All Posts from February 3, 2014

Mississippi Phosphates to produce MAP, Interoceanic to market

Featured, News

Mississippi Phosphates Corp. (MPC), a wholly-owned subsidiary of Phosphate Holdings Inc., said Jan. 30 that it plans to add MAP to its product line, beginning in mid-February 2014. MPC has long produced DAP and sold it through traditional domestic and international channels. The company said the addition of MAP to its portfolio will allow it to take advantage of broader market opportunities. MAP is currently trading about $20/st higher at NOLA than DAP.

MPC said by broadening its product mix, it will combine internal marketing efforts with an exclusive off-take agreement for MAP with Interoceanic Corp. (IOC), of Ossining, N.Y., in an effort to enhance its targeting of value-added market sectors. It said IOC’s proven market success in the industry will be in direct support of MPC’s new market strategy.

After MPC left PhosChem in 2006, Trammo took over the exports of MPC’s DAP (GM Oct. 16, 2006, p. 11). Sources indicated that Trammo will continue to supply MPC with ammonia and have an ammonia terminaling agreement at MPC’s Pascagoula facility.

While MPC did not respond to inquiries, market sources said they were told by MPC that it was essentially switching to MAP from DAP and they believed it is MPC’s goal to produce as much MAP as possible, with little, if any, DAP to sell.

MPC has traditionally sold more DAP into the export market than the domestic, with this reflected even more so in fourth-quarter 2013. MPC sold 147,315 st of DAP, with 119,732 st exported, and only 27,583 st going to the domestic market. For the year-ago quarter, MPC sold 179,014 st with 93,516 st export and 85,498 st domestic.

For the year 2013, MPC sold 617,868 st, with 362,036 st export and 255,832 st domestic. In 2012, MPC sold 685,641 st, with 351,231 export and 270,054 st domestic.

MPC has struggled in recent years with maintenance woes and had a net loss of $808,000 on sales of $352.3 million in 2011, the last year financial data was made publically available. Phosphate Holdings, the parent, has stopped releasing detailed financial data and making analyst calls, indicating that the company is reviewing its strategic options (GM April 23, 2012, p. 13).

As reported last year (GM Oct. 14, p. 13), MPC is behind in its tax payments to Jackson County, Miss., and as of December, the local Sun Herald reported that the company still owed $798,000 in back taxes and penalties. The Jackson County Tax Collector told Green Markets last week that he wasn’t sure where MPC stood on its back taxes as the matter had been turned over to a collection agency, but that they were expected to pay $100,000 per month toward them. He did indicate that they are paying their current taxes, saying “they are paying some big amounts on current real property as of today (Jan. 30), which we handle.”

Sulfur

Market Watch, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa: The sulfur market remained subdued following the recent price realignment for first-quarter sulfur contracts. And although the updated price of molten sulfur delivered to Tampa is still in its relative infancy, many were already looking ahead to the second quarter.

The first-quarter price of molten sulfur delivered to Tampa was $110/lt, up from the fourth-quarter price of $75/lt.

Operating rates at U.S. refineries rose slightly as frosty temperatures abated, according to data from the U.S. Energy Information Administration. Outputs crept up to 88.2 percent for the week ending Jan. 24, a 1.7 percent increase from the previous week’s 86.5 percent, and also up from last year’s 85.0 percent and the five-year average of 83.6 percent.

U.S. Gulf: The price range for Gulf prill was $110-$120/mt FOB, unchanged from the previous week.

Vancouver: Upward pressure from international markets facing tight supply kept the Vancouver spot market in a range of $138-$142/mt FOB, unchanged from the previous period. Contract prices also remained static at $100-$120/mt FOB.

The price of sulfur shipped to the U.S. from Alberta was quoted in a range of (-)$30-(+)$37.

West Coast: The price of sulfur on the West Coast was unchanged at $140/mt FOB.

Benelux: The new first-quarter price range for Benelux was set at $130-$144/mt, a $22/mt rise from the fourth-quarter price of $108-$122/mt.

ADNOC: The January ADNOC price remained at $140/mt FOB, though an adjustment for February is due soon.

Potash

China, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Potash Muriate, U.S. Gulf, Western Cornbelt

U.S. Gulf: Potash barge prices were called $300-$310/st FOB. Some argued that a floor has been found now that business has been done with China, so there was no need to further lower prices. Others also argued that inland demand was starting to pick up, so that was another reason not to lower prices.

Eastern Cornbelt: Potash was steady at $350-$357/st FOB in the Eastern Cornbelt, with the upper end for white granular tons.

