All Posts from February 17, 2023

Martin Midstream Sulfur Services Volumes Fall in 2022, 4Q Adjusted EBITDA Down 55%

Earnings, News, Sulfur, Texas

Martin Midstream Partners LP (MMLP) reported volumes in its Sulfur Services segment at 663,000 lt for the 12 months ended Dec. 31, 2022, a 12% decline from 757,000 lt reported for the year-ago period. The segment’s decrease, along with lackluster returns in the company’s NGL segment, contributed to a net loss in the fourth quarter, as well as a lower 4Q adjusted EBITDA compared to the same period of 2021.

“Despite the challenges we faced in the second half of 2022 due to fluctuating commodity prices, the Partnership had another solid year,” said Bob Bondurant, President and CEO of Martin Midstream GP LLC, the general partner of MMLP. “While results were slightly lower than our guidance range, all of our business segments, with the exception of the NGL segment, outperformed compared to our internal forecast.”

The company reported a fourth-quarter net loss of $0.4 million on revenues of $243.4 million, below the year-ago net income of $10.8 million on revenues of $285.9 million. Adjusted EBITDA for the fourth quarter was $17.8 million, off 55% from the year-ago $39.7 million.

In the Sulfur Services segment, MMLP reported a fourth-quarter operating income of $9.1 million, above the year-ago $8.9 million, while adjusted EBITDA of $5.7 million for the period was down 50% from $11.4 million in 4Q 2021. The company attributed the lower adjusted EBITDA to decreased sales volumes related to continued pricing instability, as well as the $5.25 million sale of MMLP’s Stockton, Calif., sulfur prilling terminal, completed on Oct. 7, 2022, which reduced adjusted EBITDA by $0.5 million for the quarter (GM Oct. 14, 2022).

The company reported fourth-quarter sulfur volumes at 125,000 lt, up 36% from the year-ago 92,000 lt. Fertilizer volumes were 41,000 lt, off 37% from the year-ago 65,000 lt.

Twelve-month operating income in the company’s Sulfur Services segment, which includes both sulfur and fertilizer, was $24.2 million on revenues of $179.2 million, up from $24.0 million and $145.0 million, respectively, in 2021.

Sulfur volumes were down 1% for the 12-month period, edging to 452,000 lt from the year-ago 456,000 lt. Fertilizer volumes fell 30%, however, to 211,000 lt from 301,000 lt.

MMLP reported a net loss of $10.3 million for full-year 2022, compared to a $211,000 net loss in 2021. Adjusted 12-month EBITDA was $114.9 million, up slightly from the year-ago $114.5 million. Revenues for the year were $1.0 billion, up from $882.4 million in 2021.

A decision by MMLP to exit its butane optimization business during the last three months of the year negatively impacted adjusted EBITDA by $10.7 million and $7.2 million for 4Q and 2022, respectively. The butane business posted a quarterly net loss of $4.7 million, and a $20.0 million net loss for 2022.

Citing the combined effects of exiting the butane business, an expectation of selling off the company’s remaining butane inventory by the end of the second quarter, and ongoing efforts to restructure outstanding debt, MMLP issued full-year 2023 adjusted EBITDA guidance of $115.3 million.

“With the planned exit from the butane optimization business and the extension of our debt maturities, we have substantially lowered the risk profile of the Partnership. We remain committed to capital discipline and continued strengthening of our balance sheet through meaningful debt reduction,” Bondurant said.

Creditors agreed with Bondurant’s assessment. S&P Global Ratings in January upgraded MMLP’s credit rating from CCC to B- with a stable outlook, while Moody’s Investor Services lifted its issuer credit rating for the company to B3 from Caa1, also with a stable outlook. Fitch Ratings in January assigned MMLP an initial issuer rating of B- with a stable outlook.

