All posts by mickeybarb@charter.net

Keras to Focus on Utah Phosphate Project

News, News Briefs, Pacific N.W., Phosphate Rock, Specialty, United Kingdom

UK-based Keras Resources plc reported on May 18 that it is now fully-focused on its North American business, targeting the organic fertilizer market through Diamond Creek, the company’s organic phosphate rock mine in Utah, which is wholly-owned through Falcon Isle Resources LLC (GM Oct. 21, 2022). This comes after Keras agreed to award its manganese exploitation permit to a Togolese state-owned company for US$1.7 million along with ongoing cashflows associated with future production.

Keras said it will use the proceeds from the Togo agreement to advance the Diamond Creek business. It said it is now fully funded to fast track the start and exploration program to prove up a NI 43-101 complaint mineral resource; convert the current mining permit to a large-scale permit; complete the build of the granular plant; and research the development of liquid organic products from existing product streams to access markets not already served.

BRANDT to Break Ground on New Plant

Eastern Cornbelt, Featured, News, Specialty

Illinois-based BRANDT Inc., a professional agronomic retailer and manufacturer of specialty ag products, said on May 19 that it is set to break ground on a new production facility in Aurora, Neb., later this summer. The facility, to be called Advanced Ag Formulations, is expected to open for production in third-quarter 2024.

The company said the facility is designed to be nearly 100,000 square feet and will produce the full line of BRANDT’s specialty ag products, including its flagship product technologies – BRANDT Smart System, BRANDT Manni-Plex, and BRANDT EnzUp.

“We are thrilled to break ground for this new plant in such a key strategic location,” said Bill Engel, BRANDT Executive Vice President. “When this plant comes online, we’ll be able to better serve our existing and new customers in the upper Great Plains.”

The plant will join BRANDT’s network of specialty formulations manufacturing plants. BRANDT operates plants in Pleasant Plains, Ill.; Avon Park, Fla.; Logan, Utah; Fresno, Calif.; and Visalia, Calif. BRANDT also has manufacturing in Brazil and Spain.

“This is our first ‘clean-sheet’ plant in the US for many, many years,” said Engel. “We’re planning to implement the latest technologies and include process best practices to create a state-of-the-art facility. Our goal is to build and operate the most efficient BRANDT plant right here in Aurora.”

BRANDT is currently marking its 70th year in business. “I’m very proud to break ground on this plant in our platinum anniversary year,” said Engel.

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, Market Watch, Middle East, Northwestern Europe, South Central, South Korea, Southern Plains, Tampa, U.S. Gulf, Western Cornbelt

US Gulf/Tampa:

Falling natural gas prices in Europe and plentiful ammonia supplies in NOLA are expected to pressure the Tampa ammonia price for June. Yara announced that it was bringing its Ferrara, Italy, nitrogen plant back up. Other industry observers doubted there would be a mad rush to return European plants to production, however, as the cost to do so is still high compared to simply importing product.

NOLA observers said prices are under pressure, and have fallen from the recent $335-$345/st FOB to sub-$300/st FOB.

Eastern Cornbelt:

Ammonia prices in the Eastern Cornbelt dropped again as demand remains light ahead of the sidedress season. The market was quoted at $490-$500/st FOB in the region, down from last week’s $500-$550/st range, with the low confirmed in Illinois and Indiana and the high in Ohio.

Western Cornbelt:

Ammonia slipped to $450-$490/st FOB in the Western Cornbelt, down from last week’s $465-$500/st, with the low confirmed in Nebraska and the high in Missouri. The Fort Dodge, Iowa, market was quoted at the $465/st FOB level at midweek.

Southern Plains:

The ammonia market was quoted at $450-$490/st FOB production points in Oklahoma and Kansas, depending on location. The latest truck offers out of Beaumont, Texas, were pegged at the $335/st FOB level.

As one source put it, however, “I wouldn’t put any credibility in the pricing that is out there. No one wants to buy unless they are running conversions for 10-34-0, and they don’t want that either.”

