Lima, Ohio — PCS Nitrogen has announced a seven-week planned shutdown for its Lima, Ohio, facility, beginning Aug. 21, that will complete major upgrades at the facility. The company says the project will be one of the most comprehensive in the history of the Lima operation. The expansion will add 100,000 mt/y of ammonia capacity and 73,000 mt/y of urea. The added ammonia is targeted toward the Aurora, N.C., phosphate facility, which uses ammonia as an input. It is also expected to make the facility more flexible in meeting market demand for other products, such as diesel exhaust fluid. The company has invested over $350 million dollars in capital and maintenance spending over the past two years, with this outage being the second of two planned outages. During the shutdown period the company estimates approximately 1,200 additional contract personnel will be on site to assist in completing the capital projects and maintenance activities. The company told local residents to expect elevated noise levels during both the shutdown and startup, which is expected in early October. Increased traffic is also expected. Current capacity is put at 600,000 mt/y ammonia, 300,000 mt/y urea, and 900,000 mt/y UAN and other products.
The owners of United Suppliers, Inc., Ames, Iowa, and members of Land O’Lakes Inc., Arden Hills, Minn., have overwhelmingly approved the merger of United Suppliers with Land O’Lakes’ crop inputs business (GM July 6, p. 1). The two say the merger will build on the recent successes of the two companies and aims to create a single, relevant and competitive system of independent agricultural retailers.
"This merger will allow us to continue to meet our customers’ needs through each company’s successful go-to-market strategy while providing for the size and scale to compete in an environment of consolidating suppliers and competitors," said Chris Policinski, president and CEO of Land O’Lakes, Inc. "We are excited to bring our WinField business and United Suppliers together and expect our members, owners and customers will benefit greatly from this merger."
Under the merger, United Suppliers will join with Land O’Lakes, Inc.’s crop inputs business. The first step of the merger will be to combine the two companies’ seed and crop protection businesses under Winfield US, LLC, and a second step will merge the crop nutrient business.
Customers are expected to benefit from expanded product offerings, enhanced precision agriculture services, tools and technologies, improved product insights, consulting services and more.
"Both organizations exist to increase our customers’ capabilities and competitiveness. By coming together, we are true to our shared purpose, and we also preserve our different approaches to best serve a wide variety of customer needs," said Brad Oelmann, president and CEO of United Suppliers. "Together, we are positioned to protect and build the future of independent agricultural operations in an environment of consolidation."
In 2014, WinField had $4.9B in seed and crop protection product sales and United Suppliers had $2.6B in crop protection, seed and crop nutrient sales. Closing is anticipated in October 2015.
The merger of the United and Land O’Lakes crop nutrient businesses will have a delayed close until either the termination of an existing non-compete agreement or September 2017, whatever comes sooner, Green Markets was told earlier by Land O’Lakes/United sources. Industry sources tell Green Markets the agreement in question is one between Land O’Lakes and CHS Inc. The two were once partners in the disbanded Agriliance LLC.
Minsk, Belarus — First production from a new potash mine under development in Belarus is anticipated in 2020, according to its main promoter, Russian billionaire Mikhail Gutseriev. The new ore mining and processing enterprise is to be built on the Nezhinsky section of the Staroinskoye potash salts deposit in the Minsk region, Eastern Belarus. Initial output is put at 1.1 million mt/y, ultimately rising to 1.8-2.0 million mt/y, according to Belta, the Belarus national news service. Gutseriev controls the Minsk-based Slavkaliy Co., which was established in 2011 by U.K.-registered GCM Global Energy plc to develop the new potash mining operation. Gutseriev is understood to be a major shareholder in the London-based oil and exploration services company. He is also the largest shareholder in Russian oil producer OAO RussNeft. Slavkaliy, together with the Belarusian Finance Ministry and Belarusbank, signed a Memorandum of Understanding (MOU) with China Development Bank in May to borrow up to $1.4 billion to build the mine and processing plant. According to Belta, the money will be borrowed against guarantees of the Belarus government. Gutseriev’s B&N Bank is reported to be investing about $250 million in the potash project, the total cost of which is put at some $1.5 billion. According to news reports quoting Gutseriev in an interview earlier this month, China is guaranteeing the purchase of the entire output from the planned potash operation until at least the investments are recouped, which Gutseriev believes will be probably by 2029. Belarus Potash Co. (BPC) is expected to handle the potash exports. Preparatory work on the project has been underway since 2012. In addition to the mine and processing plant, the project includes the construction of a gas turbine power plant, a gas pipeline from Soligorsk GDS, and the refurbishment of part of the Urechye passenger railway station at Luban to handle the potash from the new mining site.