Nutrien Misses Wall Street Estimates; Shares Up on Plans to Slow Potash Capacity Expansion

Earnings, Featured, News, Nitrogen, Phosphate, Potash, Saskatchewan

While Nutrien Ltd. missed major analyst projections (Bloomberg Consensus) for fourth-quarter adjusted EBITDA, net income, and revenues (GM Feb. 10, p. 1), company shares advanced 6.5% on Feb. 16 for its biggest intraday gain since May after the company gave guidance that it would slow down its plans to increase potash capacity to 18 million mt/y.

Nutrien announced that it is adjusting the ramp-up timing of its existing low-cost potash capacity to optimize capital expenditures in line with the expected pace of demand recovery in 2023 and beyond. It now expects to reach 18 million mt/y in 2026. Last June, the company announced plans to ratchet up production to that amount by 2025 (GM June 10, 2022). At the time, Nutrien said it was accelerating the ramp-up in response to the uncertainty of supply from Eastern Europe.

Nutrien anticipates 2023 potash sales volumes to be 13.8-14.6 million mt, but said it has maintained the capability to increase sales volumes to its previous expectation of 15 million mt if the company sees stronger demand in the market.

“We like the implied supply discipline in this new production/sales outlook,” Raymond James analyst Steve Hansen wrote in a note, as reported by Bloomberg. Analysts had been quizzing Nutrien for some time as to whether it would rethink the expansion plans.

Nutrien’s Board of Directors also approved a 10% increase in the quarterly dividend to $0.53 per share and approved the purchase of up to 5% of the company’s outstanding common shares over a twelve-month period through a normal course issuer bid (NCIB). The company purchased 53 million shares in 2022, and an additional 8 million so far in 2023.

“Geopolitical events caused an unprecedented level of supply disruption and market volatility across agriculture, energy, and fertilizer markets in 2022,” said President and CEO Ken Seitz. “Nutrien delivered record net earnings and cash flow in this environment due to the advantages of our world-class production, distribution, and retail network. We returned $5.6 billion to shareholders, invested in our global Retail network, and advanced a number of long-term strategic initiatives that position our company for future growth and sustainability.

“The outlook for our business is strong, as we expect global supply issues to persist and demand for crop inputs to increase in 2023. We remain disciplined in our capital allocation approach as we position the company to best serve the needs of our customers, while delivering meaningful returns for our shareholders,” added Seitz.

The company said fourth-quarter nitrogen volumes were impacted by production losses related to Trinidad gas curtailments and extreme cold weather events that caused outages at North American plants. The company forecasts Trinidad gas curtailments of approximately 20%, similar to the impact in second-half 2022. In addition to lower production, the company cited cautious buying from both the agriculture and industrial markets.

The company said its potash winter fill program had a good response, with about 70% of the program filled, which would be modestly below historical levels. It said this reflects the overall caution in the market. It added that about 40% of soil test samples seen by the company’s laboratory subsidiary, Waypoint Analytical, have shown a need for potash, in addition to a significant need for phosphate.

The company said agricultural fundamentals remain strong with the lowest global grain stocks-to-use ratio in over 25 years, and grain supplies will continue to be constrained due to the war in Ukraine. In the US, it foresees a 4% increase in major crop acreage, with corn acreage at 91-93 million acres. It said Brazilian grower economics for soybeans and corn are strong, and it expects this to support another year of above-trend acreage growth.

Overall, Nutrien said it is seeing a 15-20% decline of inventories in the fertilizer supply channel at the end of 2022 versus 2021.

Nutrien believes US and Brazil potash volumes have been drawn down following a historic decline in the pace of potash shipments in second-half 2022. It expects improved demand in early 2023, though buyers have taken a cautious approach to managing inventories.

The company expects global potash shipments to remain constrained in 2023, to 63-67 million mt, below historical trend demand estimated at around 70 million mt. Belarus shipments are projected to be down 40-60% and Russian down 15-30% compared to 2021.

As for 2023 pricing guidance, the company told analysts that it expects prices in Brazil to remain flat at about $500-$520/mt, where it is today. The company also believes India, which has low potash inventories, will ink a contract before China.

