All posts by mickeybarb@charter.net

BHP Jansen 96 Percent Complete; Dual Listing Unification on Track

Australia, News, News Briefs, Potash, Saskatchewan

BHP Ltd., Melbourne, said this week the construction of the two shafts and associated infrastructure at its Jansen potash site in Saskatchewan is now 96 percent complete, up from 93 percent in August. The work remains on track for an expected completion in the 2022 calendar year, the mining group reported in its Operational Review for the quarter ended Sept. 30, 2021.

BHP’s Board in August gave its approval for the Jansen Stage 1 (Jansen S1) project and for further capital expenditure of US$5.7 billion (GM Aug. 20, p. 1). Stage 1 is expected to provide production capacity of some 4.35 million mt/y of potash, with construction expected to take around six years. First ore from Jansen S1 is expected in the 2027 calendar year, followed by a ramp-up period of two years.

The mining major has already spent US$4.5 billion (pre-tax) on Jansen, including US$2.972 billion to finish the current investment program to complete the two shafts at Jansen and for associated infrastructure and utilities at the site, as well as engineering and procurement activities, and preparation works related to Jansen S1 underground infrastructure.

BHP also said this week its plans to unify its dual listed company (DLC) structure under its existing Australian parent company remain on track to occur in the March 2022 quarter, if all approvals are received

The mining group announced its intention to unify the DLC structure in August. BHP’s DLC structure has two parent companies (BHP Group Ltd. and BHP Group Plc) operating as a single economic entity and was established with the BHP and Billiton merger in 2001.

BHP said unification would result in a corporate structure “that is simpler, more efficient, and improves portfolio flexibility to maximize value for shareholders over the long-term, including facilitating a simpler separation of the Petroleum business.”

It said “constructive engagement” with regulators and third parties for the unification continues, and that the process remains “on track.”

KBR Awarded Digital Services Contract for EuroChem’s Kingisepp NH3 Plant

Ammonia, Europe, Houston, TX, News, News Briefs

EuroChem Group, Zug, Switzerland, has awarded a three-year service contract to KBR, Inc., Houston, for KBR InsiteR for its ammonia plant at Kingisepp in northwest Russia.

Utilizing a cloud-based platform, KBR Insite provides remote monitoring and advisory services to customers to help drive plant operations to top-quartile performance, said KBR, announcing the contract.

Under the terms of the contract, the Houston-based company will proactively analyze EuroChem’s Kingisepp ammonia plant operations to identify opportunities for achieving sustainable improvements in production, reliability, environmental impact, and energy efficiency.

The 1 million mt/y capacity Kingisepp ammonia plant started operations in early June 2019 (GM June 7, 2019), and has brought self-sufficiency for the EuroChem group in this key fertilizer feedstock.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, South Korea, U.S. Gulf, Western Cornbelt

U.S. Gulf:

The most recent NOLA ammonium sulfate barge trades were quoted at a flat $415/st FOB level, up from the week-ago $410-$415/st FOB.

Eastern Cornbelt:

The ammonium sulfate market was quoted at a firm $435-$455/st FOB in the Eastern Cornbelt.

Western Cornbelt:

The ammonium sulfate market was pegged at $435-$450/st FOB in the Western Cornbelt, reflecting another slight increase at the top of the range.

Northern Plains:

Granular ammonium sulfate prices were quoted at $450-$475/st FOB St. Paul, with delivered tons in North Dakota pegged in the $460-$485/st range at mid-month.

Northeast:

Sources pegged the ammonium sulfate market at $420-$440/st FOB in the Northeast, with the low reflecting AdvanSix’s Oct. 16 granular posting at Hopewell, Va. The new Hopewell price is an $85/st increase from the company’s last posting on Sept. 20. Mid-grade and standard postings at Hopewell firmed on Oct. 16 to $400/st and $380/st FOB, respectively.

Eastern Canada:

Ammonium sulfate prices in Eastern Canada had reportedly strengthened to C$620-$685/mt FOB in mid-October, up from C$535-$585/mt FOB in late September.

China:

Ammonium sulfate prices in China are reportedly all over the place. Bids of $250/mt FOB for caprolactam grade amsul are being rejected by sellers who are looking at the $300s/mt FOB as the new price.

