All Posts from March 14, 2011

Publication details consumption drop in 2008-09

News Briefs

Washington–Commercial Fertilizers 2009, a publication that includes U.S. fertilizer consumption data submitted by state fertilizer control offices, is now available from The Fertilizer Institute (TFI). It is a cooperative project of the Association of American Plant Food Control Officials (AAPFCO) and TFI. For more information, call TFI at 202-962-0490. The following is a summary of data included in the report:

Fertilizer Year (000 material tons)
2007-2008 2008-2009 % Change
Gross Tons 55,282.8 47,273.7 -14.5
Fertilizer Year (000 nutrient tons)
Nitrogen 12,590.9 11,433.7 -9.2
Phosphate 4,246.4 3,192.2 -24.8
Potash 4,664.2 3,089.8 -33.8
Total 21,501.5 17,715.7 -17.6
* FY = fertilizer year June-July

The Week in Fertilizer Stocks

Fertilizer Stocks
Week Year
Producer Symbol Price Ago Ago
Agrium AGU 88.24 96.74 68.15
CF Industries CF 123.98 140.14 103.55
Intrepid Potash IPI 33.90 38.52 28.64
Mosaic MOS 75.23 86.10 60.35
PotashCorp POT 53.77* 61.97 39.29
Terra Nitrogen TNH 105.60 117.95 85.26
Distribution/Retail
Andersons Inc. ANDE 46.85 48.36 33.49
Deere & Co. DE 87.55 92.63 58.49
Scotts SMG 56.18 55.46 41.04
*represents three-for-one stock split

Market Watch

Ammonia, California, Eastern Cornbelt, Great Lakes, Market Watch, Middle East, Northern Plains, U.S. Gulf, Western Cornbelt

AMMONIA

U.S. Gulf/Tampa: No new trades were reported last week in the Tampa or NOLA markets; however, that did not keep people from speculating. One suggested that higher numbers might be on the way for both Tampa and NOLA. Sources have added that NOLA might actually get more action as idled production comes up at Geismar and Beaumont. However, both of those are going to take some time.

Supplies to Tampa might be a tad crimped due to outages brought on by tighter gas supplies in Trinidad. Gas to all ammonia producers was cut in mid-February due to pipeline maintenance, according to sources. It is expected to resume by mid-March. PotashCorp’s number one and two ammonia plants were operating at 85 percent capacity as a result, while three and four and the urea plant were not impacted.

U.S. January ammonia imports were up 3 percent, according to the U.S. Department of Commerce, to 606,293 st from the year-ago 588,004 st. June-January imports were up 21 percent, to 4.5 million st from 3.73 million st.

Eastern Cornbelt: Anhydrous ammonia was unchanged at $670-$690/st FOB regional terminals, depending on location and time of delivery, with the low quoted in Illinois and the upper end in the Indiana market. One source pegged fall prepay offers in the $670-$685/st FOB range out of Illinois terminals last week.

Western Cornbelt: The anhydrous ammonia market remained at $635-$650/st FOB regional terminals for prompt tons, with reports of fall prepay being offered in the $645-$660/st FOB range in the Western Cornbelt, depending on location.

Northern Plains: Delivered ammonia prices in the North Dakota market covered a wide range from $715-$760/st, depending on supplier. Minnesota sources pegged spring ammonia tons out of regional terminals at the $660/st FOB mark last week.

Great Lakes: The ammonia market was quoted at $685-$710/st FOB in the region, with the low reported by Wisconsin sources. Michigan dealers tagged the prompt ammonia market in the $700-$710/st FOB range last week. One source said fall prepay offers in roughly the same range were also on the table from some suppliers.

California: Effective March 9, Calamco’s postings in the California market firmed to $690/st truck-DEL for anhydrous ammonia and $185/st FOB for aqua ammonia. Those levels reflect a $30/st increase from the previous level for anhydrous, and an $8/st increase for aqua ammonia.

Middle East: Sources report the base ammonia price in the area is now easily $460/mt FOB.

Arab producers are asking $480/mt FOB, but not yet getting that level. One Asian trader noted, however, that the producers should be getting the price they want soon.

Demand for ammonia remains strong from Asia through Europe and into North America.

Sources use a recent deal to Gresik in Indonesia by Transammonia to estimate the netback to the Arab Gulf at $470-$475/mt FOB. The material may be actually coming from Egypt, which could mean a lower netback but not below the $460/mt FOB level.

The price is having a hard time growing as fast as the Arab producers would like, largely because of the steady presence of Iranian tons.

Sources report that another sale to Gresik was concluded late last week via Swiss Singapore from Iran. At least one Turkish buyer also took Iranian tons.

To compensate for currency exchange issues, the Iranian ammonia is often priced lower than the material from the Arab producers.

Indian buyers are using the Iranian price as the basis for any deals coming out of the Arab Gulf. This move is adding to the stalemate in pricing.

Sources say $460-$470/mt FOB is the best guess for the price from the area.

