All posts by mickeybarb@charter.net

Sulfur

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

Tampa:

President Biden’s executive order on his first day in office rescinding a presidential permit to operate the cross-border Keystone XL Pipeline could hamper the ability to draw Canadian sulfur into U.S. markets, sources speculated.

Citing the immediate loss of 2,000 existing jobs and as many as 59,000 more estimated to be created over the pipeline’s lifespan, Alberta Premier Jason Kenney issued a call for diplomatic action against the U.S. government, should the Biden administration refuse to engage in dialogue concerning the matter.

“Failing an agreement with the American government, we call on the Government of Canada to respond with consequences for this attack on Canada’s largest industry,” Kenney posted to his official Facebook page. “We are not asking for special treatment, simply the same response that Canada’s government had when other areas of our national economy were under threat from the U.S. government.”

Kenney later clarified in a press conference that he was seeking the imposition of sanctions by Prime Minister Justin Trudeau, according to local news reports.

The controversial pipeline has been touted as a cleaner alternative to the transportation of crude by alternative means, such as rail and truck. But the Keystone project remains vehemently opposed by Native American and environmental groups, citing the potential for spills and accidental releases over Native-owned land, as well as the forced application of eminent domain over land viewed as sacred by some Native groups.

President Biden’s order to rescind the permit came as part of a broader reshuffling of U.S. energy policy, as the incoming administration seeks to move toward more sustainable sources of power.

Genscape on Jan. 20 reported crude distillation unit (CDU) production returning to normal at the Monroe Energy refinery in Trainer, Pa. Activity at the 104,000 barrel/d unit had been reduced since Jan. 13. Reduced activity continued at a 23,000 barrel/d hydrocracker at the site, reported ongoing since Jan. 18, while a 26,000 barrel/d vacuum distillation unit (VDU) has remained offline since March 2020.

The first-quarter contract price of molten sulfur delivered to Tampa was settled at $96/lt CFR, rising $27/lt from the $69/lt CFR fourth-quarter 2020 level.

A schedule change from the U.S. Energy Information Administration delayed the release of refinery utilization and crude input data to the afternoon of Jan. 22. As a result, data for the week ending Jan. 15 was not available at press time.

U.S. Gulf:

A 49,000 barrel/d hydrocracker was restarted on Jan. 18 at the Valero Energy Corpus Christi West refinery, Genscape noted. The unit was taken offline on Jan. 2, while a 32,000 barrel/d VDU has been shut since Feb. 25, 2020.

A hydrogen plant was reportedly taken offline on Jan. 21 at Valero’s Corpus Christi East plant, and increased activity was noted from a 17,000 barrel/d coking unit offline since Jan. 4. A 10,000 barrel/d catalytic reformer has been offline since April 8, while an 11,000 barrel/d hydrocracker has remained shut since June 15, 2019.

Price ideas on the Gulf export market were reported firming to $108-$113/mt FOB for the week, based on rising values at Brazil. Seller participation on the Gulf spot market was said to remain constrained due to ongoing reduced run rates at U.S. refineries stemming from the COVID-19 pandemic.

Brazil:

Sources described last-done at Brazil firming to $130-$133/mt CFR. The spot market was previously quoted at $119/mt CFR. Citing new offers up to $140/mt CFR, players predicted further increases in the next round of trading.

Vancouver:

Price ideas at Vancouver lifted to the $110-$118/mt FOB range for the week, sources indicated, increasing from $95-$100/mt FOB reported previously. Next-done was expected to come near the $120/mt FOB mark.

Alberta:

Alberta sulfur netbacks firmed to (-)$31-(-)$48/mt FOB based on rising values at Vancouver, up from (-)$31-(-)$30/mt FOB in the prior report.

West Coast:

The West Coast prill market followed Vancouver higher, firming to $110-$118/mt FOB from $95-$100/mt FOB at last report. Molten contracts for the first quarter were quoted in the $70-$77/lt FOB range, increasing from $45-$60/lt FOB in the prior period.

China:

China achieved a record 13.45 million barrel/d average refinery output in 2020, according to data compiled by the country’s National Bureau of Statistics and reported by Reuters.

The output was roughly three percent higher than calendar-year 2019, equating to a 410,000 barrel/d year-over-year increase, and belied a quick rebound from the demand reduction suffered early in the year from the coronavirus. Refinery outputs were reduced in the February-April period due to widespread lockdowns in the country.