Despite lower European natural gas prices, it expects them to remain volatile throughout 2023 and said around 30% of the region’s nitrogen capacity is currently offline. It said North American gas should remain highly competitive with Henry Hub prices between $2.50-$4.50/mmBtu.

Nutrien expects tight US supply and demand balance ahead of the 2023 spring planting season due to higher corn acreage and increased US nitrogen exports in second-half 2022. It expects supply constraints to remain in Russia, Europe, and China. The company believes nitrogen prices will firm from current levels.

Chinese phosphate export restrictions should remain in place at least until April 2023, according to Nutrien, which anticipates improved demand in North America and Brazil and continued strong demand in India. Margins are expected to improve because of lower sulfur prices due to reduced operating rates and demand in China.

Fourth-quarter net income was $1.12 billion on sales of $7.53 billion, down from the year-ago $1.21 billion and $7.27 billion, respectively. Adjusted EBITDA was off at $2.1 billion from $2.46 billion.

Full-year net income was $7.69 billion on sales of $37.9 billion, more than double 2021’s $3.18 billion and $27.7 billion, respectively, with adjusted EBITDA up at $12.2 billion from $7.13 billion.

Nutrien guidance for full-year 2023:

        Nutrien Guidance Analyst Estimate
Net Earnings Per Share $8.45-$10.65 $11.36
Adjusted EBITDA $8.4-$10.0 B $10.23 B
Retail Adj. EBITDA $1.85-$2.05 B $1.88 B
Potash Adj. EBITDA $3.7-$4.5 B $4.88 B
Nitrogen Adj. EBITDA $2.5-$3.2 B $3.43 B
Phosphate Adj. EBITDA $550-$750 M $599 M
Potash Sales (millions) 13.8-14.6 mt —
Nitrogen Sales (millions) 10.8-11.4 mt —
Retail (millions) 4Q-22 4Q-21 2022 2021
Adjusted EBITDA 391 442 2,293 1,939
Gross Margin 1,077 1,173 5,179 4,600
Total Sales 4,087 3,878 21,350 17,734
CN Sales 2,320 2,035 10,060 7,290
CN Margins 349 428 1,766 1,597
CN Volume (000 mt) 2,494 2,821 11,513 13,383
Avg ($/mt) 930 721 874 545
CN gross margin per mt 15 21 18 22
Potash (millions) 4Q-22 4Q-21 2022 2021
Adjusted EBITDA 958 1,053 5,769 2,736
Gross Margin 1,067 1,115 6,499 2,751
Total Sales 1,377 1,420 7,899 4,036
Sales Volume (000 mt) 2,618 3,056 12,537 13,625
Avg ($/mt) 526 465 630 296
Nitrogen (millions) 4Q-22 4Q-21 2022 2021
Adjusted EBITDA 841 921 3,931 2,308
Gross Margin 699 754 3,281 1,726
Total Sales 1,541 1,456 6,390 3,984
Sales Volume (000 mt) 2,537 2,835 10,023 10,725
Avg ($/mt) 607 514 638 371
Gas Costs ($/mmBtu) 7.44 6.40 7.77 4.61
Phosphate (millions) 4Q-22 4Q-21 2022 2021
Adjusted EBITDA 28 196 594 540
Gross Margin 16 163 493 421
Total Sales 429 532 2,073 1,628
Sales Volume (000 mt) 531 711 2,378 2,619
Avg ($/mt) 807 749 872 622

Intrepid Potash Inc. – Management Brief

Management Briefs, Potash, Southern Plains

Intrepid Potash Inc. on Feb. 10, 2023 submitted a filing with the US SEC reporting that on Feb. 8, E. Brian Stone informed the company of his decision to retire from his position as President, effective immediately. The company thanked Stone for his contributions to the company and wished him well in retirement.

