All posts by mickeybarb@charter.net

Ammonium Thiosulfate

Eastern Cornbelt:

Sources pegged the ammonium thiosulfate market at $260-$280/st FOB in the Eastern Cornbelt and Great Lakes regions, but higher postings were published as the week advanced. IOC on March 24 reposted ammonium thiosulfate at $320/st FOB Ohio River terminals, up a full $70/st from the company’s Feb. 25 reference price.

Western Cornbelt:

The ammonium thiosulfate market was up in the Western Cornbelt, firming to $260-$290/st FOB as the week progressed. IOC reposted ammonium thiosulfate on March 24 at $265/st FOB Houston, Texas, up $65/st from the company’s Feb. 25 list price at that location.

Northern Plains:

Ammonium thiosulfate pricing was reported at a firm $285/st FOB in the North Dakota market, up significantly from last report.

Eastern Canada:

Ammonium thiosulfate pricing in Eastern Canada was pegged in a broad range at C$407-$480/mt FOB in late March, up roughly C$50/mt on average from last report.

Crops/Weather

Eastern Cornbelt:

Much of the Eastern Cornbelt experienced mild, dry weather during the first half of the week, but high winds and rain were on tap for many areas on March 25-26.

Forecasts warned of an inch or more of rain across central Illinois, with winds gusting to 30-40 mph. The state’s first tornado of the year was confirmed near Mason City, Ill., late on March 23, with no damage reported.

Highs across central Indiana reached the mid-60s at midweek, but a slight risk of severe weather was posted for many locations later in the week. A high-wind watch was also in effect late on March 25, with wind gusts of 60 mph possible across Indiana and northern Ohio.

Sources reported some fieldwork and application activity ahead of the precipitation, particularly in Ohio and Michigan. “It has been extremely dry here, so a lot of fertilizer and lime are spread,” said one Michigan contact. “They have been busy planting sugar beets in the thumb and Saginaw Valley. We are seeing spot outages already.”

Western Cornbelt:

Iowa’s first tornado of the season was reported late on March 23 near Fort Madison, but minimal damage was reported from the storm’s top winds of 80 mph. Rain was reported across central Missouri on March 25, but most areas were expecting a half-inch or less from the storm. Weekend highs were expected to climb back up to the high-60s and low-70s across the region.

Sources continued to report some preplant ammonia movement in parts of Missouri, as well as topdress activity on wheat. “It’s wet and cool in the Midwest this week, but the week of April 5 we should see significant movement,” said one contact.

Northern Plains:

Temperatures in southern Minnesota climbed to the 60s early in the week, but cooler weather moved in as the week advanced, along with an increased chance of precipitation across central and southern Minnesota.

Rain showers were also reported in eastern South Dakota at midweek, with reports of snow flurries in eastern North Dakota. Highs in the Dakotas were expected to top out in the 40s as the week advanced, with lows dropping into the 20s.

Soil conditions remained extremely dry in the Dakotas in late March, which reportedly allowed some early spreading activity to begin in southwestern North Dakota and parts of northwestern South Dakota. Many growers were waiting, however, with sources noting that the normal start is after Easter.

“There has been a little bit of fieldwork, but lots of second guessing what is the right thing to do right now,” added one regional contact.

Northeast:

Mild, spring weather was reported in much of the Northeast during the final week of March, with temperatures climbing to the 60s and 70s across New England, New York, and Pennsylvania. Although rain was reported at midweek in New York, New England residents enjoyed mostly clear skies.

A weekend weather system was expected to bring precipitation to much of the region, however, with rain likely in New York, Pennsylvania, and southern New England, and as much as six inches of snow possible in the mountains of northern New England. It was a drier-than-normal winter for much of the Northeast, with the Baltimore area recording just 10.9 inches of snowfall, about half of the winter average of 20.1 inches.

The mild weather prompted growers in some locations to start scratching around in late March, but sources said conditions were still too wet for fieldwork in most areas.

Eastern Canada:

A stretch of mild, spring weather was reported for much of Eastern Canada during the week, with above-normal temperatures across Ontario, Quebec, and the Maritimes. Strong thunderstorms hit southern Ontario at midweek, however, bringing heavy rain and strong winds, with reports of snow and freezing rain in northern areas of the province.

