Tel Aviv — The economic daily newspaper Globes reports that Israel’s State Comptroller Yosef Shapira is considering a review of the decision-making process at the Finance Ministry in connection with the attempt by Potash Corp. of Saskatchewan Inc. to acquire a majority stake in Israel Chemicals Ltd. (ICL). Then Finance Minister Yair Lapid rejected the bid by PotashCorp, saying that it was not in the national interest. The state has the right to intervene in such a deal due to the “golden share” it holds following the company’s privatization back in the 1990s. Under the proposed deal, PotashCorp committed to retaining the Israeli work force of the company. The preliminary investigation includes all documentation and position papers of the various finance ministry officials involved in the proposed deal at the time. The initial proposal by PotashCorp came in late 2012, and negotiations took place for several months. PotashCorp continues as a minority shareholder at 14 percent.
Central Florida: The Central Florida phosphate market was called slightly lower last week, based on DAP truck sales valued in a range of $440-$445/st FOB. MAP trucks were quoted at $450-$465/st FOB.
Rail-loaded product was generally priced at a $5/st discount to material shipped by truck, sources said, though no rail transactions were reported for the week.
DAP sold on the Central Florida market fell to $440-$445/st FOB, down from the previous week’s range of $445-$450/st FOB. MAP was also lower at $450-$465/st FOB, down from $465-$470/st FOB the week before.
U.S. Gulf: The NOLA barge market held flat last week, at once buoyed by increased fieldwork and hampered by ample terminal inventories.
“Fieldwork has started,” said one trader, “but there’s plenty of product out there and no price movement.” Terminal operators have waited so long for the planting season to get underway, many were simply happy to keep selling at current prices rather than risk denting demand with a price raise, he added.
Due to the relatively late start of corn planting, end-users have reportedly stuck with small-batch purchases so as not to be left with unused product at the end of the season. “It’s just a bunch of single trucks out of the warehouse right now,” one market player said. “No one wants to be stuck with extra material they can’t use.”
The slow terminals sales also translated to reduced trading volume at NOLA, it was argued. “Any refilling at this point will be buying one barge instead of five,” said one trader. “So it’s the kind of buying that isn’t really going to raise the price.”
Nearby DAP barges were quoted at $410/st FOB on the high end, though most confirmed trades were reported closer to $405/st FOB. Barges positioned upriver were called $410-$420/st FOB, and DAP paper for June and July moved up to $405-$410/st FOB from the previous week’s $400-$402/st FOB, with at least one sale claimed at $415/st FOB.
The NOLA DAP market was called $405-$410/st FOB, unchanged from the previous week. MAP was $410-$420/st FOB for the week, although some believed offers at the low end of the range had dried up as of April 30.
Eastern Cornbelt: DAP was steady at $460-$470/st FOB in the Eastern Cornbelt, with the low at Cincinnati, Ohio. MAP was $5-$15/st higher than DAP, depending on location.
10-34-0 remained at $580-$600/st FOB in the region for the last tons sold, but inventories remained all but tapped out in the Eastern Cornbelt.
Agrium’s May 1 postings for rail-DEL phos acid remained at April pricing levels of $1,200/ton of P2O5 in Wisconsin, and $1,235/ton of P2O5 in Michigan.
Western Cornbelt: Sales of phosphates and potash in the Western Cornbelt had reportedly slowed as regional growers focused heavily on planting activity in late April.
DAP and MAP pricing was slipping as a result. Sources pegged the DAP market at $455-$465/st FOB regional warehouses in the Western Cornbelt, down $5-$10/st from last report. MAP was pegged in the $460-$470/st FOB range in the region.
Although sources continued to report the last done 10-34-0 business at the $590/st FOB level or higher in the region, all were in agreement that there were no tons available last week. “I can’t find any 10-34-0 to buy at any price,” said one contact.
Agrium’s May 1 phos acid postings remained at April pricing levels of $1,200/ton of P2O5 for rail-DEL SPA and MGA in Iowa, Nebraska, Wisconsin, and Wyoming.
Southern Plains: The DAP market was quoted at $450-$460/st FOB Catoosa, down another $10/st from last report. “It’s called liquidation,&rdquo
Eastern Cornbelt: Granular ammonium sulfate was unchanged at $315-$325/st FOB and $320-$330/st rail-DEL in the Eastern Cornbelt. The ammonium thiosulfate market was steady as well at $320-$360/st FOB in the region, depending on location.
Western Cornbelt: The granular ammonium sulfate market was quoted at $290-$325/st FOB in the Western Cornbelt for limited tons, with the low in southern Missouri and the upper end in Iowa. Some locations were reportedly out of product last week
Ammonium thiosulfate was tagged at $325-$345/st FOB in the region.
Southern Plains: The granular ammonium sulfate market remained at $260-$295/st FOB in Texas, depending on location. Coarse grade postings were $10/st less than granular, with standard priced $20/st lower than granular, where available.
The ammonium thiosulfate market was unchanged at $295-$305/st FOB in the Southern Plains region.
South Central: Granular ammonium sulfate pricing had firmed slightly to $275-$285/st FOB in the South Central region, with the low end reported in the Little Rock market.