Outputs for December lifted 2.1 percent compared to one year earlier, with refiners processing an average 14.13 million barrels/d for the period, just shy of the 14.2 million barrel/d record set in November.

Global refining margins were seen falling for the week ending Jan. 8, Platts reported, as prices for refinery products failed to keep pace with firming crude values.

Prices were noted rising on the China import spot sulfur market. Players quoted last-done firming to $132-$138/mt CFR, up from $125-$132/mt CFR published previously, while new offers reportedly bent toward the high side of $140-$150/mt CFR on Jan. 21. More firming was predicted ahead of the country’s Feb. 12 Lunar New Year holiday.

ADNOC:

Abu Dhabi National Oil Co. offers for January were heard at $102/mt FOB Ruwais, up $22/mt from $80/mt FOB in December.

Qatar:

Posted prices for Qatar sulfur were heard at $101/mt FOB Ras Laffan for loading in January, rising from $82/mt in December. A recent tender floated by Muntajat was heard drawing bids in the $120s/mt FOB. Sources believed the tender had not been awarded as of Jan. 21.

Sulfuric Acid

Brazil, Market Watch, Sulfuric Acid, U.S. Gulf

U.S. Gulf:

Sources noting rising price ideas on the Gulf import sulfur market, describing recent values in the $70-$75/mt CFR range, rising from $55-$65/mt CFR reported previously. Rumors of an $80/mt CFR transaction went unconfirmed on Jan. 21.

In the U.S. delivered markets, sources reported Gulf Coast contracts at $85-$110/st DEL for 2021. Tons destined for Midwest distribution ran even with the Gulf at $85-$110/st DEL, while West Coast agreements were noted in the $100-$130/st DEL range.

Brazil:

The Brazil import market for sulfuric acid was heard at $75-$80/mt CFR, rising from $65-$70/mt CFR at last report.

Ammonium Thiosulfate

Amthio, Eastern Cornbelt, Great Lakes, Market Watch, Northern Plains, Specialty, Western Cornbelt

Eastern Cornbelt:

Ammonium thiosulfate pricing remained at $210-$250/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati and the upper end inland. Other spot quotes included $225/st FOB Terra Haute, Ind., and $235/st FOB Burns Harbor, with IOC’s Jan. 13 posting also at the $235/st level FOB Ohio River terminals.

Western Cornbelt:

The ammonium thiosulfate market remained at $225-$245/st FOB in the Western Cornbelt.

Northern Plains:

Ammonium thiosulfate pricing remained at a nominal $235-$250/st FOB in Northern Plains.

Great Lakes:

Ammonium thiosulfate pricing was reported at $217-$235/st FOB in the Great Lakes region, depending on location. Michigan terminal pricing at mid-month included $217/st FOB Bay City, $225/st FOB Wawaka, and $220/st FOB Webberville.

Calcium Ammonium Nitrate

Benelux, Calcium Ammonium Nitrate, Germany, Market Watch, Specialty

Germany/Benelux:

Yara on Jan. 20 hiked its list prices again for CAN-27 (YarBelaNitromag) deliveries in February in Germany and Benelux, posting the new price at €230/mt bulk CIF for both destinations.

The supplier also raised its posted prices for YaraBelaSulfan to €240.50/mt bulk CIF for February deliveries in Germany, and to €242/mt CIF for February deliveries to Benelux.

The new postings come just 10 days after the previous postings for February deliveries (GM Jan. 15, p. 23), and reflect a €25/mt hike for both products. Yara also emphasized that only a limited volume of both products is available for February delivery.

Crops/Weather

Crops/Weather, Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt:

Highs in southern Illinois reached the 50s as the week progressed, but much colder weather was reported in central and northern areas of the state, with highs topping out in the upper-30s and low dropping to the teens on Jan.  21-22.

Light snow showers were reported across central Indiana during the week, with temperatures dropping into the 20s. Snowfall totals so far this winter are nearly two inches below average across Indiana.

A cold front was also taking aim at northern Ohio as the week progressed, with highs expected to drop from the mid-40s on Jan. 21 to the low-20s by Jan. 23. Lake-effect snow showers were also in the forecast, with 1-4 inches of accumulation expected in northern Ohio by the weekend.

