All posts by mickeybarb@charter.net

SQM, Wesfarmers Green-Light Lithium Mine

Australia, Chile, Lithium, News, News Briefs, Specialty

SQM, Santiago, the world’s second-largest lithium producer, on Feb. 17 announced they will proceed with a new mine in Australia that will begin production just as demand for battery metals is set to surge, according to a Bloomberg report.

SQM’s Board of Directors approved development of the Mt. Holland project, which is a joint venture with Perth-based conglomerate Wesfarmers Ltd. The partners expect to spend about A$950 million ($735 million) each to build the mine.

First production of lithium hydroxide is projected for the second half of 2024 at an annual rate of 50,000 mt. After years of oversupply and low prices, the lithium market is showing signs of recovery, with global demand set to triple as the electric-vehicle revolution gains momentum.

“The commencement of production of this project is well aligned with future demand expectations,” SQM CEO Ricardo Ramossaid. “We expect the lithium industry will grow at a rate of about 20 percent per year in the long term.”

Mt. Holland represents SQM’s incursion into hard rock mining after decades of extracting the soft, silvery-white metal from brine under a giant salt flat in Chile’s Atacama Desert.

In addition to lithium, both jv partners are also involved in the fertilizer business.

Growmark Boosts Digital Presence with Launch of myFS Solution Center

News, News Briefs

Growmark, Bloomington, Ill., on Feb. 17 announced the launch myFS Solution Center to enhance its digital presence to customers.

“Our approach is to meet the customer, wherever, however, and whenever they so choose,” said Growmark Executive Director of Digital Strategy Keith Milburn. “In the morning, they may call to order fuel; in the afternoon, they may pick up seed, and in the evening, they may be online approving product bookings or paying invoices. Now they can do all of that through myFS Solution Center. Yet this is not about replacing our trusted advisors out there. It’s about enhancing the customer experience.”

myFS Solution Center consists of multiple tools that allow customers to interact directly with their local FS Cooperatives across North America. The platform also allows FS System team members to collaborate directly and instantly with customers on everything from order fulfillment to product recommendations.

“The Growmark/FS System is completely customer-centric, and this platform allows us to build on that unsurpassed customer experience digitally,” added Growmark IT Portfolio Manager Jacob Crow. “myFS will also allow us to help customers make more informed and timely choices by pushing out alerts on everything from potential pest outbreaks to real-time application and delivery status.”

More than 30 FS cooperatives have already launched myFS Solution Center for customers, with the remaining cooperatives gearing up for an early 2021 launch. The platform also allows customers to send regular feedback, which will be used to improve the experience further in the coming months. In addition to the current eBusiness tools, more features will be added in the coming months.

“The Growmark/FS System has invested heavily in logistics and distribution in its 90-year history,” added Milburn. “New digital
products such as myFS leverage that advantage over our competitors to deliver a more efficient and customized experience for customers to ultimately improve their profitability.”

Keras Advances Diamond Creek Organic Phosphate Project in Utah

London, News, News Briefs, Phosphate, Specialty, U.S.

London-based Keras Resources plc, said on Feb. 12 its Diamond Creek organic phosphate project is moving forward with the recent receipt of a processing plant, which was fabricated and shipped from Shanghai in fourth-quarter 2020. The company said the plant is now on site in Utah and construction is underway. 

Keras said the new owner-operated plant has design capacity to process the targeted 48,000 mt/y in 2024, and will increase both the installed capacity and flexibility to beneficiate a variety of organic phosphate products and will also see a significant reduction in operating costs as it moves away from the current toll agreements. Commissioning remains on schedule, and the plant is expected to be operational by the end of first-quarter 2021.

“Our expansion at Diamond Creek continues to progress as planned and the commissioning of the new crushing, milling and bagging facility, which will be capable of supporting our peak production rate of 48,000 tons per year, is a key component underpinning this strategy,” said Russell Lamming, Kera Resources CEO.

“We have a long life-of mine at Diamond Creek, with the opencast resources alone representing in excess of 60 years at the peak production rate, highlighting the long-term sustainable cash flow we anticipate being generated from this mine,” he continued. “We look forward to delivering further news regarding the commissioning of the processing plant and our 2021 production schedule in due course.”

