Phoenix-Tessenderlo Kerley Inc. (TKI) announced Dec. 6 the purchase of the Terbacil crop protection assets from DuPont Crop Protection, Wilmington, Delaware. Financial terms of the agreement were not disclosed. Terbacil herbicide is marketed globally under the Sinbar® trademark. In Japan, terbacil is also sold in a mixture with diuron under the Zobar® trademark. TKI will acquire the rights to the Sinbar and Zobar trade names, a license to the technology required to make terbacil, and the worldwide registrations and data packages for the products. Sinbar and Zobar herbicides are used primarily in niche markets, including mint, fruit, alfalfa, and non-crop applications. These products are currently registered in 11 countries. Jordan Burns, CEO of TKI, stated, “TKI is committed to expanding the current crop protection range of our company. We intend to continue building our NovaSource Crop Protection Group with the addition of other strategic products as they become available.” The development and marketing responsibility for these products will be undertaken by NovaSource (www.novasource.com), TKI’s business unit, charged with developing and marketing registered pesticides for niche crop protection and specialty markets. According to David Cassidy, Group Vice-President, “the acquisition of Sinbar and Zobar herbicides is another step in the planned expansion of the company’s niche crop protection product portfolio. Sinbar and Zobar are the second targeted acquisition and we believe are destined to become an even more important part of growers’ crop protection programs.”
U.S. Gulf/Tampa: Price ideas are way up, though firm numbers right now are hard to find. Tampa buyers will likely hold on to the $359/mt DEL Tampa numbers as long as they can. Much higher numbers were also being quoted at NOLA, with expectations that the next round of business could see a huge jump in prices, and sources speculating that they could be within the $400-$425/st FOB range.
Eastern Cornbelt: Nasty winter weather took hold in much of the Eastern Cornbelt as new snow fell last week. The ground was not frozen and will turn to mud once the snow melts. That was keeping farmers out of their fields in most areas.
The spot market for ammonia was pegged at $595/st FOB river terminals in Illinois on the low end last week, with the upper end quoted at $605-$615/st FOB spot inland locations. Effective Dec. 5, Agrium’s ammonia postings firmed to $610/st FOB E. Dubuque/West, Iowa; $615/st FOB E. Dubuque/East, Ill.; $620/st FOB Meredosia, Ill., and Marseilles, Ill.; and $630/st FOB Cincinnati/Finney, Ohio.
Western Cornbelt: Winter weather was beginning to slow activity in the fields throughout the Western Cornbelt last week, but some movement was reported by sources. In Iowa, icy conditions were followed by snow last week, but fertilizers were still moving out of terminals and into the field in some areas. Some dealers said the fall season was extremely busy and they welcomed the slowdown.
Dealers were finding ammonia harder to get and “prices are all over the board,” a source said. Last week prompt sales were in the $610-$615 FOB range in Iowa, but were somewhat less in other areas. In Nebraska the price was $595/st FOB, and in eastern Missouri ammonia was running about $590/st FOB, but was $610-$620/st FOB in the western portion of the state. Spring prepay prices in the region were in the $630-$635/st FOB range.
Effective Dec. 5, Agrium’s anhydrous ammonia postings firmed to $590/st FOB Greenwood, Neb., and Iowa terminals at Early, Garner, and Whiting; $585/st FOB Hoag, Neb.; $580/st FOB Clay Center, Kan.; $575/st FOB Conway, Kan.; $570/st FOB Mocane, Okla.; and $550/st FOB Borger, Texas. Agrium’s delivered ammonia postings in Texas from the Borger facility moved on that date to $575/st north of Interstate 40 and $580/st south.
Northern Plains: Last week, ammonia prices near the pipeline rose to $600/st FOB in Minnesota and will be $615/st FOB for spring. Prices in North Dakota were even higher. Effective Dec. 5, Agrium’s anhydrous ammonia postings firmed to $590/st FOB Mankato, Minn.
Effective Dec. 1, Agrium’s ammonia postings in the Leal, Velva, Grand Forks, and Beulah sales area in North Dakota moved to $655/st FOB and $675/st DEL.
Pacific Northwest: Effective Dec. 7, Agrium’s anhydrous ammonia pricing moved to $685/st DEL in Montana and northern Wyoming, and $685-$690/st DEL in Washington, Oregon, and northern Idaho. Agrium’s aqua ammonia postings firmed on that date to $172/st FOB Finley and Central Ferry, Wash.
Black Sea:Prices are edging up. Sources report rumors of business at $320/mt FOB. Also heard were stronger reports of actually done deals at $310-$315/mt FOB.
