All posts by mickeybarb@charter.net

Ma’aden Sees Ammonia-3 Start-Up Late 2021/Early 2022; Phosphate-3 Pushed To 2027

Ammonia, News, News Briefs, Phosphate, Saudi Arabia

Saudi Arabian Mining Co. (Ma’aden), Riyadh, said its new ammonia-3 plant under construction at Ras Al-Khair on the Kingdom’s East Coast is now “north of 55 percent completed” and is likely to start up at the end of this year-the beginning of 2022, company CEO Mosaed Al-Ohali told analysts at an earnings call on Feb. 10.

Construction of the 1.1 million mt/y ammonia-3 plant began in October 2018 (GM Oct. 26, 2018), and is being built adjacent to the Ma’aden Phosphate Co. and Ma’aden Wa’ad Al Shamal Phosphate Co. (MWSPC) DAP/MAP plants and their associated facilities.

Ammonia-3 is the first unit under construction as part of Ma’aden’s ambitious plans for a third large-scale phosphate complex, “Phosphate 3,” which upon completion will add a further 3 million mt/y of phosphate fertilizer production capacity to Ma’aden’s portfolio.

But according to local media reports this week, citing the company, the output from the ammonia-3 plant would add 1.1 million mt to the Saudi producer’s sales.

Ma’aden originally planned to build Phosphate 3 in phases through to 2025 (GM Dec. 6, 2019). Little has been heard from the company on the project during the past year or so.

Al-Ohali told analysts this week that Phosphate 3 has been “pushed a couple of years beyond 2025.

“One of our objectives is to deleverage and bring our leverage to a situation that allows us to comfortably take the additional borrowing that will be required for Phosphate 3. So we would think that maybe a couple of years, maybe three years, that we will need deleverage to an acceptable level,” he said.

The CEO put the estimated budget for Phosphate-3 at $4.2 billion on completion.

“I don’t think we will not have any serious spend on it within this year or maybe next year. Phosphate 3 is a very good project. So we may just look at maybe innovative way of financing and, providing the required capital. That may give us an opportunity to accelerate it into May 2023 timeframe,” said Al-Ohali.

“This is a huge project, and if we are going to meet first-quarter 2025, we need to be doing something now. We need to do now more than what we are doing. So the best thing to say is that maybe completion is the first quarter of 2027,” he added.

The CEO said one way to do Phosphate 3 was to develop it in two phases: Phase 1, half of the capacity, 1.5 million mt/y, and then another phase of 1.5 million mt/y.

Regarding the company’s two existing phosphate fertilizer operations, Al-Ohali confirmed that Ma’aden Phosphate Co. (MPC) is operating at capacity, even “slightly better than capacity.” MPC has approximately 2.9 million mt/y of DAP/MAP production capacity

Al-Ohal confirmed remediation work continues at the majority-owned Ma’aden Wa’ad Al Shamal Phosphate Co. (MWSPC) facilities, which commenced “commercial” operation of DAP in December 2018. The Mosaic Co. and SABIC own 25 and 15 percent stakes, respectively, in MWSPC.

“As reported earlier, we have gaps to close [at MWSPC] before we reach capacity. We are at around 60 percent to 70 percent capacity currently,” he said.

Al-Ohali confirmed the technical issues are not in a specific location; they include issues with the power and steam generation, which have now been fixed, and issues with the sulfuric acid plant, among others. But he expects to see most of the increased capacity benefits coming in this year and next, and anticipates to exceed the 3 million mt/y phosphate fertilizer design capacity at MWSPC by 2025.

Emmerson Secures Mining License For Khemisset Potash Project

Morocco, News, News Briefs, Potash

Potash junior Emmerson plc, Isle of Man, said on Feb. 9 it has received the mining license (ML) for its 100 percent owned Khemisset Potash Project from the Moroccan Ministry of Energy, Mines, and the Environment.

The ML provides the company with the exclusive right to develop and mine the potash deposit, within the perimeter of the ML, in the Khemisset basin ahead of the anticipated initiation of construction by the end of 2021, Emmerson said.

“This is another major milestone in the development of what is to become the first large-scale potash mine in Africa,” said Emmerson CEO Graham Clarke.

The company plans to produce up to 800,000 mt/y of potash per year, for export or domestic consumption.

