All Posts from January 13, 2014

Rentech plant restarts

News, News Briefs

East Dubuque, Ill. — Rentech Nitrogen Partners LP announced the completion of all repairs related to the fire that occurred at its East Dubuque, Ill., nitrogen fertilizer facility Nov. 29, 2013. Ammonia production resumed Dec. 29, 2013, and the facility was producing ammonia as expected at a steady rate of approximately 790 st/d as of Jan. 5, 2014. The LP continues to anticipate ammonia production at the increased rate of approximately 1,020 st/d by the end of January 2014, upon completion of the previously-announced repairs to the foundation of one of the four syngas compressors. Rentech reaffirmed its expectation that the lost production due to the fire will have minimal effect on previously forecasted deliveries for 2014, and that the overwhelming majority of the impact on product deliveries occurred in 2013. It also confirmed that it is in the process of submitting insurance claims to cover the full costs of the repairs, and expects to pay a deductible of $1 million.

Ammonium Nitrate

Ammonium Nitrate, Market Watch, U.S. Gulf, Western Cornbelt

U.S. Gulf: Ammonium nitrate barges were hard to find, and sources were calling the last done trades at $290/st FOB. Others predicted the market would soon hit $300/st FOB.

Tight supplies were reflected by recent imports statistics, which show that July-November imports were off 41 percent to 199,959 st, down from the year-ago 336,469 st. November was off 13 percent, to 32,402 st from 37,409 st.

Western Cornbelt: The ammonium nitrate market had reportedly firmed to $340-$350/st FOB in the region, with the Yazoo City, Miss., market pegged at the $320/st FOB level for spring tons.

Nitrogen Solutions

Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf: New trades were put in the $252-$260/st ($7.88-$8.13/unit) FOB range, starting out the week at the lower end of the range and working its way up. By week’s end, with sources citing the urea run-up, UAN quotes had gone up to $270-$280/st ($8.44-$8.75/unit) FOB for the next round of business, though nothing in that range was reported last week.

While UAN imports were off 22 percent for July-November, they saw a huge surge in November itself, with the monthly total running up 157 percent. November imports came in at 313,139 st, up from the year-ago 121,796 st. Meanwhile, July-November was 1.02 million st, down from the year-ago 1.31 million st.

Sources speculated that the November surge might have been to overly compensate for Helm’s outage in Trinidad. That plant is now back in operation.

In the meantime, price ideas for East Coast imports had moved from $290/mt to $300/mt CFR.

Eastern Cornbelt: The UAN-28 market was pegged at $263-$265/st ($9.39-$9.46/unit) FOB Cincinnati for prompt and $270/st ($9.64/unit) FOB for spring prepay, with the East Liverpool market quoted at $269/st ($9.61/unit) FOB for prompt and $280/st ($10.00/unit) for prepay. Sources also quoted the Burns Harbor UAN-28 prompt market at the $280/st ($10.00/unit) FOB level last week.

On Jan. 9, CF came out with forward UAN pricing for spring delivery, with the market FOB Illinois terminals posted at $284.20-$291.20/st ($10.15-$10.40/unit) for UAN-28; $304.50-$312/st ($10.15-$10.40/unit) for UAN-30; and $324.80-$332.80/st ($10.15-$10.40/unit) for UAN-32.

Western Cornbelt: UAN-32 pricing was up in the Western Cornbelt, with sources quoting the market at $310-$330/st ($9.69-$10.31/unit) FOB regional terminals. The upper end was reported in Iowa on Jan. 9 for spring prepay tons.

Northern Plains: UAN-28 pricing had firmed in the Northern Plains. The low end of the regional market was reported at $280/st ($10.00/unit) FOB the Twin Cities, with the upper end pegged at $305/st ($10.89/unit) for prompt and $315/st ($11.25/unit) for prepay FOB Jamestown, N.D., and Moorhead, Minn. Delivered prepay tons from Canada were pegged at the $300/st ($10.71/unit) in parts of North Dakota last week.

Great Lakes: Michigan sources tagged the prompt UAN-28 market in a broad range at $250-$280/st ($8.93-$10.00/unit) FOB, with the low out of Courtright and the upper end FOB Bay City, Mich. Wisconsin sources quoted the UAN-32 market at $320/st ($10.00/unit) DEL. Spring prepay offers were roughly $5/st higher than the prompt market.

