Deadly gas leak kills four workers at DuPont plant

LaPorte, Texas — Four workers at DuPont’s chemical plant in LaPorte, Texas, died on Nov. 15 after being exposed to a highly toxic gas leak from a valve on a container of methyl mercaptan that reportedly malfunctioned in the plant’s Crop Protection Unit. Another employee was hospitalized and later released. The U.S. Chemical Safety Board (CSB), which dispatched a seven-member investigation team to the plant, said the deaths occurred in an enclosed structure approximately 5 stories high that contained piping, valves, and other equipment. According to a Nov. 17 statement from DuPont, the leak began at approximately 4 a.m. and was subsequently contained, but no qualified medical personnel could enter the contaminated area until it was deemed safe because they were not trained in the use of personal protective equipment (PPE). “Our non-medically trained personnel who initially responded before 7 a.m. with the proper equipment reported the employees as non-responsive and likely fatalities,” DuPont said. “It was on that basis that the unit was barricaded for investigation just before 8 a.m. The incident scene was deemed safe to enter just before noon, and the fatalities were confirmed by the Medical Examiner around 1:30 p.m. We immediately began to inform families thereafter.” The four victims were identified as Crystle Rae Wise, Wade Baker, and brothers Gilbert and Robert Tisnado. The Harris County coroner determined that the deaths were accidental due to asphyxia with exposure to chemicals including methyl mercaptan, which DuPont said is a product commonly used to odorize natural gas for safety purposes. DuPont said it was working closely with local, state, and federal authorities as they investigate, and was conducting its own “top-to-bottom review” of the incident. “There are no words to fully express the loss we feel or the concern and sympathy we extend to the families of the four employees who died on November 15, and their co-workers,” DuPont said in the statement. “We continue to be directly engaged with the families to provide them every measure of support and assistance during this difficult time.” The 600-acre plant on Strang Road in LaPorte reportedly employs 800 workers.

Uralkali counters media reports

Uralkali today said in connection with the latest media reports, that the company is pointing out that one of the major tasks at the current stage of liquidation of the accident at Solikamsk-2 mine is the possibility of backfilling the worked out areas of the mine with halite waste. Currently, said Uralkali, there is no discussion of the launch of full or partial production in the mine.

“We are discussing with the Federal Service for Ecological, Technological and Nuclear Inspectorate (Rostechnadzor) the possibility to launch the western part of the underground mine complex in order to start the backfilling of areas, which can be considered potentially hazardous by specialists,” said Dmitry Osipov, Uralkali CEO.

Earlier media reports suggested that Uralkali was in discussions to restart production at half of the mine. The governor of the Perm region was also being quoted as saying there was now practically no inflow at the mine.

The Week in Fertilizer Stocks

The Week in Fertilizer Stocks

Producer Symbol Price Week Ago Year Ago
Agrium AGU 101.46 99.76 89.73
CF Industries CF 273.07 267.12 214.46
CVR Partners UAN 11.50 11.50 17.55
Intrepid Potash IPI 15.28 13.85 16.62
Mosaic MOS 47.23 45.40 47.31
PotashCorp POT 36.45 33.46 32.08
Rentech Nitrogen RNF 11.92 12.92 21.04
Terra Nitrogen TNH 127.89 138.99 157.01
Distribution/Retail
Andersons Inc. ANDE 57.01 54.12 79.28
Deere & Co. DE 85.37 87.46 84.52
Scotts SMG 60.40 60.33 58.39

Ammonia

U.S. Gulf/Tampa: The Tampa and Gulf markets were quiet last week. Sources expect the Tampa price to drop by an estimated $20-$30/mt CFR when new contracts are settled.

The arrival of cold weather across much of the nation pushed December NYMEX natural gas to close Nov. 20 at $4.489/mmBtu, up from Nov. 13’s $3.977/mmBtu.

Eastern Cornbelt: Regional sources continued to lament the dismal fall fertilizer season in the Eastern Cornbelt.

“Fertilizer applications have been at standstill since old man winter moved in,” said one Ohio source. “It has been a very disappointing fall application season so far that has just never materialized. I hope we still have a chance yet after the snow melts to get back at it, or it will put a lot pressure on spring to get everything done.”

