Doha — As the final numbers were being tallied, attendance at the International Fertilizer Industry Association’s (IFA) 80th Annual Conference May 21-23 in Doha was expected to be close to that of the 2011 conference in Montreal, which topped the 1,100 mark. On the final list of participants some 30 Indian attendees were listed as having cancelled, with over 60 initially signing up. Sources noted that some key Indian players were in attendance – not only those that are directly involved with IFA committees, but also market players, such as potash buyers, for example. Host company Qatar Fertiliser Co. (QAFCO) and minority partner Yara International ASA provided attendees with the kind of lavish hospitality IFA attendees have come to expect, topped off by a fantastic gala during the closing ceremonies. In the meantime, well-attended sessions provided preliminary short, medium, and long-term forecasts.
Spot Barge Prices
st/FOB U.S. Gulf
| Ammonia |
430-435 |
| Urea (g) |
600-650 |
| Urea (p) |
600 |
| DAP |
480-495 |
The Week in Fertilizer Stocks
| Producer |
Symbol |
Price |
Week Ago |
Year Ago |
| Agrium |
AGU |
80.71 |
77.18 |
81.31 |
| CF Industries |
CF |
168.08 |
154.25 |
146.55 |
| CVR Partners |
UAN |
21.52 |
21.93 |
16.82 |
| Intrepid Potash |
IPI |
19.69 |
19.14 |
30.45 |
| Mosaic |
MOS |
48.74 |
45.68 |
67.26 |
| PotashCorp* |
POT |
40.20 |
38.91 |
52.97 |
| Rentech Nitrogen |
RNF |
23.40 |
23.39 |
N/A |
| Terra Nitrogen |
TNH |
201.35 |
182.06 |
110.25 |
| Distribution/Retail |
| Andersons Inc. |
ANDE |
44.45 |
45.57 |
41.50 |
| Deere & Co. |
DE |
75.67 |
72.97 |
81.65 |
| Scotts |
SMG |
44.22 |
44.62 |
56.74 |
| * represents three-for-one stock split |
Tel Aviv — An increase in global potash production over the next few years is expected to slow growth at Israel Chemicals Ltd. (ICL), according to a report by Leader Capital Markets, a leading Tel Aviv-based investment bank. The report predicts that rising potash production could lead to industry-wide utilization declining from 90 percent in 2011 to 80 percent in 2015, and for potash prices to fall from $450/mt to $430/mt. This is based on an expected increase in global potash capacity of 16 million tons, or 25 percent, to 80 million mt/y. Although ICL net profits in 2012 are predicted to be $1.4 billion on revenues of $7.1 billion, based on a 4 percent drop in the quality of potash sold and on stable prices, the report foresees a 10 percent drop in prices and quantities of potash sold over the next three years. Another factor is the $1.7 billion cost of removing the salt accumulations from the Dead Sea evaporation ponds as part of the agreement signed earlier this year with the Israeli government. ICL is planning to increase potash production at the Dead Sea, as well as in Spain. Capacity is being increased from 6 million mt to 6.5 million mt by 2015. ICL said recently it believes it is shielded somewhat from the rising capacity as it has low potash production costs. Regarding India, ICL said that it expects a new agreement with Indian customers to be signed in the third quarter.
Salt Lake City — Some 2,000 gallons of highly concentrated sulfuric acid was released here May 4 when a hose ruptured at a Brenntag Pacific facility. About a dozen employees at work at the time self-evacuated the building and also were not injured. “The two operators were performing the chemical transfer outside of the building when the hose ruptured,” Salt Lake Fire Department spokesman Jasen Asay told Green Markets. “At first they thought between 500-1,000 gallons spilled, but later estimated that nearly 2,000 gallons of high concentrate sulfuric acid, reportedly about 93 percent, was involved.” Scott Anderson, director of the Utah division of solid and hazardous waste, which provided oversight for the state, explained that most of the acid – or approximately 1,700 gallons – was able to be recovered for use by Brenntag Pacific. He said the remainder ended up in a gravel sump underneath the tracks and was carefully removed. The acid ended up in the containment area mixed with gravel and was removed manually with the help of a vacuum truck to was to be transported to an offsite disposal area. Brenntag Pacific is a chemical distributor with locations around the western United States.
