All Posts from November 23, 2015

NuStar eyeing Illinois NH3 pipeline extension

News Briefs

San Antonio — NuStar Energy LP is looking at extending its anhydrous ammonia pipeline in Illinois. “We are currently in the process of submitting our permit application to the Illinois Commerce Commission, so the proposed expansion plans are still in the early stages of development and we do not have any details to provide at this time,” the company told Green Markets on Nov. 19. Initial reports were that a 60-mile pipeline was initially proposed to link from Shelbyville to an Archer Daniels Midland facility in Decatur, Ill. However, receiving property easements may be an issue, and sources said any initial plans for the route could be adjusted as a result.

Nitrogen Solutions

Eastern Cornbelt, Great Lakes, Northeast, Northern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf: The NOLA UAN barge market last week was called $180-$185/st ($5.63-$5.78/unit) FOB, but only because there was no new business, according to sources, who maintained that inland postings are starting to go down.

In the meantime, sources were calling the East Coast vessel market $195-$200/mt CFR.

Eastern Cornbelt: UAN pricing was slipping in the Eastern Cornbelt, with the Cincinnati market for UAN-28 reported in a broad range at $202-$210/st ($7.21-$7.50/unit) FOB for either prompt or prepay tons. The upper end of the regional range was pegged at the $225/st ($8.04/unit) FOB level out of inland tanks on a spot basis.

Western Cornbelt: UAN-32 was quoted at $245-$260/st ($7.66-$8.13/unit) FOB in the Western Cornbelt.

Northern Plains: UAN-28 remained at $230-$235/st ($8.21-$8.39/unit) FOB the Twin Cities and $245/st ($8.75/unit) FOB terminals in North Dakota. Delivered tons were reported in a broad range at $255-$280/st ($9.11-$10.00/unit) DEL in the Northern Plains, depending on location.

Great Lakes: A wide range was reported for UAN-28 pricing in the Great Lakes region last week, with Michigan contacts reporting the market at $215/st ($7.68/unit) FOB Courtright and $232-$236/st ($8.29-$8.43/unit) FOB Michigan terminals. Wisconsin sources quoted the UAN-32 market in the $260-$268.80/st ($8.13-$8.40/unit) FOB range, depending on location.

Northeast: The UAN market remained under pressure in the Northeast. Pricing FOB Baltimore, Md., was quoted at $195/st ($6.50/unit) for UAN-30 and $205/st ($6.41/unit) for UAN-32, down some $5/st from last report. Out of terminals in upstate New York, the UAN-32 market was steady at $240/st ($7.50/unit) FOB last week.

Urea

Bangladesh, Black Sea, China, Eastern Cornbelt, Great Lakes, India, Indonesia, Middle East, Northeast, Northern Plains, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf: Granular prompt barge trades dipped to as low as $227/st FOB, according to sources last week, although trading began as high as $240/st FOB. At the end of the day Thursday, most were putting the market within the $228-$235/st FOB range.

Some argued that a large amount of product is on its way into the U.S. Others said the amount is about the same as the year-ago figure, but the players – Dreymoor and RWE – are different. Sources were in more agreement, however, that the buyers may not have been lined up. Others also pointed to CF’s new capacity at Donaldsonville, both for urea and UAN, which is due up this quarter and will add tons to the mix.

Prills were also reported to be down. Product was now priced at $235-$236/st FOB, with no takers.

Eastern Cornbelt: The granular urea market remained under pressure in the Eastern Cornbelt, with spot pricing down roughly $5-$8/st from last report.

Sources quoted the low end of the regional market at $277-$280/st FOB Cincinnati, Ohio, with pricing out of most river terminals in Indiana and Ohio ranging from $280-$290/st FOB. The upper end of the regional market was pegged at the $295/st FOB level out of some inland locations.

Western Cornbelt: Urea prices remained flat at $285-$300/st FOB in the Western Cornbelt, with the low in Missouri and the upper end out of spot Iowa terminals.