Western Cornbelt:

Des Moines and other central Iowa locations were digging out from a winter storm that brought a half-foot of snow to some areas over the previous weekend.

That same system in mid-January also brought blizzard conditions to parts of eastern Nebraska and northern Missouri, and cold weather followed the precipitation. Highs in southeastern Nebraska reportedly topped out in the low-30s during the week, with lows dropping into the 20s.

Northern Plains:

Scattered snow showers moved through North Dakota and Minnesota early in the week, with reports of multiple bands of snow tracking through southern Minnesota on Jan. 19.

The region experienced mostly dry conditions as the week progressed, but another system was expected to produce heavy snow by the weekend. Forecasts warned of 4-7 inches of accumulation in the Twin Cities area on Jan. 23. Light snow and colder temperatures were also in the forecast for western South Dakota late in the week.

Great Lakes:

Colder temperatures were moving into the Great Lakes region as the week progressed, along with scattered snow showers.

A mix of rain and snow was reported across southern Michigan early in the week, while heavier lake-effect snow was reported in northern Michigan. Temperatures across the state were only expected to climb into the upper-10s or low-20s by the weekend, with breezy weather contributing to lower wind chill values.

Wisconsin was also bracing for gusty winds and cold temperatures at mid-month. Highs in northern Wisconsin were expected to stay below the 20-degree mark on Jan. 22, while southern Wisconsin was preparing for its first sub-zero lows of the winter on Jan. 22-23.

Northeast:

Most of New England experienced dry weather conditions at mid-month after snow and rain over the previous weekend. Up to a half-foot of snow fell on Jan. 16 in the mountains of Vermont, New Hampshire, and Maine, with lesser snowfall reported across northern, western, and much of central New England.

Blustery weather was reported across New York and Pennsylvania during the week, with winds and scattered snow showers in some locations. Much colder weather was on tap for the Mid-Atlantic region by the weekend, with highs topping out in the upper-30s and wind chills falling to the mid-20s in Maryland.

Transportation

Arkansas River, Illinois River, Mississippi RIver, Ohio River, Transportation, U.S. Gulf

U.S. Gulf:

Towing restrictions continued at Port Allen Lock during the week following a recent barge collision that damaged a guidewall. Tows traveling to the west with more than one barge were required to utilize an assist vessel, while single-barge tows were permitted to lock unassisted. Tows moving in the eastbound direction were required to use an assist boat on lengths greater than 650 feet.

Most crossings at Port Allen were reported in the 7-13 hour range during the week, although intermittent delays were seen spiking to as high as 21 hours, sources said.

Algiers Lock towing restrictions remained in effect for the week. Tows with widths above 60 feet were limited to 600-foot lengths, while tow widths narrower than 60 feet were permitted strings up to 700 feet in length. The constraints, in place until further notice, effectively limited lockages to four standard barges or two 30,000 mt tankers.

Dredging operations at Southwest Pass, which have been blamed for restricting blue-water vessel transit, were expected to conclude at 6:00 p.m. on Jan. 19. The operation, reportedly focused on Miles 0-2 in the Gulf/lower Mississippi River, was previously scheduled to run on Jan. 15-17, blocking traffic daily from 6:00 a.m. to 6:00 p.m.

Sources said overnight fog delays slowed movements in the Gulf and Canals during the week. Daylight-hour conditions were described as ideal, however.

Bayou Sorrel Lock delays were reported up to eight hours for the week, while boats transiting Industrial Lock saw waits in the 5-10 hour range. Colorado Lock movements were subject to intermittent 9-10 hour wait times.

Mississippi River:

Channel work at the lower Mississippi River’s Mile 208 was projected to block southbound travel during daytime hours on Jan. 19-22, shortened from the previous Jan. 18-22 schedule. Vessels heading north were considered for daytime passage on a boat-by-boat basis, sources said. Following the conclusion of work at Mile 208, the operation is scheduled to move to Mile 30, with similar restrictions anticipated.

Installation of power lines at Mile 369 has been postponed until further notice per the contractor’s request, sources said. Once restarted, the effort is expected to block daytime navigation in both directions while work is underway.