A stronger system was expected by the weekend, with 10-20 cm of snow likely in northern Ontario and 35-55 mm of rain possible across Quebec. Forecasts also warned of “significant” wet snow in southern Quebec by March 28. Few were complaining, however, as the area needs moisture after an unseasonably dry month.

The Maritime Provinces were also bracing for a wet weekend after double-digit temperatures in New Brunswick and parts of Nova Scotia at midweek. Forecasts warned of heavy rain and snow on March 27-28, with 15-30 cm of accumulation possible for some locations.

“We have had some nice weather the past few days, and a little bit of fertilizer is moving out on the wheat ground,” said one regional contact. “I’m not aware of any planting yet as it’s still a bit early, but depending on rain, we could be in for an early spring. We do have rain in the forecast for the next few days, so that will slow things up a bit.”

Transportation

U.S. Gulf:

Harvey Lock is set to close to navigation from April 5 through May 21 due to scheduled repairs to the 4th Street Bridge, located adjacent to the lock. Detours will be made through Algiers Lock while the project is underway.

The Colorado Floodgates were scheduled to undergo daily shutdowns from March 23 to April 2, blocking transit between 7:30 a.m. and 4:30 p.m. Waits were reported up to five hours on March 23.

Damage sustained from a barge collision at Leland Bowman Lock was expected to prompt some creative locking from the Corps in the near term. Delays were expected, as plans called for lock operators to use the site’s eastern gate as a water control structure while leaving the western gate open at all times. In response, wait times through the site were quoted spiking above 30 hours for the week.

Daytime navigation interruptions continued through Bayou Sorrel Lock. Most waits fell in the 4-9 hour range, although sources reported intermittent delays as high as 24 hours for the week. The closures, set to conclude on April 7, are scheduled to repeat from April 21 to May 15.

Restrictions on towing continued to be reported through Port Allen Lock due to guidewall damage resulting from a January barge collision. Westbound vessels were allowed to lock without assistance when towing one barge or fewer, while tows moving westward with two or more barges were required to utilize an assist vessel. Eastbound tows longer than 650 feet were also required to use assistance. Sources described waits falling in a wide 3-12 hour range.

The Gross Tete Bridge, located at Mile 36 in the Port Allen Route, will see limited navigation through May 15 due to drawbridge repairs that kicked off on March 15. Navigation through the site was limited to the hours of 10:00 a.m. through 12:00 p.m., and 10:00 p.m. through 12:00 a.m., sources noted, with 6-12 hour delays anticipated.

Towing restrictions persisted at Algiers Lock, limiting unassisted 60-foot-wide tows to a maximum 600 feet of length. Tows with widths under 60 feet were permitted to pass without assistance on lengths up to 700 feet. The limits set maximum unassisted locking capacity to four standard barges or two 30,000 mt tankers per turn, although larger lockages were reportedly available with the use of an assist boat. Most waits were noted below 10 hours, although intermittent delays peaked above 24 hours on March 22-23.

Sources described sporadic rain and wind delays on the East and West Canals during the week. The weather was predicted to impact loading and unloading operations as well.

High water limited barge counts on Gulf movements above New Orleans, cutting tows by 5-10 barges from the usual 25-barge limit. River levels at Baton Rouge, La., were nearing the 35-foot minor-flood stage on March 23. A flood warning issued on March 22 by the National Weather Service for the Mississippi River at Red River Landing was scheduled to remain in effect through April 12.

Industrial Lock waits were quoted at 5-15 hours for the week. Intermittent Bayou Boeuf Lock delays fell in the 3-9 hour range, while Brazos Lock waits were described up to 13 hours.

Mississippi River:

The upper Mississippi River’s Lock 25 returned to operation on March 22, marking a spring reopening of the upper river through at least Lock 8. Lock 2 was scheduled to resume operation on March 19, but reported no lockages as of March 24.

High water levels at St. Louis and below prompted ongoing travel restrictions on the lower river, sources reported. Tow lengths were reduced to 20 barges on travel between St. Louis and Cairo, Ill., down from the usual 25 barge loads, while sources described 5-10 barge reductions from Cairo to the Gulf.

The St. Louis gauge fell below the 28-foot action stage to 23.56 feet on March 24, but Vicksburg, Miss., levels were poised to move above the 43-foot minor-flood threshold on March 24.

