Smells from Synagro biosolids upset town

Gladstone, Va. — Synagro isn’t making any promises to residents of this tiny community two miles southwest of Richmond, who are complaining about odors from biosolids in railcars parked for unloading – sometime for weeks and months – at the edge of town. Residents of this town of about 24 say that sometimes the smell is so bad they can’t stomach their food, and what’s even more frustrating for them – they claim that placing the cars just a half-mile further away would eliminate the problem. “CSX and Synagro wanted an unloading point and chose a place where the train is stopped, uncoupled, and the cars are pushed down a half mile below Gladstone,” long-time resident Charles Brown told Green Markets. “Actually, some of the cars over the years have become very corroded and its smell trouble for Gladstone.” Synagro admits that operations in Gladstone do at times result in railcars being temporarily located near neighborhoods that reside close to the rail yard. “Recently, higher than normal volumes forced us to position the railcars closer than usual to the community,” reported spokeswoman Lauren Howe. “But they were moved as soon as possible. We work very closely with the Virginia Department of Environmental Quality to ensure our operations comply with environmental regulations and are conducted in a safe and responsible manner.” But that doesn’t satisfy Brown and others in Gladstone. “The whole problem is the railroad needs to tell its people you have got to push it out of town. But they are too lazy to do it,” Brown insisted. “They push it to a sidetrack and uncouple it and leave.” He said townspeople have called EPA, Nelson County, and the governor’s office, and they won’t do anything. “Every time we call somebody you’re referred to somebody else. Basically our hands are tied. They bring those trains into Gladstone with six containers on each railroad car. Might be 20 or 25 cars. Synagro has the unloading station three-quarters of a mile below Gladstone instead of keeping on pushing the cars another half or three quarters of a mile.” Synagro said it has its cars positioned on the section of rail yard that it leases and where it needs to conduct its business.

Pusri scraps urea tender

Pusri scrapped its granular urea tender over the weekend after bids failed to meet the lowest price Pusri would accept. The reference price was pegged at $420/mt FOB. The highest bid, however, came in at $405/mt FOB from Samsung. Subsequent bids were significantly lower.

Sources say Pusri will call a new tender soon. In the process of issuing the new tender, said one trader, Pusri will be able to propose a new floor for pricing. The trader added that no one will know that new level until the new tender closes and all bids are recorded.

This tender showed an average price of $394.75/mt FOB for the granular material. The average bid price for granular material in the tender that closed Jan. 20 was $402.92/mt FOB.

In the previous tender the highest bid did surpass the floor price. At that time Ameropa took the business at $422.25/mt FOB.

Sources say the bids reflect the softening global urea market. One trader noted that major buying for Asia will not pick up until the second quarter. Another concurred and added that soft demand from U.S. buyers is adding to the general malaise within the marketplace.

Sulfur

Tampa: Hovensa LLC announced last week that it will shut down its refinery at St. Croix, U.S. Virgin Islands, in mid-February. The plant has been losing money due to competition from new refineries in developing nations, the economic slowdown, and low natural gas prices in the U.S.

Sulfur prices for the first quarter for molten deliveries to Tampa had not been decided as of late last week, but that situation was expected to be resolved within the next few days. Both sides agree the price will go down, but by how much had not been agreed upon.

The U.S. DOE said refinery capacity operating rates last week decreased 1.5 percent, from 83.7 percent to 82.2 percent.

Vancouver: New February prices for Vancouver sulfur were expected to be settled in the $170/mt FOB range. China was not likely to make any new moves on sulfur until after its New Year.

Potash

U.S. Gulf: Potash barges continued to weaken last week, with sources now calling the market $505-$510/st FOB.

Eastern Cornbelt: Potash out of Eastern Cornbelt warehouses was quoted at $545-$560/st FOB to the dealer, depending on grade and location. One source quoted brokered tons at the $560/st DEL level as well.

Western Cornbelt: Potash remained at $545-$557/st FOB regional warehouses, with the upper end quoted for white granular tons on a spot basis. The red granular potash market in Iowa was commonly quoted at the $550/st FOB level last week.

Northern Plains: Minnesota sources quoted the potash market at $535-$545/st FOB warehouses, while prompt delivered potash was reported at the $562/st level in North Dakota. Potash pricing FOB Saskatchewan mines for U.S. customers was tagged at $530-$540/st FOB, depending on grade and supplier.

Northeast: Potash was quoted at $560-$580/st FOB and $570-$590/st rail-DEL in the Northeast, depending on grade and location.

Eastern Canada: Potash pricing out of Ontario warehouses was unchanged at $640-$650/mt FOB, with the low for red and the upper end for white granular tons.

