Nederland, Texas — OCI Partners LP, a Delaware limited partnership, has announced that it has acquired a 20,000 mt ammonia tank from Lucite International for additional ammonia storage capacity on-site at Beaumont, Texas. By acquiring the tank, OCI will have additional ammonia storage capacity and access to an ammonia pipeline. The access to the pipeline will allow OCI the flexibility to switch a larger portion of its ammonia sales via pipeline as opposed to barge, providing more flexibility on a need-be basis. In addition, the acquisition of the ammonia tank will facilitate the installation of ammonia truck and railcar loading capacity, which will help diversify OCI’s customer base. OCI already owns an ammonia and methanol production facility at Beaumont, and is upgrading its ammonia production capacity.
Rentech Nitrogen Partners LP announced today the completion of all repairs related to the fire that occurred at its East Dubuque, Ill. nitrogen fertilizer facility Nov. 29, 2013. Ammonia production resumed Dec. 29, 2013, and the facility is producing ammonia as expected at a steady rate of approximately 790 tons per day as of Jan. 5, 2014. The LP continues to anticipate ammonia production at the increased rate of approximately 1,020 tons per day by the end of January 2014, upon completion of the previously-announced repairs to the foundation of one of the four syngas compressors.
Rentech Nitrogen reaffirmed its expectation that the lost production due to the fire will have minimal effect on previously forecasted deliveries for 2014, and that the overwhelming majority of the impact on product deliveries occurred in 2013. It also confirmed that it is in the process of submitting insurance claims to cover the full costs of the repairs, and expects to pay a deductible of $1 million.
Rotem Amfert workers at Ashdod port are preventing the export of phosphates as part of their dispute with Israel Chemicals (ICL) management over ICL’s plans to lay off 127 workers. The sanctions at the Mediterranean port began on Sunday, Jan. 5, and are continuing today. In addition, workers at the company’s production plant in southern Israel prevented non-union workers from entering the plant.
The union has said that it plans to further intensify sanctions following last week’s break down of negotiations with ICL management over a recovery plan. The union charges that ICL has started handing out dismissal notices after the company agreed to freeze plans to lay off workers last month in an attempt to reach an agreement with the union and the Histadrut Labor Federation. Negotiations between the two sides remain deadlocked.
Prior to the resumption of the talks in mid-December, powerful Histadrut chairman Ofer Eini had convinced workers at Dead Sea Works to join the dispute. So far, however, they have stayed clear of taking any action following the announcement last month by ICL management of a restructuring plan.
The change in management’s position followed a lockout at the Rotem Amfert plant in the Negev when initial dismissal notices were handed out to some of the workers. The following day Rotem Amfert management imposed a lock out.
ICL management has said that it must reduce costs at Rotem Amfert. It claims that Morocco, which controls over 50 percent of the global phosphate market, is cutting prices in an attempt to drive rivals out of the market. A spokesman for Rotem Amfert said earlier this week that the company is facing its worst crisis in years due to a sharp drop in phosphate and fertilizer prices that has made the company among the least competitive in the industry. The spokesman added that the layoffs are a painful but necessary measure to enable the company to compete on the international market.
U.S. Gulf/Tampa: Nothing new was reported in the Tampa market over the holidays, as a price rollover at the $450/mt CFR mark was achieved before Christmas for January.
January NYMEX natural gas rolled off the board Dec. 27 at $4.407/mmBtu. February settled Jan. 2 at $4.321/mmBtu. The higher numbers have been driven by colder weather, according to sources.
Eastern Cornbelt: Sources reported some interest in spring prepay during the final days of 2013. Sources said prepay ammonia orders were being placed in the $530-$550/st FOB range out of regional terminals last week, with the low reported in Illinois on a spot basis.
A winter storm brought snowfall and cold temperatures to the Eastern Cornbelt last week, with up to 9 inches of accumulation reported in parts of northern Illinois by Jan. 2.
Snowfall totals in Indiana ranged from 2-6 inches by that date, with the heaviest accumulation reported in the northern counties. Ohio sources reported 5-7 inches of fresh snow in central and northern areas of the state during the first days of 2014.
The snowfall also brought cold temperatures. Lows in the single digits were reported in northern Illinois on Dec. 30, with wind chills dropping to minus 17 degrees in some parts of the state. Sub-zero wind chills were also reported in Ohio in early 2014, with even colder weather expected during the following week.
