Tiger Sul Products Co., Shelton, Conn., said April 19 that Christopher (Kit) Rowe has joined the company as U.S./Canada sales manager. The company said he has more than 30 years of industry experience. He has a degree in environmental life science from Otterbein College, Westerville, Ohio.
U.S. Nitrogen LLC reported a nitric acid vapor release on April 19 at its plant in Mosheim, Tenn. “Around 6:30 p.m., U.S. Nitrogen experienced a release of nitric acid vapors,” according to a USN statement. “The release is dissipating, and no workers were injured.” USN said it notified local authorities and would cooperate with these agencies and investigate the cause of the release to ensure that the issues are resolved.
By 8:30 p.m., local authorities reported that the leak had been contained.
“Our operations and maintenance teams responded quickly and effectively to the release, limiting its size and duration,” a USN source told Green Markets April 20. “They were ably supported by local emergency response teams from Greeneville and Greene County. Regarding the cause of the release, a preliminary assessment suggests a gasket failure on an acid heat exchanger for the ammonium nitrate solution plant. We are in the midst of an in-depth investigation this morning to develop the root cause of the failure. We expect to resume safe operation of our solution plant in short order.”
USN said the nitric acid plant has operated very well and continues to progress through the operating permit protocol as defined by the Tennessee Department of Environment and Conservation (TDEC).
Greene County Sheriff Pat Hankins, one of the first responders on the scene, likened the release to an “orange haze” similar to a cloud of pollen, according to The Greeneville Sun, which also reported that local residents complained of not being promptly or properly notified of the incident. The haze reportedly went in the direction of a nearby woodland, and residents in the area were told to shelter-in-place.
A similar release occurred at the plant in August 2016 (GM Sept. 1, 2016), when residents reported an “orange plume.” The nitric acid plant also came up and went back down again in January (GM Feb. 3, p. 18).
In recent weeks, USN has increased its intake of water from the Nolichucky River and resumed nitric acid production. While the company said it has not consistently produced nitric acid and liquid ammonium nitrate (AMSOL) due to market conditions (GM March 17, p. 13), it confirmed that it has been producing anhydrous ammonia all along. What was not needed internally was sold into the market.
Vernon C. Carlton Jr., 83, of Winston-Salem, N.C., passed away on April 17, 2017. He had a long career in the fertilizer industry, starting in 1964 as an employee of Weaver Fertilizer in Winston-Salem. He eventually bought the business and became its owner and president.
He was involved with the Plant Food Association of North Carolina, and also served as a board member on the Fertilizer Industry Round Table. Prior to his professional career, he served with the U.S. Army as a ranger, and graduated from Clemson University under a full football scholarship.
Carlton is survived by his wife, three children, two grandchildren, and several siblings, nieces, and nephews. A memorial service will be held on April 22 at Augsburg Lutheran Church in Winston-Salem, where he was an active member and served on numerous committees. Memorials can be made to the Newberry Opera House, 1201 McKebben Street, Newberry, S.C. 29108, or Augsburg Lutheran Church, 845 W. Fifth Street, Winston-Salem, N.C. 27101. Online condolences may be made at www.hayworth-miller.com.
U.S. Gulf: NOLA granular barges continued to trade lower last week, with most putting the market at $173-$185/st FOB for prompt trades. Most attributed this to very wet weather across the heartland and simply a lack of buying at the farmer level. Sources predicted that either there will be a mad rush in May to buy product, or a significant amount of urea will be left unsold.
Prills continued to follow granular downward last week, and were called $176-$190/st FOB.
Eastern Cornbelt: The granular urea market had reportedly slipped to $215-$220/st FOB Cincinnati, Ohio, for prompt tons, down $10/st from last report, with the upper end of the regional market pegged at the $245/st FOB level out of spot inland locations. “I really think if a guy wanted a block of tons, he could bid the market down,” said one source of the higher numbers.
Western Cornbelt: Urea prices were lower, but continued to cover a broad range in the Western Cornbelt. Sources quoted the St. Louis, Mo., urea market at $210-$230/st FOB, depending on supplier, with one contact claiming the upper end was “actually more common” at mid-month. Urea prices out of Iowa terminals ranged widely from $215-$240/st FOB, with the low reported at Muscatine and Port Neal.