Northeast: UAN pricing was up in the Northeast, with sources quoting the Baltimore market at $267.50/st for UAN-30 ($8.92/unit) and $285/st for UAN-32 ($8.91/unit). UAN-32 pricing out of terminals in upstate New York had reportedly firmed to $336/st ($10.50/unit) FOB, up some $15-$25/st from last report.

Urea

Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, Pakistan, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf: Granular prompt barge prices spiked last week, quickly running up from the $350s/st FOB to the $380s/st FOB. Sources gave different explanations, with some citing good demand and limited supplies from Texas and the Southern Plains.

Another was that imports are off from last year. July-November urea imports were off 28 percent to 2.44 million st, down from the year-ago 3.4 million st. November imports were off 35 percent, to 494,142 st from 761,960 st.

Sources said that importers, plagued by lingering sub-$300/st FOB prices back in the fall, had no incentive to bring in additional imports. As a result, supplies are tighter than some had thought. The quantity of urea imports has been particularly pivotal the past two years – too high in 2013, too low in 2012 – with a significant impact on pricing each year. While corn acreage is expected to be down slightly in 2014, anything over 90 million acres of corn is a good year for fertilizer movement.

With granular prices running up, sellers tried the same for prills. However, the last heard was at only $345/st FOB.

Eastern Cornbelt: Granular urea pricing FOB Cincinnati, Ohio, had reportedly firmed from $390/st to $410/st FOB as the week advanced, while sources tagged the Burns Harbor, Ind., market at $425/st FOB for spring prepay. The East Liverpool, Ohio, market was quoted at $420/st FOB.

Prepay business was described by one regional contact as “pretty decent,” but he noted that many continued to hold back on booking tons for the spring planting season. “Some will be surprised by the difference in price if they continue to wait,” he said.

Western Cornbelt: Granular urea pricing was moving up as the week advanced, with sources quoting the dealer market at $400-$410/st FOB in Iowa and Missouri for prompt tons and $410-$420/st FOB for prepay, depending on location. Those levels reflected a $25-$35/st increase from the previous week.

Northern Plains: Sources reported some year-end fertilizer sales to farmers and dealers, but the pace was slow. “A lot of farmers are still deciding what to put in with the low prices going forward,” said one Dakota contact. “So some dealers are slow on putting in urea. That may come back to hurt, as we hear tons are short in western North Dakota and eastern Montana.”

The granular urea market FOB the Twin Cities had reportedly firmed to $400/st FOB for prompt and $410/st FOB for prepay, up some $25-$30/st from mid-December pricing levels. Urea pricing was also up considerably in the Dakotas; sources pegged the prompt market at $437-$450/st FOB or DEL, with prepay reported in a broad range at $447-$495/st FOB or DEL.

Great Lakes: Granular urea pricing in the Great Lakes region was up considerably from last report. Sources quoted the prompt market at $405-$425/st FOB in the region, with the low reported out of Courtright. Spring prepay urea was $10/st higher than the prompt market.

Northeast: Granular urea pricing in the Northeast was up a full $30-$40/st from last report. Sources tagged the regional market at $410-$420/st FOB, with the upper end reported out of the East Liverpool, Ohio, market as the week advanced. Urea pricing FOB Savannah, Ga., was up as well, to $390/st FOB from mid-December pricing at the $360/st FOB level.

The Northeast was slowly warming up last week after record-setting cold settled over the region during the first days of 2014. The polar vortex also brought heavy snow to some locations, with some coastal areas of New England reporting up to two feet of new snow.

The cold front dropped temperatures to the low single digits in Boston and New York early in the week, with wind chills dipping to well below zero. Business

Ammonia

Ammonia, Eastern Cornbelt, Great Lakes, Market Watch, Northern Plains, Tampa, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf/Tampa: Possible new trades in the NOLA barge market were being bantered about last week, but there was no firm word on transactions at press time.

July-November ammonia imports were off 15 percent, according to the U.S. Department of Commerce, to 2.46 million st from the year-ago 2.89 million st.