Western Cornbelt: Sources reported some year-end fertilizer buying taking place in the Western Cornbelt last week, though several sources reported a rather tepid pace as growers remained undecided about 2014 planting intentions and uncommitted on fertilizer purchases.
Much of that uncertainty can be attributed to weak commodity prices, but sources also noted lingering drought conditions in the region. The U.S. Drought Monitor reported that all of Nebraska remained in some form of drought in late December, ranging from abnormally dry conditions in the state’s eastern counties to severe to extreme drought in western Nebraska.
Moderate to severe drought also persisted in southern Iowa at the end of the year. In Missouri, however, drought had been erased in the southern half of the state by late December, with only abnormally dry to moderate drought conditions remaining in the northern counties.
The anhydrous ammonia market was steady at $510-$520/st FOB in Nebraska and Iowa and $530/st FOB Palmyra, Mo., with spring prepay offers reportedly circulating at a $10/st premium to the prompt market.
California: The anhydrous ammonia market was unchanged at $630-$635/st DEL in California. Aqua ammonia remained at $172/st FOB in the state.
A stubbornly dry December has put much of California into the record books, with many locations in the state registering 2013 as the driest year on record.
Yearly rainfall totals as of last week stood at only 3.8 inches in San Jose, compared with 14 inches on average; 3.39 inches in Oakland, compared with an average of 22.8 inches; and 3.6 inches in downtown Los Angeles, compared with 14.91 inches on average. In addition, the northern Sierra Nevada had reportedly received barely 10 percent of its average December snowfall as of early last week.
As a result, some communities in the state began enforcing water rationing measures in December, and a state task force has been assembled to consider further actions. The U.S. Drought Monitor in late December reported that 94.25 percent of California is experiencing some level of drought, with extreme drought covering most of the Central Valley farmland.
Sources reported minimal action on the fertilizer front last week, with few sales to test the markets and pricing described as flat. “Some major corporate farms are starting to put out their spring bids, which should provide some referenc
U.S. Gulf: Prompt business over the holidays was reported to have started as low as $340-$345/st FOB and finished in the $350-$353/st FOB range. It may have gone higher, but fewer players were around to actively trade.
Prills remained strong, with the last done business called $340-$342/st FOB. Suppliers were quoting $345-$350/st FOB for the next round of business, but with no takers so far. Product remains limited, with no word of any resumption of production in Libya.
Eastern Cornbelt: Granular urea pricing was up slightly at $375-$385/st FOB in the Eastern Cornbelt, with the upper end quoted for spring prepay offers.
Western Cornbelt: The granular urea market was up slightly at $375-$385/st FOB in the Western Cornbelt, with that range also quoted for spring prepay tons.
California: Sources continued to report the low end of the granular urea market in California at $385/st FOB Stockton from some suppliers, but others were reportedly moving to the $400/st FOB level to reflect the firming NOLA barge market.
Pacific Northwest: The granular urea market was quoted at $390-$400/st FOB Rivergate, Ore., up $15-$20/st from last report. Delivered urea was quoted in the $405-$415/st range in the Pacific Northwest.
Western Canada: Rail-delivered urea pricing in Western Canada had reportedly firmed to $520-$525/mt for spring prepay.
India: The industry is still waiting for India to step up and start buying again. Sources maintain that the country still needs about 1.3 million mt of urea to close out the current application season and to prepare for the next.
One trader said it was becoming clear that while India needs the tons, it is not desperate for them.
If an Indian buyer calls a tender, it will have to demand quick loading if it wants to depend on Chinese material. The change in the Chinese export regime could make Chinese urea competitive. The issue will be getting the tonnage shipped.
The Chinese New Year comes early this year – Jan. 31. In general, workers take time off the week before and after the Lunar New Year. Getting vessels loaded in January will be difficult. One source said nothing much can be expected to leave Chinese ports until Feb. 15.
Shipment from China in mid-February would be helpful for laying in stockpiles for the next application season, but will do little for the current season.
Also, said one trader, Chinese producers are now asking $360-$370/mt FOB for granular. While no one is biting at that level, the price is not good news to the Indian buyers or government.
During the break in ordering, the Indian government started talking about making changes in the subsidy program for urea. Unfortunately for those in the finance ministry, any efforts to reduce the amount of subsidies paid were blocked because of political pressure.
Farmers saw prices rise for P & K fertilizers once the Nutrient-Based Subsidy (NBS) program kicked in three years ago. Urea was left out of the NBS plan, much to the joy of farmers who swear by urea for their crops.