Ammonium thiosulfate remained at $310-$325/st FOB in the region.
Southeast: Granular ammonium sulfate remained at $270-$275/st FOB Augusta, Ga., and Hopewell, Va., with very tight inventories and sold-out positions from some suppliers. Delivered pricing was unchanged at $270/st in the Carolinas, $280/st in Georgia, and $295/st in Florida. Standard grade ammonium sulfate was reported at $210/st rail-DEL in Florida.
U.S. Gulf: Barge prices were on the decline last week, with sources noting trades as low as $270-$276/st FOB. Most agreed, however, that the lower numbers and heightened demand had brought buyers back into the market. As a result, the low numbers were only temporary, with sources saying the market hit bottom and moved back to $285/st FOB as the week progressed.
Western Cornbelt: Ammonium nitrate was tagged at $350-$355/st FOB in the Western Cornbelt.
Southern Plains: The Catoosa ammonium nitrate market was quoted at $340-$345/st/st FOB last week, down $5/st from last report.
South Central: Ammonium nitrate was pegged at $340-$350/st FOB in the South Central region.
Southeast: The Tampa ammonium nitrate market was reported at $340-$345/st FOB.
U.S. Gulf: While the prompt granular urea barge market continues to pop, sources said UAN price ideas are wilting. Though some sources still put recent trades at $240-$245/st ($7.50-$7.67/unit) FOB, others say prompt product can be bought at $230-$235/st ($7.19-$7.34/unit) FOB, if not lower.
In the meantime, while most had been putting East Coast vessel tons in the $250-$255/mt CFR price range, there were reports last week that product may now be available for as low as $242/mt CFR.
Eastern Cornbelt: UAN-28 remained at $265-$285/st ($9.46-$10.18/unit) FOB in Ohio and Indiana, while Illinois contacts quoted the UAN-32 market at $305-$320/st ($9.53-$10.00/unit) FOB and $315-$325/st ($9.84-$10.16/unit) rail-DEL.
Western Cornbelt: UAN-32 was quoted in a broad range at $300-$315/st ($9.38-$9.84/unit) FOB in the Western Cornbelt, with the low in southern Missouri and the upper end in the Iowa market.
An Iowa contact said UAN demand has picked up as growers start to move into the post-planting application phase. Due to the late start to planting in the region, dealers are reporting that fully half of the farmers in their respective trade areas plan to apply some of their nitrogen needs after the corn is up. Southern Plains: UAN-32 was quoted at $270-$290/st ($8.44-$9.06/unit) FOB in the Southern Plains, with the upper end out of regional production locations and the low quoted at terminals on the coastal bend of Texas.
South Central: The UAN-32 market remained at $285-$300/st ($8.91-$9.38/unit) FOB in the South Central region, with the low at Memphis. Southeast: Sources reported continued pressure on UAN pricing in the Southeast, driven by new vessel indications at even lower values.
Sources quoted the UAN-32 market at the $260/st ($8.13/unit) FOB level out of port terminals in the region, down some $15/st from early April pricing levels. The upper end of the regional market was reported at the $8.44/unit FOB level out of inland terminals in Georgia.
Egypt: Koch reportedly bought some 25,000-30,000 mt of product in the recent Abu Qir tender and has slated the material to go to Europe in May. Sources said the destination will take some pressure off the U.S. market.
U.S. Gulf: It was the most volatile granular urea market in recent memory, according to observers last week. Some say the volatility will only be temporary, however. Sources say there is plenty of urea in NOLA, but it is just a matter of getting it upriver.
Delays in getting product from vessel to barge, coupled with slower tows due to higher water rates, have put a premium on upriver and loaded barges. Buyers finding one of those two were willing to pay last week. Upriver barges already in place were netting back to NOLA in the $325-$340/st FOB range – if not higher – last week. Loaded barges were easily called $300-$325/st FOB.
There was more contention over first-half May barges or barges to load in the new few weeks, however. Some sources put early week trades as low as $280/st FOB.
Prill barges continued to be called $270-$280/st FOB.
Eastern Cornbelt: The granular urea market had reportedly firmed to $345-$365/st FOB regional terminals in the Eastern Cornbelt, fueled by tight supplies on the river system.
Western Cornbelt: Sources reported a firming urea market in the Western Cornbelt, fueled by barge logistics issues and increased demand. “There is very little supply available on the river,” said one contact.
Granular urea was quoted at $345-$365/st FOB in the Western Cornbelt, up $20/st from the week before, with the low reported in southern Missouri and the upper end in Iowa. The St. Louis, Mo., market was reported firmly at the $360/st FOB level as the week advanced, while dealer pricing in Minneapolis, Minn., had reportedly strengthened to as high as $380/st FOB, up a full $30-$40/st from just one week earlier.
Some sources were worried that a conservative hand-to-mouth buying strategy may result in more supply outages as the season winds down. “Everyone is worried about carryover, and thus will run out at warehouses and just stay out of the market,” said one regional supplier last week. “But customers just think there is plenty of product and will not commit. I think product will not be in the right places when needed at the end of the season.”