Keras Resources acquired its majority stake in the project late year (GM Aug. 14, 2020), having acquired a 51 percent stake in Salt Lake City-based Falcon Isle Holdings.

Keras started commercial operations at the 840-acre mine site with a throughput of 5,000 mt/y on July 29. The company said the first beneficiated -10 mesh organic product, part of a 770 mt order, was dispatched in early September.

The Diamond Creek Mine is located in a region between Vernal, Utah, and Spanish Fork, Utah. The J.R. Simplot Co. operates a phosphate mine north of Vernal that supplies its Rock Springs, Wyo., fertilizer complex with phosphate ore via a slurry pipeline.

Texas, Oklahoma Plants Offline Due to Cold Weather

Ammonia, Ammonium Sulfate, Amthio, Featured, News, Nitrogen, Sulfuric Acid, U.S., UAN, Urea

One by one, major fertilizer producers in Texas and Oklahoma reported that their plants were offline due to the cold weather. LSB Industries Inc., Oklahoma City, announced Feb. 16 that on Feb. 12 it temporarily took its Pryor, Okla., facility out of service as a result of the recent surge in natural gas prices that has taken place in the region due to extremely cold temperatures.

Also related to the cold weather, the company said the operator of the pipeline that supplies natural gas to the Pryor facility experienced significant weather-related gas supply impacts and, as a result, curtailed gas distribution to commercial customers. LSB said it will restart production at Pryor as soon as natural gas prices and availability normalize.

PCI Nitrogen, Pasadena, Texas, announced Feb. 16 that on Feb. 13 in order to supply additional power to the Houston electric grid through its cogeneration facility, it elected to shut down ammonium sulfate production. On Feb. 15 due to the historic cold temperatures, the company was forced to shut all production at the facility which includes ammonium sulfate, sulfuric acid, ammonium thiosulfate, and power production. 

As of Feb. 16, the company said it is unable to say when the facility will return to normal operations and will depend on the weather moderating and raw material supply normalizing.

Nutrien Ltd. reported that it has taken down its Borger, Texas, nitrogen plant as a result of gas interruptions. The Geismar, La., plant was running as of Feb. 16, but the company was closely monitoring gas supply for possible disruptions. Although Nutrien’s Aurora and White Springs phosphate sites were running without disruption, the feed operations have been affected by the weather.

Nutrien’s Canadian operations plants are currently running with the exception of the nitrogen plant in Fort Saskatchewan, where the company has moved up an outage that was originally planned for Q2 to address a few freeze-up issues.

It was generally assumed that other plants in Texas and Oklahoma, and to a lesser extent, Louisiana and Kansas, were facing the same or similar problems. Yara’s Freeport, Texas, ammonia plant was already offline due to mechanical problems, and the Incitec Pivot Ltd. ammonia plant in Waggaman, La., had already extended its major turnaround to mid-March (see related story).

The Mosaic Co. indicated in its Feb. 18 earnings call that it was having freezing problems at a Louisiana plant and would likely have to shut down the plant – or parts of it – for a couple of days. Mosaic did not specify the plant or respond to inquiries, but sources suggested the Faustina ammonia plant was most likely.

Likewise, CF Industries Holdings Inc. in its Feb. 18 earnings call indicated its Oklahoma plants were impacted by the weather, though it did not specify the extent, saying only that this would impact UAN more than urea. Overall, addressing the cold weather and the industry in general, CF told analysts that lost production could be several hundred thousand tons for both ammonia and upgraded products. “It is still very cold in Kansas, Oklahoma, and Texas and these plants, if they are not shut down appropriately, will not come up appropriately,” CF said Feb. 18.

In the meantime, there were reports that Iowa Fertilizer Co.’s Wever plant was offline. However, the company had not responded to inquiries at press time. Likewise, Koch Industries Inc. and Martin Midstream Partners LP, had not responded as to the status of their plants. However, the latter pushed back its earnings release due to the weather (see related story).

As of Feb. 17, the Houston Ship Channel, which had closed earlier in the week, was again open, according to Bloomberg. The news service also reported that the Electric Reliability Council of Texas (ERCOT) expected the Texas power grid to come out of emergency conditions on Feb. 19.

