All Posts from January 20, 2015

MMTC calls urea tender – Alert

Bowing to pressure caused by reports of urea shortages, MMTC called a tender for prilled or granular urea to close Jan. 27 with validity through Feb. 4. The last date for shipping is March 13.
   
Indian media have been full of stories of complaints of urea shortages from places around the country. In response, local politicians have been leaning on the national government to increase the amount of urea available for the end of the current application season. International traders said just last week that once the last of the IPL tons arrive the complaints of shortages would cease.
   
Sources say Chinese producers immediately began asking higher prices in response to the tender call.
   
Blue Deebaj remains blacklisted from Indian tenders because of its failure to come through with its award after Chinese producers raised the price of the product. Continental and Emmsons are also on what MMTC calls the “holiday list” for the same reason.

Mosaic upgrades 4Q outlook – Alert

The Mosaic Co. on Jan. 19 upgraded its fourth quarter 2014 outlook. Mosaic said it expects reported phosphates volume and phosphates and potash margins will exceed previously provided guidance ranges, and that potash volumes will be at the high end of guidance range, resulting in fourth quarter 2014 earnings per diluted share in the range of $0.93 to $0.98 per share, including approximately $0.10 in net benefits from notable items. The notable items include early estimates of discrete tax benefits, primarily related to the acquisition of a Brazilian distribution business, which may change. Mosaic expects earnings, excluding notable items, to be in the range of $0.83 to $0.88 per share.
 
"Demand for potash and phosphates exceeded our expectations during the fourth quarter," said Jim Prokopanko, president and CEO. "We were cautiously optimistic going into the fall application season with good crop nutrient affordability and an empty supply chain, but customers came to the market in force, as they sought to position inventory in anticipation of a strong spring season and increasing crop nutrient prices.

"At Mosaic, we were prepared to meet the surge in demand, and our results for the quarter reflect the earnings power our business can deliver in good markets. Our Phosphates business sold 3.3 million mt of finished product during the quarter – well above our expectations – and our Potash business produced at a high operating rate due to a successful proving run at the Colonsay mine.

"We expect further business strength as we move into 2015, with strong demand for potash and phosphates continuing. We expect the first quarter of 2015 to reflect normal seasonal spring demand, minimally impacted by accelerated purchases in the fourth quarter of 2014, and are excited for the opportunities we see in the coming year."

The company will discuss fourth quarter 2014 results in more detail, as well as first quarter and full year guidance for 2015, during the earnings release Feb. 11, 2015.

Tampa NH3 down in February – Alert

Major players have concluded February business for the Tampa ammonia market at $495/mt CFR, down $50/mt from January’s $545/mt CFR. Sources had been anticipating a continued drop.