The ammonia market was reported at $650-$660/st FOB regional terminals for spot tons, with the low end reported in Illinois. Sources reported “no takers” for spot tonnage, however, with many customers still reportedly pulling fall prepay.

Western Cornbelt: Sources continued to report minimal fall fertilizer work in the Western Cornbelt, with one Missouri contact summing up the fall season in just two words: “Pretty slow.”

The regional ammonia market was steady at $615-$625/st FOB Nebraska terminals, and 640-$650/st FOB in Iowa and Missouri, depending on location. Delivered ammonia in the Missouri market was reported at $640-$670/st from southern production points for the last business, depending on destination and point of origin.

Northern Plains: The early arrival of winter weather cut the fall ammonia season short in the Northern Plains. “Maybe half of the normal tons went down,” said one Dakota contact last week. “Spring will be tough, but with urea prices down, more guys may use dry. Also with corn being down, we may see more beans and then less nitrogen all around.”

Minnesota sources quoted the anhydrous ammonia market at the $630/st FOB level for fall tons. Delivered tons in North Dakota were pegged at the $660/st level for November/December fill, with reference prices quoted as high as $700/st DEL or FOB.

Eastern Canada: Sources reported a firming market for anhydrous ammonia in Eastern Canada. The dealer market was pegged at $830/mt FOB Courtright, Ont., up $15/mt from last report.

Middle East: Reportedly PIC sold 8,000 mt of ammonia to Mitsubishi for $620/mt FOB. Sources say this is a high price to pay for material that is most likely bound for the Far East.

India: Confusing ammonia numbers out of the region have some industry watchers scratching their heads. One report came out of a sale by Mitsui to FACT at $600/mt CFR. At the same time, sources say the landed price in India is closer to $660/mt CFR.

The higher number matches more with the latest reported deal out of PIC by Mitsubishi. One industry watcher suggested, however, that Mitsui may have secured a distressed cargo from Iran to secure the lower price.

The problem, say sources, is that both prices may be correct for their respective ports of entry.

Black Sea: The limited material available from Yuzhnyy has generated some mystery surrounding prices. Sources report that buyers have claimed paying $600/mt FOB and up. Others, however, point to business in Turkey that indicates sub-$600/mt FOB netbacks.

Settling the differences may take some time, said one trader.

Europe: Sources are reporting sellers with Baltic material but no place to sell it.

Long positions are not finding willing buyers, say sources. The lack of movement coul

Urea

U.S. Gulf: The granular barge range expanded in moderate trading last week. Transactions were quoted in a range of $303-$316/st FOB, shifting from $305-$315/st FOB in the last report. Sources blamed barge rates for hindering the market, with buyers holding off from purchases “until they absolutely have to,” a market player said.

Imported prills survived another week at $315-$330/mt FOB, though questions remained regarding the strength of the range’s upper end.

Eastern Cornbelt: The granular urea market had reportedly slipped to $345-$350/st FOB Cincinnati, Ohio, at the low end of the range. Sources continued to report the upper end of the regional range at $365-$370/st FOB on a spot basis, although there were no recent sales confirmed at that level.

Western Cornbelt:
Sources continued to quote the granular urea market in the $350-$370/st FOB range in the Western Cornbelt, with the low confirmed in St. Louis, Mo., and the upper end in Iowa. One southern Missouri contact pegged the common dealer market at the $360/st FOB level last week.

Northern Plains:
The granular urea market was quoted at $360-$365/st FOB the Twin Cities, up slightly from last report. North Dakota sources reported delivered urea in the $385-$390/st range for recent business, although sources said some suppliers were no longer offering fill tons at those levels last week.

“We are looking for it to continue up somewhat as the river closes, and positioning of tons will again become tighter on rail and trucking,” said one contact.

Northeast:
Granular urea remained at $370-$385/st FOB in the Northeast, with the upper end FOB Fairless, Penn. Urea inventories remained out at Savannah, Ga., but sources said incoming tons were expected to be priced at the $370/st FOB mark.

Eastern Canada: The granular urea market had reportedly slipped to $495/mt FOB Ontario terminals, down some $45/mt from early October pricing levels.