Higher Prices, Equipment Upgrades Boost PhosAgro 4Q EBITDA, but Volumes Dip

Earnings, News, Nitrogen, Phosphate, Russia

PhosAgro, Moscow, reported a 93 percent increase in fourth-quarter net income, to RUB12.96 billion on revenue of RUB58.89 billion ($773 million), up from the year-ago RUB6.7 billion and RUB53.14 billion, respectively.

Net income adjusted for non-cash foreign exchange gain and other non-cash items came in almost three times up on the year at RUB7.48 billion ($98 million), up from RUB2.53 billion.

Fourth-quarter EBITDA increased 64 percent year-over-year, to RUB18.39 billion ($241 million), up from RUB11.19 billion, but missed analysts’ average estimate of RUB18.93 billion (Interfax, five estimates).

The Russian fertilizer group attributed the  main growth drivers for the EBITDA increase as the recovery in global fertilizer prices and the completion of equipment upgrades and operational improvements at production facilities. Additional supporting factors were the weakening of the ruble against the U.S. dollar and low prices for primary feedstocks, it said.

Revenue for the quarter increased by 11 percent year-on-year to RUB 58.9 billion ($773 million) with the recovery of prices for phosphate- and nitrogen-based fertilizers on the back of a weaker rouble as the main drivers.

“2020 was a record year for PhosAgro in terms of both production volumes and the group’s ability to generate cash flows,” said PhosAgro CEO Andrey Guryev. “Implementation of our long-term development strategy enabled us to exceed, for the first time, 10 million mt of commercial production in a year, and fertilizer sales increased by more than 5 percent year-on-year.”

The group’s full-year net income sunk to RUB16.92 billion on foreign exchange losses, down from the previous year’s RUB49.41 billion. However, net income adjusted for these forex losses was RUB46.79.billion ($649 million), some 26 percent higher than the year-earlier RUB37.06 billion.

Full-year EBITDA rose 12 percent, to RUB84.28 billion ($1.17 billion), up from RUB75.58 billion, while revenue increased 2 percent year-on-year, to RUB253.88 billion ($3.5 billion), up from RUB248.13 billion.

Total sales volumes in 2020 reached 9.96 million mt, but fourth-quarter sales declined 10 percent on the corresponding year-earlier quarter, to 2.04 million mt.

The PhosAgro CEO is positive about demand and prices going forward.

“The start of 2021 has shown a noticeable increase in prices for major agricultural crops, which, combined with the growth in seasonal demand in key sales markets (Europe, the U.S. domestic market, and China in particular), contributed to a significant increase in demand and prices for all major types of mineral fertilizers and raw materials for production,” said Guryev.

In addition to these factors, the CEO highlighted that support for fertilizer demand in the near term can be expected from the Indian market, where he sees low carryover stocks may be conducive to an earlier start of major seasonal purchases.

PhosAgro Sales Volumes

‘000 mt 4Q-2020 4Q-2019 % change FY-2020 FY-2019 % change
Phosphate-based fertilizers 1,545 1,738 (11) 7,669 7,255 +6
Nitrogen-based fertilizers 500 537 (7) 2,286 2,197 +4
Total sales 2,045 2,275 (10) 9,955 9,452 +5

Ammonia

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

U.S. Gulf/Tampa:

The Tampa ammonia price remains under significant pressure to move up from February’s $330/mt DEL. NOLA barges continue to trade at $360/st FOB, a Tampa equivalent of $397/mt, and recent imports into the U.S. Gulf have gone at approximately $400/mt.

In addition, a new round of ammonia plant outages, spurred by cold weather in Texas, Louisiana, and Oklahoma, have idled at least two ammonia plants, Nutrien at Borger, Texas, and LSB at Pryor, Okla. (see related story). Even before the bad weather, the Waggaman, La., plant’s outage was extended to mid-March.

Correction: The Nutrien Algerian cargo referenced last week (GM Feb. 12, p. 2), which was bound for the U.S. Gulf for March, should have read as $400/mt CFR, not $440/mt CFR. It was reported correctly elsewhere in the publication and in the price scan.