Ammonia

Ammonia, Black Sea, Brazil, Eastern Canada, Eastern Cornbelt, India, Market Watch, Middle East, North Africa, Northern Plains, Northwestern Europe, Southeast Asia, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf/Tampa:

The Tampa ammonia price for February stands at $330/mt DEL, but sources said new barge and vessel sales this week indicate Tampa will likely go up for March. A NOLA barge trade was reported at $360/st FOB, up $60/st, with yet another trade reportedly being negotiated late in the week.

In addition, Nutrien is taking an Algerian cargo from Fertiglobe at a reported $440/mt CFR in March into the U.S. Gulf.

Sources said ammonia inventories are tight, citing both planned and unplanned outages in the international and domestic market. In Trinidad, Yara’s Tringen II plant is now down due to mechanical issues. Two Nutrien plants are already down in that country. In addition, Yara’s Freeport, Texas, plant is also down due to mechanical issues, while Louisiana’s Waggaman plant is reported to still be offline due to a planned major turnaround.

U.S. Imports:

Imports of ammonia fell 15.0 percent in July-December 2020, according to the U.S. Department of Commerce (DOC), to 1.14 million st from the year-ago 1.34 million st. December imports fell 26.6 percent, to 201,272 st from the year-ago 274,207 st.

U.S. Exports:

July-December 2020 ammonia exports were up 9.4 percent, to 303,097 st, from 277,093 st one year earlier. Export totals for December were down 5.1 percent, however, to 61,793 st from 65,143 st in December 2019.

Eastern Cornbelt:

Sources reported prompt ammonia pricing at the $430-$440/st FOB level in the Eastern Cornbelt, with spring prepay offers ranging from $470-$500/st FOB in the region, depending on location.

Western Cornbelt:

The ammonia market remained solidly at the $430-$440/st level FOB Western Cornbelt terminals for prompt tons, depending on location, with spring prepay offers pegged at $470-$490/st FOB in the region.

Northern Plains:

Northern Plains sources reported new prepay offers for ammonia firmly in the $530-$550/st range FOB terminals in North Dakota and Minnesota, up from earlier offers at $440-$475/st FOB. Sources said many wholesale distributors and dealers bought a large chunk of their spring prepay at those lower numbers.

Delivered ammonia prepay was pegged in the $550-$575/st range for limited tons, up from earlier pricing in the $485-$495/st DEL range. Sources reported no prompt offers on the table in early February.

Eastern Canada:

Ammonia pricing in early February was quoted firmly at the C$620/mt level FOB Courtright, Ont., for spring prepay, up C$60/mt from the initial prepay offers at that location.

Black Sea:

A couple of cargoes to be loaded in March have moved up the Yuzhnyy ammonia price. Sources reported a Trammo deal with Rossosh at $307/mt FOB. By week’s end, another trader settled a deal at $310/mt FOB.

The increase in pricing reflects the general attitude in the market that limited material and steady-but-strong demand offer sufficient grounds for continued price strength. The fundamentals, sources said, remain strong enough that further increases are still expected.

Middle East:

Producers continue to claim limited material is available for sale. The tightness in the market means producers have little, if any, to offer in the spot market. At this point, said one trader, the producers are working hard just to fulfill their existing contracts.

Sources noted some of the tightness is related to plants being down for routine maintenance. However, demand is also strong enough that even when the plants come back online, they will have to first repay any tons they borrowed in swap deals before they can move on to dealing with the spot market.

The lack of non-formula-based sales from the Arab Gulf means the $280/mt FOB level identified a few months ago remains as the publicly posted price.

North Africa:

Algeria is reportedly sold out through March. Capping off deals extending into next month was a sale by Fertiglobe of Algerian product to Nutrien at $358-$360/mt FOB. The product is headed for the U.S. for a reported landed price of $400/mt CFR.

Northwest Europe:

The steady upward pressure from Yuzhnyy and North Africa is combining with new deals from Baltic sellers to push up the Antwerp ammonia price. Sources now peg the Northwest Europe price at $345-$350/mt C&F, with more increases to come.

Sources reported a sale from Fertiglobe to Yara from a Baltic port at $317/mt FOB, which represents a sizable leap in pricing. The month opened with deals at $280/mt FOB and buyers hoping that this price level would hover at least until March.

Southeast Asia:

Demand remains strong as some industries begin to ramp up production after COVID-related shutdowns. Reportedly, Indonesia is looking at a floor of $330/mt FOB for its ammonia, representing a move upward of $10-$20/mt.

Sources reported some production issues for Yara in Australia, leaving the company to look to the Southeast Asian market for replacement tons.