In the Southern Plains market, urea prices FOB Catoosa, Okla., were pegged at the $220/st FOB mark or lower at mid-month.
Northern Plains: Granular urea pricing remained under pressure in the region. Sources quoted the Twin Cities market at $215-$220/st FOB at mid-month, down another $7-$10/st from late March pricing levels. Delivered urea was quoted at $250-$262/st in the North Dakota market, reflecting a drop of some $15-$18/st from last report, although reference prices reportedly remained as high as $280/st FOB Carrington, N.D.
“We think suppliers are getting nervous and starting to reduce supplies or make room for more unit trains heading this way,” said one urea contact.
Northeast: Granular urea pricing had reportedly dropped to $240/st FOB in western Pennsylvania, with the East Liverpool, Ohio, market pegged at the $245/st FOB mark. One Northeast contact put the delivered urea market at $270/st to his location, noting freight costs of $30/st. The last reported price out of Fairless, Penn., was put at the $255/st FOB level, down some $5-$15/st from late March levels.
Eastern Canada: Granular urea pricing in Eastern Canada was down $5-$10/mt from last report, with sources quoting the regional market at $430-$435/mt FOB at mid-month.
India: After MMTC and IPL took about 1 million mt in two consecutive tenders, sources said Indian buying may take a break until mid-May. The last of the IPL tonnage must be loaded by May 20.
Sources speculated that a new tender will be called near the end of May. One observer said the IFA annual meeting, which starts on May 22, may give the Indians an opportunity to meet with potential suppliers before calling a tender.
Even as the government claims the upcoming rainy season will be normal, some states are reporting drought-like conditions. Local press reports stated that urea purchases for the stricken areas have slowed to a standstill. One source said, however, that once the rains start, local farmers may try to make up for lost time by being aggressive in their urea applications.
The government has stepped up its rhetoric about curbing future imports. Recent interviews for local media by fertilizer ministry officials have stressed the government’s desire to make India urea self-sufficient by 2022.
Indonesia: Producers are still looking to secure a formula-based contract for the export of their product from May through December.
A tender closed earlier this month with no takers. Sources reported that a new tender will close April 20, with the producers looking for a series of formula-based sales broken up into 100,000-150,000 mt lots.
China: Sources reported that about 1 million tons remain in the ports for export. The waning domestic season has stopped the transfer of product from the ports back inland.
Loadings – especially the Indian-bound cargoes – are moving at a steady pace. Sources said buyers understand they only have about a week before China takes a “Golden Week” holiday to celebrate international Labor Day on May 1.
Prices have eased off just a bit, said one trader, calling the market at $215/mt FOB for both prilled and granular urea. Some material may be sold for a bit more, depending on quality.
Middle East: Egyptian product has come off about $5/mt as part of a general decline in urea prices. Sources now peg the Egyptian granular market at $214/mt FOB.
Officially, the price from the Arab Gulf producers is still at $221/mt FOB. However, sources said the downward pressure on prices has picked up again after a brief hiatus following the IPL/India urea tender.
While no public deals have been done below the official price, sources said the most likely level now is hovering right around $200/mt FOB.
Black Sea: Sources reported some softness coming out of Yuzhnyy. Prilled urea from the Black Sea port is now being pegged at $210/mt FOB, with some deals reported just under that level.
One trader commented that Romanian product is also coming out of Black Sea ports near $220/mt FOB, which also represents a drop in prices.
Bangladesh: Bangladesh will continue to import urea from the Middle East on state-to-state deals to address supply shortages in the country. Bangladesh Chemical Industries Corp. (BCIC) has re-invited international tenders for 50,000 mt of bulk prilled/granular urea in two shipments from Mesaieed, Qatar, with delivery in 50 kg bags at the outer anchorage of Chittagong Port. Bids are now due on April 24, 2017.
