Posts By Date - Green Markets

K+S resumes production at Unterbreizbach

July 11, 2016Breaking Industry News, Potash MuriateSteve Seay

Production of potash fertilizers at K+S Group’s Unterbreizbach site at the Werra plant has temporarily resumed today. The company said production is expected to be maintained until July 14. “Production at the Werra site is still determined by the very limited disposal possibilities as well as the available basin capacities. A temporary resumption of production is now possible because the amount of temporarily stored saline wastewater in the basins can be reduced for the time being,” said K+S in a statement.

Operations were interrupted at the Unterbreizbach site on June 13 because the production wastewater could no longer be disposed of, or temporarily stored. Approximately 350 employees in production and mining have been working short time since then.

At the neighbouring Hattorf site, where operations were suspended on June 15, production is still at a standstill with the exception of Epsom salt production. About 650 employees are working short time here.

K+S said there have been up to 60 days of short-time working since the beginning of the year at the Hattorf and Unterbreizbach sites due to production shutdowns as a result of insufficient disposal possibilities for saline wastewater. Only the Wintershall site has not been affected by production shutdowns and short-time working so far. Its saline wastewater is being temporarily stored in basins, if it cannot be disposed of by discharge into the Werra River or by making use of the low injection quota. Wintershall is particularly geared towards the production of fertilizer specialties and it is also K+S’ sole facility where pharmaceutical salt is produced.

IPL calls urea tender, limits tonnage

July 11, 2016Breaking Industry News, India, UreaSteve Seay

The much awaited Indian urea tender by Indian Potash Limited will close July 15. In a move not seen for a long time, IPL specified how many tons it was willing to buy. The company will only issue awards for 420,000 mt to be shipped by August 21. The tonnage is to be divided among specific east coast and west coast ports and limited to 60,000 mt each. On the west coast: Pipavav, Mundra, Adani Tuna and Adani Hazira. On the east coast: Kakinada, Krishnapatnam and Gangavaram.

The tender documents did note, however, that the specified port quantities “should not be construed as minimum quantities to be bought mandatorily.”

Also in a break from tradition, the company announced it would not engage in negotiations with tendering companies. In the past the importing companies have negotiated for lower prices based on specific ports. This time, however, the tender documents merely stated: “The tenderers may please note that bids will be finalized only on the basis of initial quotes and there will be no negotiation with tenderers. In case, it is felt that rates for any particular port are high in the judgment of the company, it reserves its right to reject such bids.”

ICL confirms India K deal

July 11, 2016Breaking Industry News, India, Potash MuriateSteve Seay

Israel Chemicals Ltd. (ICL) today confirmed it has signed its first agreement for the sale of potash to India for delivery in India’s fiscal year 2016/17, and that additional agreements are expected to be signed in the coming days. Reports were circulating late last week that the Israeli supplier had struck a deal with Indian Potash Ltd., India’s biggest potash importer, for 2016/17 deliveries of potash. The price agreed is believed to be in line with the price of $227/mt CFR with 180 days’ credit reached between Belarusian Potash Company (BPC) and IPL on June 27, but this has yet to be confirmed. The BPC-IPL deal was the first potash contract to be signed for fiscal 2016/17 deliveries; the first contract agreed has in the past set a price benchmark for other major suppliers to India to follow. ICL said it will provide a further update once its total volume to India [for 2016/17 delivery] is agreed upon. The Israeli company contracted to supply about 835,000 mt of potash to Indian buyers, including optional tons, in fiscal 2016/17. Of this total, about 525,000 mt firm was understood to be for IPL.

Onexim sells its stake in Uralkali

July 11, 2016Breaking Industry News, Potash Muriate, RussiaSteve Seay

Russia’s Onexim Group, one of the largest investment funds in Russia, has sold its 20 percent shareholding in Uralkali PJSC to Belarus businessman and chief executive of Belarus’ Yuras Oil Ltd., Dmitry Lobyak, and likely strengthens Uralchem JSC’s hold on the Russian potash company.

Yuras Oil is the authorized distributor of Uralchem’s products to a number of Belarusian companies, according to its website, and Uralchem, which owns a 19.99 percent stake in Uralkali, has a long-standing supply partnership with Lobyak, according to media reports.

Onexim has not disclosed any details of the transaction price nor officially announced the sale of the stake. Uralkali declined to comment. “We are not a party in this deal, so we cannot comment on any aspect,” a spokesperson for the company said. Onexim and Uralchem have yet to respond to Green Markets’ enquiries.

There had been speculation for a while that the Onexim Group, which is owned by Russian billionaire Mikhail Prokhorov, was looking to sell its Uralkali holding. Last week, the investment group said a media report suggesting it was preparing to sell off [all] its Russian assets was inaccurate. Onexim purchased Uralkali’s major shareholder Suleiman Kerimov’s 21.75 percent stake in the potash company in November 2013, subsequently raising the holding to 27.09 percent by April 2014. Onexim’s stake in Uralkali fell to its current level in June 2015 following a buyback by the potash producer.

AS import petition advances

July 11, 2016Ammonium Sulfate, Breaking Industry NewsSteve Seay

The U.S. International Trade Commission on July 8 voted unanimously, 6-0, that there is a reasonable indication that domestically-produced ammonium sulfate is materially injured or threatened with material injury by reason of imports from China. As a result, the case now proceeds to the U.S. Department of Commerce which will investigate whether imports from China are being imported into the U.S. at dumped and subsidized prices.

The deadline for DOC’s preliminary determination is Aug. 18, 2016 for the countervailing duty investigation and Nov. 1, 2016 in the antidumping investigation. If the DOC’s preliminary countervailing duty determination is affirmative, AS imports from China will be subject to provisional countervailing duties, requiring importers to post a bond to cover the provisional duties. Affirmative final determinations by DOC and ITC would result in the imposition of final antidumping and countervailing duty orders in the spring of 2017, which would remain in effect for at least five years.

The ITC initiated the investigation pursuant to the May 24, 2016 petitions filed by PCI Nitrogen LLC on behalf of the U.S. AS industry. The DOC published its notice initiating the antidumping and countervailing duty investigations June 22, 2016. The DOC found estimated dumping margins of up to 493.46 percent for China.

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