Boardman, Ore. — ConAgra officials, along with emergency responders, were saying only that the source of an anhydrous ammonia leak that shut down the Lamb Weston facility here around 9:30 p.m. May 15 is still under investigation, and that those employees who were affected were treated and released from a nearby hospital. No one was available at the facility, but ConAgra corporate spokesman Jeff Mochal reported that seven employees were evaluated at Good Shepherd Hospital at Hermiston for several hours for respiratory distress and nausea and then released. The Murrow County sheriff’s office said another four employees were checked over by EMTs onsite, but refused to be taken to the hospital. They said the release was contained by on-site personnel and the local emergency units. Police cleared the scene around midnight. Mochal said the entire plant, where potatoes and vegetables are processed, was shut down, and only the areas not involved with refrigeration were being restarted later the next day.
Bartow, Fla. — The driver of the truck that spilled acid at an intersection on April 24 has been charged by the Polk County Florida Sheriff’s Department for not properly securing his load. Eric Scott Garland, who received second-degree burns after he slipped while attempting to warn motorists of the hazard, was ticketed on May 2 following an investigation. The spill occurred as he was attempting to stop at an intersection at South Rifle Range Road and State Road 60. The truck was carrying six tanks of sulfuric acid, rock salt, and peroxide, which combined to form a harmful gas cloud, but dispersed quickly due to high winds at the time of the spill. Investigators said he did not have a barricade, which would have prevented the load from shifting, although it was secured with two-inch-straps. A three-mile section of the road was closed for most of the day following the spill and cleanup. Garland was working for Davis Supply Inc. of Fort Myers, Fla. at the time of the incident.
Marysville, Ohio — Scotts Miracle-Gro Co. is not concerned about the recent spike in urea prices, saying it is well-hedged for the remainder of the current fiscal year and that it expects prices to ease going forward. Scotts recently told analysts it is 88 percent hedged on urea for the rest of the fiscal year. “When we look at the forward markets, we don’t see the current market as being indicative of the forward markets for when we’re going to be back in the market purchasing urea for next fiscal year,” said David Evans, Scotts CFO and executive vice president, strategy and business development. “So at this stage, we are not seeing urea as a material concern for next year.” Company Chairman and CEO Jim Hagedorn added that the company has started to commit to the future urea market, and that it is pretty relaxed about the kind of prices it has been seeing. Scotts did not raise its own product prices this year, even though it incurred higher input costs. However, it is anticipating lower single digit increases next fiscal year. While Scotts earnings were off for the quarter ending March 31, 2012, (GM May 14, p. 12), sales were up, with the company saying as it entered May consumers purchased 1 million more bags of fertilizer than they had the same time last year. Scotts said consumers are buying 2.7 bags of fertilizer every time they buy the company’s new Snap fertilizer spreader. In addition, the company said Miracle-Gro has gained a substantial Facebook presence as it has high profile visibility on the Farmville game website. As a result, the product now has 1.1 million Facebook friends, versus about 5,000 two months ago.
Shoreview, Minn. — WinField, one of the nation’s largest distributors of professional products for turf, ornamental, pest control, aquatics, and vegetation management, announced May 15 that it has completed the acquisition of the assets of Minnesota-based Precision Turf & Chemical. WinField said the combination will give customers in the Upper Midwest access to a broader range of products and services. WinField, a unit of Land O’Lakes Inc., has 80 service centers across the country and close to 100 sales representatives.
Bangor Township, Mich. — Brink Terminal Services, a liquid fertilizer manufacturer for private and industrial farms, has disclosed plans to invest $3.2 million to sublease 10 to 15 acres in an industrial area. The company plans to spend $1.8 million toward tank rehabilitation and repair, and $1.4 million to prepare the site for operations. The company already has a site in Muskegon. In a recent public hearing, the Bangor Township board approved the request by Port Fisher, owner of Bay Aggregate Inc., to create an 80-acre industrial development district along the Saginaw River. In addition, the board opened a second hearing to create a rehabilitation site, which contains four 15,000-ton steel tanks. “Two public hearings were held involving neighboring industries,” said Terry Watson, supervisor for the township of Bangor. Watson told Green Markets that both requests were approved by the board. “Representatives from Brink Terminal Service have already been out to the site. Since August is the company’s peak season, they are anxious to get started,” added Watson. Watson said that the company needs to make sure that the steel tanks are up-to-par structurally. Operations manager Brian Brink also mentioned that the tanks haven’t been used in over ten years, so structural steel work to repair some areas is needed. “There will be a lot of maintenance to get existing infrastructure back in use,” said Brink. The company receives shipments of concentrated nitrogen and phosphate liquid fertilizers, which are then processed on-site. The finished product is available to retailers, where small farms and others can purchase it. Brink said his operation benefits local farmers and reaches agricultural consumers in the thumb and central Michigan regions.
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