Pakistan: The TCP tenders closed with a bit of drama. Dreymoor made a strong effort to take all four of the tenders. At first it looked as if the company would only get two of the four. Samsung nailed the third tender and a Hong Kong company new to the fertilizer trade, Dan Moody Investments, had the lowest price in the fourth tender.

In the end, however, Dreymoor took three of the tenders when the Dan Moody offer of $312.22/mt CFR was ruled ineligible.

Sources say the Dan Moody offer was bounced because it was not a pre-registered company with TCP for fertilizer trade. All TCP would say publically was that the offer was non-responsive because its paperwork did not meet all the terms of the tender documents.

Once the Hong Kong company was dropped, second-place Dreymoor won the award with an offer of $316.79/mt CFR. The Dreymoor offer was more in line with the trend shown in the previous tenders. While there was a steady decline in prices in each tender, no one could have expected to see a $5/mt drop. The final spread among the four tenders was just under $2/mt.

The final awards give Dreymoor 180,000 mt, and Samsung 105,000 mt. Loading has to be completed within two weeks.

Sources say the way Dreymoor went after the tenders indicated to them that Dreymoor had a number of tons already committed from producers in China, but no place to send them.

The low-ball number submitted by Dan Moody had some traders speculating that it might have been a stalking horse for another trading house to drive off other competitors. Others in the business said such speculation was more a product of imaginati

Nitrogen Solutions

U.S. Gulf: A flurry of activity was reported for the week, with confirmed NOLA trades described in the $233-$245/st ($7.28-$7.66/unit) FOB range. A large quantity of product was reported to have moved at the $238-$240/st FOB range.

The East Coast vessel price was constant at $265-$268/mt CFR.

Eastern Cornbelt: UAN-28 was quoted at $249-$255/st ($8.89-$9.11/unit) FOB Cincinnati for prompt pull, with spring prepay pegged at $260-$262/st ($9.29-$9.36/unit) FOB at that location. Illinois sources quoted similar pricing for UAN-32, with prompt tons tagged at $281-$290/st ($8.78-$9.06/unit) FOB and prepay at $290-$300/st ($9.06-$9.38/unit) FOB.

Western Cornbelt: The UAN-32 market remained at $280-$295/st ($8.75-$9.22/unit) FOB in the Western Cornbelt, depending on location, with the low reported in southern Missouri and the upper end in Iowa.

Northern Plains: The UAN-28 market was pegged at $280-$285/st ($10.00-$10.18/unit) FOB in the Northern Plains, also up slightly from last report, with the low reported in the Twin Cities and the upper end FOB Harvey, N.D., for spring prepay tons.

Northeast: The UAN-32 market was reported at $255/st ($7.97/unit) FOB Baltimore, Md. UAN-32 pricing out of terminals in upstate New York remained at the $296/st ($9.25/unit) FOB level in mid-November.

Eastern Canada: UAN-28 remained at $320-$340/mt ($11.43-$12.14/unit) FOB in Eastern Canada, depending on location.

Ammonium Sulfate

Eastern Cornbelt: Granular ammonium sulfate remained at $290-$300/st FOB and $295-$305/st rail-DEL in the Eastern Cornbelt.

Ammonium thiosulfate was quoted at $310-$330/st FOB in the region, depending on location.

Western Cornbelt: Granular ammonium sulfate remained at $280-$300/st FOB in the Western Cornbelt, with the low in southern Missouri and the upper end in Iowa. Rail-delivered ammonium sulfate was unchanged at $295-$305/st in the region.

The ammonium thiosulfate market was pegged at $300-$315/st FOB in the region.

Northern Plains: The granular ammonium sulfate market was reported at $290/st FOB the Twin Cities. North Dakota sources quoted the market from one regional supplier at the $300/st level for winter fill tons pulled between Dec. 20 and Feb. 28.

No current prices were reported for ammonium thiosulfate in the region.

Northeast: Granular ammonium sulfate was unchanged at $295-$305/st DEL in the Northeast. Sources pegged the Hopewell, Va., granular market at $270/st FOB after netbacks.

Eastern Canada: Granular ammonium sulfate pricing was steady at $374-$390/mt FOB in Eastern Canada.

The ammonium thiosulfate market was pegged at the $470/mt FOB level in Ontario at mid-month.

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