Itochu Corp., Tokyo, said on Sept. 1 its first cargo of blue ammonia from Abu Dhabi National Oil Co. (ADNOC) (GM Aug. 6, p. 1) for use as fertilizer will arrive in October. The company said it will begin marketing the product for fertilizer use.
It noted that to date, the product has mainly been considered for fuel production in Japan, however, it said it will begin studying the establishment of a blue ammonia fertilizer supply chain in cooperation with Ube Industries Ltd., Tokyo, and others.
Azotic Technologies Ltd. Raleigh, N.C., and Virya LLC, a climate conscious investment firm, recently announced an agreement to fund rapid global expansion of the Azotic sustainable nitrogen solutions business model. Azotic produces EnvitaTM and N-Fix®, which the company said is the only nitrogen fixing bacteria that works across multiple crops from within plant cells to fix nitrogen from the air.
“The investment from Virya allows us to support the exponential growth we are experiencing in the USA and Canada, as well as accelerate commercial opportunities in Asia, increase production capacity and enhance formulation development,” said Ray Chyc, Azotic CEO. “Our technology provides the balance between productivity and sustainability that agriculture needs and aligns to the purposeful investment strategy of Virya.”
Applied in a liquid formulation as an in-furrow or foliar application, Azotic said its products reduce synthetic nitrogen fertilizer use 25-50 percent while maintaining yield, or can be applied to existing fertility programs to boost yields. Dry formulations and seed treatment options are the next innovations in the product development pipeline of this patent-protected technology.
Azotic said rapid expansion and hiring begin immediately and run parallel to a global partnership strategy that seeks licensees and master distributors in key markets around the globe. The amount of the investment was not released.
Junior developer Gensource Potash Corp., Saskatoon, on Sept. 2 announced that Tugaske Project offtaker Helm has committed to invest C$50 million into the 250,000 mt/y project. As offtaker, Helm is committed to purchasing 100 percent of the production for a period of 10 years, renewable thereafter.
Gensource has formed a Special Purpose Vehicle (SPV) called KClean Potash Corp., with Helm owning 33 percent and Gensource 67 percent. KClean is a Saskatchewan corporation and is the entity that will finance and ultimately own, construct, and operate the Tugaske Project, which is located 170 kilometers south of Saskatoon. Citing plentiful reserves, Gensource anticipates implementing several potash production modules over the course of the next decades. It believes that the cost of potash production from its modules will be within the lowest quartile of potash producers worldwide.
Helm’s investment is contingent upon the remaining equity and debt financing for the SPV being successfully completed and Helm’s Board approval. Gensource said the investment commitment represents an increase over previously discussed amounts and will occur at financial close.
The senior debt financing package for Tugaske, being arranged by joint lead arrangers KfW IPEX-Bank and Societe Generale, is expected to be for up to C$280 million.
“We are excited to achieve this next important milestone for the Tugaske Project,” said Mike Ferguson, Gensource CEO. “The equity investment commitment by the project’s offtaker, Helm, reaffirms Gensource’s fundamental business proposition of creating new and direct supply chains in the potash industry, to help begin the transition of the industry to more of a manufacturing model rather than the conventional “bulk mining” model.
“I’m very encouraged to see a robust fertilizer market as we continue to achieve our key milestones towards commencing the construction of the Tugaske Project,” added Ferguson. “The presence of today’s higher prices will, no doubt, bring additional new potential projects to the industry, however, it is important to note that Tugaske does not rely on the current high prices to be economically sound. Tugaske was developed under much lower potash pricing scenarios than we are seeing today and shows robust economics at both low and high pricing environments, this is one of many fundamental and differentiating strengths of the project.”
Gensource said the project involves selective solution mining and processing methods to create an efficient, modular, scalable and environmentally sustainable potash production facility, sized appropriately for local communities. It said it will have lower impact on air, water, and land compared to conventional potash mining methods, with significantly lower freshwater use, no salt tailings, and no brine ponds.
Gensource said Helm will market the potash directly to its customer base, providing KClean with the competitive advantage of a direct and efficient delivery network from the mine site to retail. It said Tugaske’s modular nature will also allow for nimble and capital-efficient future supply additions to meet market demand, without the need for the multi-billion-dollar mega-projects the industry has suffered from up to now.