Intrepid named Stone as President in August 2021 (GM Aug. 6, 2021). He joined Intrepid in December 2019 as Chief Operating Officer, with responsibility for the Oilfield Solutions segment. At the time, it cited his 34-year career prior to Intrepid as including service as Chief Operating Officer for Hupecol Operating Co., an international oil and gas company. Stone also worked for mining company J.M. Huber Corp. earlier in his career, serving as Chief Risk Officer and Vice President in the Energy Sector.

Driver Dead After Nitric Acid Truck Rollover

News, News Briefs, Nitric Acid, Southwest

The driver died after a commercial truck tractor hauling a box trailer containing nitric acid overturned on Interstate 10 near Tucson, Ariz., around 2:43 p.m. on Tuesday, Feb. 14, according to the Arizona Department of Public Safety.

When the trailer began leaking, those living within a one-half mile perimeter of the accident were evacuated and those within one mile were directed to shelter-in-place. A two-mile section of I-10 was closed in both directions. By 6:45 p.m. on Wednesday, Feb. 15, the evacuation order was rescinded, I-10 was reopened, and the public was told they could resume normal activities.

The cause of the accident was not immediately established, however, local weather reports at the time cited strong winds and dense blowing dust along the highway that could rapidly reduce visibility, according to a report by The Washington Post.

Muriate of Potash

Brazil, China, Eastern Canada, Eastern Cornbelt, India, Israel, Market Watch, Northeast, Northern Plains, Potash Muriate, U.S. Gulf, Western Cornbelt

US Gulf:

NOLA barges edged down to $375-$380/st FOB from the week-ago $380-$387/st FOB range.

Eastern Cornbelt:

The regional potash market slipped to $445-$470/st FOB in the Eastern Cornbelt, with Cincinnati pricing quoted at the $445-$465/st FOB level during the week.

Western Cornbelt:

The potash market remained at $445-$470/st FOB in the Western Cornbelt, with the St. Louis market reported at the $445-$450 FOB level.

Northern Plains:

Sources quoted potash pricing at $460-$470/st FOB St. Paul, with delivered fill offers reported at the $485/st level in North Dakota. The latest prices FOB Saskatchewan mines, based on current exchange rates, were reported at $482-$495/st, depending on grade.

Northeast:

The potash market in the Northeast was pegged at $460/st FOB Fairless Hills and $480/st FOB East Liverpool, while Baltimore pricing was reportedly referenced at the $495/st FOB level. Delivered potash was quoted in the $490-$505/st range in the region, depending on supplier.

Eastern Canada:

Potash pricing in Eastern Canada was steady at C$740-$745/mt FOB regional warehouses.

Brazil:

Prices continued to drop for potash, with sources putting the landed price at $480-$510/mt CFR. Sellers continue to argue that higher prices are on the horizon, although the presence of Belarus material in the market is putting downward pressure on pricing.

New orders of potash in Rondonopolis are hovering around $610-$620/mt FOB ex-warehouse. Sources said the range of concluded deals is wider, however, pegging the price for inland business at $610-$640/mt FOB ex-warehouse.

India/China:

ICL Group President and CEO Raviv Zoller expects India’s new annual potash supply contract to be settled “soon.”

“India needs product,” Zoller told analysts on a Feb. 15 earnings call. Zoller said ICL doesn’t mind if the contract takes a few more weeks, however, as the company is already essentially sold out of potash for the first quarter.

The CEO declined to comment on whether the market might see a two-tier contract price, with Belarus settling supply contracts with Indian buyers at one price and other suppliers coming in a different price level.

On China, Zoller reminded that the country still has potash inventory, and believes that none of the international suppliers are in a rush to agree to a contract at this point in time.

Israel:

ICL said on a Feb. 15 company earnings call that it is essentially sold out of potash for the first quarter of 2023, and has already sold over half of its annual allocation of potash to Brazil, to be delivered in the first half of this year.

