Vancouver-Raytec Metals Corp. on June 10 announced a summary of the resource calculations from its KP441 Potash Disposition Application, located in south central Saskatchewan. KP441 is the company’s first potash acquisition within the Saskatchewan potash basin, and accounts for 88,320 acres of the company’s total land package of 291,330 acres under application. The report estimates a total indicated resource of 148.02 million mt grading 23.44 percent K2O, and an additional inferred resource of 229.16 million mt grading 20.40 percent K2O. “We are very pleased with the results of our current resource estimate,” said Raytec President Brian Thurston. “We believe this shows that Raytec has some very prospective potash ground in Saskatchewan. Our goal is to expand our current resources through seismic exploration and drilling of the property. Through my recent conversations with personnel at the Saskatchewan Government Mines Branch, I expect to have our permit for KP441 issued in July.” In other news, on June 12 Raytec announced a private placement with a syndicate of agents – led by Canaccord Capital Corp., and including Integral Wealth Services Ltd. – for an aggregate of 10,000,000 units at a price of C$1.20 per unit for proceeds of $12,000,000, and 3,571,500 flow-through common shares at a price of C$1.40 per FT Share for proceeds of approximately C$5,000,000 for aggregate gross proceeds of approximately C$17,000,000. A unit will consist of one common share and one transferable common share purchase warrant. Each warrant will entitle the holder to subscribe for one additional common share at a price of $1.60 for a period of two years from the date of closing. The funds raised from the issuance of the Flow-Through Shares will be used for general exploration expenditures, which will constitute Canadian Exploration Expenditures. The funds raised from the issuance of the units will be used for the advancement of the company’s mineral assets and for general working capital purposes.
U.S. Gulf/Tampa: The markets remained quiet again last week, with speculation by sellers that tighter supplies across the international market will drive Tampa prices up for July.
U.S. ammonia imports were off 3 percent in April, according to the U.S. Department of Commerce, to 780,899 st from the year-ago 808,163 st. July-April imports, however, were up 5 percent, to 7.13 million st from the year-ago 6.8 million st.
Eastern Cornbelt:Fieldwork was limited in the region due to wet conditions, although some sidedress activity was reported in central and southern Illinois early in the week.
Ammonia pricing covered a wide range, with the low reported at $725/st FOB in Illinois on a spot basis for dealer-to-dealer trades on excess spring prepay tons. The upper end of the range remained at $800-$805/st FOB for spot tons from resellers, and producers were posting higher numbers. Agrium’s anhydrous ammonia postings firmed on June 13 to $870/st FOB Cincinnati/Finney, Ohio, $860/st FOB Meredosia and Marseilles, Ill., and $855/st FOB E. Dubuque and Niota, Ill.
Western Cornbelt:Torrential Midwestern rains caused widespread river and lowland flooding in the region last week, bringing fieldwork to a halt. On the fertilizer front, sources continued to talk about high prices and firming markets. One source noted that, with the higher crop prices, corn growers were actually spending the same per/bushel amount for blended inputs that they did one year ago, but that was still a hard sell to farmers faced with drastically higher fertilizer costs.
Ammonia pricing covered a wide range at $700-$800/st FOB in the region, with the lower numbers for dealer-to-dealer trades of excess spring prepay tons and the upper numbers from producers for spot market values. As for fall prepay, there were reports of several producers referencing $1,000/st FOB. One source said he had booked fall prepay tons back in late May at the $885/st FOB level.
Agrium’s anhydrous ammonia postings firmed on June 13 to $850/st FOB Mankato, Minn., Greenwood, Neb., and Iowa terminals at Early, Garner, and Whiting, and $845/st FOB Hoag, Neb.
Southern Plains:Ammonia pricing to the dealer had reportedly climbed to $750-$770/st FOB regional production points, and up to $800/st FOB pipeline terminals in Kansas. There were reports that one regional producer had posted fall prepay ammonia at the $900/st FOB level.
Effective June 13, Agrium’s anhydrous ammonia postings firmed to $820/st FOB Clay Center, Kan.; $815/st FOB Conway, Kan.; $810/st FOB Mocane, Okla.; and $790/st FOB Borger, Texas. Delivered postings in Texas from the Borger production facility include $815/st north of Interstate 40 and $820/st south. Those postings reflect a $95/st increase from Agrium’s May 6 ammonia prices in the region.
South Central:The anhydrous ammonia market was pegged at $675-$710/st FOB regional terminals, up slightly from last report, with the low for spot tons FOB Memphis, Tenn.
California: Calamco lowered its anhydrous ammonia postings effective midnight June 5 to $600/st truck-DEL in California, with rail-DEL product referenced at $630/st in the state. Calamco’s aqua ammonia postings were lowered as well, to $160/st FOB in California.