Sources reported that while amsul was not on the list of items banned from export, producers are looking at limited supplies and are using the current situation to push prices higher. Buyers are pushing back against the sellers, however. The last confirmed deal was in the low-$260s/mt FOB a week ago.One trader said no matter how hard the buyers resist, the price will hit the $300s/mt FOB soon.

Chinese exports of ammonium sulfate for January-September 2021 were reported at 7.1 million mt, a 20.6 percent increase from 5.9 million mt during same period in 2020, according to Trade Data Monitor. The main buyers of Chinese amsul were Brazil at 1.9 million mt, Vietnam at 835,000 mt, and Indonesia at 734,000 mt.

Third-quarter 2021 exports were reported at 2.5 million mt, just 9 percent higher than the 2.3 million mt exported during the same period last year.September 2021 exports were reported at 775,000 mt, just marginally more than September 2020 export of 768,000 mt.

South Korea:

Exports of ammonium sulfate for January-September 2021 were up 40 percent, to 454,000 mt from 325,000 mt during the same period in 2020. The main buyers, according to Trade Data Monitor, were Mexico at 107,000 mt, Turkey at 95,000 mt, and the U.S. at 79,000 mt.

Third-quarter 2021 exports were reported at 133,000 mt, just slightly up from the 101,000 mt shipped during the same period in 2020.September 2021 exports were up 60 percent, to 72,000 mt from 45,000 mt in September 2020.

Brazil:

The price at Paranagua is a matter of debate because of a quiet market. There are, however, agreements that the range looks to be $450-$500/mt CFR. The price comes, said sources, not from any new deals of landed amsul, but rather in the sales of the product to inland buyers. Sources put the FOB price at Paranagua at $536-$655/mt, giving an indication of what the CFR price should be.

While pricing dramas are playing out in China and at Paranagua, sources said the Rondonopolis market held even this week at $500/mt FOB ex-warehouse.

DAP/MAP

Brazil, Central Florida, China, DAP/MAP, Eastern Canada, Eastern Cornbelt, India, Market Watch, Northeast, Northern Plains, Saudi Arabia, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

Sources put Central Florida DAP trucks at $685/st FOB for the week, unmoved from the prior period. Truck-loaded MAP was seen firming to $695/st FOB after a single-week dip to $690/st FOB in the prior report.

In the North Florida market, MAP truck pricing was steady at $750/st FOB on Oct. 21.

U.S. Gulf:

Values on DAP and MAP barges loading from NOLA took a step back from week-ago levels, sources said.

Nearby transactions were generally heard bottoming out around the $670/st FOB mark, falling from the prior $675/st FOB floor, while sources described transactions at a $680/st FOB high, down from the week-ago $685/st FOB. A rumored $665/st FOB barge went unconfirmed on Oct. 21.

MAP barges were also seen slipping lower, with players quoting the nearby low at $760/st FOB, a decline from the week-ago $765/st FOB. MAP highs were noted taking a bigger step down, to $765/st FOB from the prior week’s $780/st FOB top.

The prompt barge DAP market was quoted at $670-$680/st FOB for the week, softening from $675-$685/st FOB in the prior report. MAP barges were pegged in the $760-$765/st FOB range, sources said, a drop from $765-$780/st FOB at last report.

U.S. Exports:

Nothing new was reported on the Gulf export phosphate markets, leaving last-done at $660/mt FOB for DAP and $685/mt FOB for MAP.

Eastern Cornbelt:

DAP pricing eased up to $735-$750/st FOB in the Eastern Cornbelt, with the low at Cincinnati and the high reported out of spot Illinois River terminals. MAP was steady at $790-$810/st FOB in the region, with the Cincinnati market quoted at the $800-$805/st FOB level at mid-month.

Out of Michigan warehouses, sources reported current offers at the $790/st FOB level for DAP and up to $860/st FOB for MAP.

Western Cornbelt:

DAP pricing was quoted at $720-$735/st FOB in the Western Cornbelt, with the low reported at St. Louis. The MAP market was pegged at $790-$810/st FOB in the region.