Norwegian ammonia bunkering technology company Azane Fuel Solutions has received confirmation that it will be granted NOK89 million (approximately $10.3 million at current exchange rates) through the Norwegian Green Platform Initiative for its first project, the “Ammonia Fuel Bunkering Network,” which will build a green ammonia bunkering terminal.
Confirmation of the funding was announced on Sept. 2 by Norway’s Minister of Climate and Environment, Sveinung Rotevatn, Yara International ASA reported in a statement.
Azane Fuel Solutions, working with project partners spanning the entire value chain for ammonia as a marine fuel, will develop, build and operate the first bunkering terminal in a Norwegian port, under real conditions. With this public funding, the project is on track to be the first in the world to pilot ammonia bunkering operations.
“This first green ammonia terminal will be an important enabler for international adoption of ammonia fuel,” said Miriam T. Wennberg, CFO at independent Norwegian technology company and project partner, ECONNECT Energy.
Azane Fuel Solutions will offer its products and services globally and see the Northern European market as a likely early adopter of ammonia fuel for the maritime industry.
Ag-tech company NewLeaf Symbiotics® and direct-to-farm crop inputs provider Meristem Crop Performance Group LLC on Aug. 26 announced a new strategic alliance designed to bring new biologicals to more farmers. The first product to be released under the agreement is Meristem’s Revline Hopper Throttle™, a nutrition enhancer featuring azospirillum, micronutrients, and NewLeaf’s Terrasym technology in an 80/20 combo of talc and graphite.
“We are thrilled NewLeaf has selected Meristem’s new, efficient pathway to reach top growers and millions of acres,” said Mitch Eviston, Meristem Founder and CEO. “Better market access will pull even more innovation, such as the natural corn rootworm biocontrol product NewLeaf is planning to release in 2023, pending regulatory approval.”
According to New Leaf, Terrasym® is the first in a new class of biologicals that infuses plants with naturally-occurring pink pigmented facultative methylotrophs (PPFMs). Since discovering the product, NewLeaf has launched a portfolio of products for corn, soybeans, and peanuts, and is planning more for tomatoes, rice, and cannabis. Meristem and NewLeaf said they are already at work on field trials of other products in the pipeline.
“NewLeaf has invested significant time, energy, and dollars into validating Terrasym® technology across large-scale operations,” said Matt Helms, NewLeaf Chief Commercial Officer. “We see our alliance with Meristem as another step toward taking our great in-field results to more growers across the Cornbelt.”
Based in St. Louis, Mo., New Leaf has raised investor capital from global players such as Koch Disruptive Technologies, Sabic, and S2G, and is currently conducting trials across large and small plots. The company said it is working closely with growers and making its data transparent.
“We view our growers as co-developers of this technology with us,” said Dr. Allison Jack, NewLeaf Technical Product Manager. “This process allowed us to connect with a progressive group of farmers who are interested in more sustainable technologies that deliver enhanced crop performance alongside convenience of application and return on investment.”
Meristem is headquartered in Columbus, Ohio, and is a relatively new direct-to-farm business, launching in May 2020 with Eviston and Rob McClelland as principals of the company. Meristem’s initial product portfolio included seed treatments, plant growth regulators, nitrogen stabilizers, micronutrients, and foliar nutritionals used by corn, soybean, wheat, sugar beet, cotton, and potato growers.
Over the past year, Meristem has been branching out to add products and distribution partners, including C&H Ag Products, Benton County, Ind.; Ag To Go LLC, Henrietta, N.Y.; Forefront Ag Solutions, Huntington, Ind.; Axis Seed Direct LLC, Genoa, Ill.; AgPlanIt, Axtell, Neb.; and Van Trump Ag Solutions, Kansas City. Earlier this year, the company announced a strategic product development alliance with Planet Earth Agronomy LLC, Middleton, Wisc., designed to bring biological products to American farmers (GM April 2, p. 1).
“Consolidation of multinational players and their
traditional reliance on an antiquated distribution system makes it difficult
for many smart people developing this new innovative technology to find a clear
path to market,” Eviston said. “We are excited to have a passionate team and
new allies to be a part of the solution for farmers.”