Black Sea: With about half of the production facilities under turnarounds and demand strengthening, sources say the price is moving back up. Asian sources now peg the market at $460-$470/mt FOB, with some saying producers are asking $480/mt FOB. Many in the industry figure the asking price will soon be the median price ?Çô and in a week or so, the low end of the price scale.
Demand for ammonia has jumped because of a rollover effect starting in Australia and passing through the Middle East.
A disruption of natural gas supplies to the Burrup facility in Australia has forced Yara to go to the Middle East for tons to cover what was lost there. At the same time, buyers are picking up tons from the Middle East and Black Sea to replace shut down European production.
The bottom line, say Asian sources, is an increased demand for Yuzhnyy ammonia.
The Burrup facility should be down for at least two months, say sources.
Middle East: Producers are sitting pretty. Demand for East Asia has not abated, and a major supplier is offline for a couple of months.
The shutdown of the Burrup facility in Australia has buyers looking for ammonia wherever they can find it. Yara has reportedly scored a couple of cargoes from the Middle East. Buyers are reportedly sworn to secrecy.
One source noted the concern for secrecy could easily mean that Yara was able to secure tons significantly below the current market. Another observer commented Yara may also be taking a bath on the price and wants to keep the details quiet until it can average out its losses with gains elsewhere.
Most in the industry are putting their money on the former.
The lowball prices of earlier this month are gone, say Asian sources.
Even earlier buyers say material in the low-$400s/mt no longer exists.
Reportedly, business was done at $460/mt FOB. Some material may be available – if the offer and vessel are timed right – a bit cheaper, but the consensus now is that $460/mt FOB is the bottom of the price range.
Producers are touting $480/mt FOB, but Asian sources say $470-$475/mt appears to be the top range right now.
Asian observers now peg the market at $460-$475/mt FOB.
Australia: The explosion at the Varanus Island gas facility forced many area industries to shut down. Directly affected by the loss of natural gas is the Burrup ammonia plant. Yara, a partner in the plant, has been looking far afield to satisfy its contracts with Far East Asian buyers. Sources say the company has gone to the Middle East and possibly Yuzhnyy to get the tons it needs.
Apache Energy, the operator of the gas field, more than doubled its staff on the island to figure out what happened and to get the facility back online.
Asian sources say they have heard reports gas is not expected to flow out of the facility for at least two months. Apache has not commented publicly as to when it expects to be back online. It told local media the investigation into the accident is moving ahead as quickly as possible.
The Burrup facility became a major supplier to Asian buyers, especially in Korea and Taiwan.
UREA
U.S. Gulf: Granular barge prices last week were put in the $660-$667/st FOB range. Sources say for the most part dry nitrogens are quiet right now except for what is expected to be rice season, which is expected to be stretched out due to planting delays. Sources say exports out of the Gulf for Latin America remain a possibility, as the U.S. market continues to be a bargain compared to the international.
April imports were off 53 percent, to 420,470 st from the year-ago 897,238 st. However, July-April imports were up 12 percent, to 6.0 million st from the year-ago 5.34 million st.
Eastern Cornbelt: The granular urea market was pegged at $660-$700/st FOB regional terminals, with June 4 reference levels from Agrium ranging from $700-$710/st FOB in the region.
Western Cornbelt: Granular urea was pegged at $660-$680/st FOB, with most dealer reference prices reported in the $670-$685/st FOB range last week. Agrium’s June 4 urea postings included $700/st FOB St. Louis, Mo., and $705/st FOB Hoag, Neb. A Nebraska source quoted delivered urea at the $700/st mark.
Southern Plains: The granular urea market was pegged at $660-$670/st FOB Arkansas River terminals in Oklahoma, with some talk of dealer reference levels as high as $685/st FOB in the Tulsa area.
South Central: Granular urea pricing was up from last report at $665-$675/st FOB terminals to the dealer, although some locations were posted as high as $700/st FOB. Fertilizer dealers said topdress movement on rice was in full swing in the region, while sidedress demand for corn was winding down. Applications on pasture ground were also underway.
Southeast: Granular urea was generally quoted in the $650-$660/st range FOB port terminals. On June 4, Agrium’s granular urea postings firmed to $710/st FOB Bainbridge, Ga.
Black Sea: Major buyers are expected back in any day. As a result, the Yuzhnyy price has begun getting stronger. Producers have been talking $640-$660/mt FOB. Traders say, however, $620-$630/mt FOB has been done. They add the producers may get their price if and when deals with India and Pakistan are concluded – but not before.
One source noted that in a week or two the $650-$660/mt FOB might be the norm, but not now.
Asian sources remain convinced China will not lower its export duty on urea come the last quarter. The result will be Black Sea and Middle East producers will feel little or no pressure to lower their prices. And with urea demand at record levels, sources say prices will keep climbing.
Sources report the June line-up is full, and July is beginning to look busy.
