All Posts from August 18, 2015

Koch and K+S sign K deal – Alert

Koch Fertilizer Trading Sarl, an affiliate of Koch Fertilizer LLC, and K+S North America Corp., a fully-owned subsidiary of K+S Aktiengesellschaft, have signed an exclusive master supply agreement for potash fertilizer produced at the K+S Legacy mine in Saskatchewan.   
  
"This is an exciting opportunity for Koch Fertilizer to grow our portfolio of fertilizer products to U.S. retailers," said Scott McGinn, president of Koch Fertilizer. "We are proud to enter an agreement with K+S. This new agreement allows Koch Fertilizer to provide additional high quality products produced in North America."  
  
The C$ 4.1 billion K+S Legacy mine will reach an annual capacity of about two million tonnes of potash by the end of 2017. Koch Fertilizer Trading Sarl receives exclusive rights to supply of a projected annual volume of 500,000 short tons (~ 453,000 million metric tonnes) of granular potash for its U.S. customers.  
  
"We are seeing enormous interest in potash from our Legacy mine both from existing and new customers. Koch Fertilizer is a distinguished partner with excellent experience marketing a robust portfolio of fertilizer products. This relationship highlights our position as a reliable and independent supplier in the market," says Dr. Andreas Radmacher, Member of K+S’ Board of Executive Directors and in charge of the Potash and Magnesium Products business unit.

No further details of the agreement are available.

Second TCP tender results show softer prices – Alert

Ameropa is set to take the second TCP urea tender with an offer of $293.96/mt CFR, for an estimated China netback in the mid-$270s/mt FOB. The offer is about $1/mt lower than the company’s winning price in the previous tender.

The second of three tenders of 50,000 mt each drew 15 offers totaling 750,000 mt against a call for 50,000 mt. Of the 15 offers, nine were below $300/mt CFR. The highest offer – Fertisul at $308/mt CFR — also reflected a softening of prices.

While the delivered prices are showing a decline, sources note the netback to China is fairly stable in the $274-276/mt CFR range.

The third and final tender in the series of 50,000 mt each will close August 20. Sources expect to see an even softer price when that tender closes.

Canadian Fertilizer Institute announces name change – Alert

Canadian Fertilizer Institute (CFI) on Aug. 17 announced that it is rolling out a new brand name – Fertilizer Canada – to reflect its "evolution into a global leader for sustainable fertilizer production and use." The new name and website, fertilizercanada.ca, were launched at the association’s 70th Annual Conference in Vancouver, B.C.

"The name change after 40 years as the Canadian Fertilizer Institute is small, but reflects a major shift in the association and the industry it represents during the last decade," said Garth Whyte, president and CEO of Fertilizer Canada. "The evolution to Fertilizer Canada highlights progress the industry has made to protect the environment, enhance the economy, and benefit the social fabrics of Canadian life. Today, Canada’s fertilizer industry stands stronger than ever."

Fertilizer Canada represents Canada’s fertilizer industry – including manufacturers, wholesale distributors, and retailers – which contributes more than C$12 billion in annual sales and employs 12,000. The organization’s industry programs include the 4R Nutrient Stewardship initiative; Codes of Practice to protect the public, farmers, employees, and communities; public education initiatives with organizations like Nutrients for Life; and environmental stewardship efforts to reduce greenhouse gas and air pollutants.

"While our name is changing, our priorities remain the same: issue and policy development, knowledge and education, product stewardship, and industry services," said Whyte. "These core functions allow us to advocate for our members from a position of strength."