Eastern Cornbelt:

The last ammonia offers in the Eastern Cornbelt were steady at $430-$440/st FOB for prompt and $470-$500/st FOB for prepay, depending on location. Sources said most producers had temporarily withdrawn pricing, however, due to the production outages stemming from extremely cold weather and the demands placed upon natural gas and electrical power.

Western Cornbelt:

The ammonia market remained solidly at the $430-$440/st level FOB Western Cornbelt terminals for the last prompt offers, depending on location, with spring prepay pegged at $470-$490/st FOB in the region. Sources said most producers were not quoting any offers during the week, however, because of production outages stemming from the cold weather.

Southern Plains:

The last ammonia offers were reported at a firm $380/st FOB Oklahoma production points for prompt tons and $340/st FOB Beaumont, Texas, for recent truck business, but sources speculated that the Beaumont price will be up significantly when operations fully resume after the cold snap.

South Central:

Prompt ammonia had reportedly firmed to $375-$390/st FOB for truck tons out of regional production points, but plant outages continued to limit prompt offers in mid-February. Incitec Pivot Ltd., the owner of the Waggaman plant in Louisiana, reported that a major turnaround at the facility that started in January has been extended until mid-March.

Black Sea:

New ammonia sales out of Yuzhnyy have dramatically pushed up prices. Sources reported a cargo sold to Fertiglobe and then to Eurochem showed a netback of $350/mt FOB. Even as this sale was being concluded, inquiries were coming in from buyers in Europe and Africa, leading traders to reach out to as many potential suppliers as possible.

The Yuzhnyy price continues to influence pricing in Northwest Europe. Sources reported the deal done with Eurochem also boosted the Antwerp price to $405/mt C&F.

Sources said even with the major leaps in pricing, there are few obstacles to even higher prices. One trader pointed to a growing tightness in the Arab Gulf, exacerbated by the extension of the Sabic plant turnaround. Also, the cold snap that has hit the U.S. is causing disruption in ammonia production in the U.S. Gulf, further limiting available material.

Middle East:

Sources said material is so tight that no new spot deals were reported. The only ammonia moving out of the area appears to be under long-term contracts with formula-based pricing.

Adding to the situation in the area, Sabic said it was extending its plant’s turnaround another 20 days. The continued closure will keep vital tonnage from a marketplace that is apparently desperate to buy ammonia at almost any price.

If spot tons were available, sources said the price would be just above $300/mt FOB. However, said one trader, without any product to trade that talk is only talk.

Southeast Asia:

Reportedly, more buyers keep showing up on sellers’ doorsteps each day. Sources said the buyers are reaching out for product and appear to be willing to keep paying ever-higher prices.

India:

No new spot business has been done, sources said, because buyers are pushing back against prices in the high-$300s/mt CFR. The last bit of public business was a couple of months ago at $310-$320/mt CFR. Sources stressed that this range is no longer available, despite buyers’ protests.

Traders said eventually Indian buyers will have to pull the trigger and accept the higher prices reflected around the globe. Some are questioning how much ammonia the country has on hand. The most generous estimates indicate that new orders will need to be placed before the end of this month, or end users will face a serious shortage of product.

Northwest Europe:

Pressure from the east and west pushed up ammonia prices to $405/mt C&F. Sources said a cargo picked up in Yuzhnyy worked its way to Antwerp for Eurochem to use in its own system. On the heels of that deal, a cargo that was being shopped around the U.S. Gulf for $490-$500/mt CFR ended up reaching Antwerp at $405/mt C&F.

Sales from Baltic producers remain in the $300-$317/mt FOB range only because they got fixed at the beginning of the month. Sources expect to see higher prices on the table when March talks begin.

Urea

Brazil, China, Eastern Cornbelt, India, Market Watch, Middle East, Nepal, Pakistan, South Central, Southeast, Southern Plains, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf:

The NOLA granular urea barge market showed some strength at mid-month after a few weeks of decline. New barge trades were reported in the $324-$356/st FOB range, up from the week-ago $320-$342/st FOB.

Eastern Cornbelt:

Urea was quoted at $380-$410/st FOB in the Eastern Cornbelt, with the lower end reported at Cincinnati, Ohio, and other river terminals in the region.

