Posts By Date - Green Markets

Major Fire at Fertilizer Plant Out

October 9, 2018Breaking Industry NewsSteve Seay

An Oct. 9 fire at Ravensdown’s Hornby manufacturing facility in Christchurch, N.Z., is out, according to the company. No injuries to the 57 employees were reported. However, the company said that while parts of the plant were badly damaged, manufacturing and dispatch operations seem undamaged. The company told the local press that it is looking at “many millions” in repairs.

“The fire started at the eastern end of our storage store but it’s too early to know the cause,” said CEO Greg Campbell. “We will be working closely with an investigation team to identify the cause.”

Campbell said Ravensdown was already working with its customers and transporters to keep them informed and help them with alternative supply options.

New Postings Announced for Trio®, Ammonium Sulfate

October 9, 2018Ammonium Sulfate, Breaking Industry NewsDan Cole

Effective Oct. 8, Intrepid Potash Inc. announced a domestic fall fill program on all grades of Intrepid Trio® for the U.S., Canada, and Mexico. The company’s postings FOB Carlsbad, N.M., moved to $250/st for premium, $235/st for granular, $220/st for standard, $305/st for OMRI granular, and $280/st for OMRI standard. The new prices are effective for orders taken through Oct. 31, with the shipping period extending from Oct. 8 through Dec. 31, 2018. Effective Nov. 1, a $15/st increase will take effect for all Trio grades and all regions.

Also on Oct. 8, AdvanSix announced a new price increase for its ammonium sulfate grades in the Midwest. The company’s granular postings firmed on that date to $270/st FOB Granite City, Ill; $275/st FOB East Dubuque, Ill., Prairie du Chien, Wisc., and Roseport, Minn.; $280/st FOB Danville, Ill., and Amherst Junction, Wisc.; and $285/st FOB Sioux City, Iowa. The NOLA barge posting for granular firmed to $235/st FOB. Those levels reflect a $15/st increase from AdvanSix’s Aug. 31 postings.

Mid-grade postings from AdvanSix also firmed $15/st on Oct. 8, moving to $240/st FOB Danville and Byron, Ill., and $245/st FOB Roseport. The company’s rail-DEL postings in Illinois, Wisconsin, and in Iowa and Minnesota east of Interstate-35 moved up as well, to $285/st for granular and $250/st for mid-grade.

APC, Sinochem Macao Agree New Potash Supply Contract

October 9, 2018Breaking Industry News, PotashSteve Seay

Arab Potash Co. (APC) said Oct. 7 it had concluded a new potash supply contract with Sinochem Macao for the delivery of about 600,000 mt, including optional quantities, which will be shipped “during 2018 and part of 2019.” The volumes agreed are down on last year when about 700,000 mt of various grades were concluded, although last year’s contract settlement came earlier, in late July.

The Jordanian producer said the terms and conditions agreed are in line with current market prices and terms. Belarus Potash Co. (BPC) was the first supplier to settle a new seaborne contract price with China, on Sept. 17 agreeing a new price of $290/mt CFR with China’s buying consortium, comprising Sinochem, CNAMPGC and CNOOC, for the deliveries through June 2019. It has been past practice for other suppliers to subsequently settle their seaborne supply contracts at the same price with China as the first supplier to reach a deal. Until now, BPC is the only supplier to officially announce a conclusion with China.

APC said the expected financial impact of the new China supply deal on the company before income tax, royalties and production costs is around JD125 million (approximately $176.3 million) spread over the years 2018 and 2019 based on the shipping schedule.

MMTC Said to Favor East Coast Deliveries

October 9, 2018Breaking Industry NewsSteve Seay

Sources reported Monday, Oct. 8, that the Indian government is focusing on East Coast deliveries from the MMTC tender that closed Oct. 5.

Dreymoor had the lowest offer into an East Coast port at $356/mt CFR. With a total cost package close to $20/mt, sources said the netback to China is $335-$337/mt FOB. While the price is significantly higher than what MMTC paid in its last tender, sources report Chinese producers are holding out for $340/mt FOB.

EuroChem Takes On Trammo’s U.S. Transport & Storage Assets

October 9, 2018Breaking Industry NewsSteve Seay

EuroChem Group AG, Zug, Switzerland, on Oct. 8 announced the expansion of its North American distribution network via the assumption of dry and liquid fertilizer transport and storage assets from international merchandising and trading firm Trammo Inc., New York City.

The fertilizer group said the move substantially expands its fertilizer storage capacity in the U.S., and will enable it to strengthen its presence into Western Canada as well as on the East Coast. EuroChem now operates 25 warehouses in the U.S. with a current storage capacity of about 500,000 mt.

It said the U.S. market accounted for about 11 percent of group sales in 2017. The group expanded its presence in the U.S. in October 2015 with the acquisition of Ben-Trei, a fertilizer distribution business historically focused on sales within the country’s heartland.

“The agreement with Trammo will substantially increase our storage capacity, while also broadening our geographic reach,” said EuroChem North America Managing Director Charlie Bendana. “It will support the ongoing expansion of our U.S. business, allowing us to fulfil growing demand from local farmers for high-quality fertilizers.”

BCIC Urea Tender Confirms Higher Prices

October 9, 2018Breaking Industry News, UreaSteve Seay

The BCIC urea tender for 100,000 mt of granular urea and 50,000 mt of prilled urea – both in bags – closed Monday, Oct. 8 with prices that confirmed levels more favorable to producers.

Four companies offered lots of 25,000 mt each in the granular tender with the lowest price coming from Swiss Singapore offering Chinese material at $399.00/mt CFR bagged. Three companies offered in the prilled urea tender, again with Swiss Singapore the lowest at $377.95/mt CFR.

Sources reported two other companies offered lower prices, but their offers seemed to have been discarded by BCIC. Agro-Industrial offered 25,000 mt of prilled at $365.87/mt CFR bagged. Hydro Carbon offered 25,000 mt of granular at $365.90/mt CFR bagged. Sources could not explain why these two companies were not included in the final tally released.

The package to bag, ship, insure and load/unload the product is pegged at $50/mt, for a netback for granular at $345-$350/mt FOB and prilled at $325-$330/mt FOB. The prilled price is markedly below the expectations of Chinese producers. At the same time, the granular netback surpassed the $335-$337/mt FOB estimated netback in the MMTC/India tender that closed Friday, Oct. 5.

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