Dike work planned for the lower river’s Mile 770 remains on track to commence in late March. Once begun, the project is expected to block southbound travel daily from 7:00 a.m. to 6:00 p.m. through late April. Mat-sinking operations reported at Mile 356 were expected to drive intermittent slowdowns in the southbound direction between 6:00 a.m. and 6:00 p.m. daily.

Lock 21 delays were posted up to five hours. Sources quoted Lock 25 waits in a wide 6-18 hour range for the week, while Lock 27 passages were generally noted at 4-10 hours.

Illinois River: Utica Bridge (Mile 230) demolition, delayed from the original Feb. 17 schedule due to cold weather, was finally executed on March 18, blocking navigation through the area for approximately 24 hours.

Wickets were reported in the lowered position at Peoria Lock and LaGrange Lock, allowing tows to transit both sites without locking.

Ohio River: Greenup Lock primary chamber repairs, underway since Feb. 19, were extended through March 24 from the previous March 5 scheduled end. Traffic has been routed through the secondary chamber while the project is underway, triggering reported delays up to 11 hours for the week. Auxiliary chamber repairs previously set to begin on March 11 were pushed back to March 25.

The Meldahl Lock main chamber is slated to close from April 12 through June 11 for miter gate machinery repairs, prompting detours through the site’s 600-foot auxiliary chamber. Delays are expected while work is underway.

The secondary lock chamber at Markland Lock, shut since early 2020, is likely to remain closed to navigation through Oct. 29 due to cracks in the miter gate, sources said. Transit was reportedly available through the primary chamber, with minimal delays reported.

A Smithland Lock secondary chamber repair and maintenance project underway since Feb. 1 is scheduled to end on April 1, returning both of the site’s auxiliary units to full operation.

Sources said the New Cumberland Lock auxiliary chamber is shut through June 10, but navigation remains available through the main chamber. Primary chamber repairs scheduled at Cannelton Lock were expected to prompt substantial delays between June 21 and Nov. 19.

High water allowed lockless travel at Olmsted Lock for the week, sources said.

The Tennessee River’s Pickwick Landing Lock returned to normal operating hours on March 19. The site was previously shut to daytime navigation on March 4. Kentucky Lock wait times were noted up to 18.5 hours for the week.

Bio-acoustic fish fence (BAFF) repairs at the Cumberland River’s Barkley Lock began on March 22, halting daylight-hour navigation through the site. BAFF work scheduled for April 3 through June 3 at Cheatham Lock will trigger lengthy delays, sources said. The Corps is expected to open Cheatham to waiting vessels on April 23-26, May 7-10, and May 21-14.

Arkansas River: The Arkansas River’s Lock 3 was scheduled to conclude structural testing on March 20, ending a period of intermittent delays and shutdowns that began on March 12.

David D. Terry Lock will shut for dewatering and repair operations from Aug. 27 through Sept. 9. Prior to the shutdown, intermittent delays are expected on Aug. 16-26.

Exmar Wins Classification Approval for Ammonia-Fueled Gas Carrier Plans

Belgium-based shipping company Exmar has secured “approval in principle” for an ammonia-fuelled gas carrier from U.K.-based classification society Lloyd’s Register (LR).

The ship will be a mid-size vessel with cargo capacity of 40,000 m3 and was designed by China’s Jiangnan Shipyard, while Norwegian industrial equipment supplier Wärtsilä Gas Solutions AS provided all input for the ammonia fuel gas supply system, Exmar said.

A risk assessment conducted confirming the risks arising from the use of ammonia fuel affecting persons onboard and the structural strength or the integrity of the ship were addressed in accordance with LR’s ShipRight Procedure for Risk-Based Designs (RBD). This included a Hazard Identification (HAZID) study, the shipping company said.

LR’s Global Head of Engineering Systems Ed Fort said the approval in principle was a significant milestone in progressing alternate fuels for shipping’s transition to zero-carbon, “proving the possibility of the use of ammonia as a fuel and how adaptable the fuel is to gas carriers, especially if carrying ammonia as cargo.”

This approval in principle is “an important milestone” in the process of developing low CO2 emission gas carriers, said Exmar’s Executive Director Shipping Jens Ismar.

“Exmar continues its steps towards further innovation and decarbonization by demonstrating the possibility of using ammonia as fuel onboard gas carriers,” Ismar said. “This follows our initiative of introducing LPG as a fuel in 2012, which is being implemented on our world’s first order of two dual fuel VLGCs currently under construction.”

