All posts by mickeybarb@charter.net

Sulfur

ADNOC - Abu Dhabi, Alberta, Brazil, Kuwait, Market Watch, Qatar, Sulfur, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, West Coast

Tampa:

Fourth-quarter Tampa molten contracts were quoted at $183/lt, a $12/lt decline from $195/lt CFR reported in the third quarter.

Operable refining capacity ticked higher in the U.S. Energy Information Administration’s (EIA) most recent report. Combined nationwide utilization was reported at 86.7 percent of capacity for the week ending Nov. 5, a 0.4-point increase from the prior week’s 86.3 percent rate and leading both the year-ago 74.5 percent and the 85.7 percent five-year average.

Daily crude inputs lifted to an average 15.366 million barrels/d, a 343,000 barrel/d jump from 15.023 million barrels/d published previously.

U.S. Imports:

September sulfur imports were off 29.0 percent, to 201,935 st from 284,524 st in the prior year. Imports were off 22.8 percent for July-September, falling to 774,709 st from the year-ago 1.00 million st.

U.S. Exports:

Sulfur exports soared 186.8 percent in September, to 178,430 st from the year-ago 62,218 st. July-September exports softened 13.3 percent, however, to 299,544 st from the year-ago 345,636 st.

U.S. Gulf:

Phillips 66 on Nov. 8 announced plans to convert its storm-damaged Alliance, La., refinery into a terminal facility. The 255,000 barrel/d plant has remained offline since Aug. 28 and suffered heavy flood damage from Hurricane Ida. The conversion is projected to take place in 2022, Reuters reported, with approximately 425 of the plant’s 900 employees expected to lose jobs.

Genscape reported a Nov. 4 restart of the 283,000 barrel/d crude distillation unit (CDU) at Marathon’s Garyville, La., refinery. The unit was shut earlier in the same day following a bout of excess flaring.

ExxonMobil Corp. on Nov. 4 successfully restarted the 225,000 barrel/d Pipestill 10 crude section at the company’s refinery in Baton Rouge, La. The unit went offline on Nov. 1.

Gulf export ideas firmed to at least $200-$210/mt FOB, rising from $190-$200/mt FOB at last report. Ongoing logistics complications were noted potentially keeping the market from its full potential, which was indicated up to the $240s/mt FOB based on recent international increases.

Brazil:

The Brazil spot import sulfur price moved to the $285-$290/mt CFR range for the week, in line with expectations at the $285/mt CFR mark in the prior report. Import contracts for the fourth quarter were pegged at $234/mt CFR, rising from $221-$223/mt CFR in the prior period.

Vancouver:

Recent Vancouver levels continued to be heard at $200-$205/mt FOB, unmoved from one week earlier. Firming international markets were expected to drive Vancouver higher in the next round of business, sources said.

Alberta:

Alberta netbacks were indicated in the $68-$135/mt FOB range. The wide spread included both molten tons contracted into the U.S. and prilled material selling internationally by way of the Vancouver export market.

West Coast:

West Coast prills continued to mirror Vancouver at $200-$205/mt FOB.Molten sulfur contracts on tons loading from West Coast locations were reported in the $160-$170/lt FOB range for the fourth quarter.

China:

Spot imports to China were reported at $260-$263/mt CFR during the week, increasing from $255-$260/mt CFR in the prior report.

ADNOC:

Abu Dhabi National Oil Co. (ADNOC) prills were quoted at $230/mt FOB Ruwais for November, rising $37/mt from $193/mt FOB in the previous month.

Qatar:

November offers from Qatar Petroleum were noted at $226/mt FOB Ras Laffan, a $34/mt increase from $192/mt FOB reported one month earlier.

Kuwait:

Sources put the Kuwait sulfur price at $226/mt FOB for November. October pricing was heard at $191/mt FOB, a $35/mt difference.

Sulfuric Acid

Brazil, Gulf Coast, Market Watch, Midwest, Sulfuric Acid, U.S. Exports, U.S. Gulf, U.S. Imports, West Coast

U.S. Gulf:

Gulf sulfuric acid vessel price ideas continued to be heard at $245-$250/mt CFR, steady from the prior report.

U.S. Imports:

Sulfuric acid imports fell 16.5 percent for the July-September period, to 900,560 st from the prior-year 1.08 million st. Imports were down 26.1 percent in September, to 272,527 st from 368,716 st.

U.S. Exports:

September sulfuric acid exports moved 19.0 percent higher year-over-year, to 21,452 st from 18,033 st. July-September volumes rose 106.4 percent, to 125,479 st from last year’s 60,801 st.