South Central:

Truck offers for ammonia dropped to $335-$350/st FOB Gulf Coast terminals in the wake of the softer Tampa price for May. Other terminal prices in the South Central region were lower as well at $350/st FOB Hopewell, Va., and $400/st FOB Cherokee, Ala., and Midway, Tenn.

Black Sea:     

The renewal of the deal allowing Ukrainian grain to ship from Black Sea ports has also rejuvenated Russia’s interest in reopening the Togliatti-Odessa ammonia pipeline, closed early in the Ukraine war. Efforts to reopen the pipeline have been criticized by many in the industry due to the dangers of moving ammonia through a war zone.

In order to once again move its ammonia out in quantity, Russia has stepped up efforts to enhance the port in Taman, located near Crimea. The Russian government hopes to upgrade the port to handle ammonia by be end of the year, and to increase the facility’s shipping capacity in coming years.

Northwest Europe:      

Sources said the market has gone quiet. Talks of deals continued at the current $370s/mt CFR level and below, but with no confirmed sales. The imported price remains lower than what it costs European companies to produce ammonia. Sources put the production cost around $400/mt ex-plant, with the rate a bit lower at more efficient plants.

Italian producer Ferrara has restarted its ammonia and urea production. The plant’s current output will be focused on covering existing contracts, instead of offering material to the spot market. The facility has a nameplate ammonia capacity of 600,000 mt/y.

Russian efforts to export ammonia include setting up a system to move product out of a port near St. Petersburg. Sources said the limited capacity for ammonia loading in the Russian Baltic ports has led Russian suppliers to devise a plan to load ammonia directly from railcars to a holding vessel. The product will then be transferred to other ships for delivery to international buyers. The plan is expected to be operational in June.

Middle East: 

Sources reported steady business related to contract sales from the Arab Gulf. No new spot deals were reported.

January-April ammonia exports from Iran totaled 195,000 mt, Trade Data Monitor reported, a roughly 18% increase from the year-ago 165,000 mt. April exports were noted at 52,000 mt, up marginally from 49,000 mt shipped in April 2022. India received the bulk of the April tonnage with 46,000 mt, while Turkey took the 6,000 mt balance.

South Korea:

January-April ammonia imports were counted at 361,000 mt, according to Trade Data Monitor, a 32% decline from 527,000 mt recorded through same period of 2022. The drop confirmed reports of lower ammonia demand in South Korea during the first quarter of the year.

April imports softened 44% year-over-year, to 66,000 mt from 119,000 mt. Saudi Arabia supplied 45,000 mt, while Indonesia sent 21,000 mt.

Urea

Africa, Black Sea, Brazil, China, Eastern Cornbelt, India, Market Watch, Middle East, Poland, South Central, South Korea, Southeast, Southeast Asia, Southern Plains, U.S. Gulf, Urea, Western Cornbelt

US Gulf:

Prompt urea barges started the week as high as $465-$475/st FOB. By midweek, they were called $405-$420/st FOB. Second-half May became $350-$365/st FOB, while first-half June fell to $320/st FOB. There were reports of all-June below $300/st FOB.

Eastern Cornbelt:

Urea was down slightly in the Eastern Cornbelt, to $480-$500/st FOB from the prior $495-$520/st FOB range. The Cincinnati, Ohio, urea market was pegged in the $480-$490/st FOB range during the week.

Western Cornbelt:

Urea remained at $480-$520/st FOB in the Western Cornbelt, with the low confirmed at St. Louis, Mo., and the high reported in the Iowa market.

Southern Plains:

Urea was quoted at $480-$510/st FOB in the Southern Plains, with the high confirmed at Houston, Texas. The Catoosa/Inola, Okla., urea market reportedly dropped to $480-$490/st FOB after beginning the week at the $495/st FOB level or higher, with inventories continuing to be described as relatively short.

“The short product inventory isn’t because of overwhelming buying, but no one is wanting to bring up barges this far into the season,” reported one contact. “And prompt upriver barges are bringing such a premium that buyers see the price crash coming, so why take the risk of the hit?”