Northern Plains: Granular urea was pegged at $290/st FOB the Twin Cities, reflecting a $5-$10/st drop from late October pricing levels. North Dakota sources quoted rail-DEL urea at $316/st on the low end of the range, with the upper end reported at $330/st DEL or FOB Carrington, N.D.

Great Lakes: Granular urea pricing covered a broad range in the Great Lakes region last week. While Wisconsin sources pegged the low end of the market at the $300/st FOB level, Michigan sources quoted a wider range at $305-$335/st FOB, with the low at Courtright and the upper end FOB Webberville.

Northeast: Granular urea pricing was lower in the Northeast. Sources quoted the regional market at $295-$300/st FOB, down $5-$10/st from last report, with the low reported at East Liverpool, Ohio, and the upper end FOB Fairless, Pa.

India: As of Friday at close of business in India, no official announcement was posted on the IPL website for the anticipated IPL tender, nor did traders report receiving a notice of a tender from IPL. Sources say rumors remain plentiful the tender could be called at any time. One source said he had heard the tender – once called – will close November 27. Other sources say that means the announcement would have to come no later than COB Monday, Nov. 23.

Sources say companies that received awards in the previous tender appear to have booked their tons and locked in vessels to deliver the product on time. The time it now ripe, say industry watchers, for IPL to call its tender.

The overall softness in the market was evidenced by reports that granular product was included in some of the tonnage shipped under the STC tender of last month. At a minimum, said one source, the actions of these traders indicate that prilled and granular urea are essentially at parity in China.

One trader explained that IPL wants to wait until all the STC tons are booked. The idea is to not overlap inquiries for tonnage and have the Indian buying houses compete for the same tonnage.

The tender call is also expected quickly because prices are coming off at production operations from China to Egypt. Buyers are also demanding lower prices. The drop in NOLA prices, said one trader, is almost making the U.S. a unique market that needs to be boxed off from the rest of the world.

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, Great Lakes, Indonesia, Northern Plains, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa: New Tampa business was concluded last week at $400/mt CFR for December, down $20/mt from November business. Nothing new was reported at NOLA.

TFI said Nov. 16 that the U.S. Department of Commerce has confirmed that a July ammonia export statistic was in error. DOC had initially reported that there was an export in July from the U.S. to Mexico of some 580,506 st at a value of $3.2 million. TFI contacted DOC and said the listing was highly suspicious. DOC has now revised the amount to 4,191 st at a value of $2.77 million.

December NYMEX natural gas closed Nov. 19 at $2.276/mmBtu, up slightly from Nov. 12’s $2.260/mmBtu.

Eastern Cornbelt: The ammonia market was quoted at $540-$550/st FOB in the Eastern Cornbelt, down $5/st from last report, with the low in Illinois and the upper end FOB Indiana terminals.

Western Cornbelt: Ammonia pricing was steady at $510-$540/st FOB in the Western Cornbelt, with the low reported out of Nebraska terminals. The Iowa market was pegged at $520-$540/st FOB, depending on location.

One source said only 30-32 percent of the fall ammonia was applied in his trade area before heavy precipitation moved into the region at mid-month. “We have in the past run into the first week of December, but that’s pushing it,” he said.

Northern Plains: Sources reported lower spot prices for most products last week. “It was not a very good fall, so it looks like spring will be a hard, fast pace unless we get an early start,” said one Dakota contact.

The anhydrous ammonia market was quoted at $535/st FOB regional terminals in the Northern Plains, down some $20/st from last report, with delivered tons pegged at the $550/st level in the region.

Great Lakes: Anhydrous ammonia was pegged at $540-$550/st FOB in the Great Lakes region, down $10-$15/st from last report, with the low quoted in the Wisconsin market. Michigan sources reported the Courtright, Ont., ammonia market in the $545-$550/st FOB range last week.