Gulf Coast:

Sources quoted Gulf Coast domestic contracts at $85-$110/st DEL for 2021. Sources generally expected 2022 contracts to firm to $200/st DEL or higher.

Midwest:

Midwest tons were reported even with the Gulf Coast at $85-$110/st DEL for 2021 agreements.

West Coast:

West Coast annual contracts were pegged in the $100-$130/st DEL range.

Brazil:

Recent bidding on material imported to Brazil was reported at $275-$280/mt CFR.

Ammonium Thiosulfate

Amthio, Eastern Canada, Eastern Cornbelt, Market Watch, Specialty, Western Cornbelt

Eastern Cornbelt:

Ammonium thiosulfate pricing was steady at $450-$500/st FOB in the Eastern Cornbelt for the last prompt or prepay offers. In the Great Lakes region, sources reported limited tons at the $470/st level FOB Webberville, Mich.

Western Cornbelt:

Ammonium thiosulfate remained at $450/st FOB or higher in the region.

Eastern Canada:

The ammonium thiosulfate market increased to C$585-$620/mt FOB in Eastern Canada, up from C$512-$535/mt FOB at last report.

Sulfate of Potash

Eastern Canada, Market Watch, Specialty, Sulfate of Potash, U.S. Exports, U.S. Imports

U.S. Imports:

SOP imports firmed 168.1 percent in September, to 8,564 st from the year-ago 3,194 st. July-September totals were up 413.3 percent, to 53,813 st from 10,484 st during the same period last year.

U.S. Exports:

SOP exports for September firmed 550.0 percent, to 10,346 st from 1,592 st. July-September exports were up 103.5 percent, to 14,165 st from 6,959 st in the prior year.

Eastern Canada:

The SOP market was quoted at C$1,026-$1,090/mt FOB in the region, up from the last reported range of C$1,000-$1,026/mt FOB in mid-October.

Crops/Weather

Crops/Weather, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt:

A mild week allowed for a flurry of harvest activity and fall fieldwork in the Eastern Cornbelt, but the region was bracing for a big weather change as the week progressed.

Rain started moving into northern Illinois at midweek, with highs dropping from the 60s to the mid-40s by Friday. Forecasts called for possible snowfall over the weekend, with temperatures topping out in the high 30s across northern Illinois by Nov. 14.

Central Indiana saw a similar transition, with rain reported later in the week and highs falling from the mid-50s on Nov. 11 to the mid-30s by late on Nov. 12. Highs topped out in the upper-60s across northern Ohio at midweek, but forecasts warned of chilly temperatures in the low 40s by the weekend, along with rain and scattered snow showers.

An abrupt weather change was also seen in the Great Lakes region, where mild temperatures in Michigan and Wisconsin gave way to rain, cold temperatures, and scattered snow flurries by the end of the week.

The corn harvest as of Nov. 7 was reported at 90 percent complete in Illinois, 75 percent in Indiana, and 54 percent in Ohio, with only Illinois tracking ahead of its five-year average. The soybean harvest was estimated at 85 percent complete in Illinois, 81 percent in Ohio, and 77 percent in Indiana, with all three states lagging behind the average pace.

In the Great Lakes region, the corn harvest had progressed to 76 percent complete in Wisconsin and 62 percent in Michigan by Nov. 7, with the soybean harvest rated at 93 percent complete in Wisconsin and 65 percent in Michigan.

Western Cornbelt:

A strong system brought heavy rain to much of Iowa at midweek, with 1-3 inches falling across the state. Strong winds and much cooler temperatures moved in as the week progressed, prompting a winter weather advisory for three north-central Iowa counties on Nov. 11.

An earlier system brought snow to a wide swath of central and western Nebraska on Nov. 8, with reports of up to seven inches of accumulation in some southwestern areas of the state. Cold temperatures followed the precipitation, with wind chills expected to drop to the teens in Lincoln, Neb., by the end of the week.

The corn harvest as of Nov. 7 had progressed to 91 percent complete in Missouri and 82-84 percent in Iowa and Nebraska, with all three states tracking slightly ahead of their five-year averages. The soybean harvest was estimated at 95 percent complete in Iowa and Nebraska and 71 percent in Missouri, while Missouri’s cotton harvest had progressed to 75 percent complete by Nov. 7. Nebraska’s sorghum harvest was reported at 85 percent complete by that date.

Northern Plains:

After a mild and dry start to the week, much of the Northern Plains was bracing for cold, wet weather, with 1-4 inches of snow expected across eastern North Dakota and up to six inches in northern Minnesota by the weekend. Strong winds were also in the forecast, and temperatures were expected to top out in the 30s in many locations.