South Central:

Urea prices were higher in the South Central region, firming to a broad $440-$515/st FOB, up from the prior week’s $430-$500/st range, with the low at Convent, La., and the high in Arkansas. Memphis urea pricing ranged broadly at $500-$515/st FOB during the week, while Kentucky sources pegged the market at $485-$500/st FOB Ohio River terminals.

Southeast:

Urea pricing was pegged in the $460-$480/st FOB range out of port terminals in the Southeast, with the low confirmed at Charleston, S.C. The Wilmington, N.C., urea market was quoted at $475-$480/st FOB during the week.

India:

Sources are still expecting to hear of a new tender call at the end of the month. The Department of Fertilizers issued a letter to the three authorized urea importers – NFL, RCF and IPL – setting the time frame for the next tender. The memo did not specify a date to call the tender, however, some are now thinking its release could mean a tender call could come during the IFA conference in Prague.

Some traders are still scrounging for material to satisfy their awards from the March Indian Potash Ltd. (IPL) tender, sources said. Most of the material appears to be coming from the Arab Gulf.

The Indian government announced the approval of urea subsidies for the current season. All told, the government will set aside $8.46 million to cover subsidies for urea purchases. The subsidies are needed to cover the difference between the imported price of the urea, currently reported at $330-$335/mt CFR, and the maximum price charged to farmers, which is $74.13/mt.

Southeast Asia:     

Traders are still waiting for Indonesia’s Pupuk to call its next selling tender, for June shipment of granular urea. One source noted that the call is late in coming.

The Petronas Sipitang plant in Malaysia is back up and running. Sources said the production will be used to cover contracts rather than spot demand. The plant closed in April for an undisclosed reason. During the shutdown, Petronas bought urea from Indonesia at a premium to cover its contractual commitments.

There were reports that Myanmar is looking for 25,000 mt of granular urea. The buyers are talking with Arab Gulf suppliers for the product.

The government of Sri Lanka authorized the purchase of 25,000 mt of urea for June shipment. The cargo will be split between two companies for distribution to local farmers. Ceylon Fertilizer Co. will take 60% of the purchase, and Colombo Commercial Fertilizers will take the remaining 40%.

South Korea:

South Korean urea imports were reported at 298,000 mt for January-April, according to Trade Data Monitor, off31% from 432,000 mt in the prior-year period. April imports were 31,000 mt, down from 105,000 mt in April 2022. China sent 18,000 mt for the month, while Qatar added 12,000 mt.

China:   

China’s domestic urea market is ending. Sources noted that even as local demand is coming off, production remains steady at approximately 165,000 mt/d. The buildup of reserves is affecting the ex-plant prices, though this softening has not been reflected in the export price.

As more tons are being made available for export, sources also said the time to clear tons for sale offshore is coming down. The apparent increase in urea availability has caused the price of prilled urea to edge higher.

Deals into Southeast Asia have reportedly shown netbacks to China in the upper-$320s/mt FOB. There were also reports that $330/mt FOB was hit. A reported 6,000 mt sale of prilled urea into the Philippines showed a netback in the high-$320s/mt FOB, leaving the estimated price at $325-$330/mt FOB. There was talk that the price could easily move into the $330s/mt FOB, however. So far, most of the sales were reportedly for small lots, and primarily for container sales rather than large bulk orders.

Granular urea continued to be reported in the mid-$330s/mt FOB. Sources said Fudao is still hoping to find a buyer for 30,000 mt of granular product, for shipment by the end of May.

Middle East: 

Sources reported that Swiss Singapore is looking for 45,000 mt from an Arab Gulf supplier to cover part of its award from the March IPL/India tender. The trading house was also said to be looking for another 25,000 mt for Myanmar from an earlier deal.

Sohar International Urea and Chemical Ind. (SIUCI) reportedly has some spot material available for early-June shipment.

Oman reportedly closed a deal a couple of weeks ago in the high-$320s/mt FOB, moving the regional price below $330/mt FOB, a line many producers hoped not to cross.

Egyptian producers continue to hold to pricing ideas in the mid-$360s/mt FOB, and an absence of new deals has left the price at $366-$367/mt FOB. The lack of business is leaving producers with growing reserves for export.