U.S. Gulf/Tampa:
The Tampa ammonia market continued at $615/mt CFR for September. International and domestic demand remain strong. Hurricane Ida has taken some U.S. Gulf plants offline, at least for a while, tightening supplies for October.
Eastern Cornbelt:
The ammonia market remained at $645-$670/st FOB Eastern Cornbelt terminals for prompt or prepay, with the low reported at Lima, Ohio, and the high out of northern Indiana terminals. Most terminals in Illinois were steady at the $665/st FOB level for prompt or prepay in early September.
Western Cornbelt:
The ammonia market was steady at $645-$665/st FOB for prompt or prepay in the Western Cornbelt, depending on location and supplier, with the low reported in Nebraska on a spot basis and the high at Palmyra, Mo.
California:
Ammonia prices firmed in California on Sept. 1. Calamco reportedly raised its reference prices to $710/st DEL for anhydrous and $187/st FOB for aqua ammonia, reflecting increases of $84/st for anhydrous and $15/st for aqua.
Pacific Northwest:
The ammonia market in the Pacific Northwest remained at $695/st FOB regional terminals and $730-$760/st DEL, depending on location. Aqua ammonia prices were steady at $177-$183/st FOB in early September.
Western Canada:
Ammonia pricing in Western Canada was quoted in a broad range at C$980-$1,050/mt DEL for fall tons, depending on location.
Black Sea:
Increases in energy prices are expected to soon play havoc with ammonia prices. For now, however, sources said the price out of Yuzhnyy remain stable at $590/mt FOB.
The limited availability from Russian producers means that once contracts are covered, there is nothing available for the spot market. At the same time, high production costs in Ukraine are keeping ammonia out of the market. All in all, sources said there is nothing available to test new prices on the spot market in the area.
Middle East:
Vessels are lining up to take SABIC product. Earlier sources had speculated the line-up was for Ma’aden after reports the plant was back up and running. This week, however, as more details filtered out of Saudi Arabia, it seems that the Ma’aden facility is still only in the testing phase.
Industry observers have been hoping for a quick return of the Ma’aden plant. Supplies from the Arab Gulf have been tight, leaving no room for spot market activity. Even orders covered by long-term contracts have seen delays in getting filled as producers scramble for whatever material is available from just about any source.
Sources said while buyers are still hustling for product, even the small quantity produced in the Ma’aden test runs has helped ease the tight situation in the Gulf.
Iranian ammonia exports for January-July were up 71 percent, according to Trade Data Monitor, to 358,000 mt from 210,000 mt during the same period last year The main buyer so far this year was India at 228,000 mt.
July 2021 exports of 42,000 mt were marginally down from the July 2020 amount of 43,000 mt. The main buyer in July was once again India, taking 41,000 mt.
Northwest Europe:
Higher production costs for the European plants has led to higher ammonia prices in Antwerp. Sources reported a Fertiglobe-BASF deal at $700/mt C&F, moving the price up.
At the same time, Baltic deals are now a combination of formula-based agreements and spot prices. Sources said Acron and Eurochem are settling their deals on a formula based on the Yuzhnyy price, while Uralchem is reportedly closing deals at $590/mt FOB.
Southeast Asia:
Demand remains steady and is strong enough to keep the slack out of the system, but sources said there does not appear to be any major new demand on the horizon.
Ammonia imports by Thailand for January-July 2021 were up 30.7 percent, according to Trade Data Monitor, to at 267,000 mt from 204,000 mt during the same period in 2020. The main supplier this year was Malaysia at 182,000 mt.
June 2021 imports were up 81 percent, to 57,000 mt from 32,000 mt in June 2020. The stronger demand for ammonia confirms reports from industry sources that the region is showing signs of an economic rebound as more ammonia is being called for by industries emerging from COVID-19 shutdowns.
U.S. Gulf:
How much difference a week can make.
NOLA granular urea barges had a big stretch for the week, going from $425/st FOB all the way up to $495/st FOB in late Thursday trading. Prices early in the week easily topped the $454/st FOB level, with sources saying this was in reaction to Hurricane Ida, and to a lesser extent due to pending demand from an imminent Indian tender.