Exmar operates a fleet of primarily mid-size carriers. Ammonia transportation accounts for around a third of the company’s business.

Afreximbank, OCP Ink $350 M Term Loan

African Export-Import Bank (Afreximbank), the Cairo, Egypt-headquartered pan-African multilateral EXIM bank, has signed a seven-year $350 million term loan facility to provide financing to the OCP Group, the bank reported March 15.

Afreximbank said the facility will support the Moroccan group’s expansion plans across Africa.

OCP Africa, a wholly owned subsidiary of the OCP Group, and Nigeria earlier this month inked a number of agreements to advance their ammonia and fertilizer production project plans in the West African country (GM March 5, p. 1). The Moroccan group, via its African subsidiary, is also pursuing fertilizer production projects at various stages of development in Ethiopia and Ghana, as well as a number of fertilizer blending projects in the Sub-Saharan African region.

Australia’s Leigh Creek Gives FID Nod for Stage 1 Leigh Creek Energy Project

Adelaide-based Leigh Creek Energy (LCK) this week said its board had made the final investment decision (FID) to proceed with Stage 1 of its Leigh Creek Energy Project (LCEP) in South Australia, some 550 kilometres north of Adelaide, where it plans to establish a 1 million mt/y urea facility utilizing in-situ gasification (ISG) technologies (GM Jan. 22, p. 1).

The Stage 1 commercial development of the project, which overlays the Leigh Creek coalfield, will comprise drilling of up to five initial gasification wells to provide feedstock syngas and the construction of a 5 MW power plant.

The company recently completed the project pre-feasibility study, and has been awarded a petroleum production license by the South Australian government for the commercial production.

“The FID milestone gives us approval to construct everything we need in Stage 1 of our commercial development plan of the LCEP and start earning revenue,” said LCK Managing Director Phil Staveley. “The company can now move ahead and build on the EPCM contracts and commencement works [announced earlier this year] and commence placing orders with suppliers for long-lead items and specialty process equipment items.”

In January, LCK awarded the upstream engineering, procurement, construction, and management (EPCM) contract to manage drilling services for the development of initial gasification wells to provide feedstock syngas for the power plant to Brisbane-based InGauge Energy Pty Ltd. The Downstream EPCM contract for the selection, engineering, construction, and commissioning of the 5 MW gas-fired power plant went to Prudentia Process Consulting Pty Ltd., also based in Brisbane.

LCK said initial costs for the Stage 1 commercial development will be funded using the company’s existing cash balance and finance facility.

Negotiation of purchase agreements, seismic work, planning, drilling, and power plant installation are currently scheduled for the remainder of calendar year 2021.

The Adelaide-based company has put the cost of the LCEP at US$2.6 billion, and said updates on the progress of Stage 1 will be given throughout the year with a view to estimating a completion date once planning is further progressed.

LCK also sees the potential to increase urea production capacity at the site to 2 million mt/y, using its 1,153PJ 2P gas reserves.

Russia’s Ag Ministry Draws Up Draft Decree for Domestic Fertilizer Price Freeze

Russia’s Agriculture Ministry has drawn up a draft government decree that proposes the Ministry of Industry and Trade sign agreements with the country’s mineral fertilizer producers and suppliers in order to reduce and maintain prices for mineral fertilizers for domestic agricultural consumers, according to an Interfax report this week, citing the Ag ministry’s document.

The decree is proposed to enter into force from the day of its signing and will apply until July 1, 2021, to cover the spring sowing season.

Agriculture Minister Dmitry Patrushev earlier this month proposed a freezing of prices of the main domestic mineral fertilizer products for two-to-three months for the domestic spring sowing season (GM March 12, p. 12). According to the report, the move is prompted by price hikes for certain types of fertilizers, and are a growing concern for Russia’s farmers.

Russia’s Federal Antimonopoly Service (FAS) last month was prompted to initiate an investigation into the grounds for pricing of mineral fertilizers to the domestic market (GM March 5, p. 31; Feb. 26, p. 37). FAS is still to report on its findings.

However, the country’s mineral fertilizer producers believe the existing measures in place providing for a pricing methodology from the FAS for domestic mineral fertilizer pricing and the accessibility of fertilizers on the domestic market is sufficient, according to this week’s news report.

According to the Russian Association of Fertilizer Producers (RAFP), current mineral fertilizer prices for the domestic market are up to 20-30 percent below the export price.