Moscow-Uralkali reported last week that on March 18 the Perm Territory Arbitrage (Commercial) Court partially lifted the injunction imposed in connection with claims brought Feb. 24 by OJSC Acron, Licona International Ltd., ROF (Cyprus) Ltd., and Medvezhonok Holdings Ltd. against OJSC Silvinit and Uralkali. They are seeking to invalidate decisions approved by the Silvinit shareholders meeting Feb. 4 and the merger agreement entered into between Uralkali and Silvinit. Uralkali said the court has lifted the injunction prohibiting Silvinit and its bodies from implementing the decision on the reorganization of Silvinit in the form of the merger with Uralkali approved by Silvinit shareholders. The court has also rejected the injunction prohibiting the implementation of the merger agreement and the registration of termination of Silvinit through entries into the unified state register of legal entities upon completion of the merger. The only measure remaining in force by the court relates to the prohibition on the Federal Service for Financial Markets (FSFM) from registering the Uralkali share issuance and report on results of share issuance to be placed as a result of the conversion of Silvinit shares into Uralkali shares upon completion of the merger in accordance with the merger agreement. The preliminary hearing on the merits of the claim is scheduled for April 12. Uralkali and Silvinit believe that the injunction and the claim are entirely without merit and intend to contest them vigorously in order to complete the merger, pursuant to the previously announced timetable and in accordance with the terms announced and subsequently voted on by the overwhelming majority of shareholders of both companies.
U.S. Gulf/Tampa:Players began negotiations for Tampa business last week; however, nothing new was reported at press time.
Eastern Cornbelt:Anhydrous ammonia pricing remained in the $665-$685/st range FOB regional terminals depending on location and time of delivery, with the low quoted in Illinois and the upper end in the Indiana market.
Western Cornbelt:Ammonia pricing remained in the $640-$660/st range FOB regional terminals, with delivered tons from southern production points tagged at $670-$680/st in the Missouri market.
California:Effective March 9, Calamco’s postings in the California market firmed to $690/st truck-DEL for anhydrous ammonia and $185/st FOB for aqua ammonia. Those levels reflect a $30/st increase from the previous level for anhydrous, and an $8/st increase for aqua.
Agrium also announced pricing increases for ammonia. Effective March 11, the company’s reference prices for anhydrous ammonia moved to $685/st truck-DEL in central California and $690/st truck-DEL in northern California. Agrium’s aqua ammonia posting moved on March 11 to $185/st FOB in California.
Pacific Northwest:Anhydrous ammonia pricing was unchanged at $675-$720/st DEL in the Pacific Northwest region, with the low for railed tons and the upper end for truck-delivered material.
Western Canada:Anhydrous ammonia pricing to the dealer was steady at $817-$825/mt DEL in Manitoba, $825-$834/mt DEL in Saskatchewan, and $834-$861/mt DEL in Alberta. Dealer postings were in the $827-$871/mt DEL range in the region.
UREA
U.S. Gulf: Most last week put new NOLA prompt granular business at $330-$338/st FOB. Sources said barges sitting at NOLA are simply not worth that much for those upriver who are seeing some movement and/or are restocking positions. Instead, they said well-positioned barges upriver are garnering a premium, which would net back to NOLA at much higher levels i.e., $350-$362/st FOB.
Some sellers blamed the fall-off in pricing in the past few weeks to unnecessary panic by some of their brethren. They remain hopeful that once demand takes off, prices might again see a rebound. There was speculation last week that a large quantity of barges may be sold at the lower numbers, and that this would help put a floor under pricing. Others, however, note that imports continue to come to NOLA.
Speaking of imports, Yara’s last import of Libyan prills has been stuck in limbo as it sailed from Libya prior to new sanctions by the U.S. government. Now that sanctions are in place, the government has been trying to decide how the approximately 20,000 tons will be handled. The company confirmed last week that it has been cleared to unload the vessel into barges. However, it expects to wait 30 days prior to shipping them as the matter is still under government review and is not final. In the meantime, the company is eyeing Qatari prills as a substitute for serving the feed-grade market, but getting FDA approval for those is still an issue.
