All posts by mickeybarb@charter.net

Centrex Inks Offtake with Ameropa, Ballance

News, News Briefs, Oceania

Centrex Ltd., Adelaide, South Australia, recently announced that its wholly-owned subsidiary, Agriflex Pty Ltd., has signed binding offtake agreements with Ameropa Australia Pty Ltd. (Ameropa) and New Zealand-based Balance Agri Nutrients for the supply of phosphate rock from the Ardmore Phosphate Project.

Ameropa has committed to purchase 15,000-16,000 mt of phosphate from Ardmore in the first year of a 2.75-year agreement. The parties will then meet within 120 days of the end of each contract year to mutually agree on the tonnages for each subsequent contract year.

On July 1, 2022, Centrex announced the signing of a trial shipment with Ameropa, with the company agreeing to sell 5,000 mt of Ardmore phosphate to Ameropa. The supply of the phosphate under the new offtake agreement is expected to commence on April 1, 2023.

Centrex has set aside 10% of production at Ardmore to fulfill its projected allocation under the Ameropa agreement. Ardmore has current capacity of 120,000 mt/y, but is pursuing an expansion to 524,000 mt/y.

Centrex will supply Ballance with 30,000 mt of phosphate from Ardmore in the first year of the agreement, with subsequent tonnages renegotiated for each subsequent contract year. On May 12, 2022, Centrex announced the signing of a trial shipment with Balance, with Ballance completing its testing of the product earlier this year. Centrex has allotted up to 20% of Ardmore’s production towards the Balance offtake agreement.

Yara, Enbridge to Partner on Blue Ammonia Project

Blue Ammonia, Canada, Featured, News, Norway

Yara Clean Ammonia (YCA) and Calgary-based Enbridge Inc. on March 31 announced the signing of a letter of intent to jointly develop and construct a world scale, low-carbon blue ammonia production facility as equal partners.

The proposed plant, which includes autothermal reforming with carbon capture, will be located at the Enbridge Ingleside Energy Center (EIEC) near Corpus Christi, Texas. Once operational, the production facility will be capable of supplying low-carbon ammonia at an expected capacity of 1.2-1.4 million mt/y. Yara expects to contract full offtake from the proposed facility, the two companies said in a joint statement.

“Yara is pleased to be joining Enbridge in developing this significant clean ammonia project,” said Magnus Krogh Ankarstrand, YCA President. “As presented at our Capital Markets Day, we are working systematically to develop project opportunities in the US and this project will significantly contribute to our strategy of decarbonizing agriculture as well as serving new clean ammonia segments such as shipping fuel, power production, and ammonia as a hydrogen carrier.”

If confirmed through the Front-end Engineering Design (FEED) phase and approved, the companies expect the total project investment to be $2.6-$2.9 billion, with production start-up in 2027/2028. The two companies stressed that the construction of any facilities will be subject to receipt of all necessary regulatory approvals.

Approximately 95% of the CO2 generated from the production process is anticipated to be captured and transported to nearby permanent geologic storage. Enbridge’s Texas Eastern Transmission Pipeline is expected to provide the transportation service for feed gas that will be used for the production process, and Enbridge, along with Oxy Low Carbon Ventures, is advancing a nearby CO2 sequestration hub as a potential destination for the captured CO2.

“We are excited to partner with Yara and collaborate on this clean energy project, especially given their expertise in global ammonia projects, operations, and distribution,” said Colin Gruending, Enbridge Executive Vice President and President, Liquids Pipelines. “EIEC is well positioned to become the most sustainable export terminal in North America through low-carbon fuel production, carbon capture, and solar self-power.”

This is the second blue ammonia project that YCA has announced in the US this year. In January, the company inked a Memorandum of Understanding with JERA Co. Inc., Japan’s largest power generator, to study the viability of collaborating on a 1 million plus mt/y blue ammonia project that YCA is considering developing on the Gulf Coast (GM Jan. 20, p. 1).

In May last year, Enbridge and Denver-based Humble Midstream LLC announced the joint development and marketing of a blue hydrogen and ammonia production and export facility at the EIEC (GM May 13, 2022). If built, the companies said at the time that the facility would cost roughly $2.5-$3 billion and could come online as early as 2026, with Enbridge and Humble jointly marketing the capacity.

