San Francisco-The U.S. Environmental Protection Agency has fined Linde LLC $81,400 for not immediately notifying the National Response Center and the state emergency response commission of anhydrous ammonia air releases in 2007 and 2008 at its Torrance and Carson, Calif., carbon dioxide production plants. EPA said that five separate releases between December 2007 and May 2008 involved reportable quantities ranging from 250 pounds to 665 pounds. Linde LLC did not immediately notify the agencies, according to EPA. The federal Emergency Planning and Community Right-To-Know Act and the CERLA require companies to immediately report release quantities over 100 pounds to the proper authorities in order to ensure appropriate responses to spills and releases. In addition to the fine, the company will also be required to spend approximately $415,550 to purchase equipment upgrades as part of an environmental project that will prevent future ammonia releases into the environment.
All posts by traceybg@gmail.com
Suit filed in 2007 Agrium ammonia release
Athena, Ore.-Agrium U.S. and its subsidiaries Crop Production Services and Western Farm Services are being sued by an Athena resident for an anhydrous ammonia release two years ago that caused the evacuation of two schools and the closure of a state highway. The driver of the truck is also named in the suit, which seeks no more than $48,000 for medical expenses, loss of income, and “pain, suffering, fatigue, loss of sleep, and loss of energy.” The driver, who was working for Western Farm Services, had filled a truck with ammonia from a tank, but drove off before disconnecting the filler hose, causing the release of 1,800 gallons of anhydrous ammonia. An elementary school and high school evacuated nearly 600 students during the morning, and the state highway was closed at one point for an hour. Reports at the time were sketchy, but indicated that a man was injured in the release and a Western Farm Services employee was taken to the hospital but suffered no ill effects. Agrium officials said the instigator of the suit, Stacey Hetterley, was not believed to have been injured. Agrium spokeswoman Cindy Andrews said the Hetterley suit was not unexpected because the two-year statute of limitations was running out and that the woman is understandably protecting herself. Andrews also said Agrium has replanted grass and trees the anhydrous ammonia had damaged, and the company is committed to working with Hetterley and everyone else the leak affected. “We are absolutely following up all the way with the people we have impacted,” she said. “This is one we’re still working with.”
EPA fines two firms for not reporting ammonia
Boston-Two Connecticut companies have been fined by the U.S. Environmental Protection Agency for failing to notify local and state emergency responders about using anhydrous ammonia and other hazardous chemicals in their facilities. EPA Region I officials recently issued complaints against Sousa Corp., West Hartford, Conn., a metal heat-treating facility, and Jelliff Corp., Southport, Conn., a manufacturer of woven wire products. Based on an inspection in May 2008, EPA determined that Sousa Corp. faces a penalty of $13,700 for failing to file with state and local authorities a chemical inventory, also known as a Tier II form, for calendar year 2007 for anhydrous ammonia and quench oil, which, like anhydrous, is an irritant to the skin, eyes, and respiratory tract. Additionally, EPA said another inspection May 2008 resulted in a one-year violation penalty of $11,115 for Jelliff Corp. of Southport, also for failing to file a Tier II form for calendar year 2007 for anhydrous ammonia and fuel oil. Tier II information is considered important for proper emergency planning and response by the state and local agencies. Failure to file Tier II information also deprives the community of its right to know about chemicals present in the neighborhood.
Idaho seeks comments on phosphate projects
Boise-The Idaho Department of Environmental Quality (IDEQ) is seeking public comment on J.R. Simplot Co.’s proposed air quality permit to construct and operate a 10-acre decant pond at its Don phosphate fertilizer plant near Pocatello. IDEQ is also seeking comment on Monsanto’s proposed Tier II air quality operating permit for the company’s P4 Production LLC elemental phosphorus plant near Soda Springs. Monsanto’s proposed permit establishes requirements for operating air pollution emissions control equipment there. The department has reviewed and analyzed Simplot’s permit application and determined the proposed action will not cause nor contribute to violating any ambient air quality standards, nor injure or unreasonably affect humans, animals, or vegetation. The deadlines for submitting written comments regarding the proposed Simplot and Monsanto permits are 5 p.m. MST, Monday, Nov. 2, and 5 p.m. Monday, Nov. 9, respectively. For technical information on the proposed permits, Carole Zundel and Morrie Lewis of IDEQ’s air quality division may be contacted at (208) 373-0502 or via e-mail at carole.zundel@deq.idaho.gov or morrie.lewis@deq.idaho.gov. Written comments on the proposed permits may be submitted electronically on DEQ’s web site; by mail to Faye Weber, Air Quality Division, DEQ State Office, 1410 N. Hilton, Boise, ID 83706; or by e-mail to faye.weber@deq.idaho.gov.