As prices soften in the Arab Gulf, sources reported the price of Iranian urea at $290/mt FOB, but with no takers. Recent offers of at least 30,000 mt at this price level have gone unanswered.

January-April urea exports from Iran fell 15%, Trade Data Monitor reported, to 1.1 million mt from the prior-year 1.3 million mt. April exports were noted at 422,000 mt, up a bit from 417,000 mt sent in April 2022. Turkey bought 254,000 mt for the month, while Vietnam took 63,000 mt. Sri Lanka purchased 62,000 mt.

Ethiopia:       

Reports are circulating that Ethiopian Agricultural Business Corp. (EABC) is looking to purchase 50,000 mt of granular urea. The move is surprising, as EABC traditionally buys urea in a large tender that closes in the last quarter of the year, for delivery in the first and second quarters of the subsequent year.

January-April imports totaled 150,000 mt, Trade Data Monitor reported, compared to the year-ago 56,000 mt. First-half imports to Ethiopia typically dwarf imports in the second half of the year. January-June imports in the country averaged 406,000 mt in 2020-2022, compared to an average 116,000 mt in July-December during the same three-year period.

Brazil:   

Reports of large inventories throughout Brazil continued to pressure the price of urea coming into the country. Sources said the market has tightened to $315-$325/mt CFR. Besides the large supply of material, low-priced offers of Iranian urea have created additional pressure, players noted.

While inland suppliers continue to offer material at $460/mt FOB ex-warehouse, the few deals reported to conclude were priced at $435-$445/mt FOB ex-warehouse.

Poland:

Grupa Azoty reported a 44% decline in nitrogen fertilizer production in April, to 176,000 mt from the year-ago 312,000 mt, as Azoty aimed to bring output in line with market demand.

The group’s production of “multi-component” fertilizers fell to 30,000 mt in April, down from 82,000 mt produced in the same month last year. However, its production of specialty fertilizers saw a small boost during the month, lifting to 26,000 mt from 25,000 mt.

Meanwhile, Azoty reported that its Puławy subsidiary has restarted its Melamine III unit. Production volumes at the unit will be adjusted according to market conditions on “an ongoing basis,” the group said. The unit, shut on March 10, boasts a nameplate capacity of 90 mt/d, and accounts for about one-third of Puławy’s melamine production capacity. Two other Puławy melamine units have remained halted since last summer

Puławy’s caprolactam production, suspended on March 10, also remains shut.

Black Sea:

Prices dipped for Black Sea prilled urea. Sources now put the price at $295-$300/mt FOB.

UAN

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

US Gulf:

UAN barge prices softened to $260-$270/st ($8.13-$8.44/unit) FOB from the week-ago $270-$280/st ($8.44-$8.75//unit) FOB, reflecting the lower prices in the inland markets.

Eastern Cornbelt:

UAN-32 prices were pegged at $300-$315/st ($9.38-$9.84/unit) FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati and Mount Vernon, Ind. The last UAN-28 offers at Cincinnati remained in the $258-$280/st ($9.21-$10.00/unit) FOB range.

“The issue on UAN in the Cornbelt is there is very little buying of product, as it may be 7-10 days away before sidedress starts,” said one contact. “Customers are patient to buy UAN and it seems getting their system empty is more important than having tons in place when sidedress starts.”

Western Cornbelt:

UAN-32 dropped to $300-$315/st ($9.38-$9.84/unit) FOB in the Western Cornbelt, down from the prior high of $320/st (10.00/unit) FOB, with the low confirmed at St. Louis.

Southern Plains:

UAN-32 slipped to $280-$305/st ($8.75-$9.53/unit) FOB in the Southern Plains, with the low at Woodward, Okla., and the high out of Gulf Coast terminals in Texas. Pricing at Verdigris, Okla., was pegged in the $285-$290/st ($8.91-$9.06/unit) FOB range, down from recent offers at the $310/st ($9.69/unit) FOB level.

South Central:

UAN-32 dropped to $280-$300/st ($8.75-$9.38/unit) FOB in the South Central region, down from $305-$335/st ($9.53-$10.47/unit) FOB, with the low reported in Louisiana and the high for river terminal pricing in the Kentucky market.