Reports are circulating that some deals were done with India for July deliveries. These quiet early deals are just the tip of the iceberg, say sources. Eventually, India will have to begin serious buying. On top of the Indian business, Pakistan and numerous other smaller – but not insignificant – buyers from Taiwan to Sri Lanka will be in the market.
Many will have to deal with the Middle East producers, who also see no need to offer lower prices. The rollover effect will be that buyers who can take panamax vessels – think India – will be forced to accept higher prices, and possibly less than ideal shipping arrangements.
Middle East: The BCIC/Bangladesh and CFC/Sri Lanka tenders showed that producers are aiming for more than $700/mt FOB for prills and granular. The Helm offer to BCIC has an estimated netback of $700/mt FOB for prills. Other offers show even higher pricing expectations. The Sri Lankan tender points to similar results.
Producers see no need to lower prices just as demand is getting stronger.
Indian buyers have reportedly given up trying to persuade the Middle East producers to lower their prices. With India looking at a delivered price of $700/mt and Middle East material at $700-$740/mt FOB for prills or granular, sources say few tons from the Arab Gulf will make it to India.
Producers point to an imminent call from Pakistan for about 300,000 mt, the current and future Sri Lankan tenders, potential Bangladesh business, and steady contract sales to the U.S. and East Asian buyers as reasons they will not drop prices.
India: Indian companies have reportedly concluded deals with a couple of trading houses; Helm, Transammonia, and Toepfer are the most commonly mentioned.
Some traders are frothing at the mouth over published reports of large cargoes slated for third quarter delivery. Others say the issue is not the quantity being discussed, but rather the timetable for delivery.
Sources say the final tally of the deals will be known soon. IPL and MMTC will have to call tenders to validate the purchases and take more tons. Once the tenders are called and the results are tabulated, the quiet talks that have taken place in the past week or so will become public knowledge.
For now, sources say the real issue is dealing with pricing expectations.
With the Middle East and Yuzhnyy prices rising, any hopes of securing cargoes at $700/mt CFR – the latest expectation by the Indians – seem to be vanishing. Reports of adjustments to $725-$730/mt CFR are even being dismissed by traders as too low.
The bottom line as to how many tons Indian buyers will take appears to come down to how much the national treasury can handle.
The government is loathe to raise the price of urea to farmers, especially in an election year. At the same time, shortages – even small, regional shortages – are sure to be used by the opposition parties to score electoral points against the governing party.
In desperation, the government is looking to open at least eight closed urea plants.
Minister for chemicals and fertilizer Ram Vilas Paswan told local media the plants to be reopened are naphtha based, but will be converted to natural gas by 2011.
The opening of the plants will do little to help India this year or next, said area sources. One trader said that even once they were up and running, the demand will be so great that the contribution to supply from the plants will be negligible.
Indonesia: Sources report that Youngwoo won all 20,000 mt of the previous tender held by PIM. The trading house had bid on only 10,000 mt. The next highest bidder was Toepfer, who refused to match the Youngwoo price of $378/mt FOB. Another tender is expected in July for 20,000 mt.
Bangladesh: BCIC closed its prilled and granular tenders June 10. The offers gave the industry a glimpse of what could happen once India and Pakistan come fully into the market. BCIC called for 50,000 mt of prilled and 50,000 mt of granular urea in bags.
The BCIC prill urea tender is as follows.
Offering Company
Source
Quantity mt
US$/mt CFR bagged
Discharge
Helm
Fertil
25,000
802.50
Chittagong
Bulktrade
12,500
848.90
Chittagong
12,500
852.40
Chittagong
12,500
855.90
Chittagong
12,500
859.40
Chittagong
Toepfer
Qatar
25,000
866.00
Chittagong
Wilson
12,500
854.87
Chittagong
Desh
12,500
859.90
Mongla
12,500
860.40
Mongla
12,500
866.90
Mongla
12,500
870.40
Mongla
The BCIC granular urea tender is as follows.
Offering Company
Source
Quantity mt
US$/mt CFR bagged
Discharge
Bulktrade
12,500
865.40
Chittagong
12,500
864.40
Chittagong
Wilson
12,500
864.87
Mongla
Source: Industry sources
Asian sources say whether BCIC will make an award is still up in the air. BCIC has a track record of letting the validity dates expire because of delays within the bureaucracy to name a winner. One trader noted it was not important whether or not BCIC took any tons at this time – what was significant about the tender were the pricing ideas.
Sri Lanka: The CFC and CCF tenders for lots of 12,000 mt each closed last week. Deliveries for the lots were to be August through October.
Sri Lankan tenders are another glimpse into the thinking of the Middle East suppliers. Sources said that by themselves the Sri Lankan purchases will not strengthen or weaken a market, but they can provide valuable insight into the thinking of producers and traders.