Western Cornbelt:

Urea pricing was unchanged at $375-$410/st FOB in the Western Cornbelt, with the low reported at St. Louis and Caruthersville, Mo., and the upper end at Port Neal, Iowa. The St. Paul, Minn., market was pegged firmly at the $405-$410/st FOB level during the week.

Southern Plains:

Sources quoted the urea market at $380-$385/st FOB Catoosa/Inola, Okla., up $5/st from the previous week, with some sources speculating that higher levels are likely when production fully resumes. The Houston, Texas, market was also reported at $380-$385/st FOB, with truck-DEL urea in central Texas pegged at the $400/st level, give or take.

South Central:

Urea prices were inching up in the South Central region, fueled by NOLA barge values that saw a mid-month rebound after a week or two of decline. Terminal values were generally up $10/st from the previous week, to $380/st FOB Convent, La., and most Arkansas River terminals, $380-$385/st FOB Memphis, Tenn., $380-$390/st FOB river terminals in Kentucky, and $400-$405/st FOB Shreveport, La.

Southeast:

The urea market was quoted at $400-$405/st FOB port terminals in the Southeast, up from $375/st FOB at last report.

China:

The country was essentially closed for the past two weeks. Offices are expected to re-open on Feb. 22. In the absence of anyone to talk to, international traders said the market held even in the low-$360s/mt FOB.

Sources said even after people return from the Lunar New Year holiday, urea for export will still not be readily available. Some in the industry are now saying that when the offices open, the starting price will be closer to $370/mt FOB, which would put Chinese urea back on par with the Arab Gulf price.

Just before the beginning of the holiday, the government issued a reminder to all fertilizer producers and traders that the first priority is to ensure a plentiful supply for the upcoming spring application season. Sources said the local distribution centers seem to have good reserves built up. The issue will be determining the demand strength.

Reportedly, the few tons that are being shipped to regional buyers are coming from product already placed in warehouses at the ports. Those tons have not been replaced in the past few months, leaving international traders to speculate that soon there may not be anything for export.

Refilling the export warehouses and satisfying the domestic demand may face difficulties. The sporadic outbreaks of COVID-19 have been affecting the transportation system that moves the urea from plants to local distributors and ports. Some plants have also been hit with reduced staff because of the virus.

India:

Sources are now talking about a tender call in the first week of March instead of the end of February. Reportedly, the government is looking at the ever-rising prices of urea in the global market, and seems to hope that by holding off the price might come down in time for a tender. Most traders said this is a false hope.

International traders have been looking at the demand for urea by farmers. According to some, demand remains strong, meaning local and portside warehouses are being quickly emptied. One trader estimated that at the current rate, the reserves will be quickly eaten up and the country will be in a negative supply situation by the end of March.

One trader said if that situation holds true, a tender will need to be called in late February so that the first cargoes of awarded urea can start being trucked inland by the end of March.

Middle East:

Urea prices have stabilized in the $370s/mt FOB, even as the whole market seemed to pause and take a deep breath. Reports of limited tons coming from China have encouraged producers into thinking that they do not have to lower their prices any time soon.

However, the paper market seems to differ. March estimates in the paper market put the price at $355-$363/mt FOB, representing a $15/mt drop. The following months show a continued slide to $351-$360/mt FOB for April and $340-$350/mt FOB for May.

Traders expressed skepticism that the prices would drop so precipitously in the next three months, despite expectations by buyers that the second quarter would show a price drop.

Egyptian producers were also puzzled by the paper market predictions. The current price in the $370s/mt FOB was set more than a month ago for the February and early March shipments. Early April sales have already been concluded at $380/mt FOB, with producers arguing for late-April prices of $400/mt FOB. In fact, as the week closed, MOPCO concluded a deal for 6,000 mt of granular to be shipped in the second half of April at $390/mt FOB.

The paper market is showing a steady decline for the next three months. March is pegged at $365-$380/mt FOB, which does track with many of the deals already signed. However, the April range of $360-$370/mt FOB is in direct contrast to deals already done for that month at $380/mt FOB. A further decline is seen in May to $350-$365/mt FOB.