Western Cornbelt: The Western Cornbelt potash market was tagged at $345-$357/st FOB, with the low reported in Iowa on a spot basis. The upper end of the regional range was reported for white granular and soluble potash.

Northern Plains: The potash market remained at a flat $350/st FOB the Twin Cities. Delivered potash in the Dakotas ranged from $345-$375/st, with the market FOB Saskatchewan mines quoted in the $310-$325/st range after netbacks, depending on grade.

Northeast: The potash market remained at $350/st FOB Baltimore and East Liverpool for red granular tons, with white granular at the $357/st FOB level.

Eastern Canada: Eastern Canada sources quoted the dealer market for potash at the $415/mt level FOB regional warehouses, down $30/mt from fall pricing levels. One source commented, however, that the lower price had finally spurred some recent buying activity in the region.

The sulfate of potash market was quoted at $745-$750/mt FOB in Eastern Canada, down slightly from last report.

The K-Mag market remained at $535-$550/mt FOB in the region.

China: Canpotex Ltd. said Jan. 24 that it has reached agreement with Sinochem Fertilizer Macao Commercial Offshore Ltd. for the supply of 700,000 mt of potash to China during the first half of 2014. It said the new contract is priced at current and competitive market levels.

“We are very pleased to sign a supply contract with our long-term Chinese customer, and to continue our history of being a leading supplier to this important market,” said Steven Dechka, Canpotex president and CEO. “We look forward to meeting China’s future growing potash needs in collaboration with our Chinese partner.”

Uralkali said Jan. 20 that its wholly-owned subsidiary, Uralkali Trading, has reached an agreement for first-half 2014 potash deliveries to China with a buying consortium headed by CNAMPGC, one of the major Chinese agrochemical corporations. The contract is for 700,000 mt at $305/mt, and the contract period runs through June 30, 2014.

That level reflects a $95/mt drop from the first-half 2013 contract price of $400/mt reached between China and major potash producers in January 2013 (GM Jan. 7, Jan. 21, 2013).

On Jan. 28, Arab Potash Co. said that it has agreed with Sinochem Macau on the supply of 300,000 m potash to China for the first half of 2014. Likewise, it said the terms and conditions of this agreement are in line with current market prices and terms in China. This comes as part of the long-term agreement between the two sides signed in Beijing last year.

Analysts honed onto the fact that both Canpotex and Uralkali were only taking 700,000 mt of business in the first half each, compared to the year-ago 1 million mt each. However, PotashCorp last week responded that it was encouraged that China concluded business early in the year and expected it would eventually take 1 million mt from Canpotex. Likewise, PotashCorp CEO Bill Doyle said the price was a reasonable price from which the company could recover.

Phosphates

Central Florida, Eastern Canada, Eastern Cornbelt, India, Market Watch, Northeast, Northern Plains, Oceania, Pakistan, Phosphate Rock, Russia, Triple Superphosphate, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida: The DAP market remained slow last week, stranded at the crossroads of restricted supply and diminished demand. Rumors persevered regarding producers’ lack of willingness to release product to the market, but that was contradicted by one producer, who said they “continue to meet (their) customers’ needs.”

MAP supply was said to be even tighter.

In the absence of large transactions, a limited number of DAP truck sales were made into the region at a price of $450/st FOB, and quotes for March DAP sales were put in a similar range of $445-$450/st FOB. Sources were generally bullish on price despite the lack of activity in the market, and planned to test higher price levels in the near future.

Planting season in Central Florida is expected to commence in February or March.

The price of Central Florida DAP was in a range of $415-$450/st FOB based on truck sales and Mosaic’s posted price of $415/st FOB. That number is up from the previous reported range of $400-$415/st FOB.

No MAP deals were found, but that product was expected to carry a $15-$20/st FOB price premium over DAP.

U.S. Gulf: The NOLA DAP market was livelier last week, but overall trading volume remained thin. Prices appeared to find broad agreement for the week, but one source pointed to a lack of selling opportunities as a reason for the lull. “I’m bullish on price, but bearish on liquidity,” he said.

Others pointed to the upcoming TFI conference in San Diego as a factor, speculating that many sought to stand pat in advance of the conference, planning to do business face-to-face instead.

End-users seemed to be recovering from the sticker shock of recent weeks, making small buys from terminals at a reported $465/st FOB price point at the low end of the terminal range.