Black Sea: Prices keep sliding in the region, sources said, and no bottom seems to be in sight. Softer prices indicate the bottom of the range could be as low as $330-$335/mt FOB. Some remaining deals show prices below $350/mt FOB.

Yuzhnyy suppliers have long accepted the competition from Trinidad into the U.S. markets. Sources say they only use the Tampa-Yuzhnyy benchmark as a touchstone for calculating relative prices, rather than for determining actual market positions as in the past.

Now Trinidad material is being offered in markets traditionally dominated by the Black Sea and Baltic suppliers.

Indonesia: New production at Kaltim V means an additional 1.92 million mt/y will be pumped into an already soft market. The upgraded plant is now expected to turn out 2.74 million mt/y.

The impact of this new production has not yet been felt, but sources expect to see more Indonesian ammonia finding buyers in areas where the Arab Gulf suppliers once sold their wares. Likewise, the increase of Indonesian product in Asia means regional buyers can save on transportation costs once they dump their Arab suppliers.

One trader noted that Indonesian ammonia is quickly eclipsing Arab product as the price setter in Asia. Sources say Asian buyers have regularly complained of how the Arab producers and the Indian buyers tend to dominate the pricing discussions, leaving little room for additional negotiations.

As both Indonesian supply and its influence in Asia increase, buyers might be able to strike better deals for their needs.

Correction: The ammonia price ranges for Western Europe and Black Sea on pg.

Vale assessing next steps for Kronau project

News Briefs

Kronau, Sask. — Vale Fertilizantes has announced that the detailed engineering survey for its Kronau potash project some 30 kilometers southeast of Regina, Sask., has now been concluded. According to Vale S.A.’s press office, the company currently is analysing the situation and assessing its next steps, which, it says, involve finding partners and raising funds for the project. Earlier this week, Canadian media reported Vale had suspended the project. According to The Canadian Press, quoting sources from the Brazilian group, Vale believes the recent feasibility study still shows "a compelling case" for a mine "someday," but market conditions make it difficult to finance the project "right now." The cost of the project, which ultimately would produce 3-4 million mt/y of potash for more than 40 years, has been put at $3.5 billion. Work on the project was last postponed in 2012 (GM Aug. 27, 2012).

Ruble depreciation boosts PhosAgro’s earnings

News Briefs

Moscow — PhosAgro reported a 144 percent rise in EBITDA, to RUB62.8 billion ($1.1 billion) on revenues of RUB142.3 billion for the nine months ending Sept. 30, 2015, up from RUB25.8 billion and RUB86.8 billion, respectively, for the same prior-year period. Net profit for the period increased fivefold, to RUB31.6 billion from RUB6.3 billion a year earlier. Ruble depreciation against the U.S. dollar supported the significant year-on-year growth in revenues and the group’s significantly higher financial result. Phosphate-based fertilizer and monocalcium phosphate (MCP) sales volumes in the nine-month period increased 15.8 percent year-on year, while Nitrogen volumes fell 6.2 percent (GM Nov. 2, p. 19). The Phosphate-based products segment saw gross profit increase 133 percent, to RUB72.5 billion on revenues of RUB125.8 billion from RUB 31.1 billion and RUB 74.2 billion, respectively, a year earlier. The group’s Nitrogen segment saw a 23 percent rise in gross profit, to RUB7.4 billion on revenues of RUB15.9 billion for the nine-months to Sept. 30, 2015, up from the prior year’s RUB6.0 billion and RUB12.0 billion, respectively. PhosAgro said its capital expenditure in the nine-months under review amounted to RUB 28.7 billion ($484 million), a 137 percent increase on the RUB12.1 billion spent in the same prior-year period. Most of the capex was focused on ore extraction capacity development at Apatit, construction of the new 760,000 mt/y ammonia plant at PhosAgro-Cherepovets, and building new storage facilities for liquid ammonia at Balakovo. PhosAgro said as a result of the marketing efforts at new sales offices, it intends to invest further into expanding the number of NPK and other fertilizer grades it produces. The group is in the process of launching new sales offices in São Paulo, Brazil; Zug, Switzerland; and Warsaw, Poland (GM Oct.19, p.16).