FAA says phosphate flyover did not violate rules
Washington-The Federal Aviation Administration has ruled a flyover of three Southeast Idaho phosphate mines by Idaho’s lieutenant governor, attorney general, and state lawmakers did not violate rules, even though the flight was financed by the Idaho Mining Association (IMA) (GM Oct. 19, p. 13). The FAA held a conference call with Idaho Transportation Department officials on Friday, Oct. 16, about the Sept. 11 trip. The IMA is reimbursing $2,543 to Lt. Gov. Brad Little’s office and denoting it as a lobbying expense. Under Idaho law, private groups are forbidden to directly charter state planes. FAA spokesman Mike Fergus of Renton, Wash., said his agency concluded the trip on Idaho’s 10-passenger King Air did not meet the definition of a commercial charter because Little’s office arranged it with the state transportation department’s aeronautics division, not the IMA. The Greater Yellowstone Coalition questioned the use of a state plane for a lobbyist-financed trip with no phosphate mining critics aboard. The flight has also been criticized in Idaho newspaper editorials. Little cited his monthly $400 travel budget as one reason for accepting IMA money for a trip where he and other officials gained information about phosphate mine expansion and pollution concerns. IMA Executive Vice President Jack Lyman said use of the plane by state officials to tour Idaho mines is legitimate and would have been an appropriate expenditure of state funds. Because of that, he said he did not pursue hiring a private charter company.
Chinese companies eye Saskatchewan potash
Regina-China’s Zhongchuan International Mining Corp. is exploring some 96 square kilometers southeast of Saskatoon, according to the Canadian press, after having been granted exploration rights by the government in 2008. The site could reportedly garner some 3 million mt/y of potash if developed. Another Chinese company, Taiji Resources Ltd., also reportedly has Canadian mining rights. Last week, PotashCorp CEO and President Bill Doyle said a new 2 million mt/y greenfield mine would cost $4 billion and take seven years to production. Several others have their eye on a new mine in Canada, including mining giant BHP Billiton, whose chairman reportedly indicated last week that it still regards PotashCorp as “an opportunity” when asked if BHP is thinking of buying its way into the industry.
Canpotex to expand Vancouver terminal capacity
North Vancouver, B.C.-Neptune Terminals announced Oct. 19 plans by its shareholder Canpotex to invest $37.5 million to upgrade the existing potash facility at the North Shore terminal. The project will increase terminal throughput speed and provide an additional 1.5 million mt of capacity to export potash. “This investment by Canpotex will allow us to better service the Pacific Gateway,” said Jim Belsheim, Neptune president. “We are proud to see such investments, which help support shipments of Canpotex’s potash products to international markets.” The project, which will commence immediately, is expected to take 18 months to complete and will include improvements to terminal conveyor and material handling systems. Neptune said the decision to undertake the expansion is in support of the Saskatchewan potash mine expansions by Canpotex members and the fundamentals for long-term growth of potash demand by Canpotex’s markets.
All those carp could become fertilizer
Salt Lake City-Some 6 million pounds of carp will be fished from Utah Lake each year for the next six or seven years to remove a threat to an endangered fish found only in the lake, located south of here. Planners are hoping to find a contractor to turn all those fish into fertilizer or use them for some other constructive purpose. Biologists say ridding the lake of the bottom feeders is the most important thing that can be done to remove the June sucker from the endangered list. So far about 160,000 pounds of carp have been removed, but the main hangup is what to do with the catch. “We’d like someone to take the fish and turn it all into fertilizer,” Chris Keleher, assistant director of the recovery program, told Green Markets. But Keleher and others aren’t having a lot of luck. Keleher said discussions have been held with a couple of outside parties, and that a proposal has been received from one company in California. “But we’re still looking for fresh people with fresh ideas to help us,” he added. “We’re still accepting proposals.” Biologists figure there are 7 to 8 million carp in Utah Lake, where they were introduced in the 1880s to provide food for the locals. But the problem is that in such great numbers, the carp tear up bottom vegetation where young June suckers hide to avoid predators. During a pilot program last year, one commercial outfit pulled in about 1.4 million pounds of carp. Most were used for fertilizer at a nearby farm or given to a mink farm. Composting the fish at a nearby landfill is also being considered. In addition, state and local officials have been reviewing proposals for grinding them into fish meal, and flash-freezing them for out-of-state or overseas markets for human consumption. This year’s operations are expected to cost around $1.3 million, with about $1 million coming from federal stimulus funds.
Market Watch
AMMONIA
U.S. Gulf/Tampa: Last week Yara was reported to have settled November with major customers Mosaic and CF at $355/mt DEL, up $10/mt from October.
As of Oct. 22, the higher prices had not hit the Direct Hedge (DH) paper market, which was showing $310-$330/mt for November and $300-$320/mt December-March.
