Nutrien Ltd., Saskatoon, reports that it expects to increase potash production by approximately 500,000 mt in the second half of 2021 compared to earlier expectations, in response to tightening global potash market conditions. The news comes soon after Mosaic announced it expects a 1 million mt near term short fall after closing its K1 and K2 shafts.
All posts by Steve Seay
AdvanSix Raises Gran AS Postings
AdvanSix says that effective immediately, it is increasing the price for granular ammonium sulfate by $20/st on new orders with availability after July 1 in the Midwest and Plains regions. The new price will be $305/st FOB river terminals. Inland warehouses will continue to be priced at traditional spreads to the river.
Mosaic Closes K1-2 Shafts, Resumes Colonsay Production
The Mosaic Co. on June 4 announced that it is immediately closing the K1 and K2 potash mine shafts at Esterhazy. Closing K1 and K2 are key pieces of the transition to K3 but the timeline for the closure has been accelerated by nine months due to a recent acceleration of brine inflows.
The company said it is planning to resume production at the Colonsay potash mine and recalling workers as soon as practical. It said the restart will offset a portion of the production lost by the early closure of the K1 and K2 shafts at Esterhazy, and position the company to take advantage of the expected strong potash markets in 2022 and beyond.
PhosAgro Files Suit Over CVD Decision
Russia’s PhosAgro has filed suit to contest the U.S. Department of Commerce’s imposition duties on PhosAgro phosphates imported into the U.S., according to a Tass report citing the company. PhosAgro maintains that its phosphates are not subsidized. EuroChem has also filed suit. DOC calculated subsidy margins and corresponding duty rates of 47.05 percent on EuroChem and 9.19 percent on PhosAgro and 17.2 percent for other Russian producers. DOC imposed a rate of 19.97 on phosphates from Morocco’s OCP SA.
EuroChem Challenges Phosphate CVD
EuroChem Group, a Russian producer and exporter, is challenging U.S. duties on phosphate fertilizer, arguing to a federal court that the U.S. Department of Commerce miscalculated the extent of foreign subsidies in the form of cheap natural gas, according to a Bloomberg Law report. The U.S. recently began imposing countervailing duties (CVD) on Russian phosphate fertilizers. DOC calculated subsidy margins and corresponding duty rates of 47.05 percent on EuroChem and 9.19 percent of Russia’s PhosAgro and 17.2 percent for other Russian producers. DOC imposed a rate of 19.97 on phosphates from Morocco’s OCP SA.
RCF to Issue Awards
India will buy 565,000 mt from the latest tender. The Department of Fertilizers gave approval to RCF to issue letters of intent to seven companies. Material will come from China, Black Sea and Arab Gulf. Another tender is expected in a couple of weeks. For more details and analysis see the June 4 issue of Green Markets.
BHP, Nutrien Reported in Talks on Giant Potash Mine
BHP Group is in talks with Nutrien Ltd. about a potential partnership in its massive Canadian potash venture as the world’s biggest mining company moves closer to a final decision on the project, according to a Bloomberg report. The two companies are discussing multiple options, including Nutrien becoming the operator and selling the potash through its existing channels, or the Canadian company taking a stake in the Jansen mine, according to people familiar with the matter. There is no guarantee the talks will lead to a deal, said the sources.
Pursell to Build New Plant
Pursell, Sylacauga, Ala, on May 26 announced that it has reached terms to build a state-of-the-art production facility in Savannah, Ga., that will greatly expand the reach of its next-generation coating technologies across the Southeast and beyond. The plant will be located near two rail lines at the SeaGate Terminals and will produce controlled-release fertilizers (CRF) for the turf, ornamental, specialty and broadacre markets.
Tampa NH3 Down $10/mt
Tampa anhydrous ammonia for
June was concluded at $535/mt CFR, down $10/mt from May’s $545/mt.
Offers Down in RCF Urea Tender
Twelve companies offered a total of 1.5 million mt in the May 25 RCF urea tender. Offers to East Coast ports were reported at 795,000 mt and offers to the West Coast at 595,000 mt. Direct offers from Arab Gulf producers Muntajat and Fertiglobe totaled 90,000 mt. Sources said a lot of these offers are double-counted tons, which means availability is even less than the numbers reflect.
Price envelopes are expected to be opened Thursday because of the national holiday of Vesak Day on Wednesday. Sources said current prices in China and the Arab Gulf, combined with higher freight rates into India, could mean offers will be $400-$405/mt CFR.
In the end, sources expect no more than 700,000 mt to be awarded, which would lead to another tender called within the next couple of weeks.