All Posts from June 8, 2015

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, Great Lakes, Market Watch, Middle East, Northern Plains, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa: No movement was reported in the ammonia market last week.

U.S. ammonia imports were up 10 percent in April, to 564,287 st from the year-ago 515,269 st, according to the U.S. Department of Commerce.

The NYMEX natural gas price closed at $2.626/mmBtu on June 4, down from May 28’s $2.706/mmBtu.

Eastern Cornbelt: Sources described “hand-to-mouth” fertilizer sales as the season winds down, with pressure reported on most of the spot markets.

The anhydrous ammonia market was reported in a broad range in the Eastern Cornbelt last week, from a low of $595-$610/st FOB in Illinois, depending on location, to a high of $625/st FOB Huntington, Ind.

Western Cornbelt: Anhydrous ammonia remained at $570-$610/st FOB in the Western Cornbelt, with the low in Nebraska and the upper end in Missouri. No summer fill offers were confirmed in the region, though some reported “guesses” that programs might be offered at $540-$550/st FOB in Iowa on a spot basis.

Northern Plains: Sources quoted the anhydrous ammonia market at $635-$645/st DEL in North Dakota, with the upper end reflecting the reference price from Dakota Gasification. Out of regional terminals in the Northern Plains, the market was pegged at $595/st FOB the Twin Cities and $620/st FOB Velva, N.D.

Great Lakes: The anhydrous ammonia market had reportedly slipped to $595-$620/st FOB in the Great Lakes region, with the upper end quoted by Michigan sources FOB Courtright, Ont. The low end of the range was reported by Wisconsin sources out of spot Mississippi River locations.

Black Sea: Some recent buying from Turkey is getting the regional market off to a start. Sources report that Bagfas closed a deal for 6,000 mt from Trammo at an estimated netback of $380/mt FOB Yuzhnyy.

More purchases of similar sizes are expected in the next few weeks. If the Bagfas deal is an indication, sources say prices will remain stable.

Middle East: Sources report nothing has matched the $404/mt FOB paid to Sabic last month. Trammo is looking for additional tons in the area, however. Sources say Fertil may be able to help out because it has extra ammonia while it deals with some urea production issues.

Pennsylvania fire keeps residents indoors – Alert

Breaking Industry News

Residents within one mile of Miller Chemical and Fertilizer Corp. in Conewago Township, Adams County, Pennsylvania, have been advised as a precautionary measure to continue to stay inside as heavy smoke continued to rise from a chemical fire burning since early Monday morning June 8. According to Adams County Emergency Management, businesses within the one-mile radius should also remain closed as the advisory remained in effect in both York and Adams counties.

Latest word was the fire was under control but was allowed to continue as a controlled burn Fire officials stated that continued air monitoring has not found toxic chemicals released into the air but the smoke could pose complications to individuals with existing respiratory illness or vulnerabilities.

Damage to the facility was reported as extensive.

TFI touts results of USDA fert use stats

News, News Briefs

Washington — According to fertilizer application rate data released on May 14 by USDA’s National Agricultural Statistics Service (NASS), U.S. farmers were able to more than double crop production from 1980 to 2014 while using only 4.5 percent more fertilizer nutrients. NASS reported that farmers in 1980 grew 6.64 billion bushels of corn using 3.2 pounds of nutrients (nitrogen, phosphorus, and potassium) for each bushel, while in 2014 they grew 14.2 billion bushels using 1.6 pounds of nutrients per bushel produced. The Fertilizer Institute reported that this represents an 114 percent increase in production with just 4.5 percent more nutrients, and noted as well that corn production accounts for fully half of U.S. fertilizer use. “Numbers don’t lie, and this trend of continuous environmental and economic performance improvement is something that agriculture should be very proud of,” said TFI President Chris Jahn. “But we are not resting on our laurels, and believe that farmers and the businesses that serve them will continue this 24-year trend of improving efficiency. Truly sustainable agriculture protects the environment and grows farm profitability. We expect that through the more widespread adoption of 4R nutrient stewardship, (use of the right fertilizer source at the right rate, right time, and right place), farmers and the fertilizer industry will continue to help feed a growing world population.”

Western Potash sued over Chinese investment

News, News Briefs

Vancouver — Western Potash Corp. confirmed June 3 that UBS Securities Canada Inc. has filed a lawsuit against the company before the Ontario Superior Court of Justice claiming fees, disbursements and damages in connection with a strategic investment in the company by China BlueChemical Ltd., and Guoxin International Investment Corp. Ltd. through a wholly-owned subsidiary, CBC (Canada) Holding Corp. (CBCHC), which closed in June 2013. Western Potash said it believes the suit is unfounded and entirely without merit, and intends to vigorously defend itself against the lawsuit. In 2013, Western has issued to CBCHC approximately 45 million common shares at a price of $0.71 for proceeds of C$31,979,022, which represented a 19.9 percent ownership stake in the company on a non-diluted basis. China Blue is a majority owned subsidiary of China National Offshore Oil Corp. Earlier, Western and CBCHC signed an off-take term sheet whereby CBCHC or a purchaser designated by it will enter into an off-take agreement for the purchase of the lesser of 30 percent or 1 million mt/y of potash from Western’s Milestone potash project for a term of 20 years. Pricing of product sold under the agreement will be based on market terms.