Low water levels continued to slow transportation between St. Louis and Cairo, Ill. The NWS river gauge at St. Louis was reported at 2.11 feet on Jan. 20, and was expected to descend to the 0.00-foot mark on Feb. 2-3.

The Lock 27 auxiliary chamber is shut through Jan. 29 for maintenance and repairs. Following the auxiliary project’s completion, the primary chamber is scheduled to close to navigation on Feb. 1-18, with sources predicting extensive delays. Waits were noted up to five hours at Lock 27 for the week.

The upper Mississippi River is closed for the winter navigation season. Upper river locks are scheduled to begin reopening for spring travel on March 15, starting with Locks 13-19, while Lock 25 is scheduled to return to service as early as March 31.

Illinois River:

Ice coverage continued to be reported on the Illinois Waterway, slowing navigation and necessitating the use of ice couplings. Ice coverage on Peoria Lake was noted thinning to approximately 0.5 inches.

Utica Bridge demolition has been postponed to Jan. 27 from the previously scheduled Jan. 13. Transit is projected to be unavailable through Mile 229.6 for at least 24 hours. The project was originally slated for Dec. 22.

Wickets remained raised for the week at both Peoria Lock and LaGrange Lock, slowing movements. Peoria Lock travel was delayed up to 15 hours, while sources noted LaGrange Lock wait times peaking above 28 hours for the week.

Ohio River:

The Emsworth Lock main chamber is closed to navigation through Jan. 27 for repairs and maintenance. Sources reported traffic locking one barge per turn through the smaller auxiliary chamber, with resulting waits noted up to 14 hours for the week.

The auxiliary chamber at Markland Lock is scheduled to remain shut through Oct. 29 due to cracks in the miter gate. Locking is projected to remain available through the primary chamber, with minimal delays expected.

The Meldahl Lock 1,200-foot primary chamber will close for repairs and maintenance from Feb. 22 through April 30, prompting tows to detour through the 600-foot secondary chamber. Delays are predicted.

Secondary chamber closures are scheduled for Feb. 1 through April 1 at Smithland Lock. The shutdowns will affect both of the site’s auxiliary chambers, running 30 days each. Boats will continue locking through the main chamber while the project is underway, with minimal delays predicted.

Sources reported a planned New Cumberland Lock auxiliary lock shutdown slated to run March 8 through June 10. The Greenup Lock primary chamber will close from May 10 through June 11, leaving tows to pass through the secondary chamber, with substantial delays predicted. Looking ahead, the Corps has scheduled a main chamber shutdown at Cannelton Lock from June 21 through Nov. 19.

Olmsted Lock saw waits up to five hours for the week. Sources noted Jan. 19-20 delays at Kentucky Lock peaking at nearly 21 hours.

On the Monongahela River, Braddock Lock transport was scheduled to undergo five separate eight-hour navigation interruptions on Jan. 11-25, each projected to block movements from 7:00 a.m. to 5:00 p.m.

Arkansas River:

The Arkansas River’s Norrell Lock, located at Mile 10, will close for emergency repairs from 6:00 a.m. on Feb. 2 through 6:00 p.m. on Feb. 6. No locking will be available at the site while work is underway, effectively blocking access to and from the river.

Scotts Exceeds 1Q Expectations

Earnings, Eastern Cornbelt, News, Specialty

The Scotts Miracle-Gro Co. Marysville, Ohio, on Jan. 11 announced that it exceeded expectations for the first quarter ending Dec. 31, 2020. Scotts Chairman and CEO Jim Hagedorn made the announcement when detailing realignment and organizational changes and the departure of CFO Randy Coleman (see Management Briefs).

“Clearly our business has been performing well, and that trend has continued into 2021 as we exceeded our expectations for the first quarter,” said Jim Hagedorn. “This realignment is focused on fully exploiting the longer-term opportunities that lie ahead and leveraging the deep well of talent that exists within ScottsMiracle-Gro.

“In our U.S. Consumer business, gardening has never been more relevant to consumers, and demographic trends continue to work in our favor,” added Hagedorn. “Further investments in marketing and categories like live goods will be critical in this business. And at Hawthorne, the regulatory environment continues to improve at both the state and federal level. Those tailwinds, coupled with the improvements we’ve made over the past two years and the recent opening of our new R&D facility in Canada, clearly position Hawthorne above any other player in the industry.”