Ammonia

Ammonia, Eastern Canada, Eastern Cornbelt, Market Watch, Middle East, Northern Plains, Northwestern Europe, Tampa, U.S. Gulf, Western Cornbelt

US Gulf/Tampa:

Tampa prices for February continued at $790/mt CFR, down from January’s $975/mt CFR. Sources said low natural gas prices in Europe and the US are expected to continue to put pressure on ammonia prices. NOLA inventories were reported as plentiful.

Eastern Cornbelt:

Following the previous week’s major downward adjustment, the ammonia market remained at $840-$850/st FOB for spring tons in Illinois, Indiana, and Ohio. Truck pricing in the South Central region slipped to $700/st FOB Cherokee, Ala., and $675/st FOB Gulf Coast production points.

Western Cornbelt:

The reset for spring ammonia continued this week after CF and Koch dropped prices to $840-$850/st FOB in the Western Cornbelt on Feb. 8. By Feb. 14, new offers were reported at $725/st FOB Palmyra, Mo., and Wever, Iowa; $750/st FOB Hermann, Mo.; $775/st FOB Hoag, Neb.; $780/st FOB Fort Dodge, Iowa; and up to $840/st FOB spot terminals in eastern Iowa.

Ammonia prices were also under pressure in the Southern Plains, with new offers quoted at $610/st FOB Pryor, Woodward, and Enid, Okla., and $650/st FOB Verdigris, Okla.

Northern Plains:

Spring ammonia pricing dropped to $840-$850/st FOB and $850-$870/st DEL in the Northern Plains on Feb. 8-9, well below the previous $1,050-$1,100/st FOB and $1,100/st DEL levels. The low end of the FOB terminal range was reported at Velva, N.D., with other suppliers reportedly matching that level or posting slightly higher.

Eastern Canada:

The latest spring offers for ammonia in Eastern Canada were reported at roughly C$1,180-$1,185/mt FOB Courtright, Ont.

Northwest Europe:

Despite expectations of lower prices, no one is making the first move, sources said. Softer natural gas prices and an abundance of ammonia in the global market have led buyers to push for lower prices. At the same time, buyers remain hesitant to commit in case the price continues to fall.

Middle East: 

Arab Gulf producers continue to push out contract tons. Sources reported no new spot deals, leaving prices in the $680s/mt FOB.

Urea

Black Sea, Brazil, China, Eastern Canada, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, U.S. Gulf, Urea, Western Cornbelt

US Gulf:

NOLA urea barges were put in the $302-$325/st FOB range. Early-week trades were noted in the $302-$315/st FOB range, with late week business reported as high as $325/st FOB. This compares to the week-ago $300-$340/st FOB.

Eastern Cornbelt:

Urea remained under pressure in early February. Sources pegged the Eastern Cornbelt urea market at $370-$405/st FOB, down another $10/st from last week, with the Cincinnati, Ohio, market reported in the $380-$390/st FOB range.

Western Cornbelt:

Urea dropped to $360-$400/st FOB in the Western Cornbelt, with the St. Louis, Mo., market quoted at the $360-$370/st FOB level, down $10/st from the previous week. The Port Neal, Iowa, market was also reported at $370/st FOB at midweek.

Northern Plains:

Urea terminal prices continued to fall, with new offers in the Northern Plains reported at $360-$370/st FOB St. Paul, Minn., for river-open tons, $440/st FOB Carrington, N.D., for 2Q shipment, and $480-$500/st DEL for spring tons in North Dakota. Those prices were down from the previous $390-$400/st FOB St. Paul, $515/st FOB Carrington, and $520-$545/st DEL levels.

Northeast:

The urea market slipped to $395/st FOB East Liverpool, Ohio, $425-$430/st FOB Fairless Hills, Pa., and $430-$450/st FOB Baltimore, Md., down from the previous range of $460-$500/st FOB in the Northeast.

Eastern Canada:

Urea pricing dropped to a wide C$880-$1,020/mt FOB in Eastern Canada, depending on location and supplier, down C$25/mt at the low end of the range.