Northern Plains:

DAP was reported at $735-$745/st FOB St. Paul, with MAP quoted at the $800-$810/st FOB level at that location. Delivered green MAP offers were pegged at the $870/st level in central North Dakota, up $45/st from last report.

Northeast:

Phosphate pricing FOB East Liverpool, Ohio, was confirmed at $750/st for DAP and $815/st for MAP, up $25-$35/st from late September. DAP offers at Chester, W. Va., were also reported at the $750/st FOB level at midweek. November MAP tons at Fairless Hills were quoted at the $810/st FOB level, while spot tons at Belle Vernon, Pa., were pegged at $800/st FOB.

In the Southeast, Nutrien’s MAP price FOB Aurora, N.C., and White Springs, Fla., remained at $750/st FOB, with limited supply at both locations.

Eastern Canada:

MAP prices ranged broadly at C$1,060-$1,180/mt FOB in Eastern Canada, up from C$985-$1,060/mt FOB in late September. The last DAP business was reported at the C$1,120/mt level FOB Montreal, up C$140/mt from last report.

Saudi Arabia:

Recent Saudi Arabia phosphate pricing was heard in the $650-$685/mt FOB range, rising from $640-$660/mt FOB at last report.

China:

The restrictions on phosphate exports have essentially killed any pricing discussions for DAP and MAP out of China.

Sources said the move will build the national reserves of phosphates and could push down prices in the domestic market. One trader said if the producers do not have their energy cut back too much, the reserves will soon be large enough that the Chinese government might change its mind and allow exports.

However, reports this week indicated cold weather is arriving earlier than expected in China. The government has already stated its first goal is to ensure homes have adequate heating, even if it means diverting coal and natural gas from industries.

Exports of DAP for January-September 2021 were up 27 percent, according to Trade Data Monitor, to 5.3 million mt from 4.3 million mt during the same period in 2020. The main buyer for this year was India at 1.3 million mt.

Third-quarter exports of DAP were reported at 2.08 million mt, down slightly from the 2.1 million mt exported during the same period in 2020.September 2021 DAP exports were down 2.8 percent, to 550,000 mt from 566,000 mt in September 2020.

Exports of MAP for January-September 2021 were up 80 percent, to 3.4 million mt from 1.9 million mt during the same period last year. The main buyer this year was Brazil at 1.7 million mt.Third-quarter MAP exports were reported at 1.6 million mt, up from the 678,000 mt exported during the same period in 2020.September 2021 MAP exports were up 58 percent, to 312,000 mt from 197,000 mt in September 2020.

Sources said they expect the export numbers for the rest of the year to drop as producers follow the rules set by the Chinese government. One international trader noted, however, that some exports might be allowed under existing contracts if the domestic price goes down and product reserves are high.

India:

Sources said there is still strong demand for DAP in India. However, the cost of producing DAP in the country remains expensive and a possible money looser unless the government raises the maximum retail price, or adds even more in the budget for subsidies.

The other ray of hope for buyers is that prices out of China will drop and the Chinese government may decide there is enough DAP in the regional warehouses to cover the upcoming domestic market. Under those circumstances, the government might allow some of the producers to honor their contracts with Indian buyers.

Brazil:

The price for MAP moved up to $800/mt CFR as buyers and sellers reacted to the phosphate export ban from the Chinese government. Sources said this price may ease off, because Brazil usually does not have strong demand for MAP in the first quarter of the year.The MAP price range in Rondonopolis tightened to $920-$926/mt FOB ex-warehouse.

The barter rate changed again as crop prices have not kept pace with fertilizer costs. Sources in Sorriso put the rate at 110 bags of corn for 1 mt of MAP, up from the previous rate of 108 bags of corn for 1 mt MAP.

TSP

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

U.S. Gulf:

Price ideas on TSP barges loading from NOLA remained firm, supported in part by a limited supply of physical barges. Ideas typically held in the $610-$620/st FOB range, with sources noting an increase of offers at the $620/st FOB level.

Western Cornbelt:

The TSP market remained at $665-$675/st FOB in the region at mid-month.

Correction:

The price for Brazil TSP should have been reported in the Oct. 15 Green Markets as $680-$700/mt CFR, not $630-$660/mt CFR.