Eastern Cornbelt:
Sources reported stronger urea pricing in the region during the week, fueled by rapidly firming NOLA barge values in the wake of Hurricane Ida. Sources pegged the Cincinnati, Ohio, urea market at the $470/st FOB level at midweek, but pricing reportedly firmed to $505/st FOB there by the end of the week. The market out of Illinois and Mississippi River terminals had reportedly strengthened to $475-$485/st FOB as the week progressed, depending on location.
New urea offers at Memphis, Tenn., were quoted at $485/st FOB at midweek, up from $470-$475/st the week before.
Western Cornbelt:
Urea prices were up slightly in the Western Cornbelt. The market was quoted at $465-$475/st FOB St. Louis, Mo., at midweek, with pricing out of Iowa terminals reportedly climbing to $475-$495/st FOB as the week progressed. The market FOB Catoosa/Inola, Okla., had reportedly firmed to $480-$490/st FOB, up from last week’s $460-$465/st FOB range.
California:
Urea pricing remained in a broad range at $545-$600/st FOB in California in early September, depending on supplier and location, with no current rail-DEL offers confirmed in the state.
Pacific Northwest:
Urea prices moved up $25/st during the week, firming from $525/st to $550/st FOB Rivergate, Ore., and from $530/st to $555/st FOB Aurora, Ore. Rail-DEL pricing was pegged in the $550-$560/st level in the Pacific Northwest.
Western Canada:
Sources reported firming prices for urea in Western Canada during the week. New offers were reported at C$670-$690/mt DEL and likely going higher, depending on time of shipment, up from the last reported range of C$650-$670/mt DEL. The lower end of the range was quoted for September tons, with the higher numbers for October-November.
India:
From China to the Middle East, through North Africa all the way to Brazil, industry watchers are wondering when RCF will call its next urea tender. Rumors in Brazil earlier this week pegged the date as Sept. 6. Sources in Asia, however, said the call could come as early as Friday, Sept. 3.
Indian media reported a number of regional complaints of fertilizer shortages combined with stronger demand for urea. In some cases, said traders, the supplies of DAP are lower than expected, leading farmers to grab whatever fertilizer is available, and urea is readily at hand and cheap. Sources said India needs at least 1.5 million mt to make sure demand in the country is fully covered.
The reports of softening prices in China are said to be an encouraging sign to the Indian buyers. However, the tightness in the Arab Gulf and Black Sea markets could leave RCF more dependent on Chinese urea than they would prefer. Sources are estimating 500,000-600,000 mt could come from China in the next tender.
Even as the world looks at softer Chinese prices, sources said freight rates continue to rise. The freight from China to an East Coast Indian port is now pegged at $40/mt and rising, and does not include the usual extra $5-8/mt or so for additional cost or a margin for profit to the trader.
China:
It took a while, but the final numbers from the Taiwan Fertilizer tender for 6,000 mt of urea were finally revealed. They showed, as expected, a netback to China of $415-$420/mt FOB.
The only problem, said traders, is that the market continued its slide. More recent deals of similar-sized cargoes into Southeast Asia showed netbacks for prilled urea deals at $400-$405/mt FOB. Some traders are even arguing that some of the deal could eventually be pegged below the $400/mt FOB mark.
If the price holds in the low-$400s/mt FOB, the price into India would represent a drop of at least $50/mt to the Indian buyer. Sources said they expect to see China supply 500,000-600,000 mt in the tender.
Traders said the threat of central government action against exports still looms. So far, internal supplies and prices seem to indicate that the domestic season will not be too expensive and there is plenty of tonnage available. If, however, the government planners project the numbers into the next year, they might take steps to prevent producers from chasing more lucrative offshore deals ahead of any domestic demand.
Sources said the Chinese government has traditionally announced policy changes such as an export tax or limited restrictions on exports in December, with the new policy to be implemented in January. There have been times when the new policy had immediate effect, however, much to the detriment of buyers who had not yet signed their contracts or already moved their product to bonded warehouse.