Eastern Cornbelt: Most areas continued to report delays in fall fertilizer movement, although activity was underway in some locations. Midweek movement was described as brisk in parts of central and northern Indiana, although weekend forecasts called for more precipitation. “No farmers want to stick their necks out on fertilizer until they know what kind of crop they’ll have,” said one contact.
Sources reported spot ammonia pricing at $330-$350/st FOB in the region, down slightly from last report, with the low confirmed in the Illinois market. Spring prepay was reportedly being talked about in the $400-$405/st FOB range.
Western Cornbelt: Fertilizer movement remained on the backburner as growers focused on harvest. One source said lighter soils have seen some fall fieldwork in his location, but movement overall has been “slim.” He noted the late date with concern. “Anytime you get to late October or early November, you’re one rain away from being finished for good,” he said.
The anhydrous ammonia market remained at a nominal $330-$350/st FOB in the region, with no movement and no new sales to test the market. One source said dealers and growers are increasingly worried about getting their fall prepay tons to the field.
California: Anhydrous ammonia was unchanged at $390/st truck-DEL in California, with rail-delivered ammonia referenced at the $425/st level. Aqua ammonia was posted at $110/st FOB in California.
Much of the state was hit with heavy rains and high winds at mid-month from the remnants of Typhoon Melor. The precipitation, which came after a blistering September that brought plenty of wildfire problems, unfortunately did little to alleviate long-term drought conditions in the state or bolster depleted reservoirs in the Northern Sierra.
Pacific Northwest: The dealer market for anhydrous ammonia was quoted at $335-$355/st DEL, down slightly from last report, with the low for railed tons and the upper end reflecting the truck-delivered market. Sources reported little movement to test the market, however.
Western Canada: The anhydrous ammonia market remained at $595-$640/mt DEL in Western Canada.
Black Sea: New Tampa prices put the effective Yuzhnyy netback at $295-$300/mt FOB; by week’s end, the price broke $300/mt. To back this up, sources report that Transammonia did a deal at $302/mt FOB reportedly for Tampa.
The Yuzhnyy market is moving, say Asian sources, because American and European demand is growing. Yet at the same time, people tend to buy what they need and not get too far ahead of demand. One trader noted that people are still feeling the effects of the roller coaster ride prices took during the past 18 months.
Last year at this time the Yuzhnyy price was still in the $800s/mt FOB after hitting $900/mt FOB. By early December, the price had dropped to $180/mt FOB.
The strong demand in India and East Asia is also helping provide a strong floor for Black Sea ammonia. Buyers east of the Suez are not only taking all that can be sent, they keep asking for more. The producers in the Arab Gulf and in Asia are running at full capacity to service clients, sources say. That means the possibility of material flowing west from those areas is greatly limited. That leaves Europe and the U.S. to the Black Sea and Baltic suppliers.
Sources peg the market at $295-$305/mt FOB.
As of Oct. 22, the DH paper market called Yuzhnyy at $280-$290/mt FOB October, $275-$285/mt November, and $270-$280/mt December.
Middle East: The latest FACT/India tender puts the price solidly in the $310s/mt FOB. The jump in price and continued strong demand is now prompting producers to ask for $350/mt FOB. Nothing has been done above the $310/mt FOB level. Yet.
Sources say the continued strong demand in East Asia and India means the Arab Gulf producers will keep finding a home for its material.
Producers reportedly are jumping to the $350/mt FOB price quickly because rumors are circulating that Mitsui may be in the market again for a prompt cargo.
The last time Mitsui appeared desperate to buy, the price jumped about $20/mt.
For now, sources say the price remains in the $300-$310/mt FOB range.
India: The FACT tender showed another jump in prices. The lowest offers came for two 7,500 mt cargoes from Qafco at $340/mt CFR. Details follow.
FACT Tender for two lots of 7,500 mt each |
||
| Company | US$/mt CFR | Delivery |
| Qafco | 340.00 | Nov. 23-26 |
| 347.00 | Dec. 3-6 | |
| PIC | 345.00 | Dec. 3-6 |
| Transammonia | 342.00 | Nov. 23-26 |
| 348.00 | Dec. 3-6 | |
Demand from India across the board remains strong. Contract tons continue to flow into the country for the DAP producers.
As Green Markets went to press, sources expected Qafco to get the award.
Sources say the market has not yet felt the impact of the new storage facility in Mumbai. The tanks are now ready to receive, but sources say nothing is expected until November. The tightness in the market is making any prompt shipments difficult – and expensive.
Asia: Production in Malaysia and Indonesia continues at full capacity. Sources say demand in East Asia is so strong that producers are postponing routine maintenance turnarounds.