Some sources are calling the market ready to go to $350/mt FOB in the next few days. Buyers are hoping that the talk of $350/mt FOB tons is just the talk of producers and traders trying to push the market higher.
One Asian source noted that the Yuzhnyy price might hold stable for a while as demand eases off. The reduced buying interest has more to do with the upcoming holiday season rather than a serious downward slide in demand. Once the New Year revelries are done, say sources, demand will pick up – and so will the price.
Middle East: The price is seriously jumping in this area. For the longest time the market was holding under $300/mt FOB, and now producers are ready to demand $340/mt FOB. Sources report Qafco sold a full cargo at $330/mt FOB late last week.
With supplies tight and demand remaining firm throughout Asia, Middle East producers have no incentive to lower prices.
The rapidness of market changes in the area requires almost daily updates. By press time, however, sources were sure the price had topped at $335/mt FOB. The range for the week was $320-$335/mt FOB.
UREA
U.S. Gulf: With phosphate barges getting all the attention, urea barges appeared to stall. In addition, buyers argued that there is a large line-up of vessels due into NOLA, particularly those with Chinese material, in near-term months. Sellers countered, saying that much of that tonnage is committed. They added that the Canadians are likely to keep more of their product at home in 2008. Regardless, the most recent NOLA business was put within the $425-$435/st FOB range.
Eastern Cornbelt: Granular urea increased to $495-$505/st FOB to the dealer, depending on location.
Western Cornbelt: Granular urea pricing was quoted at $460-$465/st FOB, up roughly $5/st on the bottom end of the range from the prior week, with the upper end of the range holding firm.
Northern Plains: Granular urea was quoted at $475-$485/st FOB in Minnesota, also up from last report. No delivered numbers were available for urea in North Dakota out of Canada. Agrium’s granular urea postings firmed on Nov. 23 to $490/st FOB Shakopee, Minn., and North Dakota terminals at Alton, Carrington, Colfax, Marion, and Scranton. The company’s delivered postings firmed on Nov. 23 to $495/st in Minnesota, Wisconsin, and the Dakotas. Those levels represent a $35/st increase from Agrium’s Nov. 19 urea postings in the region, and a $65/st increase from Nov. 2 reference levels.
Northeast: Granular urea pricing was “just plain crazy,” a regional source declared. Sources tagged the market in a broad range at $470-$485/st FOB Philadelphia, Pa., and Baltimore, Md., but Baltimore was said to be empty.
Eastern Canada: The granular urea market was pegged at $603-$620/mt FOB in the region, with the upper end reflecting dealer reference pricing in Ontario. On a delivered basis, urea was pegged at $618-$641/mt in Ontario and Quebec.
California: Agrium’s granular urea postings in California firmed on Dec. 7 to $470/st FOB Sacramento, $490/st truck-DEL in Central California, and $495/st truck-DEL in Northern California.
India: It now appears that MMTC will only take the $407/mt CFR material, which means Ameropa, Transammonia, and Keytrade are the winners. The 125,000 mt the three companies offered was reportedly agreed to before the tender. Sources say none of the other offering companies were even contacted with counter bids.
The idea appears to be that MMTC was buying to build the country’s stockpiles so it and IPL will not have to reenter the market anytime during the first quarter of next year. This three-month hiatus from buying could provide a cooling down period.
One Asian trader noted that even if MMTC wanted to buy more tons, the logistics of getting the cargoes unloaded and shipped inland would have proved problematic at best.
Reportedly, port congestion in India is once again becoming a major problem. The issue is not so much vessels sitting at anchor waiting for a berth, but rather getting the urea out of the ports to the inland warehouses.
Also affecting Indian buying are continued reports of congestion in the Chinese ports.
Because most of the material purchased by MMTC and IPL comes from China, delays in loadings will affect India. Sources say the problem is no longer finding vessels or loading the vessels when they pull in, but rather having the logistics to get the urea to the ports. Some facilities are also facing manpower shortages, causing further aggravation.
Middle East: India did not take any Middle East tons in the latest tender. Fertil and Qafco jointly offered about 100,000 mt at $410/mt FOB.
With 125,000 mt available at $407/mt CFR, India was in no mood to play the Middle East suppliers’ game.
To one trader it appeared the two producers offered tons at a high price only because they were fully booked, but at the right price would be willing to rearrange their shipping schedule to accommodate the higher-priced tons.