Some demand may slacken as the Lunar New Year opens on Feb. 12. China, for example, will be mostly shut down through Feb. 22, and other Asian countries will be taking some extended time off this weekend as part of the celebrations.

India:

Buyers keep looking for product, but so far have not concluded any new deals. For now, buyers seem to be working with material secured under long-term, formula-based contracts rather than new spot business.Sources said any spot deal would have to be in the $350-$38/mt CFR range just to start.

Brazil:

According to Trade Data Monitor, Brazil imported 53,000 mt of ammonia in January 2021, up from the 40,000 mt imported in January 2020.The main supplier was Trinidad, with 44,000 mt. The remaining 9,000 mt came from Algeria.

Urea

Black Sea, China, Eastern Canada, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Urea, Western Cornbelt

U.S. Gulf:

The NOLA granular urea barge market rollercoaster continued this week. Sources reported trades as low as $320/st FOB, with prices eventually rebounding to settle in the $338-$342/st FOB range.

Sources gave a multitude of reasons for the past two weeks of price swings, including a delay in the Indian tender; Arab Gulf paper trades; cold and wet weather halting movement; and volatile corn and soybean prices. While some feared that inland UAN and urea inventories might be sizeable due to low prices in the second half of 2020, others disagreed, arguing there is still plenty of product left to sell.

With the big run-ups in prices for all the major commodities, sources speculated that profit taking is also taking place in some cases, as some players who bought low can make an easy profit on resales.

U.S. Imports:

December urea imports were down 16.5 percent, to 151,230 st from the prior year’s 181,006 st. Imports for the July-December period fell 11.3 percent, to 1.34 million st from 1.51 million st.

Qatar led the fertilizer year-to-date imports with 540,915 st, up 1.5 percent from the year-ago 532,798 st, while Saudi Arabia’s 299,131 st was 26.2 percent higher than the prior year’s 237,094 st. Canada was third at 213,990 st, up 7.7 percent from the prior year’s 198,691 st total, with Russia following at 195,904 st. Egypt’s 551 st July-December total represented a 99.4 percent decrease from the previous year’s 91,132 st tally for the same period.

U.S. Exports:

July-December 2020 urea exports were up 48.8 percent, to 516,073 st from the previous year’s 346,883 st. Offshore movements were down 4.7 percent in December, however, to 88,672 st from 93,091 st.

Eastern Cornbelt:

Urea reportedly backed off to $375-$410/st FOB in the Eastern Cornbelt on reports of weaker NOLA barge pricing, with the low reported at Ottawa, Ill. In the Great Lakes region, urea out of Michigan terminals ranged from $425-$440/st FOB during the week, depending on location.

Western Cornbelt:

Urea was steady at $375-$410/st FOB in the Western Cornbelt, unchanged from the prior week, with the low reported at St. Louis, Mo. Sources quoted the Port Neal, Iowa, urea market at $395-$410/st FOB at midweek, with the Catoosa/Inola, Okla., market pegged at $375-$380/st FOB.

Northern Plains:

The urea market FOB St. Paul, Minn., was quoted firmly at $390-$410/st FOB in early February. Delivered urea was pegged in the $425-$455/st range in North Dakota, up from $380-$405/st DEL in mid-January, with the lower numbers for prompt and the higher for spring tons.

Northeast:

The urea market had reportedly edged up to $400/st FOB Fairless Hills, Pa., for February tons, up $35/st from mid-January, with forward offers at Fairless quoted at $405/st FOB for March-April and $410/st FOB for Q2.

Eastern Canada:

The granular urea market was pegged at C$545-$580/mt FOB in Eastern Canada in early February, depending on location, up some C$90-$115/mt from pricing levels at the end of 2020.

China:

Sources said an advisory issued by the central government in Beijing could have been the genesis of a rumor that the country was considering implementing an export tax on urea.

The advisory reportedly was sent to all urea producers and traders in the country telling them the government considered maintaining adequate stockpiles of urea for the domestic market to be of national importance. Supposedly, the notice further expressed the government’s displeasure that export sales have been running up the domestic price.

Some in the industry interpreted this as a veiled threat that China might re-institute export duties on urea to force product back into the domestic market.

Sources outside the country said they have had discussions with their sources in China about the possibility that such a duty might be imposed. The consensus is that nothing will happen until the end of the month because the country spent most of this week slowly shutting down for the Lunar New Year holiday.

Officially the Golden Week is February 11-18. However, sources said many offices this week were operating with limited staff as people took time off early. Few are expected to be back to work until Feb. 22.