Urea currently is sold to farmers at US$86.12/mt. The last imported price was about $340/mt. The difference is made up with subsidies. The government is currently in arrears in its subsidy payments to local producers and distributors of urea to the tune of US$5.8 billion.
The subsidy costs will be proportionately higher as the global market price rises.
One of the major trading houses in India – India Potash Ltd. (IPL) – got into a kerfuffle with Nepal. Nepalese government inspectors said a recent cargo of urea sold by IPL was substandard. The government inspector said too much moisture was allowed to enter the bags, causing lumping and
U.S. Gulf: Prices continued to be hard to gauge, but most said they were definitely up. Sources quoted the range at $250-$258/st ($7.81-$8.06/unit range) FOB. Players remained bullish for the East Coast, saying it is quoted at $290/mt CFR.
Eastern Cornbelt: The low end of the UAN-28 market in the Eastern Cornbelt was quoted at the $265/st ($9.29/unit) level FOB Cincinnati, Ohio, for prompt or prepay. Illinois sources tagged the UAN-32 market in the $300-$310/st ($9.38-$9.69/unit) FOB range last week for prepay tons.
Western Cornbelt: UAN-32 remained in the $295-$310/st ($9.22-$9.69/unit) FOB in the Western Cornbelt, with the low reported in southern Missouri and the upper end quoted in Iowa for spring prepay.
California: UAN was quoted at $295-$312/st ($9.22-$9.75/unit) FOB in California, with the low end of the range reflecting a slight drop from last report. Dealer postings continued to be reported as high as $345/st ($10.78/unit) FOB at some desert locations in the state. Rail-delivered UAN-32 was pegged at the $315/st ($9.84/unit) level in the Central Valley.
Pacific Northwest: UAN-32 was steady at $315-$330/st ($9.84-$10.31/unit) DEL in the Pacific Northwest.
Western Canada: UAN-28 remained at $339-$342/mt ($12.11-$12.21/unit) DEL in Manitoba, $342-$345/mt ($12.21-$12.32/unit) DEL in Saskatchewan, and $345-$354/mt ($12.32-$12.64/unit) DEL in Alberta.
U.S. Gulf: While recent nearby business was called $280-$285/st FOB, February was reported at $290/st FOB. Others predicted the market would soon hit $300/st FOB.
Western Cornbelt: The ammonium nitrate market was quoted at the $335/st FOB level in the Western Cornbelt.
California: No market was reported for ammonium nitrate in California.
AN-20 remained at $300/st DEL and $290-$295/st FOB in California.
CAN-17 was pegged at $295-$305/st FOB Stockton and $308-$318/st FOB Helm, with reference prices as high as $328/st FOB in some desert locations in California.
Pacific Northwest: No market was reported for ammonium nitrate in the Pacific Northwest.
CAN-17 remained at a nominal $338/st FOB in the region.
Eastern Cornbelt: Granular ammonium sulfate was unchanged at $270-$280/st FOB in the Eastern Cornbelt. Ammonium thiosulfate remained at $335-$340/st FOB.
Western Cornbelt: Sources tagged the dealer market for granular ammonium sulfate at $260-$275/st FOB in the Western Cornbelt, up $5-$10/st from last report.
The ammonium thiosulfate market remained at $310-$315/st FOB in the region.
California: Ammonium sulfate remained at $260-$290/st FOB in California, depending on grade, location, and supplier. Ammonium thiosulfate remained at $300/st FOB Stockton.
Pacific Northwest: IRM’s postings for Tranzform and WesternPremium ammonium sulfate had dropped to $245/st FOB and $255/st DEL in Oregon, Washington, Montana, and Idaho. IRM’s WesternStandard postings dropped in December as well, to $198/st FOB and $208/st DEL in those locations.
Western Canada: Granular ammonium sulfate was unchanged at $380-$385/mt DEL in Western Canada.
Central Florida: Farmers served by dealers who are in turn served from Central Florida put money up before the end of last year to avoid having to pay taxes for fertilizer they will use this year. A source said they were ordering no particular product and would decide later.
The Northeast was cold and wet, with more ice and snow on the way as of late last week. However, coastal areas from Pennsylvania to Maine were experiencing abnormally dry weather, and there were even some pockets of moderate drought, according to the U.S. Drought Monitor.
The South was faring much better. Virginia, Alabama, and the Carolina all saw improvements on the Drought Monitor, though abnormally dry conditions were spreading somewhat in south-central Florida, where planting will begin in the next few weeks.