Other Middle East producers did not participate in the tender because they, too, were sold out. Sabic in particular had no incentive to participate in the tender. One source said Sabic would have been in trouble if they offered in the low $400s/mt FOB and then got captured.
Sabic is comfortable for several deals into Asia. One in particular is part of a government-to-government program worked out between Pakistan and Saudi Arabia. It is this deal that has kept TCP/Pakistan out of the spot market throughout the year.
Fertil and Qafco turned right from the Indian tender to a deal with BCIC/Bangladesh. The two producers will provide BCIC 100,000 mt.
For now, the price is pegged at $390-$405/mt FOB.
Black Sea: Demand from Turkey and Latin America continues to place a strong floor on prices. The price in the area has moved solidly into the low $400s/mt FOB. Reportedly, producers are now asking $410/mt FOB, but have not yet concluded a deal at that level. Observers peg the market at $400-$405/mt FOB, with a strong possibility of growth in the first quarter.
Bangladesh: The government approved the importation of 100,000 mt of material from Qafco/Qatar and Fertil/UAE. The country’s urea stockpiles are falling to a critical level. Sources say the lack of concluded tenders held during the past 18 months is a contributing factor to the shortage. Now the government is playing catch-up with urea needs.
Production at Chittagong Urea Fertiliser Ltd., the largest urea producing plant in the country, remained suspended for about three weeks in November due to maintenance work along the Bakhrabad gas supply line, according to local media. An official of the company said the plant had failed to produce about 46,000 mt of fertilizer since July due to a gas supply crisis. The plant requires around 50 million cubic feet of gas daily to sustain its production smoothly. It was receiving only 44-47mn cft, plant officials added.
Pakistan: The country is expecting the arrival of 150,000 mt of imported Saudi urea in the middle of December. It would be sold through local urea manufacturers, Fauji, Pak Arab, and others.
NITROGEN SOLUTIONS
Eastern Cornbelt: UAN was quoted at $11.15-$11.35/unit FOB regional terminals, reflecting another sizable increase from last report.
Western Cornbelt: UAN-32 was pegged at $350-$355/st ($10.93-$11.10/unit) FOB regional terminals to the dealer, up $5/st from last report, with spot sales confirmed at the upper end of that range in Iowa last week.
Northern Plains: UAN pricing was pegged in a broad range at $11.25-$11.65/unit FOB for spot market tons, depending on location and supplier.
Northeast: The UAN-30 spot market had reportedly firmed to $315-$322/st ($10.50-$10.73/unit) FOB terminals in the region. However, replacement tons will cost $358-$360 FOB, a source said. That range was up sharply from spot values at $277-$281/st ($9.23-$9.37/unit) FOB six weeks ago.
Eastern Canada: Sources reported reference levels for UAN ranging from $12.45-$12.60/unit FOB in the region before discounts.
Western U.S.: Agrium’s UAN-32 postings firmed on Dec. 7 to $398/st FOB Sacramento, Calif.; $390/st DEL in Washington, northern Idaho, and northwestern Oregon; $395/st rail-DEL and $400/st truck-DEL in southern Idaho, Utah, Nevada, and Oregon’s Malheur County; $415/st DEL in Central California; and $420/st DEL in Northern California. In Montana and northern Wyoming, delivered UAN postings moved on that date to $368/st for 28 percent and $420/st for 32 percent.
AMMONIUM NITRATE
Western Cornbelt: Ammonium nitrate was quoted at $365-$385/st FOB for actual sales, with the lowest price in Missouri and the high in Iowa.
Eastern Canada: Ammonium nitrate was pegged at $370-$390/mt FOB for the last sales, but sources reported there was little activity to test the market.
Pacific Northwest: Agrium’s ammonium nitrate solution 20-0-0 posting firmed on Dec. 7 to $239/st FOB Kennewick, Wash., while CAN-17 postings at that location firmed to $279/st FOB.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was pegged at $240-$250/st FOB to the dealer, and remained in very tight supply in the region.
Western Cornbelt: Granular ammonium sulfate was tagged at a firm $245-$250/st FOB regional terminals to the dealer.
Northern Plains: Granular ammonium sulfate in Minnesota was quoted at $250/st FOB for spot and $270/st FOB for spring, with delivered sulfate pegged at the $255-$265/st mark in North Dakota for cash market tons. Agrium’s ammonium sulfate postings firmed on Nov. 23 to $260/st DEL in Wisconsin, Minnesota, and the Dakotas, reflecting a $15/st increase from the company’s Nov. 9 list prices.