U.S. Gulf/Tampa: Nothing new was reported last week at Tampa or NOLA. Tampa speculation seems to be that September prices could roll over from August or see a slight drop.
However, others point out that increased gas curtailments in Trinidad in September could tighten availability.
The September NYMEX natural gas price closed Aug. 20 at $2.755, down slightly from Aug. 13’s $2.787/mmBtu.
Eastern Cornbelt: The ammonia market in the Eastern Cornbelt was steady at $545-$565/st FOB, with the low in Illinois and the upper end out of Indiana terminals.
Western Cornbelt: The anhydrous ammonia market remained at $505-$545/st FOB in the Western Cornbelt, with the low quoted in Nebraska and the upper end for fall prepay in Iowa and Missouri. Delivered ammonia was reported at $540-$550/st in the region from southern production points.
California: The anhydrous ammonia market remained at $620/st DEL in California, with aqua ammonia referenced at the $170/st FOB level.
Pacific Northwest: Fertilizer activity has slowed to a snail’s pace in the Pacific Northwest, as one source put it, noting that the slowdown was typical for August sales. “The hot, dry weather will have a negative impact on our fall season, but how much is the question,” he added. “I just know it is bad news for fall.”
Anhydrous ammonia was quoted at $575-$600/st DEL in the Pacific Northwest, down another $10/st from last report, with the low for rail and the upper end for truck-DEL tons.
Aqua ammonia pricing remained at the $154/st FOB level in the region.
Western Canada: The anhydrous ammonia market remained at $740-$760/mt DEL in Western Canada last week.
Sources reported little activity on the fertilizer front. “Sales have been moderate but there is still not a lot of farmer buying going on,” said one regional contact. “It is mostly retailers that are stepping in. Until we see farmers buying, we are expecting sales to be slow.”
Saudi Arabia: Ma’aden Phosphate Co. will shut down its ammonia plant Aug. 21 at Ras Al Khair to carry out technical repairs in the heat exchanger. The plant is expected to be down for around 14 days. The company said DAP customers will not be impacted as that plant will continue producing using ammonia inventories.
U.S. Gulf: Some sources said the market was very quiet last week, though there was enough business to reflect softer prices. Granular barges were put in the $278-$284/st FOB range.
While prompt prills continued to be called $300-$308/st FOB, sources agreed that a good bit of product is due into NOLA in September, with those price ideas in the $275-$285/st FOB range.
Eastern Cornbelt: Granular urea remained at $335-$355/st FOB regional terminals in the Eastern Cornbelt, depending on location, with the low reported in the Cincinnati, Ohio, market and at other river locations in the region.
Western Cornbelt: The granular urea market remained at $335-$345/st FOB in the Western Cornbelt for available tons, depending on location.
California: Granular urea was steady at $370-$380/st FOB port terminals in California.
Pacific Northwest: Granular urea was steady at $355-$365/st FOB port terminals in the Pacific Northwest, with railed tons quoted in the upper-$300s/st DEL for the last business in the region.
Western Canada: The granular urea market was quoted at $500-$510/mt DEL in Western Canada, with the low end of the range up slightly from last report.
Pakistan: The Trading Corp. of Pakistan (TCP) closed three tenders of 50,000 mt each last week. Prices showed an increase compared to the India tender of last month, but then started to slide with each successive tender.
The first two tenders that closed Aug. 17 and 18 were awarded to Ameropa at $294.71/mt CFR and $293.96/mt CFR. Dreymoor then stopped the Ameropa hat-trick with a low offer of $291.89/mt CFR.
The prices reflect a netback to China in the low- to mid-$270s/mt FOB for prilled urea.
The tally for the three tenders follows:
TCP TENDER FOR 50,000 MT UREA OPENED ON 17.08.2015
U.S. Gulf: Nothing new was reported in the NOLA barge market, with prices remaining at $199-$205/st ($6.22-$6.41/unit) FOB.
East Coast vessels were being quoted at $223-$225/mt CFR, with buyers eyeing $220/mt for the next round of business. Eastern Cornbelt: UAN-28 was unchanged at $225-$245/st ($8.04-$8.75/unit) FOB in the Eastern Cornbelt, with the low reported in Cincinnati and the upper end out of spot Indiana terminals. The UAN-32 market out of Illinois terminals was steady at $256-$270/st ($8.00-$8.44/unit) FOB at mid-month.
Western Cornbelt: UAN-32 was steady at $260-$280/st ($8.13-$8.75/unit) FOB in the Western Cornbelt, depending on location and time of delivery.
California: The UAN-32 market was quoted in a broad range at $265-$285/st ($8.28-$8.91/unit) FOB import terminals in California, while dealer pricing out of inland desert locations was reported at the $300/st ($9.38/unit) FOB level or higher.