Nepal:

A tender for 30,000 mt of bagged urea to be delivered to a Nepalese warehouse closed on Feb. 14 with only two offers at $473.70/mt CFR and $487/mt CFR. The lower offer came from Joshi, which has won previous tenders. One source noted that the company has had a hard time in the past securing the tons awarded in those previous tenders.

The issue Joshi will face this time is the scarcity of urea to fill the award, especially from China, as well as finding any supplier ready to offer tons at prices that are currently below market level. Sources estimate that the cost of bagging and transporting the urea is more than $100/mt, meaning the trader is looking at a China-equivalent price close to the last-done price from China.

Pakistan:

Local media reported that domestic urea producers are asking permission to export urea. The support the government gave the producers last year with subsidized natural gas has led to a surplus of about 1 million mt, according to the industry figures. At the same time, demand from local farmers appears to be waning as subsidies are slowly changed to allow for increases in what the farmers pay for their 50 kg bags.

The latest price quote for urea is Rs1,760/50 kg (US$220/mt) to Rs1,780/50 kg (US$224/mt).

Brazil:

The country took most of this week off for Carnival and other pre-Lent celebrations. International traders said there was no shift in the market. However, as the country came back to work at the end of the week, sources in Brazil noticed prices had slipped.

Traders in Brazil are now calling the market $380-$390/mt CFR at the ports. This represents about a $10/mt decline in prices from the previous week.

The drop coincided with a general lethargy in the market. Sources noted limited interest in new fertilizer purchases because the winter corn market is about done, and farmers are now focusing on fieldwork for the next soy and corn harvests. In addition, sources said mixers either have most of the nitrogen they need or are looking to cheaper urea alternatives, such as ammonium sulfate.

Sources reported some delays in unloading cargoes at the ports because of the seasonal rains. These delays are raising concerns that when more product is needed inland, it might not be there for the farmers.

Rondonopolis is reporting a steady price of $475-$490/mt FOB ex-warehouse, for now, as traders come back to work at the end of the week. Likewise, Sorriso is even at $540/mt FOB. The barter rate for 1 mt of urea remains at 60 bags of corn at Mato Grosso.

Brazil Urea Prices
Terminal/City US$/mt FOB ex-warehouse
Week ending 02/12 Week Ending 02/19
Rondonopolis 475-490 475-490
Sorriso 540 540

UAN

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

U.S. Gulf:

NOLA UAN barge price ideas continued to move up, with players now calling the market $200-$220/st ($6.25-$6.88/unit)FOB, up from the week-ago $185-$190/st ($5.78-$5.94/unit) FOB.

Eastern Cornbelt:

The UAN-32 market in the Eastern Cornbelt remained at $235-$250/st ($7.34-$7.81/unit) FOB regional terminals for the most recent spring offers, depending on location, with the low reported at Mount Vernon and Jeffersonville, Ind., and the high at Albany, Ill., and Terra Haute, Ind. Other spot quotes included $237/st ($7.41/unit) FOB Cincinnati, $239/st ($7.47/unit) FOB Peru, Ill., and $245/st ($7.66/unit) FOB Burns Harbor, Ind.

Western Cornbelt:

UAN-32 was steady at $235-$245/st ($7.34-$7.66/unit) FOB in the Western Cornbelt, with the low confirmed at St. Louis and the high in Iowa. As with ammonia, however, sources said many offers were pulled during the week.

Southern Plains:

UAN-32 pricing FOB regional production points in the Southern Plains had reportedly firmed to $215-$225/st ($6.72-$7.03/unit) for the last offers, up $35/st since late January, although sources said few producers are quoting current prices and prompt demand is nonexistent due to the weather.

The UAN-32 market out of Gulf Coast terminals in Texas was reported at the $210/st ($6.56/unit) FOB level for the last business, but sources said a move to $240/st ($7.50/unit) FOB is likely for the next round.

South Central:

UAN-32 pricing in the South Central region was quoted at $220-$225/st ($6.88-$7.03/unit) FOB Memphis, up $25/st from late January, with the upper end of the regional market reported by Kentucky sources at $235/st ($7.34/unit) FOB Ohio River terminals for spring shipments.