Ammonia

Ammonia, Eastern Cornbelt, Market Watch, Northern Plains, Northwestern Europe, Tampa, U.S. Gulf, Western Cornbelt

US Gulf/Tampa:

Tampa ammonia for April fell 26%, or $155/mt, to $435/mt CFR from March’s $590/mt CFR. Most sources had been expecting a sizeable drop in light of lower natural gas prices in Europe and the US, as well as plentiful ammonia supplies.

Eastern Cornbelt:

While the last postings for ammonia remained at $725-$750/st FOB in the Eastern Cornbelt, sources continued to talk of lower prices for serious offers. “I think most suppliers will compete for tons, so it seems that might be flexible,” said one contact.

The significant drop in the April Tampa ammonia price also signaled a likely drop in terminal levels, some sources said.

Western Cornbelt:

Ammonia remained at $670-$710/st FOB in the Western Cornbelt, with the low reported in Nebraska and the high in eastern Iowa. Sources continued to speculate that better deals could be had, however, citing reports of $625-$650/st FOB offers in the Northern Plains.

Northern Plains:

Ammonia pricing slipped to $625-$650/st FOB terminals in North Dakota and Minnesota as of March 24, below the prior $670-$700/st FOB offers, with the low confirmed at Velva, N.D. Delivered offers were reportedly competing with FOB terminal levels on a spot basis.

Northwest Europe:      

International traders in early March predicted the Tampa price would need to come off by at least $100/mt to bring balance to the market. The $155/mt drop announced late in the week is expected to have a rollover impact on the Northwest European price.

Even with gas prices dropping in Europe, the final price of ammonia from the factories was too expensive for the Northwest Europe market. Buyers were also upset with the Northwest Europe price, declaring it too high for the global marketplace. The price drop at Tampa is expected to push the European price down to levels buyers are more willing to accept.

Urea

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

US Gulf:

NOLA urea barge trades were reported in the $295-$312/st FOB range, down from the week-ago $305-$327/st FOB. Most March-loaded physical barge trades were quoted at the $310-$312/st FOB level, while April business fell in the $295-$305/st FOB range.

Eastern Cornbelt:

Urea was unchanged at $370-$390/st FOB in the Eastern Cornbelt, with the high out of inland terminals and the low confirmed at Cincinnati, Ohio. In the Great Lakes region, recent urea offers FOB Toledo, Ohio, were pegged at $400-$410/st FOB, down from $415-$420/st FOB at last report.

Western Cornbelt:

Urea was steady at $365-$390/st FOB in the Western Cornbelt, with the St. Louis, Mo., market pegged in the $365-$380/st FOB range.

Northern Plains:

Northern Plains urea pricing was pegged at $360-$390/st FOB, with the low confirmed at St. Paul, Minn., for river-open offers. No new prices were reported at Carrington, N.D., where tons were described as tight in late March. Delivered urea remained at $450-$470/st in North Dakota.

Northeast:

New prompt urea offers in the Northeast were reported at $395-$400/st FOB East Liverpool, Ohio, $405-$410/st FOB Fairless Hills, Pa., and $410-$420/st FOB Baltimore, Md. April-May pricing at Fairless Hills was referenced at $420/st FOB, with delivered pricing in Pennsylvania pegged at the $435/st level.

Eastern Canada:

Eastern Canada urea slipped to a broad C$700-$875/mt FOB range in late March, depending on location and supplier, below the previous low of C$720/mt.

India:     

The government of India has renewed India Potash Ltd.’s (IPL) license to import agricultural urea. The government announced that IPL will be able to continue as one of three companies authorized to import subsidized urea, along with Rashtriya Chemicals and Fertilizers Ltd. (RCF) and National Fertilizers Ltd. (NFL).

The government also said that buyers of technical-grade urea, intended for industrial use, will continue to be allowed to import tons as needed without government regulation. The agricultural urea is coated in neem and is heavily subsidized, while industrial urea is sold to companies at market value.

Sources remain firm that no new tender will be called until mid-May at the earliest. They noted that a new tender will not be called until all the tonnage awarded in the most recent tender has vessels nominated. The shipping deadline for the tender is June 1.

Black Sea:

The prilled urea out of the Black Sea has moved to the upper end of the range

from just a week ago. Sources now estimate the price at $270/mt FOB.

Indonesia:     

Producers have gone quiet after Kaltim settled sales at $342/mt CFR. The final price was pushed up by producers following a tender in mid-March. Producers said the price will be higher next time.