Southern Plains: Granular urea pricing moved up significantly last week, with sources quoting the dealer market firmly in the $340-$345/st range FOB Catoosa and Inola, Okla. That level was up $20-$25/st from early April pricing, and reflected a $10-$15/st increase from just one week earlier.
South Central: Sources reported a rapidly firming urea market in the South Central region due to weather-related logistics issues, particularly for barge tons trying to move upriver out of NOLA.
“Volatility in urea seems to be as bad as I can remember,” said one regional contact. “Transportation has affected the price, with upriver spreads as high as $50/st-plus over NOLA.” Added another source: “The market is a mess because of NOLA weather; barges are behind and the prompt price is very strong.”
The dealer market for urea out of regional terminals was quoted at $340-$350/st FOB last week, up some $20/st from last report, with the low reported in Memphis and the upper end in Little Rock, Ark.
Southeast: Granular urea was consistently quoted at the $360/st FOB mark out of port terminals in the Southeast.
India: Indian Potash Ltd. (IPL) called a tender to close May 9 with validity through May 16. Sources say IPL will want to buy at least 1.5 million tons to ensure a ready supply of product for the next application season. One trader figured IPL will go for 2 million tons.
The extra tonnage is necessary because STC only purchased about 500,000 mt, and about 120,000 mt of that may not be deliv
U.S. Gulf/Tampa: Nothing new was reported in the markets last week, although Mosaic did predict that ammonia prices should be on a downward trend for the next couple of quarters.
The May NYMEX natural gas closed rolled off the board April 28 at $2.517/mmBtu, down slightly from the April 23 close of $2.531/mmBtu. June closed April 30 at $2.751/mmBtu.
Eastern Cornbelt: The anhydrous ammonia market was steady at $625-$640/st FOB terminals in the Eastern Cornbelt, with the low in Illinois and the upper numbers reported out of Indiana locations.
Western Cornbelt: Sources continued to quote the anhydrous ammonia market at $590-$595/st FOB out of Nebraska terminals, with the upper end reported at $610-$620/st FOB in Iowa and Missouri.
Ammonia demand had tapered off significantly in the Western Cornbelt.
Southern Plains: Sources continued to report the anhydrous ammonia market in the $540-$570/st FOB range in the Southern Plains, with the low out of regional production points and the upper end out of pipeline terminals.
One contact said more weakness is expected now that spring demand is essentially over in the region.
South Central: Anhydrous ammonia was steady at $590/st FOB Memphis, Tenn., and $610-$620/st FOB Henderson, Ky. Sources continued to report a slow truck pace out of both locations due to wet weather and planting delays.
Black Sea: Sources report business in Turkey that shows a netback to Yuzhnyy of just under $400/mt FOB. The deal confirms reports that have been circulating for a while that the market in the area is softening.
At the same time, buyers are getting more aggressive in demanding lower prices. Sources say buyers in Turkey are now starting their talks for spot tons at $380/mt FOB. So far, however, no one is nibbling at a price that low.
Middle East: Product availability and pricing remain steady. Sources say that unlike the rest of the ammonia world, the Arab Gulf is a sea of tranquility.
Santiago — Sociedad Química y Minera de Chile SA (SQM) said April 30 that it has filed with the U.S. Securities and Exchange Commission (SEC) a Form 12b-25 extension notice relating to its annual report on Form 20-F for the fiscal year ended Dec. 31, 2014. SQM said it was unable to file its form on time pending the outcome of matters subject to the internal investigation that the company previously announced relating to payments of invoices for services that have not been properly supported and related matters. SQM has identified approximately US$11 million in payments made by the company without sufficient supporting tax documentation between tax years 2009-2014. This amount is expected to increase by no more than US$2 million and is related to certain payments by the company’s subsidiaries that may not qualify for tax deductible expenses in the same period. SQM said it will file with the SEC as soon as practicable.
Navarre, Spain — ASX-listed potash developer Highfield Resources reports that it has completed a scoping study on its Sierra del Perdón Project in Spain that has confirmed strong project returns and a 20-year mine life. The study revealed the 100 percent-owned project would have an after-tax Net Present Value of US$527 million and an Internal Rate of Return of 38.5 percent. This is based on an average annual production of approximately 520,000 mt of granular K60 potash with cash operational expenditure in full production estimated at US$155/mt, including transport costs to target markets. The capital cost is estimated at US$233 million, inclusive of a 20 percent contingency. The project is located less than 50 km from Highfield’s flagship Muuga Potash Project, where the company recently completed a definitive feasibility study. Anthony Hall, Highfield’s managing director, said that while Sierra del Perdón is a fantastic second project for the company, the company’s focus remains firmly on the rapid development of its Muuga project. The company is currently working towards commencing construction at Muuga in the fourth quarter of this year, targeting an average annual production of some 1.123 million mt a year of granular K60 potash over an initial 24-year mine life. The company has two other potash exploration projects in Spain. All four projects are located in the country’s potash-producing Ebro Basin. In addition, Highland has applied for three new potash investigation permits in the province of Navarra.
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