India:

The week closed with rising expectations that a urea tender will be called soon. Sources reported that officials at the Department of Fertilizers (DoF) had scheduled a meeting for Friday, Feb. 17, to finalize the paperwork for a tender.

Sources said the tender could be called as early as immediately after the meeting, or more likely, over the weekend. IPL will reportedly handle the tender, and will be looking to book 1-1.5 million mt delivered in March and April. Some sources speculated the tender would be handled by RCF, citing rumored problems between IPL and the DoF.

Earlier reports had the Indian government pushing the tender back until April, in what some traders called an effort to keep prices down. By the end of the week, however, sources said the DoF would be looking for a longer shipping period that would include April deliveries.

Normally, Indian tenders have a 4-6 week delivery window. If the reports out of India are accurate, the tender could have a 90-day delivery period. Sources said the extended period would give companies more flexibility in their offers, while also limiting upward pressure on urea pricing.

Even as the DoF moves ahead with a traditional urea tender, sources said that some discussions are still taking place related to the IPL tender that closed earlier in February, for a long-term commitment to supply 600,000 mt. The IPL tender was an unusual move that was designed to ensure a steady supply of urea without overheating the market. Only one producer was reported to participate in the tender.

The Indian government is stepping up its plan to increase production of Nano Urea (Liquid). The liquid fertilizer, sold in 500 ml bottles, was heralded by the government as a viable alternative to traditional urea applications. The product provides nitrogen directly to the crop plant instead of only being absorbed through the soil. The patent for Nano Urea is held by IFFCO.

Two new Nano Urea-producing IFFCO plants were dedicated in mid-February. The government is promoting the product because it will cost less than standard urea and will have less impact on the soil.

Critics question the value of the product, which carries 4% nitrogen content compared to the 26% in standard urea. IFFCO said that because the Nano Urea is absorbed directly into the plant instead of through the root system, the lower nitrogen content will not detract from the efficiency of the product to support sustained crop growth.

Indonesia:

Pupuk closed a tender for prilled and granular urea. Liven took two cargoes of 6,000 mt each of prilled urea at $367/mt FOB. Nitron took 45,000 mt of granular urea at $348.88/mt FOB.

The tender was the first of 2023 in the market. Sources were expecting Pupuk to delay a tender call until after India made its call.

Middle East: 

Sources put the price out of the Arab Gulf in the upper-$330s/mt FOB. Traders could not point to any specific sales at that level, but noted that all discussions for product were at $335-$340/mt FOB.

The March paper market for Arab Gulf material was pegged at $310-$320/mt FOB. The April price was put at $325-$335/mt FOB, and at $320-$335/mt FOB for May.

No new sales were reported from Egypt, although traders said that early-week discussions indicated prices around $380/mt FOB. Sources said the $380/mt FOB price fits with both the steady slide in prices and with reported Arab Gulf price levels.

The paper market for Egypt showed a significant drop in pricing. The price for March was reported at $325-$335/mt FOB. April paper was pegged at $330-$340/mt FOB, with May at $330-$345/mt FOB.

China:

Sources reported sub-$400/mt FOB prices at China. Traders said discussions are at $380-$390/mt FOB for the limited tons being made available for export.

Even with domestic inventories at a reported five-year high, sources said they do not expect to see much urea coming out of China in the next couple of months. The government is expected to maintain its tight hold on exports to ensure lower prices and high inventories for the domestic market.

Black Sea:

The estimated price for prilled urea came down to $320/mt FOB. The fall was in line with price drops from other major urea producing areas.

Brazil:

The landed price came off to $320-$340/mt CFR. The drop in pricing was not surprising, as the softening followed price drops from around the world. Material from sanctioned countries is being offered at $320/mt CFR.

The price in Rondonopolis was reported at $550-$560/mt FOB ex-warehouse, down about $30/mt from the previous week. Rumors that India was close to issuing its urea tender prompted some players to halt negotiations until the impact of the tender could be assessed.