The Libyan situation has crimped prill supplies at NOLA, as well as the matter of gauging new trades. Prills had been trading at a premium to granular before the recent fall-off in granular pricing. However, with the tightness of prills right now new indicators are hard to find, with most expecting any premium to remain in place, if not increase due to the short supply.
Eastern Cornbelt:Lower urea prices were reported in the region last week, fueled by a weakening barge market at the U.S. Gulf. Sources pegged the dealer market for granular urea in the $390-$405/st FOB range in the region, down considerably from last report.
Washington-Farmers are getting a pat on the back from the U.S. Department of Agriculture for conservation efforts that are reducing nutrients from cropland runoff into the Chesapeake Bay watershed by sizeable margins. A study released earlier this month titled Assessment of Conservation Practices on Cultivated Cropland in the Chesapeake Bay Region quantifies these environmental gains and identifies opportunities for further progress. “Agriculture plays an important role in protecting water quality and maintaining economic stability in this watershed,” said Dave White, chief of the USDA Natural Resources Conservation Service. “This study confirms that farmers are reducing sediment and nutrient losses from their fields. Our voluntary, incentives-based conservation approach is delivering significant and proven results. This study will help us improve our conservation practices in the Chesapeake Bay area.” The study also shows that there are opportunities for further reductions of sediment and nutrient losses from agriculture by focusing conservation activities on the most vulnerable acres. Well-managed farmland is considered among the best land uses for sustaining natural resources in the watershed. Conserving working lands will be instrumental in meeting objectives for a healthy Chesapeake Bay. The study shows that the most significant conservation concern on cultivated cropland in the watershed is the loss of nitrogen by leaching and overland flow. Suites of conservation practices that include soil erosion and comprehensive nutrient management are required to address soil erosion and nutrient losses simultaneously.
Toronto-IC Potash Inc. on March 21 announced successful metallurgical testing results from Hazen Laboratories Inc. These tests concluded liquor concentrations averaging 10.4 grams of sulfate of potash (SOP) per 100 grams of water, with recovery rates of up to 91 percent SOP, can be produced. The Hazen leaching procedures produced SOP concentrations consistent with previous work carried out by the U.S. Bureau of Mines during the 1930s and pilot studies by Potash Corp. of America during the 1950s. “These results are very encouraging as they confirm the work done by the Bureau of Mines, which forms the basis of our processes,” said Randy Foote, ICP chief operating officer. “These recent findings also closely match earlier results on the first metallurgical tests performed. This indicates that the processes are simple, predictable, and robust.” “It is our expectation that further detailed testing will continue to confirm historical work,” said Sidney Himmel, ICP president and CEO. “These independent results are in line with management expectations, and represent a major milestone for our company.” ICP intends to become a primary producer of SOP by mining its 100-percent-owned potash Ochoa property in New Mexico. ICP’s Ochoa property consists of over 100,000 acres of federal subsurface potassium prospecting permits and State of New Mexico potassium mining leases.
Los Angeles-Rentech Inc., which owns Illinois nitrogen producer Rentech Energy Midwest Corp., said March 23 that it has reached agreements to settle all of the class action lawsuits pending in federal court and all of the shareholder derivative lawsuits pending in state and federal courts against the company and a number of its current and former directors and officers. The lawsuits (GM Jan. 11, 2010) relate to the company’s restatement in December 2009 (GM Dec. 21, 2009) of certain of its financial statements for fiscal year 2008 and the first three quarters of fiscal year 2009. The company believes that it is in the best interests of its stockholders to settle the matters at a reasonable cost to avoid potentially protracted and expensive litigation. The company and the individual defendants have denied any liability or wrongdoing in connection with the allegations contained in these lawsuits. The settlement for the consolidated class action lawsuits pending in United States District Court for the Central District of California (In re Rentech Securities Litigation, Lead Case No. 2:09-cv-09495-GHK-PJW) provides for a settlement fund of $1.8 million, from which plaintiffs’ counsel will seek an award of attorney’s fees and expenses. The settlements for the consolidated shareholder derivative lawsuits pending in that same court (In re Rentech Derivative Litigation, Lead Case No. 2:10-cv-0485-GHK-PJW) and in the Superior Court of the State of California for the County of Los Angeles (Andrew L. Tarr v. Dennis L. Yakobson, et al., LASC Master File No. BC430553) provide that the company will adopt certain governance practices, and pay (or cause its insurance carrier to pay) plaintiffs’ attorney’s fees and expenses of up to $300,000. The company expects that over 90 percent of the aggregate securities class action and shareholder derivative settlement payments will be covered by its insurance carriers. The settlements are subject to court approval and certain other conditions, including notice to the company’s stockholders.