Chemtrade reports increased 3Q earnings

News Briefs

Toronto — Chemtrade Logistics Income Fund reported third-quarter net earnings of C$18.5 million ($0.09 per diluted unit) on sales of $364.4 million, up from the year-ago $11.8 million ($0.19 per unit) on sales of $314 million. Total comprehensive income, spurred on by positive foreign currency translations, was $81.2 million, up from the year-ago $61.6 million. Chemtrade said significantly higher volumes of regenerated sulfuric acid and ultra-pure acid more than offset some weakness experienced by a few other products. Fourth-quarter results are expected to see a typical seasonal slowdown, as well as a two-month turnaround at one of Chemtrade’s largest regen customers that occurs once every five years. Nine-month net earnings were $32.5 million ($0.37 per unit) on revenues of $1.03 billion, up from the year-ago $31.1 million ($0.53 per unit) and $890.1 million, respectively. Total comprehensive income was $160.3 million, up from the year-ago $66.2 million.

Koch, Eco Agro litigation to continue

News Briefs

Greensboro, N.C. — Koch Agronomics Services LLC and Eco Agro Resources LLC are continuing with their lawsuits against one another over patent, antitrust, and trade disputes concerning urease inhibitor products (GM Oct. 12, p. 14). The U.S. District Court of the Middle District of North Carolina earlier gave the two until Nov. 12 to mediate their differences. If not successfully mediated, Koch was to answer and reply to Eco Agro’s remaining counterclaims and affirmative defenses by Nov. 12. Koch made the filing Nov. 12, and a pretrial conference is now set for Dec. 17.

Ammonium Sulfate

Ammonium Sulfate, Eastern Cornbelt, Great Lakes, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate remained at $272-$280/st FOB in the Eastern Cornbelt, with delivered tons at $285-$290/st.

Honeywell has a $10/st increase slated for Nov. 21, with granular postings moving on that date to $290/st FOB Byron, Danville, and Granite City, Ill. Honeywell’s Nov. 21 mid-grade postings include $255/st FOB Danville and Granite City.

Ammonium thiosulfate was quoted at $325-$335/st FOB in the region.

Western Cornbelt: Granular ammonium sulfate was steady at $265-$280/st FOB in the region, with the low reported in the Missouri market. Honeywell’s postings were slated to firm on Nov. 21 to $290/st FOB Dubuque, Iowa, and $300/st FOB Sioux City, Iowa.

The ammonium thiosulfate market was quoted in a broad range at $295-$325/st FOB in the region, with the low confirmed in Iowa on a spot basis.

Northern Plains: The granular ammonium sulfate market had reportedly slipped to $265-$270/st FOB in the Northern Plains. Delivered ammonium sulfate was reported at $270-$275/st in the region for winter fill ton orders placed in November, with a $5/st increase slated for December.

Honeywell announced a $10/st ammonium sulfate pricing increase effective Nov. 21, with the posting FOB Roseport, Minn., moving on that date to $290/st FOB for granular and $255/st FOB for mid-grade ammonium sulfate.

The last bit of ammonium thiosulfate business was reported at $280-$285/st FOB in North Dakota, but sources reported no new business to test the market last week.

Great Lakes: Granular ammonium sulfate was quoted at $280-$285/st FOB in the Great Lakes region. Honeywell’s postings FOB Amherst Junction and Prairie du Chien, Wisc., will firm $10/st on Nov. 21, moving to $290/st FOB for granular ammonium sulfate.

The ammonium thiosulfate market was pegged at $325-$335/st FOB in the region, up $10-$15/st from October pricing levels.

Northeast: The granular ammonium sulfate market remained at $285-$295/st DEL and $270-$280/st FOB in the Northeast, with the upper end of the FOB range reported at East Liverpool.

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