While the world is watching to see when India calls its tender and how much it takes, others are carefully following Chinese government pronouncements on urea production and supplies to domestic distribution centers.
Middle East:
Urea supplies out of the Arab Gulf remain tight. Sources said producers are processing contracts, and the tonnage being handled indicates no chance for price discovery deals on the spot market. With no spot deals around, the public price remains based on the netback from the last RCF/India tender in the $480s/mt FOB.
Sources said once the next Indian tender is called, however, they expect to see lower netbacks in any offers backed by Arab Gulf producers. An indication of how the market is thinking came from reports that the paper market is looking at $445-$455/mt FOB for Arab Gulf urea in September and October.
Even as prices are expected to soften in the Arab Gulf, prices already went down in Egypt and are now rebounding. Just this week, deals started at $440/mt FOB for 15,000 mt of MOPCO granular urea, but then edged up to close out the week at $462/mt FOB as Green Markets went to press. All the deals were for October shipment.
MOPCO reported that as a result of the tonnage booked in the past couple of weeks, it is now sold out for September and most of October.
Just as the prices started moving up, Abu Qir announced it would close a tender on Sept. 2 for 20,000 mt each of prilled and granular urea for shipment in late September.
Iranian exports of urea for January-July were up 70 percent, according to Trade Data Monitor, to 2 million mt from 1.2 million mt during the same period in 2020.The top buyers of Iranian urea so far this year have been Turkey at 721,000 mt, Brazil at 188,000 mt, and South Africa at 150,000 mt.
July 2021 exports were up 11 percent, to 335,000 mt from 302,000 mt in July 2020. Turkey took more than half of the July sales at 188,000 mt.
Thailand:
January-July urea imports were down about 3 percent, according to Trade Data Monitor, to 1.42 million mt from 1.47 million mt during the same period in 2020.Three suppliers accounted for 1.05 million mt, with Saudi Arabia leading at 637,000 mt, followed by Oman at 312,000 mt and Malaysia at 286,000 mt.
July imports were down 27 percent, to 235,000 mt from 323,000 mt in July 2020. Saudi Arabia supplied 142,000 mt in July, with the rest of the suppliers sending less than 35,000 mt each.
Brazil:
Urea prices at Paranagua dropped to $460-$480/mt CFR. Sources said the softening in the price has more to do with built-up reserves in the warehouses than with reports from China of lower prices.
Sources said the full warehouses and a strong line-up of vessels waiting to come in are prompting buyers to be more aggressive in their bids. The most successful buyers are those who already have trucks lined up to move the product from the port to inland distribution centers or blending facilities.
The issue of finding enough trucks to move product is affecting every type of fertilizer coming into the Brazilian ports. The limitations are due partly to COVID-19 and partly because the drivers that are available keep threatening to strike until higher rates are negotiated.
Even as the multi-level talks take place, everyone still has eyes on the Indian tender to see how the price will shift and how many tons will be purchased.
While portside costs are coming down, Rondonopolis is showing a steady price inland at $590-$676/mt FOB ex-warehouse. Prices are expected to come off. Sources said weather conditions are forcing farmers to reassess their prospects in the next season, forcing them to delay their input buying plans.
The barter rate was reported at 1 mt of urea for 80 bags of corn.
U.S. Gulf:
Price ideas continued to move up, with players now calling the market $315-$325/st ($9.84-$10.16/unit) FOB, up from the week-ago $310-$320/st ($9.69-$10.00/unit) FOB.
Eastern Cornbelt:
Sources continued to describe limited pricing for UAN-32 in the $348-$356/st ($10.88-$11.13/unit) FOB range in the Eastern Cornbelt, depending on location, with the Cincinnati market pegged at the $355/st ($11.09/unit) FOB mark for the last reported offers.
Western Cornbelt:
A limited number of UAN-32 offers continued to fall in the $345-$355/st ($10.78-$11.09/unit) FOB range in the region, with the last offers out of Port Neal, Iowa, pegged at the $350/st ($10.94/unit) FOB level.
California:
The UAN-32 market in California had reportedly strengthened to $375-$385/st ($11.72-$12.03/unit) FOB terminals, up another $10/st from last report, with rail-DEL pricing quoted at the $380-$390/st ($11.88-$12.19/unit) level.