UREA
U.S. Gulf: Players last week were putting granular barge sales within the $247-$253/st FOB range for prompt. Some said buyers were fishing for product in the $242-$245/st FOB range earlier in the week. However, some sellers, citing higher corn prices, had dollar signs in their eyes, and said the market has hit bottom and the next sale will be at $255/st FOB.
As of Oct. 22, the DH paper market had October barges at $250-$255/st, November at $252-$255/st, and December at $257-$260/st.
Eastern Cornbelt: Granular urea was pegged at a nominal $295-$305/st FOB in the region. One source said winter wheat acreage was down significantly in his trade area, as were preplant applications of dry nitrogen and phosphates.
Western Cornbelt: The granular urea market continued to be quoted at $295-$305/st FOB terminals to the dealer, with several sources placing the common dealer price in their trade areas at the $300/st FOB level last week.
California: Granular urea was steady at $345-$360/st rail-DEL and $350-$375/st FOB to the dealer.
Pacific Northwest: Granular urea was pegged at $315-$320/st DEL in Montana, with the rest of the region reported in the $330-$340/st DEL range for spot tons. Those numbers also reflected a drop of $5-$10/st from last report.
Western Canada: Granular urea was steady at $425-$450/mt DEL in the region.
Pakistan: The Trading Corp. of Pakistan ran three tenders
last week that took the buyer to the 600,000 mt mark.
The Oct. 17 tender was awarded to Amber at $294.72/mt CFR. The tally follows.
TCP Tender of October 17, 2009 |
|||
| Supplier | Origin | Quantity (mt) | US$/mt CFR |
| Amber | Open | 50,000 | 294.72 |
| Gavilon | Open | 50-65,000 | 296.50 |
| Dreymoor | Open | 50-70,000 | 297.25 |
| Multicommerce | Open | 50-75,000 | 299.87 |
| 25-35,000 (S/O) | |||
| Transammonia | Open | 50-70,000 | 299.87 |
Quickly on the heels of that tender, another one closed Oct. 20.
TCP Tender closed October 20, 2009 |
|||
| Supplier | Quantity (mt) | Origin | US$/mt CFR |
| Dreymoor | 50-70,000 | Open | 297.25 |
| Gavilon | 50-65,000 | Open | 298.75 |
| Multicommerce | 50-75,000 | Open | 299.67 |
| 25-35,000 (S/O) | Open | 299.67 | |
| Transammonia | 50-70,000 | Open | 299.87 |
| Helm | 50-70,000 | Open | 303.50 |
Sources say Dreymoor was disqualified because its period of validity was only for the day of the tender. TCP ended up awarding Gavilon 100,000 mt at $298.75/mt CFR.
As last week closed, the last tender in the quest for 600,000 mt closed Oct. 22 with a slight down tick in the winning price.
TCP Tender closed October 22, 2009 |
||
| Supplier | Quantity (mt) | US$/mt CFR |
| Transammonia | 50-70,000 | 296.87 |
| Multicommerce | 50-75,000 | 296.94 |
| 25-35,000 | 296.94 | |
| Swiss Singapore | 50-60,000 | 297.74 |
| Dreymoor | 50-70,000 | 298.73 |
| Gavilon | 50-65,000 | 299.83 |
| Helm | 50-70,000 | 303.50 |
Conflicting reports circulated late last week about how many tons were awarded to Transammonia. Initial reports put the award at 100,000 mt. As the week closed, however, sources referred to only 70,000 mt.
The Trammo price is just shy of $2/mt less than the previous tender. The Multicommerce offer is also lower than the last winning price.
Sources said these offers were most likely attempts to nail down one last bit of business before the major buying season ends. After TCP stops buying, sources say it may not be until late November before another buying session starts with India.
After nine tenders, TCP met its goal of 600,000 mt.
To make the process move quickly, TCP took only the lowest qualified offers. It did not go into any negotiations with the also-rans. As a result, the tenders that were supposed to be for 100-150,000 mt ended up with final awards of 50-100,000 mt.
A summary of the purchases and prices follows.
Summary of TCP urea buying October 2009 |
|||
| Tender Date | Company | Quantity (mt) | US$/mt CFR |
| October 3 | Toepfer | 50,000 | 289.94 |
| October 6 | Dreymoor | 70,000 | 288.81 |
| October 8 | Transammonia | 100,000 | 283.77 |
| October 10 | Transfert | 55,000 | 287.77 |
| October 13 | Helm | 50,000 | 289.71 |
| October 15 | Keytrade | 50,000 | 290.40 |
| October 17 | Amber | 50,000 | 294.72 |
| October 20 | Gavilon | 100,000 | 298.75 |
| October 22 | Transammonia | 75,000 | 296.87 |
| Total (Oct 22) | 600,000 | Avg. 291.19 | |
Middle East: Sources speculate that Transammonia will be fulfilling its latest TCP order with material from Oman. If that is the case, sources peg the netback at $272-$275/mt FOB.