Some of the extended shutdowns by urea producers are also being attributed to the pandemic. In some cases, factories are being shut down because a COVID-19 hot spot occurred in the area around the plants. In other cases, the transportation infrastructure to move its product has been impacted, leaving them few opportunities to move out their product.

There were reports of sales of product in small lots to regional buyers. Sources put the netbacks in the low-$360s/mt FOB.

India:

Sources now said the much-anticipated urea tender in India will not be called until the Chinese industry comes back to work after Feb. 22. Sources said the rise in price from every producing area is an incentive for the Indian buyers to wait until the maximum number of sources and tons are available for offer.

One trader said it would be to India’s advantage if they could play China against the Arab Gulf for supply and price. If the tender is called while China is still on its extended Lunar New Year holiday, the Arab Gulf producers would be favored as the main suppliers.

Sources noted that the current price of $375/mt FOB from the Arab Gulf would mean extraordinarily high prices into India, which is already cash-strapped and looking for ways to reduce what it has to pay for fertilizer.

Middle East:

Reports from the Arab Gulf indicate that some deals have been done at $375/mt FOB. The new range for pricing from the region is now anchored in the $370s/mt FOB, removing the lower-priced product that was available just a week ago.

Egyptian producers continue to push for higher prices as European demand remains strong. Sources said the current price that producers are offering for April shipment is $400/mt FOB after deals were closed at $380/mt FOB last week. Material shipping this month and into early March is pegged in the upper-$360s/mt FOB.

Sources said the $400/mt FOB price for late April shipment may not be difficult to achieve. They point to strong prices from the Arab Gulf to Indonesia and continued strong demand from Europe, Egypt’s main customer.

Indonesia:

Producers have quieted following the sale of 45,000 mt of granular material by Kaltim at $366.90/mt FOB and 25,000 mt of prilled at $354.90/mt FOB.Sources said another selling tender could occur by the end of the month.

The higher prices of urea are reportedly causing Indonesian NPK producers to forego buying urea in favor of imported ammonium sulfate.

Black Sea:

Limited availability of product is also limiting the possibility of spot sales. Lacking any new public sale, the urea price in the region remains in the $330s/mt FOB.

Brazil:

The price of urea in Brazil moved up all week.At the beginning of the week, sources reported a deal from China at $380/mt CFR into Paranagua. By the end of the week, sources quoted the market at $390-$400/mt CFR.The increase in prices into Brazil mirrored increases from producers in the Arab Gulf and China.

Prices at Rondonopolis softened a bit at the upper end of the range, with quoted prices at $475-$490/mt FOB ex-warehouse, dropping from $510/mt FOB. The tightness in the range, however, is indicative of a tighter market, said sources. In many inland areas, urea availability is limited.

Sorriso reported prices at $540/mt FOB ex-warehouse, up from just under $500/mt FOB at the end of January. The barter rate for 1 mt of urea remains steady at 60 bags of corn.

Brazil Urea Prices
Terminal/City US$/mt FOB ex-warehouse
Week ending 02/05 Week Ending 02/12
Rondonopolis 475-510 475-490
Sorriso NA 540

Imports of urea in January 2021 were up 25 percent compared with January 2020, according to Trade Data Monitor. Buyers brought in 545,000 mt in January, compared with 437,000 mt last year. The main suppliers were Qatar and Russia, with a total of 315,000 mt coming from the two countries.

Brazil Urea Imports
Partner Country January (mt)
2019 2020 2021
World 580,395 436,752 545,183
Qatar 66,000 42,873 158,426
Russia 138,904 66,005 157,384
Algeria 125,000 123,272 101,829
Nigeria 41,142 79,851 59,530

Source: Trade Data Monitor

UAN

Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, UAN, Western Cornbelt

U.S. Gulf:

NOLA UAN barges continued to be hard to peg. Early week reports put product in the $185-$190/st ($5.78-$5.94/unit) FOB range, but by week’s end, others suggested the market may be as high as $200/st FOB. The week-ago range was $180-$185/st ($5.63-$5.78/unit) FOB.

U.S. Imports:

December 2020 UAN imports were up 20.6 percent, to 196,444 st from 162,869 st in December 2019. Imports for the July-December period totaled 1.17 million st, however, down 19.0 percent from the year-ago 1.44 million st.

Russia topped the July-December import period with 496,508 st, falling 36.3 percent year-over-year from 778,944 st. Trinidad and Tobago was close behind at 475,886 st, softening 20.2 percent from the prior year’s 596,152 st, while Canada’s 171,357 st represented a 14.6 percent drop from 200,591 st posted one year earlier.