Sulfate of potash (SOP) was steady at $830/mt FOB in Ontario.

The K-Mag market in Eastern Canada was quoted at $460-$485/mt FOB regional warehouses, depending on location and supplier.

Russia: Uralkali, like PotashCorp, is prepared to cut potash production in order to prevent further price erosion, according to an interview given to Bloomberg news by Uralkali CFO Victor Belyakov. Uralkali has cut its 2012 production target by about 8 percent, to between 10.5 -10.8 million mt.

In other news, Uralkali reported that a Jan. 23 fire at its Brezeniki number 4 plant was quickly extinguished. It said the fire started at around 11:00 a.m. Moscow time at the 6th crystallizer in the vacuum crystallization unit of the hallurgic ore-treatment plant. At the time, Uralenergostroi, a contractor of Uralkali, was performing welding and grinding work at the crystallizer.

Uralkali said there was no danger to the employees of the plant, and no one was injured. The incident happened at the production line that is under reconstruction, and will not impact the company’s annual output.

Brazil: BPC has raised its postings for second quarter business to Brazil to $580/mt CFR, up some $20-$30/mt from its previous prices.

Phosphates

Central Florida: Phosphate does not sell at a fast pace during the winter months, though this should be the time of year dealers stock their warehouses to prepare for the onslaught of farmers ready to plant their crops in the spring. That’s not happening this year.

Prices on the Gulf’s river system were so much lower than those from Central Florida, dealers were too nervous to make a move. Will the price go down? When? And by how much? No one is confident, and that has created a problem.

Mosaic has cut back its production, but that has not created any shortages or any new demand. Even export demand, which is normally filled from Central Florida, has been lax as of late.

Phosphate producers will get a break in raw materials costs. Ammonia prices for Tampa fell $83/mt last week, from $555/mt to $472/mt, and negotiations for new first-quarter sulfur pricing were expected to result in lower prices as well.

With no significant movement, the Central Florida DAP price range was unchanged last week at a flat $480/st FOB. Very large buyers may be able to get additional discounts, but that was not clear. Both Mosaic and CF Industries were posted at the $480/st FOB mark. MAP was in short supply, and was priced at a $20/st premium to DAP by Mosaic in Central Florida – about the same difference as from traders.

PCS Sales was selling at prices comparable to the market.

U.S. Gulf: There were few NOLA DAP or MAP barges on the water last week, and there were even fewer buyers.

“No one wants to take a chance,” one trader said. “They (traders and dealers) need to buy now, but people are nervous. If there is an early spring, there will be some logistics issues. People don’t want to do the wrong thing and lose.”

That’s understandable. The NOLA DAP barge market fell after Christmas to as low as $425/st FOB, then rose to as high as $490/st FOB, then fell back again. It seemed last week that it would be hard to drop much lower, but no one could guarantee that wouldn’t happen.

The NOLA DAP barges that were sold were apparently bought when the market was at its low end a few weeks ago, and those buyers were just getting rid of them.

If spring does come early, farmers will want to take advantage and get their crops in the ground early as well. Still, January was much too early to take the chance. What to do? If planting does begin early, phosphate will not be in place to meet the need, so the demand may push prices up by a significant margin.

Prices for corn futures moved up last week compared to the previous week, rising from $5.53/bushel to $5.70/bushel for December 2012. The corn price for December 2013 was $5.58/bushel, also up from $5.466/bushel the previous reporting period. Soybeans for November 2012 enjoyed a bump as well, moving higher at $12.27/bushel from $11.91/bushel the previous week. Soybeans for November 2013 were $12.02/bushel, up from $11.815/bushel the previous week. Wheat for July 2012 rose to $6.805 from $6.3925/bushel previously. Wheat for July 2013 was listed at $7.425/bushel last week, up from $7.0775/bushel a week earlier.

The NOLA DAP barge price moved down last week to $433-$446/st FOB, compared with $440-$450/st FOB the previous week. MAP barges were reportedly fetching a $35/st premium over DAP, although there was a lack of activity to test the market.

The market may continue to be depressed for the next few weeks, but prices should begin to rise in February if farmers begin to empty dealers’ warehouse bins.

Eastern Cornbelt:
DAP remained at $510-$530/st FOB regional warehouses, with MAP pegged in the $530-$550/st FOB range in the Eastern Cornbelt. An Indiana source pegged the dealer market for DAP at $515/st FOB and $530/st DEL, with MAP at the $540/st FOB mark

Ammonium Sulfate

Eastern Cornbelt: Granular ammonium sulfate was pegged at $375-$385/st FOB in the Eastern Cornbelt region.