Pakistan: Exports of surplus urea from Pakistan are slowly progressing, ahead of an April 28 deadline set by the government for the urea industry to offload their surplus production, according to industry and market sources. Local urea demand for 2017 is expected to remain stable, thanks to an anticipated improvement in farmer income led by an increase in crop prices and the subsidy continuation in 2017.
Local fertilizer industry dynamics have undergone a major shift after 2016 witnessed a urea supply glut, in contrast to the urea shortfall prevalent in previous years. High inventory levels due to better gas supplies on the Mari and Sui networks, plus the availability of LNG, put significant financial burdens on manufacturers in 2016, and the glut is continuing in 2017.
According to market sources, one big cargo was already shipped by Engro. The industry has also committed, but not yet finalized, a 25,000 mt deal to Keytrade. Other small lots have also been committed – 9,000 mt to Trammo, 7,500 mt to Quantum, and 7,000 mt to Valency, all for Sri Lanka.
Ashgabat—Turkmenistan this week invited official bids for a project to build the country’s second potash plant. The announcement, published by state-run Turkmenhimiya, said the facility would be based at the Karabil potash deposit in northeastern Turkmenistan. No capacity details have emerged.
The country officially commissioned a Belarusian-built potash mining and processing plant at Garlyk based on the same deposit at the end of March (GM March 31, p. 16). That facility is expected to produce 1.4 million mt/y at full production, although neither Turkmenistan nor Belarus sources have indicated when the plant is expected to be fully ramped-up.
Last week at its Analyst Day 2017, The Mosaic Co. said it has pegged Garlyk’s output this year at 300,000 mt in its S&D projections, and sees the facility ramping up to the full 1.4 million mt/y capacity over the course of the next three to four years. Belarusian President Alexander Lukashenko, who attended the opening ceremony March 31, said most of the Garlyk plant’s output would go to China and India.
Minsk has said it would help Turkmenistan to market the potash (GM May 13, 2016). Turkmenistan is working to diversify its economy away from natural gas amid declining export revenues.
U.S. Gulf: Sulfuric acid vessels delivered to the Gulf of Mexico carried pricing in the $45-$50/mt CFR range, unchanged from the prior week.
Price ideas for vessels into Brazil firmed to $50-$55/mt CFR from $45-$50/mt CFR at last check, although some expected that market to push higher still in the wake of recent purchasing from OCP. Observers traced the U.S. Gulf and Brazil markets to Northwest European smelter rates clocked at $10-$15/mt FOB.
In the domestic market, tons delivered to the U.S. Gulf region were called flat at $85-$95/t DEL, with Midwest pricing quoted at $80-$90/t DEL, also unchanged. Material sold to West Coast buyers carried $100-$110/t DEL pricing, unmoved from the previous report.
U.S. Gulf: Sources estimated Industrial Lock delays at 11-17 hours for the week. Port Allen Lock waits stood at 2-5 hours, with Algiers Lock adding an average three hours to transits.
Fast flows at Brazos Lock prompted restrictions, with tows limited to a single loaded barge or two empty barges per pass. Thirteen vessels were counted in line on April 19, prompting 1-3 day delay estimates.
Dredging underway since April 6 at the Brazos River Floodgates was due to conclude on April 20. Rather than return the site to normal operation, however, ongoing contractor activities will prohibit Monday-through-Friday transits between 7:00 a.m. and 5:00 p.m. through May 31. A second dredge is working between Miles 395-400 in the West Canal. Vessels were asked to contact the dredge prior to arrival to obtain passing instructions.
Harvey Lock is slated to close for 60 days starting in August. The Corps recommends Algiers Lock as an alternate route. A 60-day closure at Bayou Boeuf Lock, previously scheduled for a similar timeframe to Harvey Lock, was pushed back to August 2019.
Mississippi River: High water and fast flows south of Lock 16 triggered navigation restrictions. Tows were cut by three barges, adding a shipper-estimated 2-3 days to navigation.
The Cape Girardeau, Mo., gauge fell below the 29-foot action stage on April 17, with levels clocked at 27.8 feet on April 19. A dense fog advisory was in effect for the area on April 19.
Persistent high flows extended towing restrictions in the St. Louis region. Vessels powered by 6,000 horsepower engines were cut to 20-barge tows from 25, adding an additional 2-3 days to navigation.