Southeast:

The UAN-32 market was down slightly from last report. Port terminals in the region were quoted in the $295-$310/st ($9.22-$9.69/unit) FOB range, down from $320/st ($10.00/unit) FOB, with the low at Savannah, Ga., and the high at Wilmington, N.C., and Norfolk, Va. Inland terminals in Georgia remained at the $320-$330/st ($10.00-$10.31/unit) FOB level for new business.

Ammonium Nitrate

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

Western Cornbelt:

Ammonium nitrate pricing at midweek dropped to $400/st FOB Lamar, Mo., and $420/st FOB St. Joseph, Mo., down a full $70/st from the previous list prices in those locations.

Southern Plains:

Ammonium nitrate pricing in the Southern Plains continued at $430/st FOB Muskogee, Okla., and $425/st FOB El Dorado, Ark.

South Central:

Ammonium nitrate was steady at $325/st FOB Yazoo City, Miss., with the latest offers out of river terminals in Kentucky pegged at the $375/st FOB level.

Ammonium Sulfate

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

US Gulf:

NOLA ammonium sulfate barges remained firm at $325-$330/st FOB.

Eastern Cornbelt:

Ammonium sulfate prices remained in the $385-$405/st FOB range in the Eastern Cornbelt for new business.

Western Cornbelt:

Granular ammonium sulfate was unchanged at $375-$400/st FOB in the Western Cornbelt, with the low at St. Louis and the high reported in Iowa.

Southern Plains:

Ammonium sulfate was up slightly in the Southern Plains, to $370-$400/st FOB from last week’s $360-$390/st range. Most offers in the Catoosa/Inola market fell in the $380-$390/st FOB range during the week.

South Central:

Granular ammonium sulfate prices widened to a broad $330-$400/st FOB in the South Central region, with the low confirmed in Mississippi and the high in Arkansas. The Memphis market was pegged at a solid $390/st FOB during the week.

Southeast:

Ammonium sulfate prices rebounded slightly in the Southeast, with granular quoted at $375-$410/st FOB/DEL, up $10/st from last report. The low was reported in Florida, with the high FOB Hopewell, Va. Standard was pegged at $330-$350/st FOB/DEL in the region.

China:

The price of caprolactam grade amsul continued to be pressured. Prices remained steady in the mid- to upper-$130s/mt FOB, however, sources said.

Southeast Asia:     

The Philippine company Atlas scrapped its May 9 tender for 8,000 mt of amsul. Sources said that offers received in the low-$150s/mt CFR were too high. The company called a follow-up tender for 6,000 mt to close on May 23, with shipment by June 25.

South Korea:

South Korean exports of ammonium sulfate were reported at 47,000 mt in January-April, Trade Data Monitor reported, off from the year-ago98,000 mt. April exports were limited to 220 mt, down from 17,000 mt exported in April 2022. Japan took 160 mt for the month.

Brazil:   

The landed price softened to $175-$180/mt CFR from last week’s $180/mt CFR. The Rondonopolis price was noted steady at $285-$320/mt FOB ex-warehouse. Both markets reported limited trading.

DAP/MAP

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

Central Florida:

Central Florida DAP trucks were posted at $640/st FOB for the week, unchanged from the prior report. Truck-loaded MAP ran $10/st lower at $630/st FOB, also steady from last week.

MAP trucks loading from North Florida remained at $650/st FOB. Sources noted “very strong movement” at the $650/st FOB level, despite softer pricing observed from the NOLA market in recent weeks. “This is the season that won’t stop,” said one player.

US Gulf:

Following a quiet start to the week at NOLA, sources reported falling barge prices on May 17-18.

Full-May DAP pricing was noted on par with week-ago levels early in the May 12-18 trading period, with sources calling barges in a $500-$510/st FOB range through May 17. Players reported business transacting at $450/st FOB on May 18, however, $50/st below the week-ago $500/st FOB floor. Unlike in the previous week, players reported no prompt or loaded barges trading at a premium to full-May loading.