Results of the CFC tender for nine lots at 12,000 mt each follow.
CFC Tender
Offering Company
Source
Lot
US$/mt CFR sight
US$/mt CFR 180 days
Toepfer
Qatar
3 and 4
823.92
844.70
5, 6 and 7
833.95
854.95
8 or 9
833.95
854.95
ETA
Arab Gulf, CIS or Indonesia
3
847.00
864.00
5
856.00
876.00
9
856.00
876.00
10
878.00
898.00
The CCF tender results for 66,000 mt in 12,000 mt lots follow.
CCF Tender
Offering Company
Source
Lot
US$/mt CFR sight
US$/mt CFR 180 days
Toepfer
Qatar
1
823.92
844.70
5
854.26
875.83
6
854.28
875.83
ETA
Arab Gulf or CIS
1
847.00
864.00
Optional 5
847.00
864.00
Transammonia
UAE, China, CIS
2
895.00
908.22
3
905.00
919.00
4
905
919.00
Wilson
China
1
960.50
984.50
Source: Industry sources
NITROGEN SOLUTIONS
U.S. Gulf: Prompt UAN barges were called $415-$420/st FOB ($12.97-$13.12/unit). Sources said flooding would likely have the most impact on this product as late application could be impacted upriver.
April imports were up 55 percent, to 223,100 st from the year ago 144,398 st. Ironically, July-April imports were also up 55 percent, to 2.98 million st from the year-ago 1.92 million st.
Eastern Cornbelt: UAN pricing remained at $13.68-$14.18/unit FOB regional terminals to the dealer, with the low out of spot river locations in Illinois and Ohio.
Western Cornbelt: UAN-32 pricing remained at $420-$445/st ($13.13-$13.91/unit) FOB regional terminals, with the low reported in Missouri to the dealer and the upper end in Iowa. One source said he was pulling UAN-32 tons ordered earlier for the sidedress run at the $413/st ($12.91/unit) FOB mark.
Southern Plains: The UAN-32 market had reportedly firmed to $410-$420/st ($12.81-$13.13/unit) FOB regional terminals. A Kansas source tagged UAN-28 at $360-$365/st ($12.86-$13.04/unit) production points in the region last week.
South Central: UAN-32 was pegged at $410-$430/st ($12.81-$13.44/unit) FOB regional terminals, with the upper end FOB Vicksburg, Miss., to the dealer. The common dealer range was reported in the $420-$425/st ($13.13-$13.28/unit) FOB range last week.
Southeast: The UAN-30 market was reported at $365-$370/st ($12.17-$12.33/unit) FOB regional terminals, up from last report but still trailing replacement costs. Sources continued to talk of new vessel tons indicated in the $475-$485/mt C&F range, although reports of actual business were few. One Carolina source said demand for product was low, noting that less cotton was planted in the region this spring in favor of soybeans.
Agrium’s UAN postings firmed on June 4 to $13.65/unit FOB Chesapeake, Va., $13.70/unit FOB Bainbridge and Wilmington, N.C., and $13.80/unit FOB Baltimore. The company’s UAN S Solution postings also firmed on that date, with 28 percent moving to $424/st FOB Bainbridge, 25 percent to $373/st FOB Chesapeake, and 24 percent to $360/st FOB Bainbridge, Wilmington, and Chesapeake.
AMMONIUM NITRATE
U.S. Gulf: Prices continued to be called $370-$380/st FOB. Sources indicated a little more interest in product.
April imports were off 61 percent, to 46,064 st from the year-ago 117,125 st. July-April imports were off 3 percent, to 924,771 st from the year-ago 950,198 st.
Western Cornbelt: Ammonium nitrate remained at $390-$410/st FOB in the region, with the low reported FOB St. Joseph, Mo.
Southern Plains: Ammonium nitrate pricing was quoted in a broad range at $380-$400/st FOB Catoosa, Okla.
South Central: Ammonium nitrate was quoted at $400-$410/st FOB in the region.
Southeast: Ammonium nitrate remained at $400-$410/st FOB Wilmington and Tampa, Fla.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $365-$375/st FOB in the region.
Western Cornbelt: Granular ammonium sulfate remained at $350-$375/st FOB regional terminals, with the upper end reflecting new dealer postings.
Southern Plains: The granular ammonium sulfate market was up from last report at $325-$355/st FOB Texas shipping points. Ammonium sulfate postings FOB Plainview, Texas, had firmed to $355/st for granular, $345/st for coarse, and $320/st for standard grade.
American Plant Food Corp.’s May 29 ammonium sulfate postings in Texas included granular at $325/st FOB Freeport, $335/st FOB Galena Park, $345/st FOB Fort Worth, and $355/st FOB Littlefield and Mermentau, La. APF’s coarse grade postings moved to $300/st FOB Freeport, $310/st FOB Galena Park, $320/st FOB Fort Worth, and $330/st FOB Littlefield. Standard grade ammonium sulfate postings from the company firmed to $290/st FOB Freeport and $320/st FOB Littlefield, and N-Pac Compacted postings moved up to $340/st FOB Galena Park. Those levels reflect a $30/st increase from APF’s May 2 postings.