Sources said the producers are pointing at a rumored deal into Mexico at $530/mt CFR as an argument for a higher Indonesian price. Sources said the deal was most likely done by Fertiglobe into Eastern Mexico with Algerian product, and not Indonesian urea.

Buyers and sellers are reportedly settling their deals on a formula basis. One trader said this process offers little in the way of price transparency, allowing both sides to quietly claim favorable prices to themselves.

Middle East: 

The price in the Arab Gulf remains in the low-$300s/mt FOB. Producers are said to be busily fulfilling orders from the previous Indian tender, along with some small cargoes for other buyers.

Sources said Egyptian producers remain quiet, while sources keep looking for bargains. The last set of deals in the upper-$370s/mt FOB are now said to be too expensive for buyers. At the same time, producers are saying the price is too low.

The absence of Russian material in Europe has opened up greater possibilities for more Egyptian sales deeper into Europe, according to local media reports. When Russian product was more widely available, Egypt was a supplier of small quantities to buyers mostly located in southern Europe. Since the start of the war Ukraine and the subsequent cutback in the availability of Russian urea, however, sources said that buyers throughout Europe are looking to Egypt and Algeria for tonnage.

China:   

With the country still in a strong domestic season, allocating urea for export is out of the question, said traders. The going price is $370-$380/mt FOB, said sources, based on strong domestic demand. This price is out of line with the rest of the global urea market.

Sources expect urea prices to remain high and export possibilities to remain limited into April, when the domestic season is projected to wind down.

Brazil:   

Prices were flat on limited demand. Sources put the landed price at $310-$320/mt CFR. There were reports of sellers trying to jumpstart a price rebound with offers in the $330s/mt CFR, but with no takers.

The Rondonopolis market was reported down to $455-$460/mt FOB ex-warehouse, a dramatic drop from the range’s $490/mt FOB high noted just one week earlier.

Argentina:    

January-February urea imports totaled 13,000 mt, Trade Data Monitor reported, up from the year-ago 1,500 mt.

February imports were 9,500 mt, up from just 56 mt imported in February 2022. Egypt supplied 92% of the imports with 8,800 mt.

Bangladesh:

Chittagong Urea Fertilizer Ltd. (CUFL) restarted production of ammonia and urea on March 23 after a four-month stoppage due to damage sustained in a November fire, the Business Standard reported, citing CUFL Managing Director Mizanur Rahman.

The plant has a nameplate production capacity of 1,400 mt/d, but the volume of natural gas available is insufficient for the plant to run at full capacity. The facility requires 48-52 million cubic feet of gas daily for full capacity, but currently only 42 million cubic feet are being supplied, which cannot produce more than 1,000 mt/day of urea, according to Rahman.

Recommissioning was planned for mid-February, after production was stopped on Nov. 22 following a fire in a reformer pipe at the ammonia plant (GM Nov. 25, 2022).

UAN

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

US Gulf:

UAN barge prices slipped to $270-$280/st ($8.44-$8.75/unit) FOB in a thinly traded market, down from the week-ago $275-$290/st ($8.59-$9.06/unit) FOB. “I’m not sure anything has been bought, as it is a bit slow due to storms in areas where it was running,” said one source.

Eastern Cornbelt:

UAN-32 remained at $320-$330/st ($10.00-$10.31/unit) FOB most river terminals in the Eastern Cornbelt for April-May tons, with the high pegged at $340-$345/st ($10.63-$10.78/unit) FOB out of spot Illinois River terminals for 2Q offers.

Western Cornbelt:

UAN-32 was quoted at $320-$335/st ($10.00-$10.47/unit) FOB in the Western Cornbelt, with the low reported at Port Neal, Iowa. The St. Louis market remained at $325-$335/st ($10.16-$10.47/unit) FOB, depending on time of shipment.

Northern Plains:

Spring pricing for UAN-32 was quoted at $365-$370/st ($11.41-$11.56/unit) FOB Winona, Minn. UAN-28 offers in North Dakota included $290/st ($10.36/unit) FOB Casselton and Harvey, with delivered pricing pegged at the $340-$380/st ($12.14-$13.57/unit) level.