Northeast: Granular ammonium sulfate was pegged at $239-$241/st FOB Philadelphia.
Eastern Canada: Granular ammonium sulfate was quoted at $316-$348/mt FOB in the region.
PHOSPHATE
Central Florida: Producers continued their heavy schedule of loading railcars in Central Florida that were ordered earlier this fall, and new, prompt sales were scarce last week. However, Central Florida may be the cheapest place in the world to find phosphate products.
The export market continued its rapid rise last week, hitting $570/mt, while the NOLA DAP barge market went bananas with rapid, unexpected price hikes, hitting $530/st FOB by midweek. Meanwhile, the Central Florida index price remained at $450/st FOB. Still, a producer was working to finalize a sale of prompt railcars at $505/st FOB.
Very late last week, Mosaic made a sale of MAP at $496/st FOB out of Central Florida, which would translate to $500/st FOB for DAP.
While producers and traders with a position in the market were enjoying record profits, some at the dealer level were clearly concerned. Those dealers have not filled their bins in preparation for spring and may lose regardless of what happens in the market. Most operators had made buys during the past several months to meet the needs of their customers in the spring, but those who haven’t will either have to pay much higher prices or not have the product on hand when the time comes. Either way, they will be hurt. One said, though, the big fear was that phosphate prices would take a sudden drop and they would get caught holding the bag, lose big bucks, and possibly be forced out of business.
Last week, based on the recent sale of MAP by Mosaic, the price range for Central Florida DAP climbed to an even $500/st FOB, up from the flat $450/st FOB the previous week. Mosaic has basically abandoned posting an asking price for DAP because of a lack of supply, but bumped its asking price to $460/st FOB and $456/st FOB for MAP, which was still well below the export price. Previously, Mosaic’s asking price was pegged at $440/st FOB, and its MAP price was $436/st FOB. PotashCorp’s Central Florida reference price leap frogged other producers a week earlier and jumped from $440/st FOB to $490/st FOB, and CF’s asking price increased from $440/st FOB and $437/st FOB for MAP to $455/st FOB for DAP and $452/st FOB for MAP. MAP supplies were said to be essentially unavailable.
In Texas, Agrifos’s truck price last week continued at $500/st FOB and its rail price was still $495/st FOB for DAP and $515/st FOB for MAP, but its inventory was sold out until January.
U.S. Gulf: A couple of weeks ago, CF was said to have swept up many of the available barges in the river system, and Transammonia was said to have done the same. CF was said to have made the move to either replace or use the newly purchased supply for an export sale. What few barges remained began selling at a premium, and that premium was rising almost hourly last week.
On Monday, a barge sale was conducted at $500/st FOB, which was $20/st FOB above the high in the NOLA DAP barge price range the previous week. Later that day, another was sold for $505/st FOB. On Tuesday of last week, another DAP barge was sold for $520/st FOB, and on Wednesday morning a DAP barge was sold at $525/st FOB. Later the same morning, confirmed sales were done at $530/st FOB. According to unconfirmed rumors, sales were also made at $540/st FOB and $545/st FOB. A trader said a buyer had offered $560/st FOB on Wednesday afternoon, but the trader decided to hold on to that barge and was asking $570/st FOB.
“I was really pleased with myself when I got a price of $525/st FOB,” one trader commented, “until I had an offer at $540/st FOB. Now, I’m kicking myself for not waiting.”
Most of the most recent purchases were said to be destined for terminals, where prices were about the same or lower than wholesale barges. One terminal operator said his company raised its DAP price three times in four hours in an effort to stop the drain on warehouse supplies.
A dealer pointed out that even with the higher price of corn, which has been the big gobbler of phosphates, farmers’ profits appeared to be about the same as before the price for a bushel of corn shot up in price. The cost to fertilize an acre of corn was about $500, but the farmers should earn approximately $800 an acre from the corn being grown, so they will still have money in their pockets at the end of the season. Due to fears of possible drought, some farmers were limiting the amount of corn they were willing to sell on the futures market.
At some point, the situation will change. As one source pointed out, phosphate is a mostly unprofitable business with periods of wild profitability. This year, and probably the next, fall into the wild category. Wheat was in short supply this year, and much more was planted this year for next. If that results in a glut and wheat prices take a tumble, those farmers will not be buying as much phosphate and other fertilizers next year. In addition, the amount of acreage for soybeans was projected to take a jump next season as farmers switch from corn to beans, and soybeans do not require as much phosphate as corn. Those factors could push the price of phosphates down sometime in 2008, but international demand will work against that trend.
