All posts by Steve Seay

EuroChem Produces First Potash

March 13, 2018Breaking Industry News, Potash, RussiaSteve Seay

EuroChem Group AG, Berezniki, on March 13 announced the successful test production of potassium chloride at EuroChem-Usolskiy Potash in the Perm region, Russia. EuroChem says this initial production is an integral part of the commissioning process currently underway at Usolskiy. Production of first marketable product is expected during the second quarter of 2018, as previously reported.

Once fully operational, Usolskiy’s Phase 1 will have a total annual production capacity of 2.3 million mt of MOP.

“The test production of MOP means we have come closer to the start of regular production at Usolskiy, which has been a substantial and complex greenfield project,” said EuroChem CEO Dmitry Strezhnev. “We are now focused on completing commissioning and ramping up to commercial production, targeting about 450,000 mt of finished product before the end of the year.”

EuroChem also holds a licence to develop the Gremyachinskoe deposit in the Volgograd region of Russia, known as the VolgaKaliy potash project. Development at VolgaKaliy continues and first production of marketable product is expected later this year. To date, EuroChem has invested about $4.13 billion in the two projects, of which Usolskiy has accounted for $1.81 billion.

Atlantic Storms Keep Moroccan Port Closed

March 13, 2018Breaking Industry NewsSteve Seay

Unusually late major storms in the Atlantic have forced OCP to keep its port closed for another week. The main discharge port was closed in late February because of violent storms.

The closure is affecting not only the unloading of much-needed ammonia for the OCP operations but also the loading of phosphate products for exports. Much of the OCP material ready for shipping is under contract for European buyers for March arrival. Sources said the continued delay is beginning to put pressure on prices.

Chile Seeks to Block Chinese Buyer for SQM Stake

March 12, 2018Breaking Industry News, Chile, ChinaSteve Seay

Chile’s government is asking antitrust authorities to block the potential acquisition of a 32 percent stake in SQM by Tianqi Lithium or any other Chinese state-controlled company, according to documents obtained by Bloomberg. Corfo, Chile’s economic growth agency, has filed the request with the National Economic Prosecutor’s Office. Corfo had earlier indicated that it would prefer a bidder that was not currently involved in the lithium industry.

Nutrien is selling its 32 percent stake. Tianqi Lithium has been reported to be among the lead bidders.

Nutrien had no comment on the report.

Two Dead in Belarus Mine Collapse

March 12, 2018Belarus, Breaking Industry News, PotashSteve Seay

Belaruskali CEO Ivan Golovaty said two workers were discovered dead after an incident Friday, March 9, at the company’s number three potash mine, according to Bloomberg citing a report by state-owned Belarus 1 TV.

Belaruskali continues to operate its potash mines in “normal mode,” including its third unit where the accident occurred, according to a text message from Deputy CEO Anatoly Makhlai.

Correction: Chinese AS is $118-$120 mt

March 9, 2018Ammonium Sulfate, Breaking Industry News, China, CorrectionSteve Seay

The Chinese ammonium sulfate price in the text on page 7 of the Green Markets dated March 9 should have read – Ammonium sulfate prices remain steady at just under $120/mt FOB. The correct price of $118-$120/mt was recorded in the price scan and the database.

Major Potash Stocks Up on Belarus News

March 9, 2018Breaking Industry News, PotashSteve Seay

Major potash company stocks moved up Friday, March 9, on news that there had been a collapse at a Belaruskali potash mine.

In this emerging story, Bloomberg reports, citing the Belarus Emergency Ministry, that the roof of a mine collapsed at a depth of 620 meters (2,034 feet) at about 6:30 p.m. local time. Two workers were in the mine at the time and an emergency team was working to clear debris. No one from the company was immediately available to comment.

Initial reports were that the collapse occurred at Belaruskali third production unit. The company does have a mine named Soligorsk 3, with a capacity of 2.3 million mt/y. However, it was unclear if this was the specific mine.

Belarus Potash Mine Collapses

March 9, 2018Breaking Industry NewsSteve Seay

A Belarus potash mine has collapsed, according to a Bloomberg report citing the Belarus Emergencies Ministry. Two workers were reported to be in the mine when the incident occurred.

The specific mine was not identified. Belaruskali has at least four mines according to the Green Markets Potash Quarterly Database, with a combined capacity of approximately 12.8 million mt/y. Individual mine capacities range from 2.3-3.3 million mt/y.

CommoditAg Adds MKC

March 1, 2018Breaking Industry NewsSteve Seay

CommoditAg, Effingham, Ill., a new online ordering and purchasing option for farmers, has expanded its network to include a top retailer in Kansas—MKC. As a result, CommoditAg now has warehouses stretching from Ohio to Kansas. “MKC is a great addition to CommoditAg. As we expand across the U.S. we will continue to engage exceptional retail partners like MKC,” said Tim Bence, CommoditAg chief operations officer.

MKC is a full-service farm cooperative offering a complete line of products, programs and services for both farm and urban customers throughout Kansas. With a current membership of more than 8,300 member-owners, MKC specializes in grain, agronomy, energy, feed and risk management.

India, Jordan Sign Fertilizer MOU

March 1, 2018Breaking Industry NewsSteve Seay

India and Jordan on March 1 announced that the two countries have signed a number of Memorandums of Understanding (MOU). One relates to the mining and beneficiation of rock phosphate and setting up of production facility in Jordan for phosphoric acid/DAP/NPK fertilizers, with a long term agreement for 100 percent of the offtake to India. India said the MOU ensures long term and sustained supply of rock phosphates to India.

MMTC Tender Closes, Pricing in Low-$270s/mt CFR

February 27, 2018Breaking Industry NewsSteve Seay

The MMTC urea tender closed Feb. 27 with about 1.2 million mt offered by 15 companies.

The lowest FOB offer came from Fertrade at $264.50/mt FOB for a delivered price of $274.50/mt CFR. The lowest delivered price came from Canopus and Transagri at $271.90/mt CFR. The FOB rates for the two companies were at $267.42/mt FOB and $271.92/mt CFR respectively.

Estimates in the run-up to the tender had landed prices in the low-$260s/mt CFR, based on Iranian cargo. Some traders had argued for the upper $260s/mt CFR and even low $270s/mt CFR, saying the Iranians would be pushing for higher prices.

Two producers – Fertil and Muntajat – offered tons at $265/mt FOB and $268/mt FOB, respectively. These prices would have a landed price about $280/mt CFR.

Industry sources said India needs about 1 million mt to adequately kick off the upcoming application season. The current reserves on hand are pegged at only 500,000 mt. Another tender could be called soon, one trader said earlier, if MTMC does not take at least 500,000 mt in this tender.