The March paper market, reported in a $320-$345/mt CFR range, predicted a further slide in prices. By April, however, prices are expected to rebound. April paper was reported at $330-$345/mt CFR, followed by $340-$350/mt CFR for May, and a high price of $365/mt CFR for June.

UAN

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

US Gulf:

NOLA barges continued to slide as the week progressed. Prices were called $250-$275/st ($7.81-$8.59/unit) FOB, down from the week-ago $295-$300/st ($9.22-$9.38/unit) FOB.

Eastern Cornbelt:

UAN-32 remained at $325-$350/st ($10.16-$10.94/unit) FOB river terminals in the Eastern Cornbelt, with the low for February-March shipment and the upper end for 2Q tons. UAN-28 was steady at $293-$298/st ($10.46-$10.64/unit) FOB Cincinnati for the latest offers.

Western Cornbelt:

The UAN-32 price remained at $325-$350/st ($10.16-$10.94/unit) FOB in the Western Cornbelt, depending on location and time of shipment.

Northern Plains:

UAN-28 pricing for prompt tons dropped to a low of $300-$320/st ($10.71-$11.43/unit) FOB in North Dakota, down from $390/st ($13.93/unit) FOB in late January. Sources said pricing for spring shipment remained as high as $375/st ($13.39/unit) FOB and $390/st ($13.93/unit) DEL in North Dakota, however, with the last spring offers for UAN-32 at Winona, Minn., reported at the $440/st ($13.75/unit) FOB level.

Northeast:

UAN-32 slipped to $365-$380/st ($11.41-$11.88/unit) FOB Baltimore, down from $410-$415/st ($12.81-$12.97/unit) FOB in late January. UAN-32 pricing out of terminals in upstate New York was also down significantly, falling to $425/st ($13.28/unit) FOB from the previous $500/st ($15.63/unit) FOB level.

Eastern Canada:

UAN-28 pricing was pegged in a broad range at C$683-$935/mt (C$24.39-$33.39/unit) FOB in Eastern Canada, reflecting a drop of C$12/mt at the low end of the range. Recent UAN-32 offers were confirmed as low as C$780/mt (C$24.38/unit) FOB in Ontario, down C$15/mt from last report.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, U.S. Gulf, Western Cornbelt

US Gulf:

NOLA barge prices continued to soften, with prices now put in the $310-$320/st FOB range, down from the week-ago $325-$330/st FOB.

Eastern Cornbelt:

Ammonium sulfate slipped to $370-$400/st FOB in the Eastern Cornbelt, depending on location. New transactions in the South Central region were confirmed at $370-$390/st FOB, down sharply from the previous $400-$435/st FOB range.

Western Cornbelt:

Granular ammonium sulfate pricing was unchanged at $385-$405/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and the high in Iowa.

Northern Plains:

Delivered ammonium sulfate in the Northern Plains was pegged at $390-$430/st for the latest offers, down from the previous $410-$440/st DEL level, depending on time of shipment. Warehouse pricing ranged from $390-$415/st FOB in the region, with the low at St. Paul and the high at Sioux City, Iowa.

Northeast:

Ammonium sulfate pricing in the Northeast dropped to $405-$455/st FOB and $475-$485/st DEL, depending on location.

Eastern Canada:

The ammonium sulfate market in Eastern Canada remained at C$720-$825/mt FOB in mid-February, steady from last report.

China:

The limited demand for ammonium sulfate by NPK producers has combined with limited production to edge prices higher. Sources now put the export price of caprolactam-grade amsul at $170/mt FOB.

Brazil:

The Brazil ammonium sulfate market showed a slight dip at the upper end of the range, tightening the market to $220-$230/mt CFR. Demand still remains light-but-steady, even as reports circulate that supplies are limited. The Rondonopolis price was reported down to $330/mt FOB ex-warehouse, following the steady drop in urea prices.

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