Tows were reduced by 5-10 barges on southbound routes out of Cairo, Ill., delaying lower river navigation by an additional 2-3 days. Lock 13 was scheduled to shut down for 24 hours on both April 18 and April 20 for lock repairs. The auxiliary chamber at Lock 15 is closed through Aug. 3.
Lock 20 delays were quoted at up to seven hours for the week. Locks 22 and 24 reported waits up to four hours, and Lock 27 delays were noted at 5-6 hours.
Illinois River: Vessels resumed transit on the Upper Illinois River last week after nearly two weeks of high-water navigation stoppages. Some shippers expected a 2-3 day “catch-up” period on cargoes moving through the area.
Lower river depths remained above flood stage. The Beardstown, Ill., gauge registered 18.9 feet on April 19, well above the 14-foot flood designation, with no estimate given for a return to normal levels. Tow lengths were slashed by 25 percent due to the conditions, creating an added 2-3 days’ delay.
The Corps plans to conduct a pair of 36-hour Peoria Lock closures during the May 17-30 period. Starved Rock Lock is slated for 10-hour daily shutdowns June 1 through July 7, and navigation will be restricted to nighttime-only operation at LaGrange Lock between June 1 and Aug. 29. An 80-foot width restriction will be in effect for the Starved Rock and LaGrange projects.
Ohio River: Shippers reported improving conditions on the Upper Ohio River, but lower river transits remained “inconsistent” as swells work downstream.
Southbound tows continued to be slashed by 5-10 barges at the Cairo junction, leading some to claim a 2-3 day wait on passage through the area. The Cairo gauge showed depths at 32.58 feet and falling on April 19, above the 32-foot action stage.
Markland Lock’s auxiliary chamber is closed for repair through April 26, and the main chamber is scheduled to go offline May 1 through Sept. 29. Shippers are predicting substantial delays during the closure. Demolition of the Ironton-Russell Bridge will trigger a daylight-hour river shutdown at Miles 326-328 on May 17, May 29, and June 15.
The Emsworth Lock main chamber will close to traffic 8:00 a.m. through 12:00 a.m. daily between June 26 and Sept. 25. Transits will be limited to overnight hours and subject to an 80-foot width limit. Shippers expect prolonged delays for the duration of the project. The Lock 52 auxiliary chamber is slated for intermittent closures July 17 through Sept. 29.
The Monongahela River’s Lock 4 will undergo repair and maintenance activities May 14 through June 20. Navigation will be completely unavailable Monday through Friday, but the auxiliary chamber will open for single-barge passes during weekend hours. Shippers expect “excessive” delays throughout the project. The Braddock Lock and Dam main chamber is due to reopen on April 28. The unit has been closed since March 30.
Intermittent navigation closures began April 17 at the Tennessee River’s Wilson Lock and are slated to persist through June 8. Sporadic transit interruptions are predicted for Kentucky Lock through April 30.
The Allegheny River’s Lock 6 remains shut down due to a hydraulic leak and accompanying mechanical failure, effectively closing the river to commercial transport.
Washington—The Fertilizer Institute (TFI) on April 19 offered testimony at a public hearing of the Environmental Protection Agency (EPA) in support of EPA’s recent request (GM April 14, p. 1) to extend the effective date of its revised Risk Management Program (RMP) rule from June 19, 2017, to Feb. 19. 2019. “We believe the additional time provided by this administrative process will allow EPA to make necessary improvements to the rule,” TFI said.
TFI cited numerous reasons for its support of the extension, saying the extra time is need to “address several petitions for reconsideration and then propose rule changes responsive to the concerns in the petitions; remedy the rushed rulemaking process apparently designed to facilitate completion of a final rule before the transition to a new administration, failing to adequately address interagency and industry concerns; consult more actively with the regulated community regarding some significant changes to the program; consider the security implications associated with publicly sharing sensitive facility-specific information; reconsider the additional responsibilities imposed on Local Emergency Planning Committees to determine whether they are unnecessarily burdensome and difficult to implement; examine further the merits of expanded incident investigation obligations; rethink the obligations to conduct a safer alternatives analysis, as the requirements were ill-conceived and are not workable in their current form; and remove obligations to use an independent third party for audits following a facility incident.”