Southeast:

The UAN-32 market was quoted at a firm $250-$255/st ($7.81-$7.97/unit) FOB most port terminals in the Southeast at midweek, up from $225-$250/st ($7.03-$7.81/unit) FOB the previous week and a full $65/st higher than late-January levels. List prices at some locations were even higher as the week progressed, with sources confirming new postings from Nutrien at $280/st ($8.75/unit) FOB Augusta, Ga., on Feb. 17.

Ammonium Nitrate

Ammonium Nitrate, France, Market Watch, South Central, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf:

It was difficult to peg the seldom-traded ammonium nitrate barge market, but with $100/st upticks at inland and production sites, NOLA was pegged at $300/st FOB.

Western Cornbelt:

Ammonium nitrate pricing took a sizable jump during the week. The market out of Western Cornbelt terminals firmed to $350-$400/st FOB, up $50-$60/st from last report, with the low confirmed at Caruthersville.

Southern Plains:

Ammonium nitrate pricing was up significantly in the Southern Plains, to $350/st FOB Muskogee, Okla., for new offers, reflecting an increase of $70/st since late January and some $125-$140/st higher than pricing levels at the start of the year.

South Central:

Ammonium nitrate pricing strengthened significantly during the week. Sources said the market FOB Yazoo City, Miss., firmed $100/st on Feb. 15, to $350/st FOB.

Southeast:

Ammonium nitrate pricing at Tampa was quoted at $315-$330/st FOB early in the week but firmed to $330-$340/st FOB as the week progressed, up a full $55-$65/st from pricing levels in late January.

France:

Yara on Feb. 15 set the list price for April deliveries of its 33.5 percent ammonium nitrate (YaraBelaExtran 33.5) in France at €328/mt bulk CPT, marking a €10/mt increase on its last posted price for March deliveries (GM Feb. 5, p. 8).

Ammonium Sulfate

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

U.S. Gulf:

Ammonium sulfate barge prices continued to be quoted in the $210-$220/st FOB range. IOC is posted at $225/st FOB.

Eastern Cornbelt:

The ammonium sulfate market was quoted at $235-$250/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati.

Western Cornbelt:

Ammonium sulfate pricing remained at $235-$250/st FOB in the Western Cornbelt, depending on location and time of shipment, with the low reported at St. Louis. The Caruthersville market was pegged solidly at the $245/st FOB level for new business.

Southern Plains:

The granular ammonium sulfate market was quoted firmly at $245-$250/st FOB Catoosa/Inola and Houston/Freeport, also up significantly from late January. IOC on Feb. 3 raised its ammonium sulfate postings to $245/st FOB Houston and $250/st rail-DEL in the Southern Plains, up $15/st from its previous postings on Jan. 13.

South Central:

Ammonium sulfate pricing had reportedly firmed to $235-$245/st FOB in the South Central region, up $15-$25/st from last report, with the low at Memphis and the higher numbers out of Arkansas and Louisiana terminals. IOC is referenced at $245/st FOB Delta terminals.

Southeast:

AdvanSix on Feb. 10 increased ammonium sulfate postings by $20/st at all distribution points. New prices FOB Hopewell, Va., include $265/st for granular, $245/st for mid-grade, and $225/st for standard. Sources in Florida said earlier orders of standard grade were still being shipped at $195-$200/st FOB at mid-month, however.

China:

Even with most of the country on holiday, a few small deals came through, pushing the price for caprolactam-grade ammonium sulfate to $140/mt FOB. Sources noted that more demand is coming from regional buyers, pushing the price and freight rates even higher.

Sources said the reduced available tons make it difficult for traders to assemble large quantities for export in one place. The subsequent need to visit multiple ports to fill a vessel has bumped up the freight rates.

Brazil:

Ammonium sulfate prices in Brazil remained stable as the country took most of the week off. Sources continue to peg the import market at $180-$185/mt CFR.

Rondonopolis showed no movement from the $280-$310/mt FOB ex-warehouse level achieved last week as trading recommenced late in the week. Likewise, Sorriso stayed at $319/mt FOB. The barter remains at 39 bags of corn for 1 mt of ammonium sulfate in Mato Grosso.