South Central: Granular ammonium sulfate was tagged at $340-$350/st FOB in the region, reflecting a $10/st increase from last report.
Southeast: Ammonium sulfate was quoted at $350-$360/st FOB for granular product, with the upper level reflecting the May reference price FOB Augusta, Ga. Delivered granular sulfate was posted at the $380/st level in Florida, with standard grade at $320/st DEL in Florida.
U.S. Imports: Imports were off 12 percent in April, to 55,472 st from the year-ago 63,190 st. July-April imports were up 16 percent, to 386,862 st from the year-ago 332,127 st.
PHOSPHATES
Central Florida: Loading of phosphate railcars ordered earlier continued last week, but new business evaporated as the industry slipped into its annual summer slumber.
Cheaper phosphates, which had been available from third parties, were not obvious last week. However, as one trader put it, “Even if I bought one, where would I put it?”
Dealers in some areas were attempting to unload phosphate in their bins on a wholesale basis, often well below the price of producers and large traders, in an effort to reduce their capital requirements during the slow summer period. Few in the industry were expecting much activity before late August or early September, when the fall season gets underway.
With a lack of new business, the Central Florida DAP price range last week remained unchanged from the previous week’s range of $1,025-$1,070/st FOB, based on actual sales at that time. PCS Sales’s Central Florida reference price remained at $1,050/st FOB for DAP. Mosaic’s asking price was still $1,070/st FOB for DAP and $1,095/st FOB for MAP. CF’s price was $1,050/st FOB for DAP and $1,125/st FOB for MAP, which continued to be scarce. In Texas, Agrifos’s truck price remained at $1,050/st FOB for trucks and $1,045/st FOB for rail shipments.
U.S. Gulf: Despite upriver waterway problems phosphate shipments will not be affected to any serious degree, because the summer season had virtually brought a halt to sales. Only warehouses in the Cornbelt saw activity last week, and that will soon be coming to a close. Dealers were moving to get their bins to the lowest possible level to avoid the cost of borrowing money and protect the profits they made earlier in the year.
CF was said to have had a sale limited to its large buyers last week at prices around the current price range, although far less than their asking price of $1,070/st FOB. A source said the sale had ended by late last week.
Unless they were out of the office stacking sandbags, many in the industry were using the slow period to catch up on paperwork and take time off. No new sales of prompt barges were found last week.
The price range last week remained at $987-$1,005/st FOB. MAP barges were available at prices $25-$75/st FOB more than DAP. Mosaic’s asking price for forward sales through August was $1,090/st FOB for DAP and $1,105/st FOB for MAP. CF was seeking $1,070/st FOB for DAP and $1,145/st FOB for MAP for prompt deliveries.
Eastern Cornbelt: DAP remained at $1,050-$1,107/st FOB regional warehouses to the dealer, with the upper end out of inland warehouses in Ohio and the low in Illinois. MAP was $1,075-$1,113/st FOB in the region. No current pricing was reported for 10-34-0 in the region.
Western Cornbelt: The DAP market was quoted at $1,025-$1,055/st FOB regional warehouses to the dealer. MAP was reported at $1,050-$1,095/st FOB, with delivered MAP also reported at the $1,095/st level in southern Nebraska. Sources reported no current pricing for 10-34-0, but one speculated that new costs, reflecting much higher acid pricing, would most likely be in the $1,100/st plus FOB range in his market.
Southern Plains: The DAP market was pegged at $1,020-$1,040/st FOB the Tulsa market, with some reporting dealer postings at the $1,050/st FOB level. MAP was in short supply and priced at a premium to DAP, with most sources tagging the Tulsa market in the $1,060-$1,090/st FOB range.
10-34-0 was in very tight supply, with several sources saying spot tons were not available. One source said green 10-34-0 was available at new pricing of $1,040-$1,060/st DEL in the region, while others speculated that spot tons could still be had at $950/st FOB. One contact also speculated that black 10-34-0 might become more prevalent as green product remains scarce.
South Central: The DAP warehouse market was pegged at $1,010-$1,030/st FOB, with MAP quoted at $1,040-$1,060/st FOB in the region. TSP was tagged at $940-$950/st FOB regional warehouses to the dealer.
U.S. Export: PhosChem made no new export phosphate sales last week, but a trader managed to sell 3,100 mt into Central America at $1,200/mt FOB. The export market began to cool a few weeks ago, after India made several purchases from producers outside the U.S. at below what was then the export market range. India was still in the market last week, although no new buys were made. When the last of the cheaper tons from China are consumed, activity in the market was expected to increase – along with prices.