Northeast:

UAN-32 pricing in the Northeast dropped to $320/st ($10.00/unit) FOB Baltimore, $330/st ($10.31/unit) FOB Fairless Hills, and $385/st ($12.03/unit) FOB terminals in upstate New York, down some $30-$40/st from last report.

The latest Baltimore prices for 27-0-0-3S and 28-0-0-5S included $301/st FOB and $335/st FOB, respectively.

Eastern Canada:

UAN-28 pricing dropped to C$560-$680/mt (C$20.00-$24.29/unit) FOB, down C$20/mt from last report at the low end of the range. Recent UAN-32 offers in Eastern Canada slipped to C$640/mt (C$20.00/unit) FOB, reflecting a drop of C$22/mt since early March.

Ammonium Sulfate

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

US Gulf:

NOLA ammonium sulfate barges remained in the $300-$310/st FOB range, unchanged from last week.

Eastern Cornbelt:

The granular ammonium sulfate market remained at $370-$385/st FOB in the Eastern Cornbelt, with the low confirmed out of spot Mississippi, Illinois, and Ohio river terminals

Western Cornbelt:

Granular ammonium sulfate was unchanged at $350-$385/st FOB in the Western Cornbelt, with the low at St. Louis and the high confirmed at Omaha, Neb.

Northern Plains:

Delivered pricing for granular ammonium sulfate in the Northern Plains remained at the $380-$400/st level in late March. New spring postings from IOC on March 16 included $370/st FOB Upper Mississippi River terminals, and $385/st FOB Sioux City, Iowa, and Casselton. IOC’s spring price for rail-DEL tons in the Northern Plains moved to $385/st.

Northeast:

The ammonium sulfate market slipped to $405-$430/st FOB in the Northeast, with the low confirmed at East Liverpool. Delivered tons were pegged at $450-$470/st DEL in the region, down $15-$25/st from last report.

In the Southeast, granular ammonium sulfate pricing at Hopewell, Va., had reportedly fallen to the $400/st FOB level for new offers.

Eastern Canada:

Ammonium sulfate pricing rebounded slightly in Eastern Canada, firming to C$720-$825/mt FOB from the prior low of C$680/mt FOB.

China:

The market continues to soften. Sources said the price now is in the low-$150s/mt FOB.

Traders noted that as industrial output steps up in China, the amsul byproduct is beginning to flood the market. At the same time that more product is being made available, buyers are stepping back. Lower urea prices are allowing some buyers to skip amsul and get their nitrogen needs from urea.

Brazil:

Prices showed a slight downward shift to $180-$190/mt CFR. Sources said the lower end of the range is being assigned to future deliveries, with near-term arrivals pulling in a slightly higher price.

The price range in Rondonopolis has tightened on the top end by $35/mt, to $310-$315/mt FOB ex-warehouse.

DAP/MAP

Argentina, Bangladesh, Brazil, Central Florida, China, DAP/MAP, Eastern Canada, Eastern Cornbelt, India, Market Watch, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

DAP trucks loading from Central Florida were posted at $630/st FOB, unchanged from one week earlier. Truck-loaded MAP was also flat at $630/st FOB.

North Florida MAP trucks continued to be quoted at $630/st FOB, steady from the prior report.

US Gulf:

NOLA barge phosphate values remained largely flat for most of the week, although firmer pricing was reported toward the end of the March 24-30 trading period.

Nearby DAP barges traded even with the week-ago low at $600/st FOB, sources noted, while domestically-produced tons changed hands up to $610/st FOB through the early week. New domestic offers quoted firming to $615/st FOB during the week found buyers on March 30, sources said.

Players described limited MAP action up to $575/st FOB, even with the prior-week top. The price was achieved on a handful of domestic barge trades, after which offers for US-produced material lifted $5/st to $580/st FOB. On the low side, business was heard at $570/st FOB, above the week-ago $565/st FOB floor.

The NOLA DAP barge market was quoted at $600-$615/st FOB, up from $600-$610/st FOB reported last. Players noted MAP barges trading in a $570-$575/st FOB range, above $565-$575/st FOB at last check.

US Exports:

No new business was reported on the Gulf DAP and MAP export markets. Recent trading was quoted at $635/mt FOB, on par with last-heard offer levels.

Eastern Cornbelt:

DAP was unchanged at $670-$680/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati. MAP remained at $625-$650/st FOB, with the upper end out of inland warehouses and the low confirmed at both Cincinnati and Ottawa, Ill.