U.S. Exports:

Offshore UAN volumes firmed 113.0 percent in December 2020, to 32,364 st from the prior year’s 15,192 st. Export volumes were down 23.5 percent in the July-December period, however, to 464,957 st from 607,961 st.

Eastern Cornbelt:

The UAN-32 market firmed to $235-$250/st ($7.34-$7.81/unit) FOB regional terminals in the Eastern Cornbelt for spring tons, depending on location and time of shipment, 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 pricing edged higher to $235-$245/st ($7.34-$7.66/unit) FOB in the Western Cornbelt, up $10/st from the previous week, with the low confirmed at St. Louis and the high at Muscatine, Iowa.

Northern Plains:

UAN-32 pricing in the Northern Plains firmed from $251/st ($7.84/unit) up to $275/st ($8.59/unit) FOB Winona, Minn., as the week progressed, up from $245/st ($7.66/unit) FOB in mid-January and a full $85/st higher than early December pricing levels.

Northeast:

UAN-32 pricing in the Northeast was quoted at $275/st ($8.59/unit) FOB Baltimore, Md., and $300/st ($9.38/unit) FOB Fairless during the week, up nearly $100/st from mid-January. The market out of terminals in upstate New York also firmed to the $300/st ($9.38/unit) FOB level as the week progressed, up from $288/st ($9.00/unit) FOB previously.

Eastern Canada:

The UAN-28 market had reportedly firmed to C$300-$302/mt (C$10.71-$10.79/unit) FOB in Eastern Canada, up some C$45-$50/mt from late December. UAN-32 pricing was also up C$50/mt, to C$345/mt (C$10.78/unit) FOB in the Ontario market.

Ammonium Nitrate

Ammonium Nitrate, Market Watch, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf:

The thinly-traded NOLA ammonium nitrate market remained at $190-$200/st FOB.

U.S. Imports:

Ammonium nitrate imports softened 56.7 percent for the July-December fertilizer year-to-date, to 100,552 st from 232,487 st noted one year earlier. December totals lifted 93.5 percent, however, to 38,759 st from 20,027 st.

U.S. Exports:

Exports of ammonium nitrate were up 31.0 percent for December 2020, to 52,954 st from 40,431 st in December 2019. July-December totals were up 63.3 percent, to 393,207 st from the prior year’s 240,855 st.

Western Cornbelt:

Ammonium nitrate pricing was steady at $290-$300/st FOB for the last reported offers in the Western Cornbelt.

Ammonium Sulfate

Ammonium Sulfate, Brazil, Eastern Canada, Eastern Cornbelt, Indonesia, Market Watch, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf:

Ammonium sulfate barge prices moved closer to producer postings this week, with sources calling the market $210-$220/st FOB, up from the week-ago $185-$200/st FOB. Expectations were that the next trades would be in the $220-$225/st FOB range. IOC is posted at $225/st FOB.

U.S. Imports:

December 2020 ammonium sulfate imports were up 110.7 percent, to 68,287 st from 32,417 st in December 2019. July-December imports firmed 102.3 percent year-over-year, to 438,868 st from 216,967 st.

Imports originating from Canada topped the July-December list at 247,032 st, a 116.5 percent increase from the year-ago 114,105 st. Tons imported from Belgium totaled 62,723, a 10.5 percent increase from 56,751 st recorded one year earlier. Russia’s 61,788 st total was 65.6 percent above the 37,319 st logged in the prior fertilizer year.

Material sourced from the Netherlands totaled 31,248 for the period, a massive increase from 65 st recorded the previous year, while buyers received 30,314 st of South Korean ammonium sulfate in July-December after buying zero tons from that country one year earlier.

U.S. Exports:

Ammonium sulfate shipments slid 10.9 percent lower for the July-December period, to 324,478 st from the year-ago 364,315 st. December exports firmed 94.0 percent, however, to 57,872 st from 29,824 st.

Eastern Cornbelt:

The ammonium sulfate market was quoted at $235-$250/st FOB in the Eastern Cornbelt, up $10/st at the low end of the range, with the Cincinnati market pegged at $235-$240/st FOB. Michigan terminal pricing ranged from $235-$255/st FOB. IOC’s Feb. 3 ammonium sulfate postings included $250/st FOB Illinois and Ohio River terminals.