With no new sales, the export DAP price range last week remained at $1,160-$1,205 mt.
POTASH
Eastern Cornbelt: The potash market was tagged at $775-$830/st FOB regional warehouses, depending on grade and supplier. Agrium’s June 4 postings for 60 percent coarse potash included $850/st FOB Mt Vernon, E. Liverpool, and Washington Court House, Ohio.
Western Cornbelt: The potash market remained in a broad range at $750-$800/st FOB for brokered or reseller tons, with the low in Missouri and the upper end reflecting reference levels from some resellers. One Iowa source pegged the common dealer market last week at $775/st FOB, with confirmed sales at that level.
Southern Plains: The potash market was pegged at $735-$780/st FOB regional warehouses to the dealer, reflecting another sizable increase from last report. At the mine, the market for granular potash was quoted at $582/st FOB Carlsbad for June shipments, but several sources noted that these tons were all allocated and that new pricing for a September shipping period had actually firmed to $700-$710/st FOB the mine.
South Central: Potash pricing in the region covered a wide range at $675-$750/st FOB warehouses to the dealer. The dealer market FOB Vicksburg, Miss., was pegged firmly at the $725/st FOB mark at mid-month.
Southeast: Potash was reported at $600-$650/st DEL in the region, depending on grade, location, and supplier, with some talking of a $100/st increase for July shipments. A South Carolina source also reported sulfate of potash (SOP) pricing up significantly to the $750/st DEL mark.
Agrium’s 60 percent coarse potash postings firmed on June 4 to $635/st FOB Wilmington, and $650/st FOB Bainbridge and Tifton, Ga.
U.S. Imports: Imports were up 11 percent in April, to 1.4 million st from the year-ago 1.27 million st. July-April imports were also up 11 percent, to 10.2 million st from the year-ago 9.2 million st.
Sulfate of Potash: K+S North America said June 12 that due to the continued unprecedented global potash market supply and demand pressures, prices on shipments of SOP, effective June 23, will be raised by $80/st on all grades.
SULFUR
Tampa: Sulfur supplies in North America appeared to stabilize recently, although a critical shortage in the world market remained.
Last week a source said that his company, which uses sulfur to make a variety of products, had been asked by the refineries he deals with to take increased amounts of the byproduct. He cited increased fuel production as refiners crank out more for the summer driving season, and an increased use of heavy sour crude oil for the additional sulfur supplies. The source also said he was paying less than the current market price range.
That differs greatly from many other in the industry, especially industrial customers who have faced steep prices and shortages. Another source questioned why the refineries did not sell their excess for prilling and offshore sales, which bring much higher prices. Others in the industry agreed production was more consistent than during the first quarter, but pointed to the strength of the world market, which has continued to increase in price.
Mosaic was said to have purchased four sulfur vessel loads from ICEC for delivery and remelting at Galveston. One of the vessels was said to be from Canada and another from the Black Sea.
The Delek refinery at Tyler, Texas, shut down for a brief period last week due to a power failure, although no lost production was reported.
U.S. Imports: Imports were up 19 percent in April, to 161,322 st from the year-ago 135,440 st. July-April imports were up 50 percent, to 1.84 million st from the year-ago 1.23 million st.
MARKET NOTES
Pakistan: Minister for Finance, Revenue, Economic Affairs and Statistics Syed Naveed Qamar on June 12 announced that the fertilizer subsidy has been increased to Rs. 32 billion (US$492 million) from the Rs. 25 billion of 2007-08. He also proposed an allocation of the subsidy from Rs. 470 to Rs. 1000 on imports of DAP per bag. The general sales tax on all types of fertilizers has also been abolished. In addition, he proposed reforms in the agriculture sector and the allocation of higher funds for farmers.
Pakistan: Minister for Food, Agriculture and Livestock (MINFAL) Nazar Mohammad Gondal told the local media that the Saudi Arabian government promised to consider the establishment of the DAP plant in Pakistan. This is at the urging of MINFAL, as the minister recently visited Saudi Arabia.
Pakistan: The government reports that a reasonable volume of new investment in the fertilizer industry for enhancing its production capacity is underway. A new project of Fatima Fertilizer Co. with a capacity of 400,000 mt of urea, 450,000 mt of CAN, 400,000 mt of NP, and 300,000 mt of NPK is under construction. It is expected that this project will start production by 2010. An expansion/BMR of Fauji Fertilizer Bin Qasim Ltd. (FFBL) for 220,000 mt of DAP and 100,000 mt of urea is expected by the end of 2008. A new project for 1.3 million mt of urea from Engro Chemical is also expected by 2010. The Pak American Fertilizer Co. has plans to install a plant for producing 200,000 mt of DAP by 2010. Suraj Fertilizer Industries is setting up a new plant of SSP at Harappa (Sahiwal) with a production capacity of 150,000 mt/y, with hopes that production will begin in 2008.
