A sale of a vessel of ammonia has reportedly been sold at $260/mt FOB out of NOLA to an offshore destination. However, so far, there has been no firm news about Tampa for October. Reportedly, the NOLA deal would equate to $295-$300/mt CFR to Tampa once freight is factored in.

K+S, Kassel, Germany, said today it is responding to the current weak demand for potash by reducing fertilizer production for potassium chloride by up to 300,000 mt thousand by the end of 2019. The effect of the production adjustment on EBITDA is expected to be in the amount of up to 80 million euros.

 “In the current weak market environment, which is further intensified by the continuing Chinese import bans on the standard potassium chloride product, adjusting production is a difficult decision, but the right one,” said Alexa Hergenröther, CEO of K+S’s Europe+ Operating Unit. “Irrespective of this, we are continuing to work hard on implementing the ongoing measures to increase product quality at the Bethune plant in Canada and to strengthen operational excellence at the German sites.”

Brazil’s Fertilizantes Heringer may wind up under the control of Russian players Uralkali Group and Uralchem Group, pending regulatory approval, according to a Bloomberg report citing regulatory filings. Controlling shareholder, Heringer Participacoes, and its quotaholders executed a binding letter of intent with Uralkali and Uralchem to subscribe for new issuance of common shares, in Heringer’s capital increase, for 2 reais per share. After the completion the capital increase Uralkali and Uralchem will hold shares representing the control of Fertilizantes Heringer. The total amount of capital increase will be no less than $59 million and no more than $115 million.

Heringer has been in bankruptcy proceedings. Nutrien Ltd. and OCP Group are both minority holders in Fertilizantes Heringer, with about 10 percent each.

Uralkali today announced plans to cut back potash production in the second half of 2019, and expects to reduce its total output of potash by approximately 350,000-500,000 mt. It said the cutback is largely a result of the current market situation and scheduled maintenance activities, which require a temporary shutdown of its production facilities.

EuroChem Group AG, Zug, Switzerland, has announced the signing of a multi-year agreement with Houston-based American Plant Food (APF) for the supply of fertilizers to its blending business. The fertilizer group will supply mixed shipments of N, P and K fertilizers, including urea, phosphate, and potash, to APF for handling, marketing, sales and distribution. Under the terms of the agreement, EuroChem and APF jointly will have access to the Greensport Houston deep sea port, exclusively controlled by APF subsidiary American Terminal & Export Company (ATEC), and each company will use it as the main rail hub for deliveries all over the U.S.

Nutrien Ltd., Saskatoon, on Sept. 17 reported a problem at its No. 4 ammonia plant in Trinidad. The company said that a section of the cooling water system associated with the plant was damaged. The company said no injuries or safety-related or environmental incidents arose from the incident. The company said a safe work plan has been formulated to effect the necessary repairs.

Nutrien’s Point Lisas Trinidad facility comprises four ammonia plants, each with an annual gross ammonia capacity of 550,000 mt and one urea plant with an annual capacity of 680,000 mt.

The Mosaic Co. said Sept. 10 that it will idle its Louisiana phosphates operations, effective Oct. 1, to reduce production by 500,000 mt in 2019. The move is expected to accelerate the reduction of high phosphate fertilizer inventories.

Mosaic said it continues to expect strong fall fertilizer application in North America, and expects a more balanced global supply-and-demand picture to emerge by 2020. It said it will prioritize shipments to meet key customer needs through the idling period.

Koch Fertilizer said Sept. 5 that it is evaluating a construction project to increase urea production at its plant in Enid, Okla., to 1.8 million tons per year. Currently, Koch Fertilizer is in the project engineering phase. Construction on the proposed project is anticipated to begin at the end of 2020, with startup occurring in 2022.

Turkey’s Toros Tarim has purchased Nutrien Ltd.’s Agroport fertilizer business in Romania, according to Actmedia, Romania’s news agency. Nutrien’s legacy company, Agrium Inc. purchased Agroport in 2011 (GM May 9, 2011). At the time, it included key distribution assets along the Danube in Romania. Nutrien had not responded to inquiries for confirmation.

Incitec Pivot Ltd. (IPL), Southbank, on Sept. 2 announced it is commencing a strategic review of its Fertilisers Asia Pacific business segment (Incitec Pivot Fertilisers) and has hired UBS to help assess various options, including a potential sale or de-merger, or retaining the business and continuing to invest for growth.

Incitec Pivot Fertilisers is a leading distributor of fertilizers in Australia, supplying 2.2 million mt of fertilizers to the domestic market in 2018. It is the sole manufacturer of phosphate fertilizers and the only producer of nitrogen fertilizers on the east coast of Australia.

The strategic review is expected to progress over the course of FY2020 (July 1-June 30).

IPL has lowered its FY2019 EBIT guidance to A$285 million to A$295 million, from May’s guidance of A$370 million to A$415 million. The company attributes the downward revision mainly due to lower-than-forecast ammonia production at Waggaman, Louisiana, and lower Fertilisers’ earnings mainly as a result of the continued impact of drought in New South Wales and Queensland, and increased gas costs at Gibson Island.

The revised range excludes approximately A$20 million of one-off items related to potential insurance proceeds for the rail outages at Phosphate Hill, Queensland, which, if they materialize, could fall into either the FY2019 or FY2020 year, IPL said.