Producers had been claiming that any offers for their material had to be in the $270s/mt FOB for any serious talks to start.
Just a few weeks ago, two producers and STC/India were haggling about closing the gap between a bid of $262/mt FOB and an offer of $264/mt FOB.
Area producers are not under any pressure to lower their prices, say traders. Contract demand, along with the occasional tender for spot sales, is keeping the order books full.
Sources say producers will most likely not have any spot tons available until late December or early January.
As of Oct. 22, the DH paper market had Egypt at $255-$265/mt FOB for October and $260-$265/mt FOB for November-March.
Black Sea: Between buying for India and Pakistan, sources say the vessel line-up is looking good and prices have firmed.
Producers will only talk to buyers willing to start in the low $240s/mt FOB. To make their point, sources say bids in the upper $230s/mt FOB are dismissed without any chance for further discussion.
Besides a sold-out Middle East, helping the Black Sea price stay in the low $240s/mt FOB are reports from China that the domestic market is getting stronger, thereby raising the price of any new cargoes being booked out of China after Nov. 1.
For now, the price in the area is pegged at $240-$245/mt FOB.
As of Oct. 22, the DH paper market called Yuzhnyy $235-$240/mt FOB for October, $240-$243/mt November, and $238-$242/mt December. First half 2010 was $235-$240/mt FOB.
China: The strength in the domestic market is being reflected in offers coming from producers. Sources report the producers are now asking $261-$264/mt FOB for material that just a couple of weeks ago was selling in the low $250s/mt FOB.
Reportedly, Chinese producers are sold out for November. Buyers of November material most likely secured their deals before the price started to climb. Sources say, however, that many of the producers may be willing to accept a mid-$260/mt FOB price and either walk away from a lower-priced deal or push loading back a few weeks.
The export duty on Chinese urea will drop to 10 percent Nov. 1 for the rest of the year. Come Jan. 1, the duty is slated to return to 110 percent.
Indonesia: PUSRI closed a prilled urea tender Oct. 22 for 70,000 mt in 5,000 mt lots. About 18 companies participated in the tender. Many of them were local traders operating for regional international houses.
A tally of the highest six companies follows.
Pusri selling tender of 70,000 mt in 5,000 mt lots |
|
| Company | US$/mt FOB |
| Limardi | 254.25 |
| Summit | 254.50 |
| Swiss Singapore | 254.50 |
| Youngwoo | 254.50 |
| Profeta | 254.00 |
| Graha | 255.00 |
The lowest bid is still higher than the September Indonesia tender by about $2.50/mt.
The sales are in 5,000 mt lots because of the shallow draught leading up to the Pusri warehouse. Sources say the material purchased in this tender will most likely be sent out to regional buyers. Organizing enough tons to fill a ship bound for India or Pakistan, said one trader, can be done – but it is difficult.
Indonesian urea is often preferred by industrial buyers, and they are willing to pay a premium for the material.
NITROGEN SOLUTIONS
U.S. Gulf: UAN barges quickly shot up last week, with sources saying prices increased throughout the week. Most put the range at $130-$140/st FOB, with CF seeking $150/st FOB by the end of the week – though that was reportedly for forward cargoes.
Some sources were puzzled by the up tick, saying there is so little demand for the product right now that there wasn’t much of a reason for the sharp increase. Others however, said that the situation went from no demand to a little demand, which did spur some buying. Some speculated that higher corn prices and wet weather enticed farmers and dealers to take the plunge.
Sellers have argued for some time that UAN prices have been too low in relation to urea. Terra, for example, said last week that UAN inventories were down 8 percent from year-ago levels as of June. 30. Terra blamed low prices on other sellers who sold product into the export market. Other factors included few U.S. imports, and there was continued speculation by sources that the new UAN plant in Trinidad may not be up in November after all. LSB Industries Inc., which owns Pryor Chemicals, has confirmed a delay to the restart of its UAN plant.
As of Oct. 22, the DH paper market had October at $130-$135/st and November and December at $140-$150/st FOB. First half 2010 was $157-$162/st FOB.
Eastern Cornbelt: UAN pricing appeared to be working its way up. One source put the dealer market for UAN-28 at $160-$165/st ($5.71-$5.89/unit) FOB for spot tons and $175/st ($6.25/unit) FOB for spring prepay, but added that those numbers were no longer on the table as the week advanced. Another put the spot market for UAN-32 at the $190.40/st ($5.95/unit) FOB level at midweek. One supplier was referencing forward contract UAN-32 for November and December at $185.60-$201.60/st ($5.80-$6.30/unit) FOB regional terminals.