Spot trades for February delivery were quoted in a range of $433-$445/st FOB, with orders carrying earlier delivery dates loaded immediately. Moroccan OCP was quoted within that price range as well, while Russian product could be had for a few dollars less. A TSP transaction was reported at $355/st FOB.

Traffic on the upper Mississippi River faced a number of hurdles last week. Closures of locks in Wisconsin, southern Illinois, and northern Missouri were announced through mid-March, and rock removal at Thebes, Ill., continued. In addition to towing limitations, passage was expected to be limited to nighttime hours for approximately two weeks at Thebes.

Tow restrictions on the Illinois River remained in effect due to ice, and rapidly decreasing water levels slowed transit on the Ohio River. Gulf operations were limited as a mix of ice and snow hit the New Orleans area, but conditions were said to be improving as of Thursday.

A snapshot of crop prices at 4 p.m. on Jan. 30 showed corn prices up from the previous week, but soybeans and wheat were down as unofficial estimates put quantities of both crops at higher levels than previously expected.

Corn for March 2014 was $4.335/bushel, up from $4.29/bushel at last report, while corn for May 2014 moved to $4.395/bushel from the previous week’s $4.3525/bushel. Contracts for December 2014 corn traded at $4.5025/bushel, up from the previous week’s $4.4925/bushel.

The soybean price for March 2014 was $12.75/bushel, down from the previous week’s $12.77/bushel, while soybeans for May 2014 moved to $12.61/bushel, also down from the prior week’s $12.625/bushel. November 2014 soybeans were $10.9725/bushel, down from the previous week’s $11.0875/bushel.

Wheat for March 2014 was $5.535/bushel, down from $5.70/bushel the previous week, while wheat for May 2014 slipped to $5.5625/bushel from the prior week’s $5.7625/bushel.

DAP prices for the NOLA barge market firmed to $433-$445/st FOB

Ammonium Sulfate

Ammonium Sulfate, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate was unchanged at $270-$280/st FOB in the Eastern Cornbelt. Jan. 24 postings from Honeywell included $270/st FOB Illinois terminals at Mapleton, Danville, and Granite City, with mid-grade posted at $250/st FOB Danville and Byron, Ill.

Western Cornbelt: The granular ammonium sulfate market remained at $270-$275/st FOB in the Western Cornbelt. Honeywell’s postings moved on Jan. 24 to $270/st FOB Omaha, Neb., and Dubuque, Iowa.

Ammonium thiosulfate was steady as well, at $310-$335/st FOB in the Western Cornbelt.

Northern Plains: Sources pegged the granular ammonium sulfate market at $260/st FOB in Minnesota and up to $290/st DEL in North Dakota for spring prepay.

Agrium’s Jan. 13 granular ammonium sulfate postings included $285/st rail-DEL in North Dakota, Minnesota, and Wisconsin. Granular ammonium sulfate postings from Honeywell moved on Jan. 24 to $270/st FOB Roseport, Minn., and Wisconsin terminals at Amherst Junction and Prairie du Chien. Honeywell’s mid-grade postings moved on that date to $250/st FOB Roseport.

The ammonium thiosulfate market was reported at the $310/st DEL level in North Dakota for spring prepay.

Northeast: Granular ammonium sulfate pricing was pegged at $280-$285/st DEL in the Northeast, based on FOB pricing at the $260-$265/st level out of Hopewell, Va. The East Liverpool ammonium sulfate market remained at the $280/st FOB level.

Eastern Canada: Granular ammonium sulfate pricing in Eastern Canada was up $20/mt from last report, with Ontario sources quoting the dealer market at $395-$400/mt FOB in the region.

Ammonium thiosulfate was up as well at the $442/mt FOB level in Ontario, nearly $30/mt higher than last report

Ammonium Nitrate

Ammonium Nitrate, Eastern Canada, Market Watch, U.S. Gulf, Western Cornbelt

U.S. Gulf: Barges were reportedly hard to find, with the last reported business called $330/st FOB.

Western Cornbelt: The ammonium nitrate market remained at $360/st FOB in the Western Cornbelt. Forward pricing from CF for ammonium nitrate FOB Yazoo City, Miss., was posted on Jan. 31 at $340/st FOB for March and April, $330/st FOB for May, and $320/st FOB for June.

Eastern Canada: Ammonium nitrate pricing in Eastern Canada was up from last report. The market was pegged in a broad range at $425-$475/mt FOB in Ontario, depending on location.

Nitrogen Solutions

Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf: UAN barges continued to move up last week, with most calling the market $285-$295/st ($8.91-$9.22/unit) FOB. Reports by late in the week were that producers were seeking $300/st ($9.38/unit) FOB.

