All posts by Steve Seay

SAFCO Plant to be Offline 117-Days

Saudi Arabian Fertilizers Co. (SAFCO) will halt operations at its SAFCO 3 plant as of Jan. 11 for 117-day scheduled maintenance, the company said in a bourse statement Jan. 6.

The company aims to enhance reliability at its SAFCO 3 ammonia plant, and implement regular maintenance at the ammonia and urea facilities.

The fertilizer producer added that it expects the related financial impact at average prices to reach nearly SAR 121 million, and show in the first and second quarters of 2019.

SAFCO will work on containing this financial impact through the optimum use of available stock.

The ammonia reliability enhancement project, which aims to improve energy utilization, will boost annual production capacity by 100,000 mt.

TCP Urea Tender Shows Softer Global Market

The results of the Jan. 3 TCP urea tender for 50,000 mt confirmed reports the global urea market was softening.

The lowest of 10 offers in the tender came from Keytrade at $295.98/mt CFR. The Keytrade offer was backed by suppliers from the Arab Gulf, Russia and China. The netback to the Arab Gulf and China is expected to be lower than levels noted at the end of the year.

The netbacks to the Arab Gulf and China are pegged in the upper $270s/mt FOB against a December 2018 price range of $280-$285/mt FOB in the Arab Gulf and $285-$290/mt FOB for Chinese prills.

As of Jan. 7 no awards were issued.

Uralkali Mine Back in Operation

Uralkali, Moscow, said Dec. 24 that its Solikamsk-3 underground potash mine has returned to normal operations. It said all emergency response measures have been completed.

Nine workers were found dead Dec. 23 after having been trapped underground by smoke after a fire occurred at the mine Dec. 22, according to the Russian media. Seventeen workers were reported to be in the mine when the fire started. Eight were safely evacuated.

Nine Die Due to Uralkali Fire

Nine workers were found dead Dec. 23 after having been trapped underground by smoke after a fire occurred at an Uralkali potash mine in Solimansk on Dec. 22, according to the Russian media. Uralkali was quoted as saying the miners were employees of a subcontractor doing maintenance work. Reportedly, 17 people were in the mine when the fire started. Eight were safely evacuated.

Interfax reported that the blaze was still to be fully extinguished.

IPNI Undertakes Major Organization Restructure

The members and the board of directors of the International Plant Nutrition Institute (IPNI), Atlanta, voted this week to undertake a major organizational restructure which will include the transfer of key scientific assets and programs to The Fertilizer Institute (TFI), Fertilizer Canada and the International Fertilizer Association (IFA). Through this move, these three organizations will receive enhanced support for initiatives in 4R nutrient stewardship, regional agronomic extension, and engagement with the scientific community, policymakers, NGO’s and other stakeholders.

“IPNI has long lent scientific expertise to the fertilizer industry’s efforts to address environmental and food production challenges. The fertilizer industry remains committed to helping farmers improve fertilizer management and to monitoring the performance with which our products are used,” said Tony Will, CF Industries Holdings Inc. president and CEO and IPNI board chair.

The final transfer of assets, including the closing of IPNI’s Atlanta, Ga., headquarters and regional offices will be effective June 30, 2019. IPNI Canada will continue to operate from its office in Saskatoon, Sask., and the Foundation for Agronomic Research will remain the umbrella organization for the 4R Research Fund.

“The fertilizer industry is very grateful for the accomplishments and dedication of Terry Roberts and his team over many years,” said Tony Will. Terry Roberts will manage the transition over the next six months and further details will be announced as they become available.

Yara Simplifies Operating Model

Yara International ASA, Oslo, announced Dec. 11 that it is simplifying its operating model. The members of Yara executive management remain the same following these changes.

Yara’s activities will be structured within three segments, effective Jan. 1, 2019.

The Sales & Marketing segment will be led by Executive Vice President of Sales & Marketing Terje Knutsen. The segment will comprise all of Yara’s existing Crop Nutrition business units, in addition to the following business units which are transferred from the former Industrial segment: Base Chemicals, Industry Reagents, and Animal Nutrition (excluding South Africa).

The Production segment is unchanged, and will continue to be led by Executive Vice President Production Tove Andersen.

The New Business segment will be led by Executive Vice President New Business Yves Bonte. The segment will comprise the following units: Two businesses which will be established to commercialize innovation within decarbonization and circular economy, in collaboration with the other Yara segments; a separate business unit for autonomous logistics operations including the Yara Birkeland autonomous electric ship project; and a portfolio of businesses which will be operated more independently with distinct strategies: Environmental Solutions, Mining Applications, and Animal Nutrition South Africa, and Industrial Nitrates.