Pacific Northwest: The UAN-32 market was pegged at $291-$296/st ($9.09-$9.25/unit) DEL in the Pacific Northwest, down just slightly from last report, with the low for rail and the upper end for truck-DEL material. IRM was referenced at the $295/st ($9.22/unit) truck-DEL level into eastern Oregon and Washington.
Western Canada: UAN-28 was reported at $320-$330/mt ($11.43-$11.76/unit) DEL in Western Canada, with the low end of the range up $5/mt from last report.
U.S. Gulf: The ammonium nitrate market remained at $255-$260/st FOB, with no business.
Western Cornbelt: Ammonium nitrate was unchanged at $305-$340/st FOB in the Western Cornbelt, with the low reported in the Iowa market on a spot basis.
California: CAN-17 had reportedly slipped to $307-$317/st FOB port terminals in California and $327-$332/st FOB inland, down roughly $10-$20/st from last report, depending on location.
AN-20 was unchanged at $310-$320/st DEL in the state.
Pacific Northwest: CAN-17 remained at $300/st FOB Kennewick, Wash., and $325/st rail-DEL in the Pacific Northwest. AN-20 was unchanged as well at $260/st FOB Kennewick and $270/st rail-DEL in the region.
China: New reports out of Tianjin say about 200 mt of ammonium nitrate was stored in or near the warehouse that exploded on Aug. 12. International sources are concerned that this latest incident may accelerate a gradual walk-away from the product.
India: The Indian government is stepping up its monitoring of ammonium nitrate. A new report to the government showed that theft and improper storage of the product in the east is a growing problem.
The report shows that much of the pilferage takes place in eastern India, where product is illegally stored in warehouse facilities. The government has tied some of the stolen ammonium nitrate to illegal mining operations and terrorist activities in the country. Some has also been smuggled into Bangladesh.
The news that ammonium nitrate may have played a role in the massive explosion in China has also prompted a closer look by Indian authorities at the handling, storage, and tracking of the product.
Eastern Cornbelt: The granular ammonium sulfate market was steady at $280-$290/st FOB in the Eastern Cornbelt, with rail-DEL tons reported at $285-$300/st in the region.
Ammonium thiosulfate was unchanged at $330-$340/st FOB at mid-month.
Western Cornbelt: Granular ammonium sulfate was steady at $280-$300/st FOB in the Western Cornbelt, with the low reported in Iowa and the upper end in Missouri.
The ammonium thiosulfate market remained at $325-$330/st FOB in the region.
California: The ammonium sulfate market was unchanged at $270-$325/st FOB in California, depending on grade, location, and supplier, with the low for standard grade and the upper end reflecting Simplot’s posting FOB El Centro. Pricing out of Lathrop was quoted in the $285-$290/st FOB range.
Ammonium thiosulfate remained at $275-$300/st FOB in the state, with the low quoted for 11-0-0-24 FOB Stockton.
Pacific Northwest: Sources quoted the ammonium sulfate market in a broad range at $275-$310/st FOB in the Pacific Northwest, with the low reported for “poor quality port material” and the upper end reflecting recent postings for granular and/or premium grade product. Delivered tons were quoted in the $304-$320/st range in the region.
Effective July 31, IRM’s postings for Tranzform and Western Premium ammonium sulfate moved to $310/st FOB and $320/st DEL in Oregon, Washington, Idaho, and Montana, while standard moved to $228/st FOB and $238/st DEL in the region.
Ammonium thiosulfate was quoted at $320-$325/st FOB in the region.
Western Canada: The granular ammonium sulfate market was steady at $400-$410/mt DEL in Western Canada.
Central Florida: Market players continued to quote Central Florida DAP trucks at $430/st FOB, with MAP listed at a $20/st FOB premium.
U.S. Gulf: NOLA barge prices held firm last week despite continued low trading volume, sources said.
Prompt domestic DAP barges commanded $434-$435/st FOB for the week, while imported DAP strengthened to a range of $430-$432/st FOB. Domestic MAP was generally called $440-$445/st FOB, with imported material quoted as low as $437/st FOB.
Lower grain prices continued to act as a primary drag on total barge transactions, sources said. Grain futures tumbled following the devaluation of the Chinese yuan and the release of a USDA report (GM Aug. 17, p. 14) that raised grain harvest estimates.
Short-term supply tightness has supported prices, however. With no imports expected at NOLA until September, prompt and full-August barges have maintained strength, sources said.
Full-September DAP paper was quoted in a range of $430-$432/st FOB. October paper swaps were described in the low $420s/st FOB, and a combined October and November-loading DAP offer was said to carry a $416/st FOB price tag, but only if both months’ barges were bought.