Western Cornbelt:

Ammonium sulfate pricing was quoted at $230-$250/st FOB in the Western Cornbelt, depending on location and time of shipment, with the bulk of new spot quotes reported at the upper end of that range. IOC’s Feb. 3 postings included $245/st FOB St. Louis and $255/st FOB Sioux City, Iowa.

Northern Plains:

Granular ammonium sulfate was pegged at $235-$245/st FOB St. Paul for river-open tons. The market in North Dakota was quoted at $245-$265/st DEL for prompt tons and up to $265-$275/st DEL for Q2.

IOC on Feb. 3 raised its ammonium sulfate postings to $250/st FOB Upper Mississippi River terminals and $260/st rail-DEL in the Northern Plains, up $15/st from the company’s Jan. 13 reference prices.

Northeast:

The granular ammonium sulfate market firmed to $265-$275/st FOB East Liverpool, Ohio, during the week, with delivered tons pegged at $270-$275/st in the Northeast.

AdvanSix on Feb. 10 announced that it was increasing the price of ammonium sulfate by $20/st at all distribution points, effective immediately. The new price for granular ammonium sulfate out of Hopewell, Va., firmed to $265/st FOB. AdvanSix on Feb. 3 announced a $30/st increase for new orders of bagged ammonium sulfate products FOB Chester, Va., attributing the price hike to strong demand and tightening supplies expected through mid-summer.

Eastern Canada:

The granular ammonium sulfate market was quoted at C$405-$450/mt FOB in Eastern Canada, up C$30-$50/mt from late December, with the upper end of the range confirmed on Feb. 10 following news of higher postings from at least one producer.

China:

Strong regional demand in China is combining with limited output to raise prices. Sources now put the price in the low-$130s/mt FOB for caprolactam grade and $165-$170/mt FOB for granular ammonium sulfate. Sources said the main focus of the buying from the region appears to be NPK producers looking for nitrogen content at a lower rate than what the urea market is offering.

The limited output is tied to reduced access to natural gas, which is being diverted to residential heating use. Output will also be limited until Feb. 22, as most Chinese business close for the Lunar New Year holiday.

Indonesia:

Tenders from ammonium sulfate buyers are expected by the end of the month. Sources said the NPK buyers are reportedly unwilling to pay the ever-rising prices for urea in the current market, and will instead use ammonium sulfate for their blending.

Brazil:

Sources reported shortages of ammonium sulfate at inland warehouses. Just as other NPK producers are looking for substitutes for expensive urea, the Brazilian blenders are sending out more inquiries for ammonium sulfate, causing a slight supply-demand imbalance.

The price has moved up to $180-$185/mt CFR for granular ammonium sulfate at Paranagua. Compacted product is said to be coming in at $185/mt CFR.

The inland price at Rondonopolis steadied at $280-$310/mt FOB ex-warehouse. Sources said this price will most likely move up as the higher-priced tonnage arriving at the ports begins to move inland. Sorriso moved up from $311/mt FOB ex-warehouse at the end of January to $319/mt FOB this week.

Imports of ammonium sulfate for January 2021 jumped 35 percent over last year. Brazilian importers brought in 384,000 mt in January 2021 against 284,000 mt in January 2020. The main supplier this year was China with 336,000 mt.

Koch Agronomic Defeats Discrimination Suit by Sylacauga Plant Manager

News, News Briefs

A black plant manager failed to show Koch Agronomic Services LLC, Wichita, fired him because of his race rather than the leadership issues cited by the company, the Eleventh Circuit Court of Appeals ruled on Feb. 11, according to Bloomberg Law.

Vince Willis became an employee of the Koch Industries Inc. company in July 2014, when it bought the Sylacauga, Ala., fertilizer facility where he worked for Agrium Inc. (now Nutrien Ltd.). Willis stayed on in the plant’s top job, making him “Koch’s only black plant manager,” the court said.

He was fired three years later when testing conducted by the Alabama Department of Environmental Management (ADEM) uncovered several operational problems with equipment and other devices at the plant.

Willis filed a race discrimination charge with the Equal Employment Opportunity Commission. Koch Agronomic responded by saying Willis was fired for leadership failures, including those that caused issues uncovered by the ADEM.

A lower court properly dismissed Willis’ claims under Title VII of the 1964 Civil Rights Act and 42 U.S.C. §1981 because there was insufficient evidence that the company’s explanation was pretextual, the appellate court said.

Willis said Koch’s firing reasons shifted over the course of the EEOC and lower court proceedings, but the record showed otherwise, the appeals court said.