There is a real possibility that phosphate prices for NOLA DAP barges could reach as much as $600/st FOB by January, and that would be in excess of the extremely high export market.
Next week, sources say to look for NOLA DAP barge prices to continue rising and watch for warehouse prices to soon follow, as new product arrives. The NOLA DAP barge price range last week was $500-$530/st FOB.
Eastern Cornbelt: Phosphate prices were up again last week, although the bad weather had brought most fieldwork to a halt. DAP was quoted at $525-$535/st FOB regional warehouses and MAP was about $5/st FOB higher, with new spot sales confirmed at the middle of that range. Sources reported no current prices for TSP or 10-34-0 in the region.
Western Cornbelt: Phosphate prices at regional terminals continued to rise. Sources tagged DAP and MAP in a broad range at $490-$525/st FOB in the region last week, with the most recent sales in the $520-$525/st FOB range. The low end was reported in Iowa, with MAP $2-$3/st FOB less, but some sources said the lower numbers most likely reflect sales from barge deliveries earlier in the season, when prices were lower.
10-34-0 firmed to $430-$450/st FOB, with the upper end reflecting new dealer list pricing. No current levels were reported for TSP in the region.
Northern Plains: Minnesota sources reported DAP pricing at the $520-$525/st mark FOB the Twin Cities, but product was reportedly unavailable. MAP was running $5/st FOB less than DAP. 10-34-0 pricing jumped to $450/st FOB and $460/st DEL in the region.
Phosphoric acid postings from Agrium for December include superphosphoric acid (SPA) at $735/st rail-DEL and merchant grade acid (MGA) at $725/st rail-DEL in Minnesota and the Dakotas. A $70/st increase is scheduled in January for both products, followed by $10/st per month increases in February, March, April, and May.
Northeast: DAP and MAP prices were quoted at $507-$513/st FOB Philadelphia and E. Liverpool, Ohio, to the dealer, reflecting another sizable increase from last report. Prices for 10-34-0 last week were pegged at $350/st FOB.
Eastern Canada: MAP was tagged at $600-$610/mt FOB, up from last report. No current prices were reported for DAP or TSP in the region.
Western U.S: Effective Dec. 6, Agrium’s MAP postings in California and Arizona firmed to $605/st FOB and rail-DEL. In the Pacific Northwest, Agrium’s MAP postings moved on that date to $590/st DEL in Montana and Wyoming; $595/st DEL in southern Idaho, Utah, Nevada, and Oregon’s Malheur County; and $595/st FOB and $600/st DEL in Washington, northern Idaho, and Oregon excluding Malheur County.
U.S. Export: PhosChem made a sale of 6,000 mt of DAP into Mexico last week at another record price of $570/mt FOB. Sources also said Keytrade made a sale of 25,000 mt of DAP into Peru at about $545/mt FOB, using CF product.
The most recent series of price escalations on the export market could be attributed, at least in part, to China. Until a few months ago China was heavily into the export market, but when word came that the government was planning on putting an export tariff into effect, sales from China came to a screeching halt and world prices took off. The government of China was expected to announce the amount of the new export tariff before the end of the year, and depending on how high it is, China could get back into the export business.
However, worldwide demand continued to grow, and prices in all producing countries have continued to shoot up. The U.S. has an advantage over its competitors, at least those in Central Florida. U.S. producers mostly own their own rock supplies and have access to considerably cheaper molten sulfur prices, and the price of ammonia was relatively stable, so their cost are low. In the U.S., only Miss Phos and Agrifos have to rely on phosphate rock from North Africa for DAP production. However, Morocco plans to hike its export rock prices by about $100/mt, which will cut into the profits of those two smaller producers, but not as badly as it will for countries that must import virtually all of their raw materials – and at higher and higher costs. If their cost of raw materials gets too high, they will likely stop producing, at least on a temporary basis. That will trigger yet another boost in world phosphate prices.
The export DAP price range rose last week from $545-$550/mt FOB to $545-$570/mt FOB, and will probably go up with the next sale.
Bangladesh: BCIC has issued a tender to import 10,000 mt of phos acid C&F Chittagong. Offers shall be received up to Jan. 7 and shall be valid until Feb. 5.
BCIC has issued two tenders to import 15,000 mt and 10,000 mt of phosphate rock on a C&F Chittagong basis. Offers shall be received up to Dec. 27 and Jan. 2, respectively. Offers are to remain valid for 30 days after the bid close.