On the East Coast, the last done business was called $320/mt CFR.

Eastern Cornbelt: The UAN market was steady at $10.20-$10.25/unit FOB Cincinnati on the low end, with the upper end of the regional range quoted at $325-$330/st ($10.16-$10.31/unit) FOB in Illinois for UAN-32 spring prepay.

CF’s Jan. 31 UAN postings FOB Illinois terminals for forward shipments from April through June included UAN-28 at $302.40-$308/st ($10.80-$11.00/unit) FOB, UAN-30 at $324-$330/st ($10.80-$11.00/unit) FOB, and UAN-32 at $345.60-$352/st ($10.80-$11.00/unit) FOB.

Western Cornbelt: UAN-32 remained at $315-$330/st ($9.84-$10.31/unit) FOB in the Western Cornbelt, with the low reported in southern Missouri. Iowa sources continued to quote spring prepay tons in the $325-$330/st ($10.16-$10.31/unit) FOB range.

Northern Plains: UAN-28 pricing in the Northern Plains was up from last report. The low end of the regional market was reported at $295/st ($10.54/unit) FOB the Twin Cities, up some $15/st from early January levels. The market FOB Jamestown, N.D., and Moorhead, Minn., was reported at the $315/st ($11.25/unit) level for spring prepay.

Delivered UAN-28 in North Dakota had also firmed significantly, with sources quoting the market at $345-$355/st ($12.32-$12.68/unit) for prompt tons and up to $360/st ($12.86/unit) for spring prepay.

Northeast: The Baltimore UAN market had reportedly firmed to $280-$285/st ($9.33-$9.50/unit) for UAN-30, up roughly $13-$18/st from last report. There were reports as well of UAN-32 reference prices at the $310/st ($9.69/unit) level FOB Baltimore, up some $25/st from early January pricing levels.

UAN-32 pricing out of terminals in upstate New York had reportedly firmed to $344/st ($10.75/unit) FOB, up $8/st from last report.

Eastern Canada: The UAN market in Eastern Canada had firmed significantly. Sources quoted UAN-28 at $350-$355/mt ($12.50-$12.68/unit) FOB in the region, up $60/mt from last report. UAN-32 had reportedly strengthened to $400/mt ($12.50/unit) FOB in the Ontario market, up nearly $70/mt from mid-December pricing levels.

Urea

China, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Pakistan, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf: Granular prompt barge prices continued to be volatile again last week, dropping to as low as $370/st FOB before rebounding later in the week. Late week trades were put as high as $398-$405/st FOB.

Some complained that there was no good reason for the volatility. Others said there are legitimate concerns facing the market, however, including an extremely dry California, worries over corn acreage, and a perceived bulked up import line-up. Rumors continued to persist of at least minor problems at CF’s Donaldsonville plant. On top of this is the continued outage at LSB’s Pryor, Okla., plant.

Sources said prills spanned a broader range, reflecting the up and down sentiment in granular. The market was reported to have traded as high as $395-$400/st FOB before sinking back to $380-$385/st FOB.

Eastern Cornbelt: Granular urea remained at $440-$450/st FOB in the Illinois market, with the low end of the regional range reported at $425/st FOB Cincinnati, Ohio.

Western Cornbelt: The granular urea market was reported at $430-$450/st FOB in the Western Cornbelt, with the upper end of the range reported in Iowa. The St. Louis, Mo., urea market was tagged in the $430-$440/st FOB range last week.

Northern Plains: Sources quoted the granular urea market at $430-$450/st FOB in Minnesota for spring tons, up some $20-$40/st from early January pricing levels. One source said the last done prompt urea business out of the Twin Cities market was at the $460/st FOB level.

Prices had increased even more in the Dakotas. North Dakota sources reported delivered urea as high as $532-$540/st for new sales in the western part of the state, with some quoting the last done business at the $490/st DEL level. Postings out of North Dakota warehouses were also reported in the $490s/st FOB.

Northeast: Frigid weather once again settled over the Northeast in late January, with temperatures dropping to the low teens from southern New England down to Maryland. The arctic blast was accompanied by snowfall and icy winds in some locations, sending wind chills down to subzero lows in many areas on Jan. 27-29.

Granular urea pricing in the Northeast moved up another $30/st from early January levels, and was up some $60/st from mid-December levels. Sources tagged the regional market at $440-$450/st FOB, with the low out of East Liverpool, Ohio, and the upper end FOB Baltimore, Md., and out of Pennsylvania warehouses.