February NYMEX gas settled Jan. 9 at $4.005/mmBtu, down from Jan. 2’s $4.321/mmBtu. Prices had held firm earlier in the week as cold temperatures gripped the country, but slackened off as the week progressed.

Eastern Cornbelt: The Eastern Cornbelt enjoyed steadily warmer weather as the week advanced, but the “polar vortex” brought record-setting cold to all three states on Jan. 6-7. The massive cold front resulted in record lows at some 50 primary weather observation sites in the country on Jan. 7.

Lows of 16-18 degrees below zero were reported in northern Illinois on Jan. 6, with wind chill readings dropping to minus 40 degrees in some locations. Up to a foot of snow also blanketed much of Illinois, making for a full winter blast in early January.

All but seven counties in Indiana were under winter weather advisories or warnings early in the week due to snowfall and subzero temperatures, with lows of minus 14-15 degrees reported in the state on Jan. 7.

Central and southwestern Ohio also posted the coldest wind chill readings since the early 1990s. One Ohio source reported temperatures of minus 10 degrees with wind at midweek, but “normal temps” were expected by the weekend.

Sources reported minimal changes to the regional ammonia market last week. Anhydrous ammonia was quoted at $520-$530/st FOB in Illinois, depending on location and time of delivery. Sources pegged the Huntington, Ind., ammonia market at $525/st FOB for prompt and up to $550/st FOB for spring prepay.

Western Cornbelt: An arctic chill settled over the Western Cornbelt in early January, dropping wind chill temperatures to well below zero in all three states.

A Missouri contact said temperatures in his area fell to minus 20 degrees on Jan. 5-6, with wind chills dropping to minus 35 degrees. Some areas of the state also collected 3-6 inches of new snow. Nebraska was part of the cold blast as well, with thermometers falling to minus 15-20 degrees and wind chills registering as low as minus 30-40 degrees in the state.

Temperatures in parts of northern Iowa were the coldest in the region, with wind chills falling to minus 51 degrees in some areas. Wind chill warnings remained in effect through Jan. 7, but warmer weather was in store for later in the week, with highs expected to reach the mid 30s in northern Iowa by the coming weekend.

Ammonia pricing was quoted at $490-$520/st FOB regional terminals last week, with the low reported in Iowa and Nebraska. On Jan. 9, CF announced a forward pricing program with ammonia referenced at $520/st FOB Palmyra, Mo., for spring shipments.

Missouri sources quoted delivered ammonia in the $490-$500/st range from southern production points, where the market had reportedly fallen to $410-$420/st FOB after netbacks.

Northern Plains: Bitterly cold weather blanketed the Northern Plains early in the week, with wind chill temperatures falling to minus 30-40 degrees in parts of the Dakotas.

Sub-zero wind chills were also reported throughout Minnesota, prompting authorities to close all schools in the state on Jan. 6. Thermometers in the Twin Cities registered a high of only 5 degrees on Jan. 7, with lows dipping to minus 15. Fortunately warmer weather was in store as the week progressed, with highs in southern Minnesota expected to climb into the 20s by Jan. 9.

Ammonia pricing in the region was down slightly from last report. The anhydrous ammonia market was quoted in a broad

Dexter buys Dalton Ag Products

News, News Briefs

Fairfield, Iowa — Dexter Apache Holdings Inc., an employee-owned company with diverse interests in manufacturing, financial services, and distribution, has acquired 100 percent of the interests of Cox Manufacturing Co., operating as Dalton Ag Products, headquartered in Lenox, Iowa. Founded in 1996, Dalton is a provider of fertilizer application equipment. Dalton offers products for both dry fertilizer and liquid nitrogen applications, including tool bars, spreaders, running gears, tanks, and trailers. “Dalton will serve as an important growth engine for Dexter Apache Holdings and allows us to leverage a number of important synergies between our companies while adding further diversification to our business,” said Dexter President and CEO Patrick Albregts. Dalton will remain headquartered in Lenox, Iowa. Rob Cox, Dalton president and owner, will continue to serve as president. “I am pleased for our employees, who will become owners of Dexter Apache, and I am excited for our dealer network and their customers, who will remain the focus of Dalton Ag Products,” said Cox. “This sale will be a major boost to Dalton’s future growth, and it’s a real win for rural Iowa and Lenox, which we are proud and grateful to call our home.” Dexter, founded in 1894, also owns Dexter Laundry Inc., a manufacturer of commercial laundry equipment; Leer Inc., a manufacturer of ice merchandisers and walk-in freezers; Apache Stainless Equipment Corp., a provider of stainless steel tanks and food processing equipment; and Dexter Financial Services Inc.