Gypsoil gains new gypsum product sources

News Briefs

Chicago-The Gypsoil Division of Beneficial Reuse Management LLC now has agreements with Southern Illinois Power Cooperative and Archer Daniels Midlands to market gypsum produced as a byproduct at these companies’ operating plants for use by growers as a source of calcium and to improve soil fertility and structure. The product, marketed as Gypsoil brand gypsum, comes from Southern Illinois’ coal-fired utility plant at Marion, Ill., and Archer Daniels’ citric acid plant at Southport, N.C. “Gypsoil is an excellent option for supplying calcium, a nutrient that is important to a wide variety of crops, but particularly essential for peanut growers,” says Ron Chamberlain, Gypsoil’s director of gypsum programs. Gypsoil is used by Midwestern agricultural producers to loosen tight clay soils. Over time, Chamberlain noted, Gypsoil neutralizes the metals and chemical salts that bind to clay particles and cause poor soil structure.

Air Products to build new nitrogen plant

News Briefs

Lehigh Valley, Penn.-Air Products said March 1 that it plans to build, own, and operate a new liquid nitrogen production facility in Mooreland, Okla. The new facility, to have an approximate 250 st/d capacity, will strengthen Air Products’ existing leadership position in supplying the region’s oilfield services market. The Mooreland plant is to be on stream in 2012. “The decision to build this facility will expand our supply position in this market, which largely serves the oilfield services industry. The plant will both assist in meeting increased liquid product demand and enhance our responsiveness level to customers for needed services,” said Nelson Squires, vice president, North America Merchant Gases at Air Products. Air Products has supplied nitrogen and oxygen for upstream oil and gas production and processing for more than 40 years, utilizing a variety of supply modes along with the most comprehensive package of value-added technologies, services, and equipment available. Air Products has additional Oklahoma operations in Pryor that produce liquid products for other markets, including food, chemicals, metal processing, electronics, and medical applications.

Air Products to pay penalty over NH3 release

News Briefs

Sparrows Point, Md.-The U.S. Environmental Protection Agency (EPA) has announced that Air Products and Chemicals, Inc., Allentown, Penn., agreed to settle alleged violations of toxic chemical reporting requirements at its Sparrows Point, Md., plant. The company will pay a $62,130 penalty and discontinue the use of chlorine in its cooling process at the Maryland plant. According to the EPA consent agreement, releases of ammonia in November 2007 and November 2008 were not immediately reported to all designated emergency response officials as required by the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and the Emergency Planning and Community Right-to-Know Act (EPCRA). The federal regulations require immediate reporting of ammonia releases when they exceed 100 pounds. On Nov. 3, 2007, at about 3 a.m., an estimated 4,000 pounds of ammonia were released. On Nov. 20, 2008, at about 4 p.m., an estimated 2,589 pounds of ammonia were released. In addition to the civil penalty, Air Products has agreed to substitute aqueous sodium hypochlorite in place of chlorine in its cooling system, a supplementary environmental project valued at $39,472. In the settlement, the company did not admit liability for the alleged violations.

Legend touts phosphate reserve estimate

News Briefs

Melbourne-Legend International Holdings Inc. says its maiden mineral reserve estimate for its 100 percent owned Paradise South phosphate project has proven and probable reserves of phosphate rock that will support 59.8 years of operation for the 600,000 mt DAP and MAP per annum production scenario, or 29.9 years at a doubled rate of production. “As-mined” proven and probable ore reserves of phosphorite are 196.1 million mt at 14.6 percent P2O5. Proven and probable mineral reserves of recoverable, commercially useable and internationally marketable phosphate rock concentrate are 55.5 million mt at 33 percent P2O5 (72 BPL). Legend says Paradise South is one of seven phos rock deposits controlled by the company, and is the first to have a current mineral reserve estimate reported.

Marifil expands K properties, eyes sulfur

News Briefs

Vancouver-Marifil Mines Ltd. reports that it has staked two additional claims totaling 17,456 hectares on its K-3 potash project, and four additional claims totaling 30,000 hectares on its K-4 potash project, both in Mendoza Province, Argentina. The K-3 project now covers 64,606 hectares and the K-4 project now covers 56,083 hectares, both in the northern portion of the Neuquen Sedimentary Basin. The Neuquen Basin is Argentina’s most prolific oil producing basin, and also hosts the country’s only producing potash mine Potassio Rio Colorado, owned by RTZ. The K-3 and K-4 properties have been acquired on the basis of regional geologic studies to determine which parts of the basin are prospective for potash. In addition, Marifil geologists identified a significant, previously unrecognized sulfur prospect located largely in the K-4 claim block. “Marifil is now the largest potash play in Argentina aside from the assets of Vale’s Rio Potasio deposit, and has now covered all of the prospective ground in the northern half of the Neuquen Sedimentary Basin,” said John Hite, Marifil president. “We are highly encouraged by the discovery of a second biogenic sulfur prospect. Last year sulfur prices hit a low of $30 per ton, but now prices are approaching $200 per ton. We expect to begin an aggressive exploration program, including drilling on both the Codihue and S-2 prospects in the coming months.”

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