EPA is accepting written comments on the proposed delay until May 19.
Tampa: A truck fire at Tampa Bay’s Port Manatee nearly ignited a massive nearby sulfur mound on April 17, local news outlets reported. Three small sulfur piles caught fire before emergency responders extinguished the blaze. A dump truck driving on the sulfur pile was blamed for sparking the fire.
The second-quarter contract price of molten sulfur delivered to Tampa is $70/lt DEL, $5/lt below the first quarter’s $75/lt DEL.
Domestic refining capacity rose again last week, according to the U.S. Energy Information Administration (EIA), the sector’s fifth consecutive increase stretching back to mid-March. Utilization swelled to 92.9 percent for the week ending April 19, a 1.9 percent spike from the prior week’s 91.0 percent, and also higher than both the year-ago 89.4 percent and the five-year average of 89.7 percent.
Daily crude inputs were clocked at an average 16.938 million barrels/d, a 241,000 barrel/d jump from the last reported 16.697 million barrels/d level.
U.S. Gulf: Sources put recent Gulf export transactions in the $79-$85/mt FOB range, down from $80-$85/mt FOB at last report.
Vancouver: Vancouver market players called last-done spot tons in the $83-$87/mt FOB range. Recent Chinese market softening was predicted to pressure Vancouver in the next round of business, although the Mexican and Australian markets are also expected to play sizable roles in setting prices at Vancouver.
Chinese refiners processed an average 11.21 million barrels/d through first-quarter 2017, Reuters reported, a 4.5 percent increase from the same period in 2016. March refinery output was tabulated at 11.19 million barrels/d, a 5.9 percent year-over-year jump, but below the record set in December 2016. Sources put recent dry sulfur sold to China in a $90-$95/mt CFR range, flat from the previous report.
Tightness persisted in the Alberta market thanks to ongoing curtailments at Oil Sands producer Syncrude. Production at Syncrude’s Mildred Lake facility has been cut to unspecified levels following a March 14 fire. The 350,000 barrels/d facility is scheduled to return to full production by the end of June, the Edmonton Journal reported.
Observers called Alberta producer netbacks flat at (-)$55-$20/mt FOB.
India: A refinery planned for India’s western coast is drawing investment interest from Saudi Aramco and the Abu Dhabi National Oil Co. (ADNOC), numerous sources reported. The two-stage project is slated to start with the construction of a massive 850,000 barrels/d facility, with an additional 50 percent capacity later.
Aramco and ADNOC’s potential levels of investment were unclear. Indian state-owned Indian Oil Corp. (IOC) currently owns 50 percent of the project, while Bharat Petroleum Corp. (BPCL) and Hindustan Petroleum Corp. (HPCL) own 25 percent each.
IOC also plans to boost production at its Paradip refinery, located in the western state of Odisha, according to local reports. IOC is targeting an approximate 463,000 barrels/d output, a 33 percent jump from the current 346,000 barrels/d capacity. No timeline for the upgrade was announced.
Santiago—Sociedad Quimica & Minera de Chile SA (SQM) announced April 18 that three major shareholders – Julio Ponce, Japan’s Kowa Group, and Potash Corp. of Saskatchewan Inc. – have signed a new governance agreement that requires all board decisions to receive five of eight votes, with the chairman refraining from voting. The move is seen as a way to diminish Ponce’s control of the company in light of his controversial stance within Chile.
SQM shares went up after the news, according to Bloomberg, which cited more cautious Citigroup analysts who downplayed the agreement, saying any of the parties may terminate it within a year of it coming into effect. In 2014, Ponce was fined about $70 million for illegally trading shares of his holding companies (GM Sept. 8, 2014); the fine is under appeal.
In 2015, former CEO Patricio Contesse resigned after it was revealed that he was involved in illegal financing of political parties. Some members of the board also resigned, and the board was later reconstituted (GM March 23, 2015; May 4, 2015). Currently, SQM is involved in a legal dispute with the government over mining rights.