Western Cornbelt: The granular ammonium sulfate market was pegged at $370-$385/st FOB in the region. Iowa sources quoted the ammonium thiosulfate market at roughly $370/st FOB in late January.

Northern Plains: Effective Jan. 12, Agrium’s granular ammonium sulfate postings in the Northern Plains region moved to $410/st rail-DEL in North Dakota, Minnesota, and Wisconsin. Honeywell’s Jan. 13 ammonium sulfate postings included granular at $385/st FOB Roseport, Minn., Amherst Junction, Wisc., and Prairie du Chien, Wisc., and mid-grade at $365/st FOB Red Rock, Minn. Honeywell’s rail-delivered postings in Minnesota and Wisconsin moved on that date to $395/st for granular and $375/st for mid-grade.

North Dakota sources quoted the ammonium thiosulfate market at $425-$445/st DEL, with the low for prompt tons and the upper end for spring prepay.

Northeast: Granular ammonium sulfate remained at a nominal $350-$355/st FOB and $355-$360/st DEL in the Northeast, though sources reported no new business to test those numbers.

Eastern Canada: Granular ammonium sulfate was pegged at $460-$465/mt FOB in the Eastern Canada market, depending on location.

Nitrogen Solutions

U.S. Gulf: Most noted a soft tone to the market last week, but the only firm number heard continued to be reported in the $270-$285/st ($8.44-$8.91/unit) FOB range, with speculation that business could be done in the $360s/st FOB.

Eastern Cornbelt: The UAN-28 market in the Eastern Cornbelt was unchanged at $294-$305/st ($10.50-$10.89/unit) FOB regional terminals for prompt tons. Rail-delivered UAN-32 was quoted at $345-$355/st ($10.78-$11.09/unit) in the region.

Western Cornbelt: Western Cornbelt sources quoted the dealer market for UAN in the $10.60-$11.09/unit FOB range, depending on location. One Missouri contact quoted UAN-32 at the $345/st ($10.78/unit) FOB level in his trade area last week.

Northern Plains: The UAN-28 market was tagged at $310-$315/st ($11.07-$11.25/unit) FOB Minnesota terminals. Delivered UAN-28 was reported at $350-$360/st ($12.50-$12.86/unit) in North Dakota, with the low for prompt tons and the upper end for spring prepay.

Northeast: One contact quoted the Baltimore UAN-30 market firmly at the $320/st ($10.67/unit) FOB level at midweek, while another said UAN-32 pricing out of Baltimore had slipped from $345/st ($10.78/unit) the previous week to $326/st ($10.19/unit) FOB last week. Out of terminals in upstate New York, the UAN-32 market was quoted in the $11.90-$12.00/unit FOB range.

The UAN vessel market was tagged at roughly $305/mt CFR.

Eastern Canada: UAN-28 pricing in Eastern Canada had reportedly slipped to $360/mt ($12.86/unit) FOB for prompt tons and $375/mt ($13.39/unit) FOB for prepay, with dealer reference levels as high as $380/mt ($13.57/unit) FOB Ontario terminals.

Urea

U.S. Gulf: The granular prompt market continued to bounce around last week. Early on, sources said trades worked their way up to the $390-$395/st FOB range. Prices were reported to have again retreated by the end of the week, however, into the $380s/st FOB. Prills were called $400-$415/st FOB.

Correction: The U.S. Gulf granular price for the issue dated Jan. 23 should have read $385-$408/st FOB.

Eastern Cornbelt: Granular urea pricing remained in the $445-$450/st range FOB Eastern Cornbelt terminals. An Indiana contact quoted delivered urea at $452/st to his location last week.

Western Cornbelt: Granular urea was tagged in a broad range at $435-$465/st FOB in the region, with the low reported in Missouri and the upper end in the Iowa market. In the Southern Plains, urea pricing out of Oklahoma terminals was quoted in the $430-$440/st FOB range.

Northern Plains: Granular urea was quoted at $435-$445/st FOB the Twin Cities and $490-$495/st DEL in North Dakota.

Northeast: Sources said urea pricing in the Northeast had firmed from a low of $420/st FOB Philadelphia earlier in January to $445-$455/st FOB last week.

Eastern Canada: Eastern Canada sources quoted dealer reference levels for granular urea in a broad range at $590-$645/mt FOB regional terminals, depending on location and supplier, but offers for spot or prepay tons were reportedly circulating in the region for as low as $550-$570/mt FOB in late January.