Mosaic completes acquisition

News, News Briefs

Plymouth, Minn. — The Mosaic Co. said Jan. 8 that it has completed the acquisition of the initial 21.65 million restricted Class A shares from the Margaret A. Cargill Foundation and the Anne Ray Charitable Trust (MAC Trusts). This share repurchase is part of the previously announced agreement to acquire 43.3 million restricted Class A shares (GM Dec. 16, p. 10). Based on the 20-day volume-weighted average closing price preceding Jan. 8, 2014, the company purchased the 21.65 million shares at a price of $45.77 per share. The remaining 21.65 million Class A shares will be purchased by Mosaic beginning in February 2014 in seven equal installments at the close of each successive 20-day trading period using the same volume-weighted average pricing formula as the initial transaction.

New Nachurs Alpine facility up

News, News Briefs

Marion, Ohio — A new Nachurs Alpine Solutions facility in St. Gabriel, La., was reported to have come up late last year. The renovated 174,500-square-foot manufacturing facility will produce the company’s liquid fertilizer products and distribute them to agricultural customers in the South and globally (GM Nov. 12, 2012, p. 1). Nachurs purchased the 69-acre parcel on the Mississippi River and invested some $13.9 million to renovate existing structures. Ciba-Geigy developed the location in 1970 as an herbicide production facility. Louisiana Economic Development (LED) estimates the project will create 16 new direct jobs with an average salary of more than $45,700 plus benefits, as well as an additional 44 indirect jobs. Nachurs has five other manufacturing facilities in the U.S. and Canada, along with 30 product depots for customer convenience.

Koch, Helena settle litigation

News, News Briefs

Wichita, Kan. and Collierville, Tenn. — Koch Agronomic Services LLC (KAS), a subsidiary of Koch Fertilizer LLC and Helena Chemical Co. said Jan. 8 that litigation between the two companies over intellectual property rights has been settled. Helena will continue to market both its N-FIXX™ nitrogen stabilizer brands, as well as KAS’s Agrotain ® nitrogen stabilizers. The parties said they look forward to future collaboration on products and services, and believe that joint efforts between the companies will provide value to all users of nitrogen stabilizer products. While the parties did not immediately disclose further details of the litigation and terms of the settlement, Koch filed suit against Helena July 26, 2012, in U.S. District Court for the Eastern District of Texas, Tyler Division, citing patent infringement. Koch raised its concerns with Helena in January 2012. It later amended its complaint March 28, 2013, saying Helena introduced a new infringing product, N-FIXX™ PF, after the first complaint was filed. Koch alleged Helena developed its N-FIXX by copying one or more of Koch’s Agrotain products with knowledge that it was patented. The District Court referred the matter to a mediator May 21, 2013. In December, the Court granted a joint motion to dismiss.

Pryor plant back offline

News, News Briefs

Pryor, Okla. — LSB Industries Inc. said Jan. 8 that as part of the company’s safety policy, LSB has determined to take down the anhydrous ammonia plant at its Pryor, Okla., chemical facility due to excessive vibrations in the second stage of the compressor detected by recently installed monitors. The second-stage compressor of the ammonia plant has been sent to Sulzer Turbo Services’ Houston laboratory for high speed testing and diagnosis. At the present time, based on available information, the company expects the ammonia plant at the Pryor facility to be returned to service before the end of January. As previously announced Dec. 30, 2013 (GM Jan. 6, p. 10), the ammonia plant at the Pryor facility was restarted after having been down for most of fourth quarter 2013.

Disclaimer of Warranty
All information has been obtained by Green Markets from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Green Markets or others, Green Markets does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.

For additional details visit our Terms of Use.