MAP barges reported at $490/st FOB through midweek were seen slipping to $482.50/st FOB on May 17. From there, public offers quickly softened to $480/st FOB, sources said, off from the week-ago $485/st FOB low.

NOLA DAP barge pricing softened to a wide $450-$510/st FOB level during the week, down from $500-$630/st FOB reported previously. MAP barges were reported at $480-$490/st FOB, below $485-$500/st FOB at last check.

US Exports:

No new business was reported on the US Gulf export DAP and MAP markets. The most recent spot business was noted at $550/mt FOB.

Eastern Cornbelt:

DAP and MAP remained in limited supply at regional terminals, though prices were starting to drop and demand was easing. DAP was quoted at $690-$740/st FOB in the Eastern Cornbelt, down sharply from last week’s broad $720-$780/st range, with MAP at $680-$720/st FOB in the region.

“Warehouses are all over the place as different players have more to liquidate than others,” said one industry contact. “Sellers are getting weak in the knees and not passing on buyers’ interest.”

Western Cornbelt:

DAP and MAP supplies were reportedly out at multiple locations in the region as spring demand wraps up. “The phosphate terminal markets are working their way down but are still at a strong premium to the NOLA market,” noted one industry source.

DAP prices dropped to $680-$720/st FOB in the Western Cornbelt, down from last week’s broad $700-$770/st FOB range, with the St. Louis market pegged at $690-$700/st FOB. The Pine Bend, Minn., DAP market was quoted at the $680/st FOB level during the week.

MAP was pegged at $690-$720/st FOB in the region, with the St. Louis market quoted in the $700-$720/st FOB range for limited inventory.

Southern Plains:

Phosphate prices were falling at Catoosa/Inola, with DAP quoted at $715/st FOB and MAP at $710/st FOB, down from last week’s $740-$760/st FOB and $715-$725/st FOB, respectively. The Houston MAP market remained slightly stronger at $715-$720/st FOB at mid-month.

“Supply is still somewhat tight, but demand has fallen off this week,” said one regional contact.

South Central:

DAP pricing in the South Central region was quoted at $720-$740/st FOB, tightening from the prior $715-$755/st FOB range, with the low reported in Kentucky and the high at Memphis and Little Rock, Ark.

Southeast:

MAP pricing from Nutrien remained at $650/st FOB Aurora, N.C., and White Springs, Fla.

China:   

Sources reported that prices have come off, based on a recent sale to India. At the same time, more tons of DAP and MAP are being made available as the domestic season winds down and as the government streamlines the export inspection process. Sources now put the DAP market at $500-$505/mt FOB.

Other reported sales, such as 6,000 mt of DAP to Thailand at $530/mt CFR, also add support to the new price level.

India:     

A reported DAP purchase at $510-$511/mt CFR from YUC showed buyers are still successfully moving the price down. Additional drops in the price are expected because more Chinese DAP is expected to be made available to the global market.

Brazil:   

The price for MAP continues to soften. Sources now put the market at $520-$535/mt CFR, with even lower prices rumored to be under consideration by market players. Sources said a general lack of buyer interest, combined with a steady influx of new tonnage, is putting steady pressure on prices.

The price in Rondonopolis was pegged at $640-$680/mt FOB ex-warehouse. Some deals have been made at the top end of the range, but aggressive buyers at $640-$660/mt FOB ex-warehouse are also pushing hard for lower prices.

TSP

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

US Gulf:

Sources reported public NOLA TSP barge offers in the upper-$420s/st FOB, falling from the previously-reported $550-$560/st FOB range.

Eastern Cornbelt:

TSP slipped to $620-$640/st FOB in the Eastern Cornbelt, down $20/st from last report.

Western Cornbelt:

The TSP market fell to $620-$640/st FOB in the Western Cornbelt, down from $640-$645/st FOB.

South Central:

TSP dropped to $600-$630/st FOB in the South Central region, down from the previous $620-$640/st FOB range, with the low confirmed at Memphis.

Brazil:   

The landed price of TSP showed a slight dip to $370-$390/mt CFR, with softer prices expected in the future. Sources said Rondonopolis remained steady at $485-$510/mt FOB ex-warehouse.