All posts by webster@kennedyinfo.com

The Week in Fertilizer Stocks

The Week in Fertilizer Stocks

Producer Symbol Price Week Ago Year Ago
Agrium AGU 89.74 90.04 79.16
CF Industries CF 188.88 190.75 167.32
CVR Partners UAN 24.18 26.41 21.83
Intrepid Potash IPI 18.00 17.53 19.15
Mosaic MOS 60.02 61.11 48.37
PotashCorp POT 41.79 43.78 39.27
Rentech Nitrogen RNF 32.73 33.04 23.29
Terra Nitrogen TNH 215.75 220.85 186.66
Distribution/Retail
Andersons Inc. ANDE 53.16 53.70 44.64
Deere & Co. DE 87.18 89.39 75.95
Scotts SMG 48.30 48.65 44.23

TFI names Christopher Jahn as new president

Christopher L. Jahn has been named president of The Fertilizer Institute (TFI), and will assume the helm at TFI on Sept. 9. He succeeds Ford B. West, who announced his plans to retire on Jan. 7, 2013. Jahn will also serve as president of the Nutrients for Life Foundation.

Jahn comes to TFI from the National Association of Chemical Distributors (NACD), where he has served as president since 2006. Prior to his work with NACD, Jahn was president of the Contract Services Association and before that, chief of staff to U.S. Senator Craig Thomas (R-Wyo.).

“I am pleased to be joining TFI and am excited about representing the fertilizer industry, which is so vital to world food production,” Jahn said. “I look forward to working with TFI’s members to expand TFI’s reach with policymakers and the general public.”

During his tenure at NACD, Jahn directed successful initiatives to advance the association’s role in the legislative and regulatory arenas. Through his leadership, NACD expanded the profile and effectiveness of Responsible Distribution, a third-party verification program that requires members to continuously improve performance in environmental, health, safety, and security activities.

“Chris’ experience in the security, environmental, and product stewardship arenas will enhance TFI’s advocacy on behalf of the fertilizer industry,” said TFI Chairman and Mosaic Co. President Jim Prokopanko. “He has demonstrated the ability to enhance a trade association’s profile by building consensus within the community of members and with like-minded allied organizations. He will be a tremendous asset to the Institute as we seek to further strengthen our members’ voice in Washington, D.C.”

West is retiring after 34 years of service to TFI. He joined TFI in 1979 and rose through the ranks, first serving as director of member services before being promoted to assistant vice president in 1982, vice president of government relations in 1984, and senior vice president in 1999. West has served as president of TFI since Sept. 6, 2005.

The Week in Fertilizer Stocks

The Week in Fertilizer Stocks

Producer Symbol Price Week Ago Year Ago
Agrium AGU 90.04 94.86 79.09
CF Industries CF 190.75 194.99 160.53
CVR Partners UAN 26.41 26.50 22.37
Intrepid Potash IPI 17.53 18.16 19.41
Mosaic MOS 61.11 63.84 46.82
PotashCorp* POT 43.78 43.56 39.46
Rentech Nitrogen RNF 33.04 33.55 23.66
Terra Nitrogen TNH 220.85 222.52 187.18
Distribution/Retail
Andersons Inc. ANDE 53.70 54.25 46.41
Deere & Co. DE 89.39 92.19 74.18
Scotts SMG 48.65 47.54 45.41
* represents three-for-one stock split

Koch to build urea plant

Koch Nitrogen Co. LLC is moving forward with plans to build a new urea plant at its Enid, Okla., facility. In addition, the company is revamping existing production processes at the facility. Combined, the investments are estimated at $1 billion and are expected to increase fertilizer production at the facility by more than 1 million st/y. The improvements to existing processes will be implemented in stages from 2014-2016. Construction on the new plant, which will include additional storage and enhanced loading facilities, is expected to begin in the fourth quarter of 2014. The plant is projected to be operational in 2016.

“The investment we are making through Koch Nitrogen underscores our confidence in the future of our overall fertilizer business and our commitment to customers for the long-term,” said David Robertson, president and chief operating officer of Koch Industries Inc. “In addition to the significant increase in capacity, this investment will serve to improve our operational efficiency and competitive position in North America.”

