to offer tons into the upcoming IPL/India tender, prices could crash. Sources said, however, that traders and financial houses remain wary of handling any Russian material for the open market. The U.S. has made it clear that urea is not on the sanctioned lists issued by it and the E.U. The American government has assured bankers and insurance companies they will not face penalties if they finance urea sales.

UAN

Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, UAN, Western Cornbelt

U.S. Gulf:

NOLA UAN was reported at $440-$450/st ($13.75-$14.06/unit) FOB, down from the week-ago $440-$460/st ($13.75-$14.38/unit). Nutrien posted a price of $450/st ($14.06/unit) on July 8, with most sources awaiting word on a CF fill program.

There was much speculation as to when the fill program might come, with most saying it would likely be some time after the U.S. International Trade Commission’s July 18 decision on imports from Russia and Trinidad and Tobago.

U.S. Imports:

May UAN imports were noted at 77,809 st, off 74.4% from 304,070 st in the prior year. July-May totals stood at 1.62 million st, falling 32.5% from the year-ago 2.40 million st.

Trinidad and Tobago continued to lead July-May imports despite logging no new U.S. imports for the March-May period. Cargoes loading from Trinidad and Tobago held flat at 542,614 st, off 37.1% from the year-ago 863,280. Russia followed with 497,281 st, down 48.8% from the prior-year period. Canada added 438,969 st.

U.S. Exports:

UAN exports for May firmed 12.3% year-over-year, to 78,441 st from 69,852 st. July-May exports were 24.0% lower, however, to 515,109 st from 678,068 st in the prior year.

Eastern Cornbelt:

The UAN-32 market remained at $515-$545/st ($16.09-$17.03/unit) FOB in the Eastern Cornbelt, depending on location, with the low reported at Cincinnati. UAN-28 offers at Cincinnati were steady at the $480/st ($17.14/unit) FOB level at mid-month.

No fill offers were circulating, with most sources saying they expect some programs to be announced after July 18.

Western Cornbelt:

UAN-32 remained in a broad $480-$520/st ($15.00-$16.25/unit) FOB range for prompt tons in the Western Cornbelt, depending on location. No fill programs were out yet.

“If UAN doesn’t drop significantly, then fill will be very light,” predicted one regional source. “Dealers are sitting on very high receivables and not in the mood to buy much until they collect money.”

Northern Plains:

The last reported prompt offers for UAN-32 were pegged at the $595/st ($18.59/unit) level FOB Winona and Pine Bend, Minn. Prompt UAN-28 pricing out of terminals in North Dakota was reported as low as $475/st ($16.96/unit) FOB for new offers.

Northeast:

UAN-32 prices in the Northeast were under pressure as the industry awaits fill program offers. Prompt pricing FOB Baltimore dropped to $635/st ($19.84/unit), down from $660-$685/st at last report, with new offers out of terminals in upstate New York reported at the $600/st ($18.75/unit) FOB level, down from the earlier $616/st.

UAN-32 prices fell even more in the Southeast, where sources confirmed new prompt offers for as low as $480/st ($15.00/unit) FOB Augusta, Ga., in mid-July.

Eastern Canada:

The UAN-28 market covered a wide range at C$760-$850/mt (C$27.14-$30.36/unit) FOB in Eastern Canada, down from the last reported C$838-$925/mt (C$29.93-$33.04/unit) FOB level. UAN-32 pricing in the Ontario market slipped to C$868/mt (C$27.13/unit) FOB, below the C$955/mt (C$29.84/unit) FOB level reported in late June.