WalMart agrees to New York fine over P regs

News, News Briefs

New York — WalMart Stores Inc. has agreed to a $98,000 fine for violating a New York state law regulating the sale of phosphorus-containing lawn fertilizer. New York’s 2010 Nutrient Runoff Law requires stores to display phosphorus-containing lawn fertilizers separately from those that are phosphorus-free, and to post signs notifying consumers about the legal restrictions on using phosphorus-containing lawn fertilizer. An investigation by Attorney General Eric Schneiderman’s environmental protection bureau found that 16 of 18 WalMart stores inspected in New York displayed phosphorus-containing lawn fertilizers without the separation or signage required by law. According to the New York Department of Environmental Control (DEC), phosphorus levels exceed state water quality standards in approximately 100 waters of the state, including reservoirs in the New York City drinking water watershed, Lake Champlain, Onondaga Lake, Chautauqua Lake, Greenwood Lake, and parts of Lake Ontario. New York enacted the Nutrient Runoff Law specifically to reduce phosphorus runoff from non-agricultural sources. Among its provisions, the law refers to lawn fertilizers containing less than 0.67 percent phosphorus as “phosphorous free.”

Feds finalize $3 million Millard settlement

News, News Briefs

Washington — The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ) report they have finalized a $3 million settlement with Millard Refrigerated Services, Omaha, Neb., involving a 2010 ammonia release at Millard’s facility in Theodore, Ala. (GM May 25, p. 15). The release sickened 152 people after the warehouse’s refrigeration equipment malfunctioned. Four of those affected were admitted to intensive care units. Millard has since sold the Theodore warehouse, and the facility is no longer in operation.

Court weighs Haifa NH3 tank

News, News Briefs

Tel Aviv — Israel’s Supreme Court has taken up an appeal by Haifa Chemicals against the Haifa Municipality for refusing to grant a license for its ammonia storage facility. The Court granted Israel’s Environmental Protection Ministry 45 days to respond to how it planned to implement a government decision on closing down the facility and replacing it with a production plant in Mishor Rotem in southern Israel. The Court also ordered the ministry to respond to whether there was a plan for reducing the amount of ammonia stored in the facility, as the amount needed by Israel at any given time is 2,500 mt, while the storage facility currently holds 12,000 mt. The city’s position is that the facility is too dangerous to have near a populated area. In the meantime, eight groups have pre-qualified in a tender issued by Israel’s Environmental Protection Ministry and the Israel Lands Authority for building an ammonia plant for the production of 150,000 mt/y (GM Dec. 1, 2014).

Precision tank acquires A&B Welding

News, News Briefs

Virginia, Ill. — Precision Tank, a specialized tank and equipment manufacturer, announced on May 28 that it had acquired A&B Welding of Thompson, Iowa, a manufacturer of field-erected tanks and a provider of general contracting services in the liquid fertilizer and chemical construction industry. Precision said it will be able to offer additional products and services to “agricultural retailers throughout the Cornbelt” as a result of the acquisition, and said the transaction is part of its growth strategy to expand and diversify in the agricultural tank marketplace. Arlin Kiel, who founded A&B Welding with his late wife Betty in 1979, will remain as president, and the company’s staff of more than 40 will remain in their current positions. The company will also continue to operate under the A&B Welding name. “Combined, we will be able to offer a full range of tanks, from smaller stainless, fiberglass, and mild steel tanks all the way up to tanks with a 3 million gallon capacity,” said David Hemming, CEO and president of Precision.

CHS acquires Illinois ethanol plant

News, News Briefs

St. Paul, Minn. — CHS Inc. announced on June 1 it has acquired the Patriot Renewable Fuels ethanol plant from Patriot Holdings LLC, Annawan, Ill. The Annawan facility produces 125 million gallons of ethanol annually, and has 68 employees. CHS was formerly a marketer of the plant’s DDGS (distillers dried grains with solubles) and ethanol products. The Annawan facility is the second ethanol plant purchased by CHS, and follows the June 2014 acquisition of the former Illinois River Energy plant at Rochelle, Ill.

Eminent domain an option for Cronus pipeline

News, News Briefs

Tuscola, Ill. — While 78 of 82 easements have been lined up for a 20.4 mile wastewater pipeline for the proposed $1.5 billion Cronus Fertilizer plant here (GM March 2, p. 12), eminent domain is a possibility if the remaining four landowners do not sign on, according to a report in the local News-Gazette, quoting Brian Moody, Tuscola Chamber and Economic Development executive director. He said that the Urbana & Champaign Sanitary District, which will supply the water, has already taken the first steps for the use of eminent domain should the landowners not sign on to the project.

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