Western Cornbelt: UAN-32 was pegged at $170-$185/st ($5.31-$5.78/unit) FOB regional terminals to the dealer, with the low reported in southern Missouri. One Iowa source quoted the common dealer price at the $5.75/unit FOB mark last week, up from the previous level of $5.50/unit FOB.
California: UAN-32 remained at $200-$210/st ($6.25-$6.56/unit) FOB and $190-$200/st ($6.09-$6.25/unit) railDEL in the state.
Pacific Northwest: Delivered UAN-32 pricing was up slightly to $205-$230/st ($6.41-$7.19/unit) in the region, with the low for railed tons and the upper end for truck-delivered UAN. One supplier was referencing the $230/st ($7.19/unit) DEL level in eastern Oregon and Washington, effective Oct. 13.
Western Canada: UAN-28 was unchanged and untested at $271-$287/mt ($9.68-$10.25/unit) DEL in the region.
AMMONIUM NITRATE
U.S. Gulf: Barges continued to be called $200-$205/st FOB, with little activity.
As of Oct. 22, the DH paper market called October at $190-$200 and November and December at $180-$190/st FOB.
Western Cornbelt: Ammonium nitrate was unchanged at $255-$260/st FOB in the region.
California: No market was reported for ammonium nitrate in California. CAN-17 was unchanged at $235-$245/st FOB in the state.
Pacific Northwest: Ammonium nitrate remained at a nominal $335-$350/st DEL for the last done business. CAN-17 was pegged at $245-$250/st FOB and $260/st DEL in the region.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $170-$180/st FOB.
Western Cornbelt: Granular ammonium sulfate pricing remained at $170-$180/st FOB or rail-DEL in the region.
California: Ammonium sulfate was unchanged at $235-$272/st FOB in California, with the low for standard grade and the upper end for granular product in desert locations.
Pacific Northwest: Granular ammonium sulfate was pegged at $215-$225/st DEL in the region.
Western Canada: Granular ammonium sulfate was quoted at $300-$305/mt DEL to the dealer in Western Canada.
POTASH
U.S. Gulf: Barges were put in the $430-$435/st FOB range last week.
Eastern Cornbelt: Potash pricing was on the decline. Sources put the spot market in the $455-$470/st FOB range last week, with one Indiana source confirming a $460/st FOB level in his territory.
Western Cornbelt: The regional potash market continued to slip. The dealer market was quoted at $450-$460/st FOB, with the low reported in Missouri on a spot basis. An Iowa contact put the dealer market at the $455/st FOB level in his area, but said there was little new business to test that level. “Everyone thinks it’ll drop more,” he noted.
California: Potash was tagged at $525-$545/st FOB or DEL, depending on grade and supplier. Potassium nitrate remained at $1,080/st FOB for bulk tons and $1,150/st FOB for bags.
Sulfate of potash pricing had reportedly dropped to $675-$730/st FOB for bulk tons, depending on grade and supplier.
Pacific Northwest: Rail-delivered potash pricing had reportedly dropped to $505-$520/st in the region, depending on grade, with the lower numbers for 60 percent muriate and the upper end for 62 percent.
Western Canada: Potash postings to Canadian customers FOB Saskatchewan mines remained at $560-$569/mt, depending on grade.
PHOSPHATES
Central Florida: Outside of contract sales, no prompt business was found last week in Central Florida, but production was continuing on a brisk pace. How long that will continue was unclear, but some signs were pointing to a slowdown later this year, when exports to India dwindle away.
Phosphate producers were in negotiations with their sulfur suppliers for new fourth-quarter prices, but had still not reached a settlement. Most likely prices for molten sulfur will go up, but not a great deal. Because phosphate markets were not providing much in the way of incentives, producers were less likely to pay prices much closer to the more robust international market.
Crops were beginning to come out of the field last week – especially soybeans – but foul weather was slowing harvesting late last week. In the Northeast, dairy farms account for a large percentage of farms, but milk producers were losing money on every gallon and were not spending money on fertilizer. In that area, wheat was being sown with little or no fertilizer, and that was unlikely to produce sufficient yields.
The Central Florida DAP price range last week was unchanged at $270-$275/st FOB based on offers and sales. Both Mosaic and PCS Sales were charging a $10/st FOB premium for MAP. Prices from Agrifos were $300/st FOB for DAP and $305/st FOB for MAP.
Eastern Cornbelt: The DAP market remained at $305-$315/st FOB in the region, with MAP at a $10/st premium. One source reported an offer from a seller at the $320/st FOB level at midweek, with the caveat that that number was negotiable.
10-34-0 was quoted at $310-$315/st FOB in the region.