POTASH
Eastern Cornbelt: Potash pricing continued to climb. Some sources quoted the last sales in the $375-$385/st FOB range, but supplies continued to be extremely limited or nonexistent. Some sources quoted the warehouse market for spot brokered tons at closer to $400/st FOB last week.
Western Cornbelt: Potash was quoted at $375-$400/st FOB regional terminals for available spot tons, but supplies were extremely limited, if available at all. There were reports of sales made at both ends of that range last week.
Northern Plains: Potash, where available, was quoted by several Minnesota sources at a firm $385/st FOB the warehouse for brokered tons, up $10/st FOB from last report. December prices FOB Saskatchewan include standard at $252/st, granular at $257/st, and soluble and white granular at $262/st, but tons reportedly won’t be available for sale until after the first of the year, at which time another $50/st will be in effect.
PCS Sales announced a $50/st increase on all potash grades, effective for shipments between Jan. 1 and Feb. 29. This is on top of the company’s $30/st increase effective Dec. 1.
Northeast: Potash prices continued to soar last week, with white potash delivered from Ohio put at $390/st, including freight estimated at roughly $27/st. One source said potash ordered earlier at $347/st DEL was slated to be delivered in December. He said he was unable to obtain a price for January. Farmers in some areas of the region reported cutbacks on fall potash applications due to pricing and product availability.
Eastern Canada: Potash out of the warehouse system was quoted to the dealer at $393-$400/mt FOB in Ontario and Quebec, with the upper end for white granular potash. KMAG was pegged at $309/mt FOB, and SOP was tagged at $509/mt FOB.
No current potash prices were reported FOB New Brunswick mines.
SULFUR
Tampa: The sulfur shortage domestically and worldwide continued to be a pressing issue for both phosphate producers and industrial customers, who were struggling to find supplies. “Big buyers are turning over stones and looking for sulfur under all of them,” a source said, referring to the spot market. Customers were no longer asking the price of sulfur, simply begging for supplies, which were nonexistent. Spot sales were virtually impossible, as sulfur producers were struggling to meet their contract commitments.
Prices for sulfur out of the Middle East are or will soon be in excess of $400/mt, and may go even higher. The situation was expected to continue until at least the middle of next year, and possibly longer, but eventually prices will tumble – and when they do, tumble fast, say sources.
However, for the first quarter, molten sulfur prices in the U.S. Gulf will undoubtedly go up for phosphate producers. One source said oil companies were planning on asking for an increase of $70/lt in first quarter negotiations, which was less than the triple digit increase they were said to have been considering. It appeared unlikely negotiations will begin before January, and they will be interesting.
Valero’s Texas City refinery suffered a power failure last week, which took the plant out of service. The company was working to restore operations, and although the refinery was still well below normal, it was expected to be back soon. The facility produces about 700/lt day.
West Coast: Valero was still in the process of completing a turnaround at its refinery near Long Beach, Calif., late last week, and sulfur production was getting close to its normal 180/t day.
Martin was attempting to build enough inventory of prill to load another vessel for export out of California last week, but it may take another couple of weeks to amass the amount it needs.
Vancouver: Spot prices for sulfur out of Vancouver were said to be heading toward $250/mt, which would actually be a bargain on the world market. Negotiations for new first quarter sulfur contracts for China were still underway last week, and prices were anticipated to increase – probably substantially. The Chinese were known to be low on sulfur inventories, which does not help their bargaining position.
Winter set in at western Canada last week and a snow slide was said to have blocked the tracks to Vancouver from Alberta, but only for a day or so. Still, the weather there could affect supplies again this year.
Bangladesh: BCIC has issued two tenders to import 5,000 mt and 12,000 mt of rock sulfur on a C&F Chittagong basis. Offers will be received up to Dec. 27 and Jan. 2, respectively. They are to be valid for 30 days from the date of closing bids.
Pakistan: Pak-Arab Refinery Ltd. (PARCO) issued a tender for the sale of 3,000 mt of sulfur between January-March 2008 from its Mid-Country Refinery (MCR) at Mahmood Kot, District Muzaffargarh. The minimum reserve base price is US$360/mt (excluding general sales tax) ex-delivery point at MCR in Punjab. Bidders have to bid for minimum quantity of 250/mt. Bids are due Dec. 17.
MARKET NOTES
Poland: The country is returning to the privatization of its chemical industry, including the fertilizer industry. The previous government of Jaroslaw Kaczynski had stopped fertilizer privatization and the sale of the Ketrzyn and Tarnow plants to German firms. According to Minister of Treasury Aleksander Grad, the list for privatization will be published “within a few weeks.”