Indonesia: Pusri closed a tender Jan. 20 for 25,000 mt of granular and 20,000 mt of prilled urea. In the end, it scrapped the prilled tender and awarded the granular material to Ameropa at $422.25/mt FOB. A new tender was slated to close Jan. 27 for 25,000-35,000 mt of granular material.

Pusri scrapped the prilled tender because the highest bid did not meet the floor price. The selling company looked at an earlier sale of prills at $424/mt FOB to Dreymoor, and another of granular at $420/mt FOB to Keytrade. From those deals, Pusri figured the market was willing to deal in the $420s and set its reference price accordingly.

They were wrong, said one trader. Only Ameropa stepped up to a pricing level of Pusri’s liking.

Details of the bids are shown below.

Ammonia

U.S. Gulf/Tampa: Tampa prices for February dropped to $472/mt DEL, down some $83/mt from January’s $555/st mt DEL.

Sources said the drop was in line with recent erosion in Yuzhnyy. Demand was reported to be off, and unsold product was reportedly on the market. Sources cited the recent cuts in DAP production, as well as caution from some other industrial customers. In addition, sources said fears about the Euro crisis continue to linger. Sellers were hopeful the bottom has been found.

In the meantime, sources continue to speculate that extra tons from the Mosaic Faustina plant and the OCI Beaumont plant should spur new spot trades on the barge market.

Eastern Cornbelt: The anhydrous ammonia market was tagged at $650-$670/st FOB regional terminals, but higher postings were in effect. CF’s ammonia postings for the Jan. 24-27 shipping period included $660/st FOB Kingston Mines, Ill.; $665/st FOB Mt. Vernon, Ind.; $670/st FOB Illinois terminals at Albany, Cowden, Peru, and Seneca; $675/st FOB Terra Haute, Ind.; and $680/st FOB Indiana terminals at Frankfort and Huntington.

Western Cornbelt: Iowa sources said fertilizer movement to the field had slowed due to the arrival of colder temperatures and snowfall at mid-month. Another cold front was taking aim at Nebraska late last week, with freezing rain and snow on tap for northeastern areas of the state by Jan. 27.

The brisk application pace reported earlier in January gave some dealers a jump on their expected spring demand. One Iowa contact estimated that at least 25 percent of his business’s typical spring business has already been completed.

Sources quoted the ammonia market as low as $595-$635/st FOB Western Cornbelt terminals last week. One Iowa contact reported a prompt market of $620/st FOB. CF raised its ammonia postings for the Jan. 24-27 shipping period, however. New postings included $640/st FOB Nebraska terminals at Aurora, Blair, Fremont, Greenwood, and Hastings; $645/st FOB Iowa terminals at Port Neal and Whiting; $660/st FOB Iowa terminals at Garner and Spencer; and $670/st FOB Palmyra, Mo.

In the Southern Plains market, CF’s ammonia postings included $575/st FOB Oklahoma terminals at Verdigris and Woodward, $610/st FOB Conway, Kan., and $620/st FOB Clay Center, Kan.

Northern Plains: Minnesota sources pegged the low end of the prompt ammonia market in the $640-$650/st FOB range at midweek. Delivered ammonia in North Dakota was reported at the $750/st level for spring prepay.

CF’s ammonia postings for the Jan. 24-27 shipping period included $665/st FOB Mankato, Minn., $675/st FOB Pine Bend, Minn., $680/st FOB Glenwood, Minn., and $715/st FOB Velva and Grand Forks, N.D.

Eastern Canada: Ontario sources quoted recent offers for anhydrous ammonia out of Courtright, Ontario, in the $740-$780/mt FOB range, with the low for prompt tons and the upper end for prepay.

Black Sea: As Asia opened for business Friday, sources looked at the impact of the new Tampa price on the Yuzhnyy market.

Earlier estimated netbacks from the Tampa price of $472/mt CFR came in at $370-$380/mt FOB. After the dust settled, however, Asian sources are saying the price is closer to $400-$410/mt FOB.

The price from the area had been on a steady decline. In reaction to the softer prices, OPZ shut down earlier this month to tighten supplies.

One Asian source noted that the ammonia suppliers faced a problem of industrial buyers not needing as many tons as in previous years because of the global economic downturn. Agricultural demand for ammonia, said one trader, has only been affected slightly. The real downturn in demand has come from industrial buyers because of reduced demand for the

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Bidding Company US$/mt FOB
  Granular (25,000 mt) Prilled (20,000 mt)
Ameropa 422.25  
Indevco 412.00 403.00
Interfame 411.75 402.75
Trada 405.00 390.00
CCIS 405.00 390.00
Liven 401.00 400.00
Fietra 401.00 399.00
     
Brio 399.00 396.00
Indagro 398.00 395.00
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