In the Great Lakes region, the latest MAP offers at Toledo were pegged at the $655/st FOB level.

Western Cornbelt:

DAP was steady at $665-$680/st FOB in the Western Cornbelt, with the St. Louis market quoted at $665-$675/st FOB. MAP remained at $615-$650/st FOB in the region, with St. Louis pricing reported in the $615-$625/st FOB range.

Northern Plains:

DAP remained at $680-$690/st FOB St. Paul. MAP was down significantly, however, falling to $625/st FOB St. Paul, well below the previous $665/st FOB level. No current delivered MAP pricing was confirmed in North Dakota, where truck availability was described as “tight” in late March.

Northeast:

The DAP market remained at $675-$690/st FOB in the Northeast, with the low confirmed at Fairless Hills and the high at East Liverpool. MAP was steady at $670/st FOB East Liverpool in late March, with delivered pricing at the $710/st level in Pennsylvania.

Eastern Canada:

New MAP offers in Eastern Canada were pegged in a broad range at C$995-$1,280/mt FOB, depending on location and supplier, down C$25/mt at the low end of the range. DAP was quoted at the C$1,010/mt FOB level in Montreal, unchanged from last report.

China:   

Exports of DAP have been slow, but are expected to pick up in April and May. Sources said the country is in the tail-end of its main domestic DAP season.

The small amount of material moving out of China reportedly falls under deals cut directly between producers and large-scale buyers. Based on the latest Indian DAP purchases, the netback to China would be in the $560s/mt FOB, although sources stress there is no public business they can cite to back up that estimate.

India:     

The week went well for Indian DAP buyers, starting with reports of a deal or two at $580-$590/mt CFR. By the end of the week, sources were reporting a 40,000 mt DAP purchase at $577-$578/mt CFR.

The most recent deal reportedly involved PhosAgro material being sold to NFL for April shipment. Traders noted that NFL is happy to promote a price in the $570s/mt CFR, while PhosAgro is reportedly telling people the price is both closer to $590/mt CFR and is for shipment after April.

Sources said that if the cargo is shipped in late April or early May, it could still be included in Kharif season planning. If it is shipped in late May, the cargo could easily be stored as part of the buffer stocks for the Rabi season.

So far. many buyers have been picking up only what they need. That could change after April 1, when the new fiscal year begins. Once the new budget and its associated subsidies are formally in place, buyers will feel more secure about their purchases.

Bangladesh:  

Sources reported that 40,000 mt of DAP will be shipped from OCP/Morocco for Bangladesh Agricultural Development Corp. (BADC) at $610/mt CFR.

The cargo is reportedly part of a larger deal between the two countries calling for 520,000 mt to be shipped during the fiscal year ending on June 30.

Brazil:   

The price of MAP came down slightly to $610-$625/mt CFR. Sources expect to see more downward pressure applied to future sales.

The Rondonopolis market narrowed to $730-$765/mt FOB ex-warehouse. Sources said the bulk of the deals were in the $750s/mt, but with some aggressive buyers pushing the $730/mt price. Large-scale buyers are said to have secured their MAP needs for the upcoming season. The only ones left to buy product are individual farmers who seem to be waiting and watching as the price slides further down.

Argentina:     

Trade Data Monitor put January-February MAP imports at 12,000 mt, up from 1,000 mt reported through the first two months of 2022.

February MAP imports were 7,000 mt, up from 5 mt imported in February 2022. All of the tons originated from Morocco. The first quarter of the year is typically a slow period for imports.

TSP

Brazil, Eastern Cornbelt, Market Watch, Triple Superphosphate, U.S. Gulf, Western Cornbelt

US Gulf:

With cheaper Lebanese tons now reportedly sold out, market players saw TSP barges firming to a $540-$550/st FOB range, up from $525-$545/st FOB noted previously.

Eastern Cornbelt:

TSP was steady at $580-$610/st FOB in the Eastern Cornbelt.

Western Cornbelt:

TSP was reported at $575-$605/st FOB in the Western Cornbelt, with the low at St. Louis.

Brazil:   

Prices for TSP showed a big drop to $415-$460/mt CFR from the high of $490/mt CFR last week. The fall continues a general trend of softening phosphate prices.

The Rondonopolis price for TSP dropped to $560-$605/mt from last week’s $595-$605/mt FOB ex-warehouse.