President Donald Trump spoke today with Amir Sheikh Tameem bin Hamad Al Thani of Qatar, emphasizing the importance of all countries in the region working together to prevent the financing of terrorist organizations and stop the promotion of extremist ideology.  He offered to help Qatar and other Gulf countries resolve their current differences, including through a meeting at the White House if necessary.

In the meantime, Bloomberg Intelligence Analyst Jason Miner in a June 7 reports said that any price impact from the current controversy is likely to be muted. Citing Green Markets data, he noted that Qatar is the world’s fifth-largest producer of ammonia and accounts for 10 percent of urea exports. He said global nitrogen supply is ample and fragmented with world urea plant capacity utilization at less than 80 percent and prices down 30 percent since January.

Industry sources tell Green Markets that the most likely impact could be on shipping and whether third-party flagged vessels will be allowed to make stops at both Qatar and another Arab nation during the same journey. More information is expected in the June 9 Green Markets.

EuroChem Group AG and its joint venture partner, H.K. Migao, on June 2, signed a declaration of intent for the production, distribution and sale of fertilizers in China with Yunnan Tobacco Co. and the Qujing local authorities of Yunnan province, southern China.

Following the declaration, the signatories will explore the possible construction of a second potassium nitrate (NK) production line at the EuroChem Migao jv facility with a projected annual capacity of 80,000 mt. A further facility for the production of water-soluble NPK fertilizers could also be built.

EuroChem Migao jv’s first fertilizer production line was established in 2013 in Luliang, Yunnan and produces 100,000 mt of NPK and 70,000 mt of potassium nitrate per annum.

The IPL urea tender closed May 29 with 18 companies putting forth about 1.6 million mt in firm offers and 90,000 mt in options. The low price for the West Coast was from Comzest at $211.25/mt CFR into Rozy. The lowest offer to the East Coast came from Dreymoor at $212.25/mt CFR into Gangavaram.

The price represents nearly a $20/mt drop from the previous tender. Sources said IPL will most likely try to grab as many tons as possible with this price. Estimates are that India will need to import just under 1 million mt each month for the next five months to satisfy the anticipated demand in the country.

The buyer wanted about 60 percent of the offers to be for the West Coast. In the end offers into West Coast ports totaled a bit more than 1.1 million tons. East Coast offers came in at 618,000 mt.

The netback to the Arab Gulf from the West Coast of India puts the price at just under $200/mt FOB. This is in sharp contrast to the 30,000 mt offered by Muntajat from Qatar at $215/mt FOB. One trader said the prices offered were not surprising. “No one believed in the $200/mt FOB Arab Gulf price anyway,” he said.

Fertil and Fertisul let IPL know they would not be participating.

Israel’s Supreme Court on May 28 ruled that Haifa Chemicals’ ammonia tank must be emptied by July 31, according to the Israeli press. The tank can hold up to 12,000 mt and opponents have argued for years that it is an easy target for terrorists. A lower court had also ruled in favor of closing the tank, however, Haifa Chemicals appealed the case to the higher court.

Ma’aden and The Mosaic Co. have announced a second memorandum of understanding (MOU). “With the nearing completion of construction of the Ma’aden Wa’ad Al Shammal Phosphate project, Ma’aden and The Mosaic Co. announced today the signing of a Memorandum of Understanding (MOU) to further highlight and commemorate the partnership between the two mining and fertilizer business leaders. The MOU contemplates several areas of potential collaboration in the phosphate business in the Kingdom of Saudi Arabia. Mosaic, Ma’aden and their partner Sabic have already invested about USD 8 billion in developing the project.

Separately, further to its previous announcement, Ma’aden is advancing a third project for the manufacture of phosphate fertilizers in the Kingdom. The project, which is anticipated to be implemented in phases starting production early in the next decade, envisions adding up to an additional 3 million mt/y of production capacity with a total investment estimated to be US$6.4 billion. The project is subject to the completion of definitive studies and obtaining necessary board approvals and consents. Estimated benefits from the project include a GDP contribution of about US$2.4 billion and total employment of 7,000, many of which would be high quality jobs.

Agrium Inc. has confirmed the May 20 release of a phosphate rock vessel being detained in Panama (GM May 19, p. 21). The source of the phosphate rock is in Western Sahara, which is a territory controlled by Morocco, and claimed by Saharawi Arab Democratic Republic.

Another vessel bound for New Zealand remains delayed in South Africa.

BHP Ltd. has confirmed its commitment to the Jansen potash project in Saskatchewan as one of its important growth projects, and now sees possible first production in 2023. CEO Andrew Mackenzie, speaking at the Bank of America Merrill Lynch Global Metals, Mining & Steel Conference in Barcelona, Spain on May 16,  said the company is looking for board approval for the initial phase of the mine in the next 18 months but there is also the potential for approval as early as June next year.

“As we currently see it, we are looking at a phased expansion into Jansen with an initial stage of 4 million mt/y and that will generate competitive returns,” the chief executive said. “And we could seek board approval as early as June next year with possible first production in 2023.”

Both production and service shafts at Jansen have been excavated and lined through the Blairmore Aquifer, which BHP said is the highest risk section and technically the most difficult, and are now in hard rock to the bottom.

“As we progress this project we will continue to optimize the development path as to how we might add a mine to those shafts, so we can reduce risk and unlock value,” said Mackenzie.

However, the CEO added, that as with any development option BHP embarks on, the company will only develop Jansen “when the time is right.”

OCP SA and Nigeria’s Fertilizers Producers and Suppliers Association (FEPSAN) on May 15 signed an agreement aimed at boosting Nigeria’s fertilizer production and securing fertilizer supply to the West African country at competitive prices, as well as reinforcing its distribution channels. The deal, signed by OCP chairman and CEO Mostafa Terrab and FEPSAN President Thomas Etuh, formalizes an MOU inked between the two organizations in December, and officially launches the project.

LSB Industries Inc. has announced the sale of its oil and gas assets. It reported May 15 that on May 11, LSB subsidiary, Zena Energy LLC, agreed to sell to BKV Chelsea LLC, a Delaware company, all of its assets, including Zena’s right, title, and interest in all of its oil and natural gas properties located in Wyoming County, Penn., for a purchase price of $16,250,000, subject to customary adjustments to reflect the operation of the properties prior to closing. Upon completion of the sale, the company will no longer own any material oil and natural gas assets. The sale was expected as LSB had previously announced plans to shed noncore assets, including its oil and gas stake.

AdvanSix reported first-quarter net income of $27.3 million ($0.88 per diluted share) on sales of $376.7 million, compared to the year-ago $27.4 million ($0.90 per share) and $299.8 million, respectively. EBITDA was up at $57.1 million from $53.3 million.

AdvanSix reported that there was a modest decline in ammonium sulfate prices during the quarter. The outlook for the year is for stable pricing and challenging agriculture fundamentals.

In addition, AS sales represented only 18 percent of total company sales for the quarter, down from the year-ago 25 percent. The sales percentages of other company categories—Nylon, Caprolactam and Chemical Intermediates, were all up.