Phosphoric Acid

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

Eastern Cornbelt:

Phos acid prices for October remained at $14.90/unit rail-DEL in Illinois and $15.05/unit rail-DEL in Ohio.

Western Cornbelt:

The phos acid market was steady at $14.80/unit rail-DEL in Iowa, Nebraska, and Missouri for October shipment.

Northern Plains:

Phos acid pricing for October was reported at $14.90/unit rail-DEL in Minnesota and Wisconsin, and $15.05/unit rail-DEL in the Dakotas.

India:

Phosphoric acid contracts at India were valued at $1,162/mt CFR for the current quarter, rising $162/mt from the prior $998/mt CFR contract.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt:

Sources continued to report no current prices for 10-34-0 in the Eastern Cornbelt, citing availability issues and uncertainty over rapidly increasing ammonia and phos acid prices.

Western Cornbelt:

No current 10-34-0 prices were confirmed in the Western Cornbelt.

Northern Plains:

No prices were reported for 10-34-0 in the Northern Plains, as sources said nearly all offers had been pulled due to supply constraints and rapidly firming ammonia and phos acid prices.

Northeast:

The 10-34-0 market in upstate New York was quoted at $680/st FOB, up another $30/st from last report.

Muriate of Potash

Brazil, China, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Potash, U.S. Gulf, Western Cornbelt

U.S. Gulf:

NOLA potash barge prices were called $650-$685/st FOB, up from the week-ago $650-$680/st FOB. Price ideas for December were reported to be $690-$695/st FOB, with January at $720/st FOB, although some questioned whether the market had the stamina for further increases.

Eastern Cornbelt:

The potash market was unchanged at $715-$730/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati. Michigan warehouse pricing was pegged at $750/st FOB for red and $755/st FOB for white granular tons.

Western Cornbelt:

Potash pricing was steady at $700-$730/st FOB in the Western Cornbelt, depending on location.

Northern Plains:

Potash prices FOB St. Paul were quoted at $710-$730/st FOB during the week. The last prices FOB Saskatchewan mines were reported at $589-$599/st FOB for Q4 tons after netbacks, depending on grade.

Northeast:

Potash pricing edged up to $700-$750/st FOB in the Northeast, with the low reported at Baltimore and the high at Fairless Hills for Q4 offers.

Eastern Canada:

Potash prices were quoted at C$825-$840/mt FOB in Eastern Canada for 4Q shipment, up C$30/mt at the low end of the range.

China:

Imports of MOP into China for January-September 2021 were down 11 percent, according to Trade Data Monitor, to 6.1 million mt from 6.8 million mt during the same period in 2020.

Third-quarter imports were down by almost half, to 1.5 million mt from 2.9 million mt in the same period of 2020.September 2021 imports of 545,000 mt were down by more than half from the 1.2 million mt imported in September 2020.

Brazil:

Activity at Paranagua allowed for a larger range in pricing ideas to emerge, with sources now pegging the MOP market at $780-$820/mt CFR. The lower end of the price range in Rondonopolis moved up, while the upper end came down as buyers and sellers come to more agreements on pricing. Sources put the price at $900-$903/mt FOB ex-warehouse.

The barter rate remained stable at 105 bags of corn for 1 mt of MOP.

Sulfur

ADNOC - Abu Dhabi, Alberta, Brazil, China, Market Watch, Qatar, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa:

The fourth-quarter Tampa molten contract price was quoted at $183/lt CFR, a $12/lt decline from the third-quarter’s $195/lt CFR.

Operable U.S. refining capacity moved lower for the week, the Energy Information Administration (EIA) reported. Utilization was reported at 84.7 percent for the week ending Oct. 15, a 2.0-point slide from 86.7 percent reported previously. The rate led both the year-ago 72.9 percent and the 84.0 percent five-year average.

Daily crude inputs also fell, moving below the 15 million barrel/d mark for the first time since the week ending Sept. 10. Inputs were noted at an average 14.990 million barrels/d for the week, a 71,000 barrel/d decrease from 15.061 million barrels/d in the prior period.