The harvest pace continued to track ahead of normal in the Northern Plains, thanks to dry October weather. The corn harvest as of Nov. 7 was estimated at 92 percent complete in Minnesota and 81-82 percent in the Dakotas, with the regional soybean harvest pegged at 98-99 percent complete by that date.

South Dakota growers also had 92 percent of the sorghum crop in the bin by Nov. 7, while the sunflower harvest had reportedly progressed to 67-72 percent complete in the Dakotas.

Northeast:

Mild temperatures were reported across much of the Northeast during the week, although wind, rain, and much cooler weather was on tap for the coming weekend.

Highs in the 50s and low-60s were reported across New England at midweek, while temperatures in the low-70s were reported in Maryland and the Mid-Atlantic region. By Nov. 11-12, however, 50 mph winds and more than an inch of rain was expected in New England, with lesser amounts reported in the Mid-Atlantic. Highs in the 50s were likely by the weekend.

Growers were on track with the fall harvest. As of Nov. 7, Pennsylvania’s corn harvest was estimated at 68 percent complete. Sources reported some fall fertilization and lime spreading underway in the region, as well.

Eastern Canada:

Much of Eastern Canada enjoyed several weeks of warm, dry weather after an exceptionally wet October that delayed harvest in some areas, and also slowed the planting of winter wheat.

Growers were reportedly taking full advantage of the improved weather to wrap up the soybean harvest and plant wheat, while also trying to get some fall fertilizers applied. Most sources described fall application volumes so far as only average. Unfortunately, the next round of precipitation arrived as the week progressed, with reports of up to 8-16 inches of snow at midweek in northwestern Ontario and southern Manitoba.

The powerful storm also packed strong winds, which produced blizzard conditions at midweek in parts of northern Ontario. Gusty winds and steady rain were in the forecast for much of Quebec late in the week, along with below-freezing temperatures. A separate system brought rain, strong winds, and light snow to the parts of the Atlantic Provinces as well.

Transportation

Arkansas River, Atlantic, Illinois River, Market Watch, Mississippi RIver, Ohio River, Transportation, U.S. Gulf

U.S. Gulf and Atlantic:

Seasonal fog delays slowed overnight movements in the New Orleans area during the week. The conditions were projected to remain for about a week.

A Coast Guard posting described ongoing travel restrictions at Bayou Boeuf Lock, where weekday movements were limited to 7:00 p.m. to 7:00 a.m. Vessels were permitted to access the lock on a 24-hour schedule on Saturday and Sunday, however.

With the West Canal fully reopened in the prior week after a lengthy hurricane-induced shutdown, movements returned to normal through the Port Allen Lock. Wait times were generally noted up to eight hours, falling from week-ago delays up to 23 hours.

Ongoing floodgate construction limited movements through Bayou Chene to daytime hours only. Navigation was available daily between 7:00 a.m. and 7:00 p.m., with tow lengths limited to 600 feet. Tows with widths greater than 54 feet were required to use an assist tug on all movements through the waterway. Delays were noted in the 6-12 hour range.

Atchafalaya River travel remained restricted through the Morgan City area, Coast Guard documents indicated, due to continued shoaling at Miles 113-116. Maximum drafts through the affected area were noted at 10 feet, while tow sizes were capped at 600 feet long and 70 feet wide. Lengths greater than 400 feet were strongly advised to travel with an assist boat. Vessels were advised to bypass the restrictions entirely by detouring through the Port Allen Route.

Algiers Lock movements were saddled with ongoing size restrictions, effectively limiting unassisted tows to four standard barges or two 30,000 mt tankers per pass, although larger tows were possible when accompanied by an assist boat.

Belle Chasse Bridge construction efforts were predicted to trigger intermittent delays up to 12 hours. The project is slated to run through late 2022.

Industrial Lock waits were reported up to nine hours for the week. Brazos Lock delays were noted as high as eight hours.

The National Hurricane Center reported a tropical disturbance located to the northwest of the Azores, in the Central Atlantic, on Nov. 11. The system was not expected to strengthen into a tropical cyclone prior to Nov. 13.

Mississippi River:

Intermittent delays were reported on overnight lower Mississippi River travel due to seasonal fog. The conditions were expected to persist into early next week.

Rock-laying operations at Victoria bend were expected to drive sporadic daylight-hour navigation stoppages daily between 7:00 a.m. and 6:00 p.m. during the first half of December.

Upper river locks were scheduled to begin closing to winter navigation on Nov. 28, starting with Lock 5A, Lock 8, and Lock 10. Locks 4, 5, and 7 are due to shut on Dec. 6, while Lock 15 is scheduled to close on Jan. 1. Lock 24 will also shut for one month of maintenance on Jan. 1.

