Dry Fertilizer Barge Rates
| 11/2/2018 | Last Week | |
| Memphis | 9.00-11.00 | 13.00-15.00 |
| St. Louis | 9.00-11.00 | 14.00-16.00 |
| Peoria | 14.00-16.00 | 18.00-22.00 |
| Cincinnati | 14.00-16.00 | 17.00-22.00 |
| St. Paul | 16.00-18.00 | 25.00-27.00 |
| Catoosa/Inola | 18.00-19.00 | 27.00-29.00 |
All Posts from November 2, 2018
Ma’aden Eyeing Overseas Investments in Phosphates, Base Metals, Says CEO
The Saudi Arabian Mining Co. (Ma’aden), Riyadh, has reiterated its ambitions to grow internationally in the phosphates fertilizer business as well as in base metals. President and CEO Darren Davis late last week said the company is actively looking for investment opportunities overseas that would complement and strengthen its existing domestic businesses, according to a Reuters report. The Saudi company is reported to be looking for potential joint ventures and acquisition opportunities in Latin America and India, among other locations, that would boost its operations in the two sectors.
Ma’aden’s former CEO, Khalid bin Saleh Al-Mudaifer, who resigned from the position in early June following his appointment as deputy minister of energy, industry, and mineral resources for mining affairs, had discussed the company’s overseas expansion ambitions in the phosphates and base metals sectors. Al Mudaifer said Ma’aden was eyeing the “key consuming markets” under its “overseas expansion” strategy. This past May, the former CEO was cited as saying “wherever there is a good mining source, we would like [to be there], and for fertilizers we would like to be in the main regions of consumption, which are the Americas and Asia.”
The company currently is expanding its phosphate fertilizer production capacity domestically, with work on a planned third large-scale phosphate complex, “Phosphate 3,” now underway. It recently signed a Sar3.35 billion engineering, procurement, and construction contract to a build a new ammonia plant at Ras Al-Khair, which is the first plant to begin construction at the new complex (GM Oct. 26, p. 1). Phosphate 3 is scheduled to be completed by 2025, and is part of “a new wave of expansions” now being launched by the company, Davis said in a Ma’aden statement this week.
On completion, Phosphate 3 will increase the company’s total phosphate fertilizer production capacity to nearly 9 million mt/y. The project is expected to cost Sar24 billion ($6.4 billion).
In base metals, gold accounts for the majority of wholly-owned subsidiary Ma’aden Gold and Base Metals Co.’s (MGBM) revenue, with copper, silver, and zinc accounting for the remainder. MGBM produced over 330,000 ounces of gold last year.
Ma’aden is celebrating its 10th anniversary since becoming a publicly-listed company, following the completion of a $2.5 billion Initial Public Offering (IPO) in 2008. Until then, the company was wholly owned by the Saudi government when 50 percent of its shares were floated on the Saudi Stock Exchange (Tadawul). The government continues to hold a 50 percent stake through the Public Investment Fund, the kingdom’s main sovereign wealth fund.
Uralchem to Participate in Zimbabwe Fertilizer Firm’s Privatization
Uralchem, Moscow, plans to participate in the privatization of Zimbabwean fertilizer holding company Chemplex Corp. Ltd., according to a Prime Business News report, citing Uralchem Chairman Dmitry Mazepin. Zimbabwe’s Industrial Development Corp. (IDC) this past September retained Ernst & Young LP to assist it in arranging the sale or in finding a partner for Chemplex (GM Sept. 7, p. 27).
IDC is looking to divest part or all of its 100 percent holding in Chemplex. There is said to be interest from 26 local and international companies, including Uralchem, according to the report.
Harare-based Chemplex controls Dorowa Minerals, which operates the country’s only phosphate mine, and ZimPhos. It also holds a 50 percent interest in Zimbabwe Fertiliser Co. (a producer of NPK fertilizers), and a 36 percent interest in Zimbabwe’s sole ammonium nitrate manufacturer, Sable Chemicals Industries Inc. in Kwekwe (GM Feb 9, p. 27; June 15, p. 30). ZimPhos is the country’s sole producer of sulfuric acid, aluminum sulfate, and superphosphates.