Bangladesh: The government reports that Bangladesh Petroleum Corporation (BPC), Bangladesh Power Development Board (BPDB), and Bangladesh Chemical Industries Corp. (BCIC) are all being forced to incur enormous losses due to the exorbitant rates of imported petroleum products. As a result, the huge accumulated losses are passed on to the government as hidden quasi-fiscal costs. The government proposes to allocate a total Tk.136.480 billion (US$ 1.992 billion) in the next fiscal year on this account as a subsidy against Tk.118.360 billion incurred during the ongoing fiscal year – equivalent to 2.2 percent of GDP.
Poland: Polish Treasury Minister Aleksander Grad has presented new plans for the privatization of fertilizers and other chemical plants. “We want to privatize and consolidate fertilizers sector to fight against global competition,” Grad said. It is planned that shares of Tarnow fertilizers plant will be sold on the stock exchange. Reportedly, the government hopes to sell at least 40 percent of the shares for over 300 million zlotys (US$137 million), which will be spent for production improvements. Some 20 percent of the shares are expected to go to the Polish Oil and Gas. Co. The next to go on the block is Kedzierzyn, with all major plants – including Pulawy, Police, Tarnow, and Ketrzyn – up for sale.
George Thornton, who retired from the position of president and CEO of Agriliance LLC in 2007, was named June 2 as the CEO of the National Wild Turkey Federation (NWTF), which is based in Edgefield, S.C. He has also worked for American Cyanamid, ICI Americas, ICI Australia PLC, Griffin/Dupont, LLC, and AgWeb.com.
The NWTF is a private, nonprofit conservation and education organization founded in 1973 with a mission dedicated to conserving wild turkeys and preserving hunting traditions. Thornton currently resides with his wife in Elberton, Ga., with plans to relocate to Edgefield.
The board of directors of the Nutrients for Life Foundation has selected Harriet Wegmeyer to serve as its first full-time executive director. The Foundation, formed in 2004, strives to accurately inform policy makers, the press, and the public about fertilizer and modern agriculture. Wegmeyer began her duties in mid-May.
Wegmeyer had served as the director of communications at The Fertilizer Institute (TFI) since 2002. Prior to that, she was employed at the U.S. Apple Association and Maryland & Virginia Milk Producers Cooperative.
Wegmeyer takes the helm from TFI Vice President of Public Affairs Kathy Mathers, who had split her time between managing Foundation and TFI public communication activities since the Foundation’s formation in 2004.
Noble Group has appointed James Emanuele and William Randall as members of its executive board, which reports to the main board. Randall heads up the company’s coal and coke division, while Emanuele leads soft commodities (coffee, cocoa, cotton, and sugar).
Boston-In these days of skyrocketing prices, what could be better than free fertilizer! Officials with the Massachusetts Water Resources Authority have lots of it – 900 tons as a matter of fact – that they’ll be giving away in 43 communities in the Boston area. Authority spokeswoman Ria Convery told Green Markets the 900 tons are only a small part of the 110 tons of biosolids produced every day at the Quincy plant, pelletized at another facility, and sold as New England Fertilizer all over the country, but primarily by Christmas tree farms and citrus growers in the south. Convery said the 900 tons are set aside each year by the Quincy contractor for use by the authority, which decided to resume the practice of donating it to participating communities to promote the product among their residents.
Morris, Minn.-A new study sponsored by Minnesota’s Agriculture Utilization Research Institute (AURI) shows that methane and fertilizer can be produced by anaerobic digestion from the thin stillage or dissolved corn solids left over from ethanol production. Perhaps more important, AURI researchers report that turning the wastes into a usable product could boost profits and add to the “green” image of the ethanol industry. “Ethanol plants could potentially become energy independent if all the energy in thin stillage could be captured in the form of methane,” claims study author David Rein of Rein & Associates, a wastewater engineering company based in Moorhead, Minn. Rein estimates that the anaerobic digestion being used more widely to extract methane from manure could add $10 million to the bottom line of a 50-million-gallon ethanol plant, while conserving water and earning valuable carbon credits. “It’s proven technology that’s been around a long time and is widely used,” Rein says. According to Michael Sparby, AURI project director, some ethanol plants already use small digesters, called methanators, to clean up their wastewater. “But the ethanol industry is not yet using anaerobic digestion to generate power. That could change as ethanol plants seek renewable alternatives to natural gas. I’m hearing a lot of interest in stillage digestion.” AURI tested both whole stillage and thin stillage digestion, with support from the Minnesota Corn Growers Assn., Otter Tail Power Co., Otter Tail Ag Enterprises, and the city of Fergus Falls. The research was done at the Fergus Falls Wastewater Treatment Plant, which operates a municipal sludge digester. In a full-scale demonstration, whole stillage was added to the city’s digester to supplement wastewater sludge. The demonstration was a great success, Rein says. With the addition of whole stillage, which Rein calls an ideal feedstock, the digester generated enough biogas to completely satisfy the plant’s fuel needs. During the 15 to 20 days in the digester, more than 80 percent of the organic matter in the stillage was converted to biogas. The digestion process also purifies the stillage water, which can then be filtered and recycled.