Eastern Canada: Ontario sources quoted the granular urea market last week at a firm $550/mt FOB in Eastern Canada, up approximately $100/mt from mid-December pricing levels.

Pakistan: The government is reportedly moving ahead with plans to change how urea is imported and distributed in the country.

Media reports say a government supervisory panel is ready to yank the distribution of urea from National Fertiliser Marketing Ltd. (NFML) in favor of the private sector. The move comes after charges of corruption and malfeasance were raised against NFML at the highest levels of the government.

At this point, TCP will still be the sole importer of urea.

The new plan would have domestic urea producers handle the imported urea through their existing distribution channels. A series of allocations and quotas would be established according to releases from the government to ensure timely and fair distribution of urea throughout the country.

The domestic producers have indicated they are willing to take on the responsibility. That is not stopping them, however, from continuing to call for more natural gas allocations so that the country will not have to import urea to satisfy the domestic needs.

International traders say Pakistan’s government has al

Ammonia

Ammonia, Asia, Eastern Canada, Eastern Cornbelt, Market Watch, Middle East, Northern Plains, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa: February Tampa business was concluded at $415/mt CFR by major players, matching recent spot business by Mosaic. Once Mosaic struck the low-price deal, most figured Yara would have to at least match it.

February NYMEX gas rolled off the board at $5.557/mmBtu, up significantly from Jan. 23’s $4.730/mmBtu, and even more from the February 2012 close of $3.226/mmBtu. While most cited extremely cold weather for the uptick, others speculated that traders were short and had to quickly cover commitments. March closed Jan. 30 at $5.011/mmBtu.

Eastern Cornbelt: The anhydrous ammonia market remained at $530-$540/st FOB in the Eastern Cornbelt. Effective Jan. 31, CF’s forward pricing for ammonia included $530/st FOB Albany, Ill., for tons shipped from March through June.

The last days of January brought another round of bitterly cold weather to the Eastern Cornbelt. Northern Illinois began the week with subzero lows and wind chills in the negative double-digits.

Wind chill warnings were also issued for northern and central Indiana early in the week, and blowing snow prompted numerous travel advisories for the state. By Jan. 28, temperatures in Columbus, Ohio, had fallen to minus 10, with wind chills down to minus 18 in Dayton, Ohio. One Ohio source reported at midweek that temperatures had dropped to minus 26 in his location.

Western Cornbelt: Frigid weather hit parts of the Western Cornbelt again last week, along with gusty winds and snowfall. Local news reports talked of whiteout conditions in northern and eastern Iowa early in the week, with wind chills dropping to minus 20-25 degrees.

Subzero lows were also reported in parts of Missouri early last week, and more winter storm warnings were in effect for western Nebraska as the week advanced.

Ammonia pricing was quoted at $490-$530/st FOB regional terminals, with the low reported in Iowa and Nebraska and the upper end in Missouri for spring prepay. Delivered ammonia was pegged in the $490-$500/st range in Missouri for prompt material.

Effective Jan. 31, CF’s forward pricing for ammonia included $530/st FOB Palmyra, Mo., for tons shipped from March through June.

Northern Plains: Delivered anhydrous ammonia continued to be quoted in the $585-$595/st range in North Dakota. The Twin Cities ammonia market, however, had reportedly slipped to $490-$505/st FOB, depending on time of delivery.

Another icy blast hit the Northern Plains during the last days of January, sending wind chills down to the minus 40s last week in both Minnesota and North Dakota.

With winter in full force in the region, spring fieldwork seemed a long ways off. Sources did, however, report some interest in booking spring fertilizer tons, at both the retail and wholesale levels.

Eastern Canada: The anhydrous ammonia market for customers in Eastern Canada had reportedly firmed to $670-$680/mt FOB Courtright, Ont., for prompt tons, up roughly $50-$80/mt from fall pricing levels.

Wind chill warnings were in effect for much of Eastern Canada last week, with lows falling to minus 34 C in southern Ontario at midweek. The cold was accompanied by gusty winds and snowfall in some areas.

Temperatures in Halifax barely reached the minus 8 C degree mark on Jan. 28, with scattered flurries and blowing snow reported throughout Nova Scotia. In Newfoundland, heavy rains early in the week were followed by much colder temperatures, resulting in multiple highway closures.

Despite the cold weather, sources reported an uptick in commitments for spring fertilizer tons, along with firming prices. “The market has been strong of late, with a lot of interest in nitrogens,” said one source. “Supply is tightening up as more retailers come to the ta

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