Lock 24 will reopen on Jan. 31, followed by Lock 15 on an estimated March 3. Locks 5 and 7 were projected to return to navigation on March 11, with Locks 5A, 8, and 10 tentatively set to come online six days later on March 17. Lock 4 will open its doors on March 21, conditions permitting.

Lock 22 delays were quoted up to 10 hours for the week.

Illinois River:

Travel conditions improved on the Illinois River during the week. Elevated water levels had previously blocked navigation on large swaths of the waterway, with barge counts reduced by around 20 percent.

Wickets were in the lowered position at both LaGrange Lock and Peoria Lock, allowing vessels to pass both sites without locking.

Ohio River:

The Cannelton Lock main chamber is reportedly closed for repairs through Nov. 19, forcing boats to pass the site through the secondary chamber. The Cannelton secondary chamber is undergoing maintenance of its own on Nov. 1-19, setting up the potential for intermittent full-lock shutdowns. The main chamber project has been in progress since June 21.

Montgomery Lock’s primary chamber is shut through Dec. 22 for planned repairs and maintenance. The work, originally set to run from Oct. 18 through Dec. 17, will see tows limited to multiple passes through the smaller secondary chamber. Waits were noted up to 41 hours for the week, falling from 45 hours reported previously.

A Hannibal Lock primary chamber shutdown, previously set to conclude on Oct. 29, was extended through an estimated Dec. 10. Minimal delays were recorded for the week.

The Dashields Lock auxiliary chamber continued to see limited operation due to an underwater obstruction. Despite the complication, delays were generally noted holding below the five-hour mark.

The Tennessee River’s Kentucky Lock reportedly closed to navigation on Nov. 1-24 for miter gate repairs, and will be followed by a second closure from Nov. 29 through Dec. 10. A temporary opening is slated for Nov. 25-28 to clear waiting tows. Traffic was suggested to detour through the Barkley Canal while work is underway.

Wilson Lock repairs, estimated to wrap up on Nov. 11, necessitated staggered one-way travel through the early week. The Corps allowed southbound travel during daylight hours, while vessels moving upriver were permitted passage overnight. Delays were posted up to 19 hours.

The Allegheny River’s Lock 6 remained closed to navigation indefinitely due to a damaged miter gate.

Arkansas River:

Webbers Falls Lock, located between Miles 366 and 367, was reportedly closed to navigation on Nov. 10-11 for planned repairs and maintenance. Delays were expected. Navigation through Mile 126 was unavailable from 7:00 a.m. to 7:00 p.m. on Nov. 8-9 due to bridge repairs.

Itafos Reports Record 3Q, Raises Full-Year Guidance

Earnings, Houston, TX, News, Phosphate

Phosphate producer Itafos Inc., Houston, reported record third-quarter net income of $15.7 million, up from a year-ago loss of $13.8 million. Revenues were $103.0 million, up from $47.6 million, while adjusted EBITDA rose to $41.2 million from a loss of $0.3 million.

The company noted that DAP NOLA prices averaged $624/st in Q3 2021 compared to $335/st in Q3 2020, up 86 percent year-over-year driven by strong agriculture and phosphate fertilizer market supply and demand dynamics. Similarly, DAP NOLA prices averaged $568/st the first nine months of 2021 compared to the year-ago $292/st, up 94 percent year-over-year.

“We delivered record operational and financial performance during Q3 2021, resulting in a year-to-date 2021 adjusted EBITDA at Conda of $107.7 million and $95.5 million on a consolidated basis,” Itafos CEO G. David Delaney said.

“We are raising our full-year guidance for 2021 to reflect the continued strength of the business and strong fundamentals in the agriculture and phosphate fertilizer markets. The positive market fundamental trends are expected to continue into 2022. In raising our full-year guidance for 2021, we have taken into account the expected negative impacts of the previously announced disruption in sulfuric acid supply to Conda from its primary supplier, which we expect to be resolved during Q4 2021.”

Full-year guidance was moved to $120-$130 million, up from $110-$120 million.

Itafos said factors driving the year-over-year improvement included no significant phosphate fertilizer supply capacity additions, which resulted in continued drawdown of global phosphate fertilizer inventory levels; strong phosphate fertilizer demand underpinned by global coarse grains and oilseeds at multi-year low stocks-to-use ratios and the highest prices in nearly a decade, supporting demand and fertilizer relative affordability; and CVD orders confirmed by the U.S. International Trade Commission on phosphate fertilizer imports to the U.S. from Morocco and Russia

Nine-month net income was $27.2 million on revenues of $296.5 million, up from the year-ago loss of $52.9 million and $185.1 million, respectively. Adjusted EBITDA was $95.5 million, up from $10.2 million.