U.S. Gulf:

Genscape reported the Oct. 15 restart of a 220,000 barrel/d crude distillation unit (CDU), a 160,000 barrel/d vacuum distillation unit (VDU), and an 80,000 barrel/d coking unit at the Valero refinery in St. Charles, La. The units were reported shutting on Oct. 9. Valero restarted a sulfur recovery unit and a 38,000 barrel/d VDU at its Houston refinery on Oct. 17.

Genscape on Oct. 18 reported a shutdown of all monitored units at the Valero plant in Port Arthur, Texas, due to a partial loss of electricity and third-party utilities. A 265,000 barrel/d crude section, a smaller 150,000 barrel/d crude section, and a sulfur recovery unit (SRU) were reported on Oct. 21 to have restarted.

Total restarted an 80,000 barrel/d fluidic catalytic cracking unit (FCC) at the company’s Port Arthur facility on Oct. 16. The unit was noted suffering an unplanned shutdown on Sept. 9. A planned turnaround was reportedly underway at the facility’s larger ACU-1 crude section, as well as a sulfur unit.

Marathon on Oct. 16 successfully restarted the 243,000 barrel/d Pipestill 3B crude section at its Galveston Bay, Texas, refinery. The unit, along with the 66,000 barrel/d Ultraformer 4 catalytic reforming unit, were shut on Oct. 12.

Members of the United Steelworkers (USW) local 13-243 union have rejected a six-year contract proposed by the ExxonMobil Corp. refinery at Beaumont, Texas, aimed at ending an ongoing lockout in progress at the plant. Approximately 650 union members were locked out on May 1.

The 369,000 barrel/d plant has continued to operate at a reduced capacity using replacement workers and management. The union will face a decertification vote in November, based on a petition submitted by workers to remove the union from the facility.

Most sulfur market players continued to put Gulf export price ideas in the mid-$190s/mt FOB for the week.

Brazil:

Brazil imports were last reported at $244-$246/mt CFR, steady from the prior report. Recent business reported from the Arab Gulf indicated potential $260/mt CFR values at Brazil, should a deal conclude today.

Contract tons were described at $234/mt CFR for the fourth quarter, a rise from $221-$223/mt CFR in Q3.

Vancouver:

Last-done sulfur vessels loading from Vancouver continued to fall in the $180-$192/mt FOB range, sources said, unmoved from one week earlier. Recent gains at China could translate to firming Vancouver pricing in the next round of business, players said.

Alberta:

Netbacks to suppliers in Alberta continued to be tagged in the $68-$122/mt FOB range.

West Coast:

West Coast solid sulfur ideas were noted in line with Vancouver at $180-$192/mt FOB, unchanged from the prior week. Q4 molten sulfur contracts were reported in the $160-$170/lt FOB range, up from $150-$155/lt FOB in the third quarter.

China:

Last-done spot imports at China continued to be heard at $240-250/mt CFR, steady from one week earlier.

ADNOC:

Abu Dhabi National Oil Co. (ADNOC) prill offers were quoted at $193/mt FOB Ruwais for loading in October. The market was $13/st lower in September, at $180/mt FOB.

Qatar:

Sulfur produced in Qatar and marketed by Muntajat was posted at $192/mt FOB Ras Laffan for October, a rise of $14/mt from the previous month’s $178/mt level.

Sulfuric Acid

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

U.S. Gulf:

Import price ideas in the U.S. Gulf were noted in the $245-$250/mt CFR range, although sources generally believed any transactions at those levels were unattainable given current U.S. domestic market values.

Gulf Coast:

Sources reported the start of the bidding season for 2022 annual rail contracts. Still early in the process, little if anything was reported settling to date, although players voiced universal expectations of “significant” year-over-year increases from 2021 prices.

Annual agreements for delivery to Gulf Coast locations were reported in the $85-$110/st DEL range.

Midwest:

Midwest contracts for 2021 were quoted even with the Gulf Coast at $85-$110/st DEL.

West Coast:

Sources quoted the West Coast in the $100-$130/st DEL range for the 2021 contract year.

Brazil:

Last-done on the Brazil spot import market continued to be quoted in the $260-$265/mt CFR range, unchanged from the prior report. Inland pricing was heard carrying a substantial premium to imports, with some putting values in a wide $1,766-$3,532/mt FOB range.