Posts By Date - Green Markets

LSB, CVR Impacted by Turnarounds

Losses for both LSB Industries Inc., Oklahoma City, and CVR Partners LP, Sugar Land, Texas, grew during the second-quarter from year-ago levels, with both companies citing down time due to turnarounds. While the outages cut in volumes, fertilizer prices were up for both companies.

LSB, citing turnarounds at both El Dorado, Ark., and Pryor, Okla., reported a net loss of $27.5 million ($1.27 per basic and diluted share) on net sales of $103.2 million, compared to the year-ago loss of $7 million ($0.53 per share) and $122.8 million, respectively.

CVR outages were at both Coffeyville, Kan., and East Dubuque, Ill., and cut some 80,000 st for UAN from the sales sheet. CVR reported a net loss of $16.4 million ($0.15 per basic and diluted unit) on net sales of $93.2 million, compared to the year-ago loss of $3.5 million ($0.03 per unit) and $97.9 million, respectively.

MMTC Calls Urea Tender

July 25, 2018Breaking Industry News, UreaSteve Seay

The long-awaited Indian urea tender came today, July 25, when MMTC called for the purchase of prilled or granular urea to be shipped by Sept. 17. The tender will close Aug. 1.

The urea industry has been waiting for an Indian tender for more than a month. Prices jumped up in June on the heels of a possible call. Since then prices have moderated but have not dipped back to pre-June levels.

Earlier this month, industry sources stated the expected price in the offers to an Indian tender could be in the mid-$280s/mt CFR, a level about $20/mt higher than the previous tender.

Some concern has been raised in the past 2 months over the impact the re-imposition of U.S. sanctions against Iran could have on the ability of India to buy Iranian urea. To add to the concern, the State Bank of India said it would not cover purchases of Iranian oil. Urea industry sources said India and Iran have been working on ways to circumvent the sanctions. In the past, some offers of Iranian material were priced in UAE dirham instead of US dollars.

The tender documents include the standard text that offers of Iranian material can be made in dirhams. Sources expect to see at least 500,000 mt of urea from Iran offered in the tender.

The price in the Arab Gulf last week for prilled urea was pegged at $280/mt FOB. Iranian product was put in the low-$270s/mt FOB.