Western Cornbelt: DAP was pegged at $300-$305/st FOB, with MAP 10/st higher. 10-34-0 remained at $305-$315/st FOB in the region. One Iowa source put the common dealer market for 10-34-0 at the $310/st FOB level last week.
California: DAP and MAP were quoted at $370-$375/st FOB or DEL in California. 16-20-0 remained at $270-$277/st FOB and $270/st rail-DEL, and the 10-34-0 market in California was pegged at $333-$354/st FOB, with the low in the Central Valley and the upper end at desert locations.
Super phosphoric acid (SPA) and merchant grade acid (MGA) were unchanged at $7.40/unit DEL in California, with Simplot referenced at $7.60/unit FOB the warehouse for MGA. Sources said posting increases were on tap for November, but no specifics were available.
Pacific Northwest: DAP and MAP were quoted at $355-$365/st DEL in the region, depending on location. 10-34-0 was tagged at $350-$375/st FOB, and 16-20-0 pricing was steady at $265-$270/st DEL in the region.
Simplot announced that it will be taking a turnaround of its Rock Springs, Wyo., phosphate plant in November. The turnaround will affect both dry and liquid phosphate production.
Phosphoric acid pricing remained at $7.40/unit DEL in the region for SPA and MGA. Sources said they anticipate a price increase in November, but nothing official was announced.
Western Canada: MAP was quoted at $440-$460/mt DEL in the region.
U.S. Gulf: Early last week, the rain eased and temperatures climbed in the Midwest, and harvesting in some areas got a big jump. Then, late in the week, the rain and colder temperatures returned – with a vengeance in some areas – and activity ground to a halt. The soybean crop was somewhere between 50 and 80 percent complete, and corn harvesting was 5 to 15 percent done. In Oklahoma and nearby areas, however, the continuous bad weather may be taking a toll on the crops, some of which may be lost.
Meanwhile, crop prices were moving upward. Corn for December got up to $3.98/bushel, and soybeans were close to $10/bushel. Harvesting in parts of Iowa and Minnesota were ahead of most areas. If the weather permits and prices continue to be high, farmers in the Midwest will generally be in good shape to start buying fertilizer. Most will have to apply more fertilizer for the next crop to continue getting high yields, because the land has been mined for nutrients during the past two years, as applications have been well below normal.
With the closed river, most phosphate sales were taking place at terminals, and it appeared to be a pretty good bet that most dealers will let their bins go empty before they reorder. The number of NOLA DAP barges on the river system was relatively low late last week, and offers had clustered around $270/st FOB. It seemed unlikely the price will spike even if a surge occurred in barge sales, because most sellers will simply be looking for a way to get rid of what they have on hand.
In the active areas, warehouse prices rose between $5/st FOB and $10/st FOB for phosphate, but were holding around $295/st FOB on the Arkansas River. However, CF, which started the price cutting there, increased its price to $300/st FOB, but other terminals were not following them back up due to fear of losing what few sales they have. However, current warehouse prices there will not support the NOLA DAP barge market, which could be a problem once the weather improves.
The NOLA DAP barge price range last week was a flat $270/st FOB, which was midway between the previous week’s $268-$272/st FOB. Mosaic was seeking $295/st FOB. Both Mosaic and CF were charging a $10/st FOB premium for MAP.
As of Oct. 22, the DH paper market had NOLA at $270-$275/st for October and $265-$270/st FOB for NovemberDecember.
U.S. Export: No new export phosphate deals were found last week, and deliveries to India under existing contracts with PhosChem will come to an end in November. India has accounted for the vast majority of phosphate exports this year and last. Brazil and Argentina were still considered to be possible markets, but no action from either of those countries happened last week.
The Fertilizer Institute issued its export report for September and, of course, India was the major DAP buyer, with deliveries of 477,467 mt. Peru was a distant second at 22,900 mt, followed closely by Japan with 19,102 mt. For September, total DAP exports amounted to 571,525 mt, a decrease of 6.4 percent compared to the same month last year. For the calendar-year-to-date, India received 2,244,626, which was an increase of 10.6 percent. Vietnam has been the second biggest buyer at 154,246 mt so far this year, and Brazil the third largest customer with 133,542 mt. For the calendar-year-to-date, total DAP exports were 4,330,079 mt, an increase of 12 percent over 2008.
TFI said MAP exports in September amounted to 86,459 mt, a decrease of 42 percent. Canada received 31,943 mt, followed by Mexico at 16,645 mt and Brazil with 15,400 mt. For the calendar-year-to-date, Brazil has been the biggest importer at 429,200 mt of MAP, with Canada next at 307,412 mt, and then Australia at 189,673 mt. Total MAP exports so far in 2009 amounted to 1,232,414 mt, a decrease of 8.9 percent.