Phosphate producers were getting ready to start their quarterly negotiations with sulfur suppliers for first-quarter deliveries of molten sulfur to Tampa. Speculation was that the price will increase, reversing a trend from last year.
The Central Florida phosphate market remained quiet last week, and that will not change for awhile, with the exception of some truck sales. The DAP price range last week moved from a flat $345/st to $355-$365/st FOB, based on prices charged by producers and traders. Both Mosaic and CF Industries, which Mosaic was in the process of purchasing, were posted at $355/st FOB.
MAP prices continued to bring a premium of about $20/st FOB over DAP in the Central Florida market. Sources recently put PotashCorp’s DAP price from Aurora, N.C., at $385/st FOB.
U.S. Gulf: The pace was slow over the holidays, but prices did rise. In reality there were not a lot of NOLA phosphate barges available, but indications were that that will begin to change over the next few months. Koch and Helm were said to be importing additional supplies. One source said Koch was planning to bring in a load of Russian product rather than OCP only.
Mosaic was holding off on making additional commitments to the NOLA DAP barge spot market, although it was not clear how long that situation will continue. Most likely, when prices are high enough, that will change.
Barge traffic north of St. Louis was not a good idea last week, as extremely low temperatures were freezing the river in many areas, making navigation difficult and dangerous. However, docks were still operating in the St. Louis area, and Blytheville, Ark., was open for business after having been shut down for a prolonged period due to low water levels.
A 4 p.m. snapshot of the futures market on Jan. 2 showed corn, soybean, and wheat prices all down. Corn for March 2014 was $4.205/bushel, down from $4.3425/bushel at last report, while corn for May 2014 had slipped to $4.29/bushel from the previous $4.305/bushel. Trading of December 2014 corn contracts checked in at $4.4825/bushel, down slightly from the previous $4.5575/bushel.
The March 2014 soybean price was $12.70/bushel, falling from $13.19/bushel two weeks earlier. Soybeans for May 2014 were put at $12.5125,/bushel, while soybeans for November 2014 slipped to $11.29/bushel from the previous $11.5825/bushel. Wheat for March 2014 was put at $6.3125/bushel, down from the last period’s $6.5275/bushel. Wheat for May 2014 was also down at $6.34/bushel, compared with $6.5375/bushel at last report.
Terminal prices were generally stagnant last week, even as the price of NOLA DAP and MAP barges moved up. One of the reasons was minimal activity; virtually all terminal operators said business ranged from very slow to none at all.
The NOLA DAP barge price range last week firmed to $365-$380/st FOB based on actual trades, compared with the previous range of $345-$370/st FOB. MAP was reported in the $380-$390/st FOB range. Higher prices were expected to be the rule in February and March
U.S. Gulf: Potash barges remained under pressure. The last done business was called $320-$325/st FOB.
Eastern Cornbelt: Potash continued to be quoted in the $360-$370/st range FOB regional warehouses during the final days of 2013. As the new year started, however, PotashCorp reportedly came out with a winter fill program for potash at $350/st FOB warehouses, with orders required by Jan. 10 and shipment due by Jan. 31.
Western Cornbelt: Downward pressure has reportedly intensified on spot potash prices in the Western Cornbelt region. Sources quoted the potash market at $355-$370/st FOB regional warehouses last week, with the low reported in southern Missouri and the upper end in the Iowa market.
Sources said PotashCorp came out with a 2014 winter fill program for potash at $350/st FOB warehouses, with orders required by Jan. 10 and shipment due by Jan. 31.
California: Muriate of potash was unchanged at $500-$510/st DEL and $494-$502/st FOB in California, with the low end reported after discounts. Some sources talked of a possible cut to potash prices after the first of the year, but no pricing changes were reported yet last week.
Crystalline potassium nitrate remained at $950/st FOB for bulk and $1,020/st FOB for bags. The sulfate of potash (SOP) market was pegged at $660-$670/st FOB in California.
Pacific Northwest: Potash continued to be quoted at $455-$465/st FOB and $460-$465/st rail-DEL in the Pacific Northwest. The potash market FOB Utah mines was flat at $385-$390/st for tons shipped into the region.
K-Mag remained at $461-$481/st FOB in the Pacific Northwest.
Western Canada: The regional potash market remained flat at $460/mt FOB Saskatchewan mines to Canadian customers. Dealer pricing out of Western Canada warehouse locations was unchanged at $468-$491/mt FOB, depending on location and supplier.
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.