Pittsburgh-A 295-foot barge moored along the Ohio River near here with an estimated 2,700 tons of anhydrous ammonia got tangled up and emerged without incident when two empty barges broke loose from a tug earlier this month. “The two barges broke away and ours got bumped into. Other than that there wasn’t much to it,” is all that Steve Butts, vice president, sales, with Kirby Inland Marine, would say about the incident that occurred in the mid-afternoon March 16. But Commander Richard Timme, who heads the Coast Guard marine safety unit based in Pittsburgh, did confirm that there was superficial damage to a tool shed on the Kirby barge. He said another barge, belonging to Consol Energy, took 24 hours to refloat after being shoved down the river, stopping just short of a main bridge support and running aground on a sandbar. “(But) there was no pollution and no injuries, and release of the anhydrous ammonia was never a concern,” Timme summed up.
Princeton, Ky.-The risk of a fire – or even worse – existed all the while granular ammonium nitrate and ANFO were being scooped up and removed after being spilled from an overturned semi last Monday (March 21) on Kentucky 91 three or four miles north of Princeton. “Our concern was that there were blasting caps also aboard the truck that could have ignited and detonated the whole 20,000 pounds aboard the truck,” Princeton Fire Chief Brent Francis advised Green Markets. “Just as a precaution we moved seven families living near the scene out of the area while the cleanup continued. Everyone knew a fire would have immediately involved the product and no one recommends fighting a fire involving a blasting agent. We would have to have allowed it to burn itself out. Everybody would have had to withdraw and let it burn itself out. Fortunately it didn’t happen.” The truck was traveling north on rural Ky. 91, one of the main highways in Caldwell County, hauling 14,000 pounds of ammonium nitrate, about 7,000 pounds of ANFO, and an undetermined number of blasting caps for Memsco Mine Equipment and Milling Supply of Dawson Springs, Ky. When the rig dropped off the shoulder, the driver overcorrected and landed in the southbound lane, where he overcorrected again. The load shifted and overturned the truck, which emptied about half of the load. Francis said Kentucky EPA handled the cleanup by mixing the ammonium nitrate and ANFO with dirt and scooping it up and loading it aboard a dump truck with a forklift. The driver was transported to Caldwell County Hospital for treatment of minor injuries. The highway was reopened after about six hours by the Kentucky Transportation Cabinet.
Louisville, Ky.-Louisville emergency response said JBS Swift plant personnel did everything right after detecting an anhydrous ammonia release at their plant here last Wednesday afternoon (March 23). “They did everything that they should have done,” reported Jim Bottom, ER technological hazards coordinator. Bottom wasn’t certain how much leaked from the system, but described the problem as a mechanical failure when readings exceeded safe levels. Fire officials told the local press that the leak didn’t appear to be coming from a rupture, but could have been caused by a compressor failure. They said although the vapors were contained inside the plant, the decision was to have businesses and school students within a quarter of a mile shelter-in-place. Between 800 and 1,000 workers were evacuated for a couple of hours. One plant worker was taken to the hospital after becoming nauseated and vomiting, but he didn’t work in the portion of the plant where the leak occurred. “The incident occurred on fairly new equipment,” Bottom explained. “It was not like antiquated equipment built to current standards.”
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.