The company’s examples of Willis’ performance problems may have varied at times, but they all “fell under the umbrella of leadership issues,” the court said.

And it was necessary to provide such examples because a worker’s lack of leadership skills “is a subjective opinion,” the court said.

Willis failed to show that the company’s explanation was false and that he really was fired because he is black, the court said.

The white senior operations quality manager, who was also disciplined but not fired for issues uncovered by the ADEM – and whom Willis said was favored by their white boss – was not comparable to Willis for purposes of showing race bias, the court said.

Their jobs were vastly different, as Willis oversaw the entire plant, it said.

Negative comments that Willis’ boss allegedly made about President Barack Obama in 2016 and earlier were too far removed from Willis’ July 2017 discharge to show race bias, the court said.

Koch sold the Sylacauga manufacturing facility and its Polyon® brand assets to Harrell’s LLC, Lakeland, Fla., in late 2019 (GM Nov. 27, 2019).

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, U.S. Imports, Western Cornbelt

Central Florida:

Truck-loaded DAP firmed to $530/st FOB Central Florida during the week, increasing from $485-$515/st FOB reported previously. MAP trucks were reported at $545-$560/st, firming from $505-$545/st FOB the week before.

U.S. Gulf:

Price action on the NOLA barge phosphate markets finally took a breather, with both DAP and MAP barges reportedly edging lower.

DAP highs were seen rolling back from the week-ago $555/st FOB high to around $540/st FOB, with sources noting $535-$540/st FOB offers finding limited traction in early-week trading. Barges were quoted changing hands down to $520-$525/st FOB on Feb. 11, falling from the previous $525/st FOB low, while trading rumored down to $515/st FOB went unconfirmed for the period.

MAP barges were quoted trading at a $551/st FOB low on Feb. 11, inching above the prior week’s $550/st FOB floor. Early-week offers at $595/st FOB unexpectedly dropped to $565/st FOB on Feb. 10, sources said, revealing a moderating sentiment as the week wore on.

Players attributed the softer market to reduced overall trading volume and a week of wet, cold weather in parts of the Midwest.

The DOC’s Feb. 8 final countervailing duties determination on imports from Morocco and Russia did little to move the market, sources said. The determination will be sent to the ITC for a final decision, expected on March 25. The DOC set final subsidy rates at 19.97 percent for tons originating from Morocco, and 9.19-47.05 percent on material shipping from Russia.

Sources pegged DAP barges in a tighter $520-$540/st FOB range for the week, falling from $525-$555/st FOB in the prior report. MAP barge trades and offers moved to $551-$595/st FOB for the full week, shifting from $550-$595/st FOB the week before, although sources called the market closer to $551-$565/st FOB on Feb. 11.

U.S. Imports:

December 2020 DAP imports were reported at 7,100 st, a 93.1 percent year-over-year decline from 103,229 st. Imports were also lower in the July-December fertilizer year-to-date, falling 24.5 percent to 462,931 st from the year-ago 613,234 st.

Moroccan imports were down 93.7 percent for the July-December period, to 24,251 st in 2020 compared with 386,042 st in 2019, as importers continued to draw on alternative sources of DAP, according to DOC data.

Saudi Arabia topped the DAP import market with 154,257 st in July-December, rising 69.3 percent from the year-ago 91,117 st. Australian receipts totaled 152,099 st after recording zero imports through the same point in 2019. Buyers sourced 47,062 st from Egypt in the current period after buying no Egyptian tons in July-December 2019. Russian imports were down 29.3 percent year-over-year, to 35,641 st from 50,398 st.

December imports in the MAP/Other category were noted at 99,329 st, falling 47.5 percent from the year-ago 189,105 st. July-December volumes dropped 62.0 percent, to 437,379 st from 1.15 million st in the prior year.

Mexico dominated the fertilizer year-to-date with 147,449 st received through December, a 131.0 percent increase versus 63,831 st recorded in the previous year. Russia’s 71,219 st lagged its year-ago 81,101 st total by 12.1 percent, while the 63,362 st originating from Saudi Arabia was 12.0 percent above that market’s prior-year total.

Additionally, the data showed 59,482 st of Australian MAP imported for the period, as well as 54,303 st from Lithuania. Zero Australian cargoes were imported to the U.S. in July-December 2019, while just 414 st of Lithuanian material found its way to U.S. soil during that period. Tons sourced from Morocco totaled just 31,438 st in July-December, falling 95.9 percent from the year-ago 759,231 st. Russian imports softened 12.1 percent year-over-year, to 71,219 st.