In the meantime, the new government of Donald Tusk may postpone or even suspend construction of a liquid gas terminal because of short supply on world markets. It planned to start construction of this terminal at Swinoujscie on the Baltic Coast just few miles from German frontier, but talks with Saudi Arabia, Kuwait and Norway broke down. However, Poland has resumed negotiations with Norway on construction of the Baltic Pipe gas line.
There is also a chance of more gas from Russia as that country may drop the idea of a gas pipeline under the bed of the Baltic Sea after protests from Poland, Sweden, and the Baltic states. Poland is hoping Russia will build an additional leg of the Yamal gas pipeline, which delivers gas to Poland, Germany, and other western countries.
Aaron Mathis, 74, Carrolwood, Fla., passed away Dec. 4 after a short illness. He retired in June 1999 after 34 years of employment from HJ Baker and Brothers Inc., where he was the president, CEO of the fertilizer division, and a corporate vice president. He is survived by his wife of 19 years, Mary Catherine; a daughter, two sons, stepchildren, 11 grandchildren, and one great grandson. His first wife, Martha Mathis, died in 1987. A U.S. Army veteran, Aaron graduated from Rutgers University in 1955. A funeral service was held Dec. 6 in Tampa. Words of comfort may be expressed at www.blountcurry.com.
Truth Chemical, The Woodlands, Texas, has made the following organizational announcement. Effective Dec. 1, 2007, Dan Russell assumes the role of executive vice president, with responsibility for worldwide sales and marketing. Reporting to Russell will be Mia McGinty, manager, nitrogen products; Terry Coco, director, oilfield services; and Chap Anderson, vice president, sulfur products. The company said these changes support Truth’s strategic plans for distributing and marketing NPK products for industrial applications, as well as growing sales into the fertilizer markets, both domestic and international. Russell will continue to report to Joe Newcomb, CEO.
CVR Energy Inc., which owns Coffeyville Nitrogen Co., has announced that Stirling Pack Jr., Ph.D., has joined the company as vice president, investor relations. He reports to Jack Lipinski, CEO. Most recently, Pack was managing director of strategic development for Paul Comstock Partners, a Houston-based wealth advisory firm. He has worked for more than 27 years in economic strategy, finance, and investor relations, most of that time as senior vice president of investor relations at The Coastal Corp. Pack has also served as an economics advisor and faculty member at several universities and colleges, including the University of Houston and the University of Utah. Pack received his bachelor’s and master’s degrees in Geography from the University of Utah and a doctorate in Economic Geography from the University of Cincinnati.
CVR announced Dec. 5 that it has named Dan Daly executive vice president, strategy. Daly reports to Lipinski. In his expanded role, Daly will be responsible for identifying opportunities and directing programs leading to CVR’s operational and financial growth. He will also continue to be responsible for oversight of CVR Energy’s accounting and controls. Daly, who joined CVR in June 2005 after a 23 year career with The Coastal Corp., also worked for Tosco Corp. and as an independent consultant with Prudentia Energy.
Bayville, N.J.-The Environmental Protection Agency has awarded the Ocean County Utilities Authority, headquartered in Bayville, N.J., its 2007 Exemplary Biosolids Management Award for the authority’s Oceangro fertilizer, which is popular at area golf courses, athletic fields, and county residences. The award was presented recently at the Water Environment Federation’s annual technical exhibition and conference. Oceangro has also been featured on a History Channel Modern Marvels segment entitled “Fertilizer: What It Takes to Feed the World.”
St. Louis-Monsanto Co., working with Devgen NV and modeling a Nobel Prize winning discovery, has come up with a new in-the-seed approach to protecting crops against insects. Monsanto said the technology – called RNA interference, or RNAi – is a biological mechanism found in nature as a way to regulate gene expression. Monsanto said it had identified novel applications of RNAi that enable plants to be better protected against insect pests that feed on crops and impact yield. “RNA interference is an incredibly promising method for crop improvement overall,” said Dr. Robert Fraley, Monsanto executive vice president and chief technology officer. “Because of its specificity, this exciting technology can help us in areas of plant science that until now have simply not been possible.” Devgen CEO Thierry Bogaert added, “This technology has the ability to effectively control very specific plant pests. This is a breakthrough in crop protection.” The research is expected to allow scientists to harness the cell’s natural ability to regulate protein production and apply it to produce insect protection for the plant. Monsanto scientists are working on incorporating this promising application of RNAi into one of the company’s future insect-protected corn projects. The study is published in the journal Nature Biotechnology at http://www.nature.com/naturebiotechnology.