Vancouver-Atacama Minerals Corp. plans a major expansion at the company’s Aguas Blancas industrial minerals mine located in northern Chile. In addition to iodine, the Aguas Blancas mine hosts extensive nitrate resources. A positive feasibility study on the development of these large nitrate resources has recently been completed. The board of directors has approved development, which will include construction of a US$60 million nitrate fertilizer plant designed to initially produce 70,000 mt of nitrate fertilizer per year. The nitrate fertilizer plant will process the nitrate salt-bearing brine solution produced from the current iodine operations. A portion of the evaporation ponds for recovery of the nitrate salts has already been constructed and is being prepared for future nitrate salt recovery. The new plant will have the capability to produce three different specialty fertilizer products ?Çô potassium nitrate, sodium nitrate, and sodium potassium nitrate. Engineering, construction, and start-up of the new plant are estimated to take up to 27 months. Permitting and infrastructure are already in place, and a new power line that facilitates this expansion was inaugurated in April of this year. Atacama notes that recent potassium nitrate contracts have been priced in excess of US$1,000/mt. “The fertilizer market has entered a new period of significant growth and global consumption,” said Edward Posey, Atacama’s President and CEO. “The timing is very opportune for Atacama to develop the fertilizer potential of the Aguas Blancas mine. Atacama has established itself as a long-term, reliable supplier of high quality iodine to the world market. The company will now enter a major new growth phase as an important new supplier of specialty nitrate fertilizers.”
Vancouver-Pacific Ridge Exploration Ltd. said June 10 that it continues to build its portfolio of phosphate projects with the recent acquisition of the Phos Property in the Fernie area of southeastern British Columbia. The Phos Property, comprising three claims totaling over 360 acres, covers the central and thickest three kilometer length of the approximately 15 kilometer long Mount Lyne Phosphate deposit. Thickness ranges from one to three meters. Pacific Ridge says the Mount Lyne deposit saw extensive work by Cominco and Crows Nest Resources in the 1980s, both of whom outlined a non-compliant phosphate resource averaging 20 percent P2O5. The deposit is known to contain additional significant levels of rare earth metals and low carbonate content. Under the terms of an agreement with two vendors, Pacific Ridge has the right, subject to regulatory approval, to earn a 100 percent interest in the Phos Property by making staged cash payments totaling $80,000 by December 31, 2009, and staged issuances of shares totaling 1.0 million shares by December 31, 2010. The vendors retain a 2 percent Gross Overriding Royalty (GORR) from potential future production, of which 1 percent is extinguished after $2.0 million is paid. The GORR pertains to all commodities except coal. In the meantime exploration will begin this month at Pacific Ridge’s BC Phosphate Project, located in the Tumbler Ridge area, a program designed to prioritize drilling targets. Initial work at the Phos property will consist of compilation of historic exploration data. At the Baker Basin Uranium project, a proposal for engaging a joint venture participant is under discussion. Pacific Ridge is also considering joint venture participation in its Fyre Lake massive sulphide copper-gold deposit in Yukon. As of March 31, 2008, Pacific Ridge had working capital of approximately $1.4 million.
Vancouver-Potash North Resource Corp. said June 10 that it has entered into an agreement with a syndicate of agents – led by Canaccord Capital Corp. and including GMP Securities LP, National Bank Financial Inc., Wellington West Capital Markets Inc., Genuity Capital Markets, and Salman Partners Inc. – whereby the agents act as the company’s agent to complete a private placement offering of 10,000,000 units at a price of $2.50 per unit, for gross proceeds of approximately $25,000,000. Each unit is comprised of one common share and one common share purchase warrant, with each warrant entitling the holder to acquire one common share of the company at $4.00 per share for a period of 24 months. The company has granted the agents an over-allotment option to solicit an additional 2,000,000 Units, for additional proceeds of up to $5,000,000, exercisable 48 hours prior to closing. In addition, Potash One Inc. has rights to subscribe for up to 20 percent of the units sold under the offering, which would entitle them to acquire up to a further 3,000,000 units, for further proceeds of up to $7,500,000. The offering is expected to close on or about July 7, 2008. Net proceeds from the offering will be used to fund the exploration, evaluation and potential development of the company’s KP416 and KP417 potash permits in Saskatchewan and for general corporate purposes. Potash North was formerly known as Timer Explorations Inc.
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