An earlier attempt to sell of Chemplex in 2015 proved unsuccessful.
Longer term, Uralchem wants to establish a Russian hub in Zimbabwe, and perhaps also in Zambia, in possible cooperation with Uralkali for the direct supply of mineral fertilizers to the two countries and potentially their neighbors, where demand is expected to grow rapidly in the next several years (GM Feb. 9, p. 27). Around 100,000 mt/y of Uralchem and Uralkali products are supplied to southeast Africa currently, according to Uralchem.
Uralchem, Ultramar Ink Deal on Ust-Luga Port Facilities
Uralchem, Moscow, and Russian logistics provider Ultramar LLC, St. Petersburg, have signed a memorandum on cooperation.
According to Uralchem, the parties agreed on the conditions of cooperation and partnership in respect of the port infrastructure development project that Ultramar is realizing in the port of Ust-Luga for handling dry mineral fertilizers. The port project plans ultimately envisage the building of a multi-functional terminal with a potential capacity of up to 12 million mt/y.
According to Uralchem CEO Sergey Momtsemlidze, the additional volume of mineral fertilizers that Uralchem could redirect to Russian ports could be over 2 million mt/y, and diverting exports from non-Russian Baltic ports would help the company cut transportation costs.
PhosAgro Boosts 3Q, YTD Output, Sales
PhosAgro, Moscow, reported that its third-quarter fertilizer production and sales were up 2 percent and 9 percent, respectively, while nine-month production and sales rose by 10 percent and 13 percent, respectively.
Third-quarter fertilizer sales increased to 2.20 million mt, up from the year-ago 2.02 million mt. Nitrogen-based sales grew 48 percent to 458,200 mt, up from 309,400 mt, while phosphate-based sales and MCP were up 2 percent, at 1.74 million mt, up from 1.72 million mt. Third-quarter fertilizer production amounted to 2.13 million mt, up from 2.09 million mt.
Nine-month fertilizer sales increased to 6.87 million mt, up from 6.09 million mt. Nitrogen-based sales grew by 43 percent to 1.72 million mt, up from 1.20 million mt, and phosphate-based sales and MCP were 5 percent higher at 5.14 million mt, up from the year-ago 4.89 million mt. Nine-month fertilizer production increased to 6.68 million mt, up from 6.08 million mt.
“PhosAgro remains focused on organic growth, which, together with solid contributions from newly launched urea and ammonia lines, has helped the company to leverage its flexible sales strategy and maximize returns in the current ‘deficit’ market environment,” said PhosAgro CEO Andrey Guryev.
He noted that third-quarter production of MAP and NPK each increased by 14 percent year-on-year on the back of “robust” demand from Latin America and India, as well as seasonal demand in Russia. However, this was partially offset, he said, by declines in DAP and NPS volumes.
Third-quarter ammonia output was up 13 percent year-on-year to 411,900 mt following the launch of a new 760,000 mt/y ammonia plant at PhosAgro-Cherepovets last year (GM Aug. 11, 2017), although the third-quarter result was partially impacted by maintenance in September, which also affected urea production. Third quarter urea production was 14 percent higher year-on-year at 355,800 mt.
In the upstream sector, PhosAgro’s optimization program enabled it to increase the recovery ratio for phosphate rock beneficiation to over 93 percent at the company’s Beneficiation Plant number 3, which Guryev said is “the absolute maximum” level ever achieved at the plant.
In the first nine months of the year, the company’s sales to CIS markets decreased by almost 60 percent year-on-year after the halt of deliveries to Ukraine in May (GM June 1, p. 27). This, the CEO said, was fully offset by a more than 40 percent increase in sales to Europe and 30 percent year-on-year growth in Latin America thanks to the company’s expanded “on-the-ground” presence with new local offices. Nine-month sales to North America and India each rose by some 50 percent year-on-year.