With no new sales, the export DAP price range continued unchanged at $310-$312/mt FOB last week.
As of Oct. 22, the DH paper market had October at Tampa at $300-$310/mt FOB, November at $285-$290/mt, and December at $280-$285/mt.
SULFUR
Tampa: Sulfur suppliers and phosphate producers were getting closer to an agreement late last week and may finish sometime this week.
Both sides seemed to agree the price will have to go up a little, but what “little” means was the point of dispute. Speculation was that it would go up between $5/lt and $20/lt for molten delivered by vessel to Tampa.
Sulfur suppliers point to the tighter world market and the higher prices being paid for prill on the Gulf, but phosphate producers were looking at a disappointing fall season and a lack of prospects for sales for most of the fourth quarter and were reluctant to pay much more than the minimal $10/lt under the current contracts.
In what may be an indication, recent spot sales for both rail and from terminals at Tampa were about $25/lt above the current market price. However, phosphate producers were working hard during the past few months to make enough to meet contracts for India – and those will run out before the end of this quarter.
Refineries were not producing as much sulfur as normal due to a greater use of sweet crude and the seasonal switch to fuel oil for heating, which has a higher sulfur content.
Some concern was expressed about the age of sulfur vessels operating in the Gulf, and the older ships may need additional maintenance in order to continue operations.
Vancouver: Contract and spot prices for sulfur out of Vancouver were running between $35-$40/mt FOB, and sales were on the increase as China has moved back into the market.
MARKET NOTES
Moscow: Russia’s Prime Minister Vladimir Putin has signed an order requiring the Russian Federation Ministry of Finance to enter into an agreement with Uralkali and Silvinit whereby the companies pay 6.454 billion roubles (US$222.9 million) to the federal budget, of which 5.454 billion roubles ($188.3 million) would be paid by Uralkali and 1 billion roubles ($34.5 million) by Silvinit, according to Uralkali. Both companies had previously indicated their willingness to reimburse the government. The Russian Railway had to construct two bypass railway links due to the accident at the Berezniki mine. Uralkali said it already paid 2.3 billion roubles ($79.4 million) for reimbursement earlier this year.
Bangladesh: Local sources say the Bangladesh government is likely to appoint a Japanese firm, Toyo Engineering Corp. (TEC), as consultant to carryout two overhauls of Chittagong Urea Fertilizer Ltd. (CUFL) at cost of Taka 5 billion (US$71.43 million). M. Abdus Salam Khan, managing director of the company, told the local press that authorities are considering a primary overhaul in 2010 and another one in 2012 in a bid to regain the plant’s nameplate production capacity of 1,700 mt/d and give the factory a new lease on life for another 15 years. CUFL has sought approval from the Ministry of Commerce to appoint Toyo for a technoeconomic feasibility report.
The plant, constructed in 1987 to produce 1,700 mt/d of urea and 1,000 mt/d of ammonia, has been having frequent closures due to mechanical problems. The plant is now running at 85-90 percent capacity.
Pakistan: The country imported DAP, urea, and other fertilizer worth $179.356 million during the first three months of the current financial year, July-September 2009. According to data released by the Federal Bureau of Statistics, the imports consist of 321,248 mt at $179.356 million, compared to 424,750 million mt at $258.536 million in the corresponding period last year – showing declines of 24.37 percent and 30.63 percent in terms of quantity and dollar value, respectively, over the same period last year. During the month of September 2009 alone, Pakistan imported 114,918 mt of urea at a cost of $67.969 million, compared to 116,028 mt at $67.342 million in September 2009. This showed that the import of fertilizer fell slightly by 0.96 percent in terms of quantity, but was up by 0.93 percent in terms of dollar value over the previous month. However, if compared with September 2008 (231,805 mt at $119.580 million), the import of urea declined by 50.42 percent and 43.16 percent in terms of quantity and dollar value over the same month last year.
The Week in Fertilizer Stocks
| Producer | Symbol | Price | Week Ago | Year Ago |
| Agrium | AGU | 56.91 | 53.32 | 32.27 |
| CF Industries | CF | 93.82 | 91.24 | 49.88 |
| Intrepid Potash | IPI | 28.56 | 26.39 | 16.77 |
| Mosaic | MOS | 53.22 | 50.67 | 32.21 |
| PotashCorp | POT | 102.96 | 94.19 | 67.10 |
| Terra Industries | TRA | 35.36 | 36.31 | 18.08 |
| Terra Nitrogen | TNH | 107.50 | 107.44 | 75.73 |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 34.86 | 36.69 | 31.74 |
| Deere & Co. | DE | 48.38 | 44.05 | 33.83 |
| Scotts | SMG | 43.22 | 43.31 | 22.25 |