Pacific Northwest:
The UAN-32 market in the Pacific Northwest was up slightly at $385-$390/st ($12.03-$12.19/unit) FOB for prompt tons, with rail-DEL offers pegged at $385-$395/st ($12.03-$12.34/unit in the region.
Western Canada:
The UAN-28 market in Western Canada remained at C$420-$430/mt (C$15.00-$15.36/unit) DEL, with the low confirmed for September and the higher numbers for October-November shipments.
Western Cornbelt:
LSB Industries on Sept. 3 announced pricing for a fall fill program for fourth-quarter ammonium nitrate. Dealer reference pricing includes Lamar, Mo., at $390/st FOB and St. Joseph, Mo., at $400/st FOB. Product availability is limited and orders will only be taken for the volume available.
France:
Yara on Sept. 1announced its list price for October deliveries of ammonium nitrate 33.5 percent (YaraBelaExtran33.5) in France, setting the price at €397/my bulk CPT, with immediate effect.
The October price marks a €7/mt increase from Yara’s last posting for September deliveries, announced on July 22 (GM July 23, p. 9). Yara once again warned only limited volumes would be available.
U.S. Gulf:
NOLA ammonium sulfate barges continued to be reported at $330/st FOB.
Eastern Cornbelt:
The ammonium sulfate market remained at a firm $350-$370/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati and the high reflecting the last published offers from AdvanSix out of river terminals in the Midwest. The market FOB East Dubuque, Ill., was pegged at the $362/st FOB level for fall tons.
Western Cornbelt:
The ammonium sulfate market remained at $350-$370/st FOB in the Western Cornbelt, with the low reported at St. Louis. The market FOB Camanche, Iowa, was pegged at the $362/st FOB level for fall tons.
California:
Ammonium sulfate prices were quoted at $365-$375/st FOB in early September, with reports of rail-DEL granular tons in the $410/st range in northern areas of the state.
Pacific Northwest:
The ammonium sulfate market in the Pacific Northwest was unchanged at $383/st FOB or DEL for granular and $350/st FOB or DEL for standard grade.
Western Canada:
The ammonium sulfate market in Western Canada had reportedly firmed to C$510-$520/mt DEL, up from C$505-$510/mt DEL at last report.
China:
Prices softened a bit, to $200-$205/mt FOB for caprolactam-grade ammonium sulfate. While demand remains strong and steady in Southeast Asia, sellers said there is an easing of demand from other buyers, notably Brazil.
Sources in Brazil, however, question that perception. International traders countered that Brazilian buyers may be still buying lots of ammonium sulfate, but the grade mix appears to be shifting with prices and availability. So for some producers in China, the demand from Brazil appears to be easing off, while other suppliers see an increase.
The numbers reported by Trade Data Monitor show an uneven export rate of ammonium sulfate so far this year. January 2021 exports were reported at 647,000 mt against July 2021 exports of 1.1 million mt. With the exception of January and February, the top importer of Chinese ammonium sulfate has been Brazil.
Thailand:
January-July 2021 imports of ammonium sulfate were up 64 percent, according to Trade Data Monitor, to 309,000 mt from 188,000 mt during the same period last year. China has dominated 2021 sales into Thailand at 237,000 mt.
July 2021 imports were down about 36 percent, to 30,000 mt from 46,000 mt in July 2020. The main supplier this year was China at 20,000 mt.
Brazil:
The landed price in Paranagua has dropped a bit. Sources reported the market for granular ammonium sulfate at $320-$345/mt CFR, down from last week’s low of $335/mt CFR.
Brazilian buyers are happy to see the price soften but remain discouraged because they are not seeing savings as large as other buyers of Chinese product. The issue is the rising freight cost. Chinese sales to regional Southeast Asian buyers are not affected as severely as Brazilian buyers. Source said the freight rate has moved up from $45/mt just a couple of months ago to $70/mt now, with reports of higher rates to come.
Rondonopolis prices were stable at $395-$454/mt FOB ex-warehouse.The barter rate for 1 mt of ammonium sulfate at Sorriso is now pegged at 60 bags of corn.