Observers described a number of import vessels due in September, including a second-half cargo said to be of Chinese origin, and a vessel of OCP material speculated for early- or mid-month arrival. A vessel reportedly containing Mexican MAP – possibly bound for mid-September NOLA discharge – could end up being redirected to Brazil or another Latin American market instead, one source said.
The NOLA DAP market was unchanged at $434-$435/st FOB for domestic material. MAP was also steady at $440-$445/st FOB.
Eastern Cornbelt: DAP was quoted in a broad range at $465-$485/st FOB in the Eastern Cornbelt, with the low at Cincinnati and the upper end out of inland warehouses. MAP was $5-$10/st higher than DAP, depending on location.
10-34-0 remained at $520-$525/st FOB in the region.
Western Cornbelt: DAP was quoted at $465-$475/st FOB in the Western Cornbelt, with MAP roughly $10/st higher.
10-34-0 remained at $525-$535/st FOB in the region.
California: MAP remained at $555-$560/st FOB or rail-DEL in California, with 16-20-0 unchanged at $408-$415/st rail-DEL or FOB in the state. TSP (0-45-0) was steady as well at $520/st FOB French Camp.
Phosphoric acid remained at August pricing levels of $10.10/unit rail-DEL in California for both SPA and MGA, with Simplot also referenced at the $10.30/unit FOB level for MGA at Lathrop and El Centro.
10-34-0 was steady at $469-$474/st FOB, with 11-37-0 remaining at $508-$513/st FOB El Centro.
Pacific Northwest: The MAP market was steady at $550-$555/st FOB in the Pacific Northwest, with rail-DEL tons quoted in broader range at $535-$555/st in the region, depending on location and supplier. Sources said shipments were being completed before Aug. 31 on fill tons ordered in early July.
16-20-0 pricing remained at $415-$420/st rail-DEL in the Pacific Northwest, with TSP (0-45-0) steady as well at $520/st FOB Pocatello, Idaho.
Phos acid was unchanged at August pricing levels of $9.60/unit FOB Pocatello and $10.10/unit rail-DEL for both SPA and MGA in the region.
The 10-34-0 market remained at $449-$454/st FOB in the Pacific Northwest, and 11-37-0 pricing was steady at $488-$493/st FOB Hedges, Wash.
Western Canada: MAP was pegged at $760-$780/mt DEL in Western Canada, up $20/mt from late July pricing levels.
The 10-34-0 market remained at $630-$680/mt DEL in the region.
U.S. Gulf: The NOLA potash market continued to be quoted at $305/st FOB, with little interest. Players continued to speculate that lower numbers could be done should buyers step forward.
Eastern Cornbelt: Potash pricing was commonly quoted in the $345-$355/st FOB range out of regional warehouses in the Eastern Cornbelt.
Western Cornbelt: The potash market was steady at $345-$355/st FOB warehouses in the Western Cornbelt, depending on grade and location.
California: The California potash market was unchanged at $472-$480/st FOB warehouses, with rail-delivered potash pegged at $485-$495/st in the state, depending on grade and location.
Crystalline potassium nitrate remained at $950/st FOB for bulk and $1,020/st FOB for bags.
Sulfate of potash (SOP) was steady at $722-$735/st FOB in California.
Pacific Northwest: Potash remained at $410-$420/st FOB in the Pacific Northwest, depending on grade and location, with rail-delivered tons quoted at $415-$425/st. The potash market FOB Utah mines was unchanged at $370/st FOB for 60 percent standard and $375/st FOB for 60 percent granular.
The sulfate of potash (SOP) market was steady at $727-$737/st FOB in the region.
SOP Magnesia remained at $481-$505/st FOB in the Pacific Northwest.
Western Canada: Potash was steady at $470-$480/mt FOB inland warehouses in Western Canada, with the Saskatchewan mine price quoted at $445-$450/mt FOB to Canadian customers.
Brazil: Sources report a further slippage in granular potash prices this week amid low buying interest and a continuing deterioration of the real against the U.S. dollar. There are reports that prices may have slipped south of $310/mt CFR, although no deals could be confirmed at this level.
Southeast Asia: Deteriorating currency values against the U.S. dollar remain a major issue for importers and buyers.
In contrast to the import inactivity elsewhere in the region, Vietnam will see the delivery of two cargoes of 25,000-30,000 mt from Uralkali, which are reported to include a mix of standard and granular material. A similar-sized cargo is also en route from Belarus Potash Co. (BPC) for August delivery. The standard tons were reportedly priced at $325-$330/mt CFR.
Southeast Asia prices remain unchanged at $305-$330/mt CFR for standard and $325-$340/mt CFR for granular.
Disclaimer of Warranty
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.