U.S. Exports:

DAP exports for December were logged at 87,070 st, a 30.1 percent decline from the year-ago 124,546 st. July-December offshore tons fell 31.0 percent, to 423,440 st from 613,335 st reported one year earlier.

MAP/Other exports for December softened to 186,788 st, off 26.4 percent from 253,777 st in the prior year. July-December totals were reported at 1.07 million st, down 21.2 percent from the year-ago 1.36 million st.

Mosaic on Feb. 11 announced a 7,000 mt export trade into a single destination in Northern Latin America. The material, comprised of 5,000 mt of DAP and 2,000 mt of MAP, was priced at $530/mt FOB and slated for loading in late March.

The U.S. Gulf export phosphate markets were pegged at $530/mt FOB for the period, rising from $497/mt FOB in the prior report. Offers for the next round of business were quoted firming to $580/mt FOB.

Eastern Cornbelt:

DAP was quoted solidly in the $567-$585/st FOB range in the Eastern Cornbelt, with the low reported at Ottawa and the Cincinnati market pegged at $575-$585/st FOB. The MAP market was quoted at $625-$650/st FOB in the region.

Out of Michigan warehouses, sources quoted DAP at $605-$610/st FOB and MAP at $630-$660/st FOB in early February.

Western Cornbelt:

DAP prices strengthened to $565-$585/st FOB in the Western Cornbelt, depending on location and time of shipment from last report, with the low reported at St. Louis and reflecting a $10/st increase from report. The DAP market FOB Dubuque, Iowa, and Catoosa/Inola was pegged solidly at the $575-$585/st FOB level for new business.

The MAP market remained at $625-$650/st FOB in the Western Cornbelt, unchanged from the prior week. MAP pricing at Catoosa/Inola ranged broadly from $625-$675/st FOB, with sources reporting “limited options” for available tons at midweek.

Northern Plains:

DAP pricing FOB St. Paul was reported at $585-$595/st FOB at midweek, up another $10/st from the previous week and some $125/st higher on average than mid-January pricing levels. The MAP market was quoted firmly in the $650-$675/st range FOB St. Paul in early February.

Northeast:

DAP pricing in the Northeast surged to $595/st FOB East Liverpool during the week, up a full $130/st since mid-January, with MAP climbing to $620/st FOB East Liverpool and $650/st FOB Fairless for February-April tons.

Eastern Canada:

MAP was quoted at C$698-$720/mt FOB in Eastern Canada, up a full C$105-$115/mt from late December, with some sources noting that current levels should be even higher based on today’s replacement costs. DAP was pegged at C$676/mt FOB Montreal in early February, up nearly C$80/mt from last report.

Saudi Arabia:

Phosphate cargoes originating from Saudi Arabia were reported firming to at least $510-$530/mt FOB, rising from $450-$470/mt FOB noted previously.

China:

The last bit of DAP business was pegged at $490/mt FOB in China. At the same time, sources said producers were quoting $500-$505/mt FOB before they started to take time off for the Lunar New Year celebrations. Some traders speculated the producers may get their wish when they return from the holiday after Feb. 22.

India:

Several DAP buyers were talking with producers in China and the Middle East looking for tons to be shipped in March. Sources said the pricing ideas of the two sides remains distant.Reportedly, the buyers are looking at prices around $460/mt CFR, while producers are all looking at prices closer to $490/mt FOB and up.

Sources said the situation will come to a head soon. Reportedly, DAP supplies in India are low, and demand for more material by farmers will begin stepping up in late March and early April.At this point, said one trader, the price is immaterial because available DAP is limited to non-existent.

Brazil:

Prices of MAP keep moving up, with quotes at Paranagua rising $50-$60/mt due to continued demand and limited tonnage inland. Sources reported the current price at the port at $570-$600/mt CFR. The Rondonopolis price is now pegged at $670-$700/mt FOB ex-warehouse.

Sources said some large buyers are looking to nail down tonnage for the 2021/22 season but are finding few takers. Sellers are reportedly reluctant to agree to long-range pricing at a time when the market is rapidly moving up. In the meantime, buyers looking for top-off tons for short-term needs are finding it difficult to get the material. Sources in Goias state said MAP shortages are preventing farmers from getting what they want.

The barter rates remain steady. Sources said 1 mt of MAP is still worth 75 bags of corn or 31 bags of soybeans.