“We are pleased Koch Industries is once again expanding its presence with a new investment in Oklahoma,” said Oklahoma Governor Mary Fallin, “Koch is well acquainted with our favorable business climate, with three separate companies already operating in the state, employing nearly 1,800 Oklahomans and generating more than $146 million in annual compensation and benefits for our economy. This substantial investment in Enid by Koch Nitrogen to build a new ultra-modern fertilizer production plant is further proof that our commitment to keeping business taxes low and regulations reasonable is paying dividends in the form of quality jobs for our state.”

Governor Fallin also congratulated officials with the city of Enid and Garfield Country and referred to the plans as a model of public and private cooperation.

“We are thrilled with Koch Nitrogen’s investment plans,” said Eric Benson, Enid City manager. “They are an excellent corporate citizen and outstanding community partner. They have worked closely with us to address the pressing needs of our community, including recent efforts to find a solution for our community’s water situation. Koch’s expanded presence in Enid will resonate positively throughout our economy for a long time.”

Koch Nitrogen has selected the following companies for the project: Black & Veatch, a global engineering, consulting and construction company, will provide project planning, engineering and procurement services; KBR, a global engineering, construction and services company, will provide urea engineering and procurement services; Stamicarbon, the global market leader in licensing of urea technology and services, will provide urea synthesis and granulation technology.

“As crop production increases throughout North America, we are seeing an increasing demand for fertilizer from our customers,” said Steve Packebush, president of Koch Fertilizer, LLC. “With this additional production, we’ll be in a much better position to meet that demand. We look forward to breaking ground on this project, while continuing to evaluate enhancements at our four other North American facilities.”

The positive economic impact to the city of Enid and surrounding communities over the next three years will be substantial. During the 18-24 months of construction, 500 to 800 new construction jobs are projected to be created. In addition, a total of 20-30 permanent employees will ultimately be added to support the new plant.

The Koch Nitrogen facility in Enid is one of the largest fertilizer production plants in North America, producing ammonia, UAN (liquid fertilizer) and granular urea. It was built in 1974 and purchased by Koch Nitrogen in 2003. The site employs 143 people i

Costs, soft market cited for K delay

The Mosaic Co. President and CEO James Prokopanko today citing “red hot” capital expenditure costs in Western Canada and a “soft potash market” explained the company’s decision to delay a 2 million mt/y potash brownfield project by 12-36 months.

In the meantime, a current project to bring on 3 million mt/y of capacity in Saskatchewan is almost finished.

Prokopanko was speaking before the BMO 2013 Farm to Market Conference in New York City.

PhosChem announces trade deal

Phosphate Chemicals Export Association Inc. (PhosChem) said today that it has reached an agreement to supply 400,000 mt of DAP to two large Indian customers for shipment between now and September 2013. The price is at current market levels.

PhosChem was founded in 1974 in accordance with the provisions of the Webb-Pomerene Act and is the export marketing association for its members. The Act was created to promote U.S. exports. PhosChem is the largest exporter of concentrated phosphate from North America. Its member companies include Mosaic Crop Nutrition, LLC, a wholly-owned subsidiary of The Mosaic Company (NYSE: MOS), and PCS Sales (USA), Inc., an indirect, wholly-owned subsidiary of Potash Corporation of Saskatchewan Inc. (TSE and NYSE: POT).

USITC votes to continue antidumping duties on AN from Ukraine

The U.S. International Trade Commission (USITC) voted on May 13 to keep in place the existing antidumping duties on ammonium nitrate imports from Ukraine. The decision was the culmination of the second five-year sunset review of the antidumping order, which was first imposed in 2001.

All six USITC commissioners decided that revoking the antidumping duty order on ammonium nitrate from Ukraine would be likely to lead to continuation or recurrence of material injury to the domestic industry within a reasonably foreseeable time. As a result of the ruling, the current dumping margin of 156.29 percent will remain in place for ammonium nitrate imports from Ukraine.

The USITC’s first sunset review of the order occurred in 2006/07, and also produced an affirmative ruling. The second five-year review process was instituted in June 2012. The USITC decided in September 2012 to conduct a full review after reviewing responses from interested parties concerning the likely effects of revoking the order.

A full report of the USITC’s views in reaching its decision, Ammonium Nitrate from Ukraine (Inv. No. 731-TA-894 (Second Review), USITC Publication 4396, May 2013), will be available after June 14, 2013. Orders for the report can be submitted at that time by emailing pubrequest@usitc.gov; calling 202-205-2000; faxing 202-205-2104; or writing to the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.