Looking ahead to market conditions through to the end of the year, Guryev noted the first signs of liquidity cooling and a certain price slowdown prior to November-December, which is typically the down season for markets. However, he believes the depth of the correction will be limited, citing a further steepening in the global cash cost curve on the back of strong pricing in ammonia and sulfur, as well as a continued deficit of the supply side. In addition, he pointed to the high season in China, with local producers focused on the domestic market, as well as the beginning of the new buying season in Latin America, which is likely in December of January.
“The ramp-up of new units in Saudi Arabia remains the main wild card for the sector,” said Guryev, “with any delays likely to push the market further into deficit.”
PhosAgro Sales Volumes (‘000 mt)
| Product | Q3 2018 | Q3 2017 | % change | Nine months 2018 | Nine months 2017 | % change |
| Phosrock | 695.3 | 653.9 | +6.3% | 2,119.3 | 1,998.1 | +6.1% |
| Phosphate-based fertilizers | ||||||
| DAP/MAP | 732.5 | 769.0 | -4.7% | 2,267.5 | 2,268.1 | 0% |
| NPK | 750.9 | 749.2 | +0.2% | 2,060.9 | 1,918.3 | +7.4% |
| NPS | 95.1 | 52.5 | +81.1% | 322.1 | 209.9 | +53.5% |
| APP | 57.9 | 34.1 | +69.8% | 154.9 | 135.5 | +14.3% |
| MCP | 85.8 | 85.0 | +0.9% | 262.8 | 260.4 | +0.9% |
| PKS | 21.3 | 25.9 | -17.8% | 74.3 | 93.4 | -20.4% |
| Total | 1,743.5 | 1,715.7 | +1.6% | 5,142.5 | 4,885.6 | +5.3% |
| Nitrogen-based fertilizers | ||||||
| AN | 86.1 | 30.3 | +184.2% | 459.1 | 399.3 | +15.0% |
| Urea | 372.1 | 279.1 | +33.3% | 1,266.1 | 805.8 | +57.1% |
| Total | 458.2 | 309.4 | +48.1% | 1,725.2 | 1,205.1 | +43.2% |
Potash Price Increases Boost APC’s Nine-month Profits
Arab Potash Co. (APC) reported a 44 percent increase in nine-month net profit after taxes, provisions, and royalties to JD88.8 million (approximately $125.2 million) on consolidated revenue of JD350 million, up from the year-ago JD61.7 million and JD312 million, respectively.
APC Chairman Jamal Al-Sarayrah attributed the growth in profits to the increase in potash prices following the inking of new contract deals with China and India during the second half of the year. China and India accounted for around 47 percent of the company’s annual potash sales volumes last year. He added that the nine-month profits also coincided with “the huge budget” allocated for the maintenance of APC’s plants and infrastructure.
Potash sales revenues last year accounted for some 86 percent of the company’s total sales revenues.
Nine-month potash production increased by 7 percent to 1.81 million mt, up from the year-ago 1.68 million mt. Potash sales volumes were 3 percent higher at 1.82 million mt, against 1.77 million mt in the same prior-year period.
APC President and CEO Brent Heimann believes potential incremental supply additions to the international market during 2019 following the entry of new producers may put downward pressure on international potash prices. He warned that this could accordingly affect the Jordanian producer’s profit margin, especially given the company’s production costs are among the highest when compared to other international producers, despite its efforts over recent years to reduce production costs.
In this regard, APC has been seeking alternatives to expensive energy sources as an important part of its strategy to reduce its production costs.
EuroChem Inks Contract for 700 New Hopper Cars
EuroChem Group AG, Zug, Switzerland, has inked a contract for the purchase of 700 new generation hopper cars with Russia’s United Wagon Co (UWC). The new rolling stock will be used to transport the mineral fertilizers of the company’s various plants, including the Usolsky potash plant. Under the contract, the new hopper cars will be completed before the end of the first half of 2019.
The new hopper cars will each have a capacity of 76.7 mt and will require a maintenance overhaul only every eight years, compared with every two years for the old style hopper car.
