Dead Sea Works workers have imposed sanctions at the company’s plant in Sdom. Workers prevented all shipments of potash from the plant. The sanctions began this morning and are until further notice. They are in protest of Israel Chemicals management steps to unify the administrative and management teams of its subsidiaries. DSW union head Moshe Lankry charged management was violating agreements with the union by taking unilateral measures without prior negotiations with the union. The union charges that the move could lead to the laying off of 200 workers.
Earlier this year ICL management started implementing a reorganization plan. The first step involved the firing of 115 workers from its financially-troubled Rotem Amfert subsidiary. The company said that the recovery plan would involve additional layoffs as part of an effort to reduce costs and improve efficiency.
Almost 3 million mt were made in firm offers in the STC urea tender that closed today. Another 840,000 mt we offered as optional sales.
Prices hovered in the $270s/mt CFR except for outlier Aires who offered 110,000 mt at $266/mt CFR and $273/mt CFR, based on the port of discharge. Both offers were for East Coast ports.
The next lowest prices were from Swiss Singapore with one cargo to Krishnapatnam at $270/mt CFR and Global Transnational at $272/mt CFR. Both offers were backed by Iranian material. Ameropa offered at $272.10/mt CFR with what looks to be Chinese urea.
Offers are valid until June 25.
Traders were shocked by the Aries offer and some have questioned if the companies that offered in the low-$270s/mt CFR will – or are able to – match the Aries number.
STC was expected to take more than 1 million mt in this tender. If no one can match the Aries number, however, another tender will most likely have to be called soon.
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