Owensboro, Kentucky-The Asmark Institute said Dec. 5 that plans are underway to provide a Videoconference Internet Protocol (VIP) Network to its affiliated state and national organizations. The VIP Network allows live video, audio, and data to be transmitted across the Internet, enabling participants from two different geographic locations to meet synchronously. Asmark noted that President Bush utilizes this same videoconferencing technology at his Crawford, Texas, ranch to receive his morning briefings from the White House, and in a variety of meetings with federal, state, and local officials. The VIP Network will help facilitate collaborative efforts between the agricultural inputs industry and governmental agencies, many of which are already equipped with videoconferencing technology. “Two essential elements critical to the future success of our industry are collaboration and technology,” said Allen Summers, Asmark president. “Collaboration, or the sharing of talent, time and resources, will continue to leverage the positive effects of all who effectively participate. The smart adoption of technology such as videoconferencing will be a powerful force in gaining new efficiencies and controlling costs in the future.”
Saskatoon-Potash Corp. of Saskatchewan Inc. was recently recognized as a leader in corporate transparency as its 2006 corporate reporting was given the Award of Excellence in the Mining Category from the Canadian Institute of Chartered Accountants (CICA). The company also received an honorable mention for electronic disclosure, in particular the company’s website, and an honorable mention for its 2006 Sustainability Report. “Stakeholders are looking for a company they can trust, to invest in, to partner with or to be employed by, and the role transparency has in building that trust cannot be underestimated,” said Wayne Brownlee, PotashCorp executive vice president and CFO. “Our top-notch corporate reporting program is a tool for improving our performance. In fact, we believe that transparency makes us function more effectively.” From 2004 to 2006, PotashCorp was named Canada’s top corporate reporter by the accountants’ group. PotashCorp is the only company to receive CICA’s Overall Award of Excellence for Corporate Reporting three years in a row. The CICA Corporate Reporting Awards are open to the top 50 companies per industry sector listed on the TSX as of March 31, 2007, that are incorporated in Canada with a market cap of over $200 million. The judging groups include the CICA, the Toronto CFA Society, Deloitte, the Canadian Investor Relations Institute, and the International Institute for Sustainable Development. “Canadian companies like PotashCorp that adhere to such high standards of financial reporting and corporate communications understand the importance of transparency to their business and to protecting the public interest,” said CICA’s President and CEO Kevin Dancey, FCA.
American Falls, Idaho-Southeast Idaho Energy LLC (SIE) has scrapped plans to take over the old FMC phosphate site in the Pocatello area for a gasification generation plant and is now pushing ahead with a $2 billion concept that would produce ammonia for fertilizer and other uses and ultra-low-sulfur diesel. SIE has selected a site on 450 acres of farmland southwest of here and applied for permits from the Idaho Dept. of Environmental Quality for what it is calling the Power County Advanced Energy Center. SIE spokesman John Burk confirmed that the center would be built over the next six years and that developers hope to begin construction late next year, with completion of Phase 1 expected in 2011. In Phase I, costing an estimated $1 billion, the first of three ConocoPhillips gasifiers would be installed to turn coal into more than 4,000 tons of fertilizer and 1,400 barrels of diesel per day. Phase 2, costing another $1 billion, would involve adding two more gasifiers to boost diesel output to 8,400 barrels. Burk told the local press earlier that SIE’s proposal two years ago to build on the former FMC site, also in Power County, ultimately died because Idaho Power wasn’t interested in purchasing the electricity. Questions were also raised about the effects on air quality and the energy company’s experience and financial ability to handle such a large undertaking. In the process of advancing the power plant, Burk noted, his company became aware of the increasing national need for synfuels and domestically produced fertilizer. He said ConocoPhillips has a lot of experience in coal gasification with its Wabash facility. Burk added that SIE, which has already generated $450 million toward the Idaho gasification project from investment organizations, expects funding to be available from large U.S. and foreign banks. Transporting 3,000 to 4,000 tons of coal from Wyoming Powder River Basin and western Utah bituminous mines and petroleum coke from refineries to be blended into the two-stage gasifier shouldn’t be a problem since Union Pacific haul trains pass through the American Falls site every day. He also emphasized that SIE won’t be dependent on any government funding. Idaho DEQ actually began processing SIE’s application last July and is expected to finalize a completeness determination in January and issue a draft permit for the first phase and a statement of basis for a 30-day public comment period in March. DEQ will hold public information meetings at times and locations still to be determined.
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