“Capacity building in potash production and sales is one of our priorities,” said EuroChem Head of Logistics Kirill Kholostov. “Control of the entire supply chain through our own logistics infrastructure, as well as the use of advanced related technologies, ensure our competitiveness in domestic, and in foreign markets.”
R.W. Griffin Industries LLC – Management Brief
Ronald G. “Joe” Register, chief operating officer at R.W. Griffin Industries LLC, Douglas, Ga., announced his retirement, effective Oct. 31, 2018. Register started his 45-year career in the fertilizer industry in 1973 as a wholesale representative at Swift Agricultural Chemicals Corp. He was promoted to sales manager in 1983 when Swift became Estech Inc., and then to marketing manager of wholesale and retail sales in Georgia and North Florida in 1984.
In 1986, Register was promoted at Kaiser-Estech to director of marketing for the Eastern Region, and then in 1987 to vice president of sales for agri-products in an expanded trade territory that included Georgia, Arkansas, Kentucky, Tennessee, Alabama, Louisiana, Mississippi, northern Florida, the Carolinas, and Virginia. Register’s marketing region was expanded again in 1988 to include all of Florida when the company became Vigoro Industries.
Register moved to the role of vice president of marketing for retail and wholesale operations in the eastern states in 1996 when Vigoro became IMC Agribusiness, and then in 1998 to senior vice president for all states with retail operations. Register then joined R.W. Griffin in 1999, where he served as chief operating officer for retail and wholesale operations until his retirement.
The Mosaic Co. – Management Brief
The Mosaic Co., Plymouth, Minn., on Nov. 1 announced several changes to its senior leadership team, all effective Jan. 1, 2019.
Walt Precourt, currently senior vice president – Phosphates, will become senior vice president – Strategy and Growth. This new group will include Mosaic’s Business Development and Market and Strategic Analysis teams. Precourt joined Mosaic in 2009 to lead the company’s Environment, Health, and Safety efforts. He then served as senior vice president – Potash. In his new role, Precourt will work from the company’s Tampa headquarters office.
Bruce Bodine, currently senior vice president – Potash, will become senior vice president – Phosphates. Bodine joined a Mosaic predecessor in 1999 and has served in a variety of roles in the potash and phosphates business units. He will be based in the company’s offices in FishHawk, Fla.
Karen Swager, currently vice president – Minerals in the Phosphates Business Unit, will become senior vice president – Potash. Since joining a Mosaic predecessor in 1994, Swager has served as the general manager of individual mines and processing facilities and as head of processing and minerals. She will be based in the company’s Regina, Sask., offices.
“These changes represent an important step forward in Mosaic’s evolving strategy,” said President and CEO Joc O’Rourke. “While our potash, phosphates, and Mosaic Fertilizantes businesses will remain the central engine that drives Mosaic, innovation and new avenues of growth are also important to our future success. I am confident that Walt, Bruce, and Karen – all proven leaders – will help Mosaic achieve its remarkable potential in the years ahead.”
Verdesian Life Sciences – Management Brief
Verdesian Life Sciences, Cary, N.C., on Oct. 30 announced the addition of four new vice presidents to lead growing demand for nutrient use efficiency (NUE™) and sales of Verdesian technology solutions across the U.S. Alan Sparkman has joined the company as vice president of sales for the East and South Regions of the U.S.; Jason Radford has been named vice president of sales for the West Region; Pat Mullahey has been promoted to vice president of the U.S. Turf and Ornamental market; and Scott Jungman will be joining the company in mid-December as vice president of sales for the Western Cornbelt Region.
“With our recent growth across multiple core markets in the U.S., it’s critical to have the best sales leadership supporting our sales reps and strategic customers.” said Andrew Duff, senior vice president of U.S. Sales for Verdesian’s Nutritionals and Polymers. “Jason, Scott, and Alan are all very talented and unique with different skill sets. Each VP brings great experience and customer relationships to the existing Verdesian team. We are very excited to welcome them to Verdesian and to introduce them to our customers across the U.S.”
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All information has been obtained by Green Markets from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Green Markets or others, Green Markets does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.
For additional details visit our Terms of Use.