a bloomberg bna business - constant...

Green Markets® March 3 © 2017 Kennedy Information, LLC, A Bloomberg BNA Business All Rights Reserved. Reproduction Prohibited by Law.

www.FertilizerPricing.com

see Intrepid, page 19

March 3, 2017VOLUME 41 NUMBER 9

see AdvanSix, page 19

Intrepid remains in loss column; touts Trio to international market, more warehouses in U.S.

Intrepid Potash Inc. reported an adjusted net loss of $14.5 million ($0.19 per share) on sales of $42.2 million for the fourth quarter ending Dec. 31, 2016, compared to the year-ago loss of $20.1 million ($0.26 per share) and sales of $42.8 million. The fourth-quarter net loss was $16.6 million ($0.22 per share) compared to the year-ago $518.2 million ($6.85 per share), while adjusted EBITDA was a loss of $2.2 million versus a year-ago loss of $8.7 million.

“2016 was a transitional year for Intrepid, as we streamlined our business to focus on lower-cost solar potash and our specialty Trio® product and revised our debt instruments to better support our current operations,” said Executive Chairman, President, and CEO Bob Jornayvaz. “The improved selling environment for potash that began towards the end of the third quarter has continued, as we saw healthy

CONTENTS2 Cornbelt NH3 prices up

2 Intl ammonia strengthens

3 NOLA urea remains under pressure

6 AS firms in PNW, W. Canada

12 TFI unveils Congressional Fertilizer Caucus

12 Gavilon buys Missouri warehouse

12 Simplot expands in Hawaii

13 Chemtrade sells unit to Mitsui

13 Land O’Lakes Crop Input results up

14 Court orders NH3 tank emptied by April 1

16 SQM says 2017 K production, sales may decrease

16 GM Webinar offers spring fertilizer outlook

18 Industry applauds Trump EO on WOTUS

Plant outage puts AdvanSix in red for 4Q

Fourth-quarter plant problems reduced AdvanSix’s pre-tax income for the quar-ter by some $64 million ($20 million planned, $44 million unplanned), helping to push the new company into the loss column for the fourth quarter. It reported a fourth-quarter loss of $24.7 million ($0.81 per diluted share) on sales of $259.3 million, compared to the year-ago net income of $15.3 million ($0.50 per share) and $315.9 million. EBITDA was a negative $29.6 million, compared to the year-ago positive $33.1 million.

“AdvanSix drove improved cash flow in the quarter despite lower income that was the result of the significant plant challenges we faced,” said President and CEO Erin Kane. “With our sites currently running at planned rates, we maintain our focus on safe operations, reliable supply to customers, and productivity as we start the new year. We successfully navigated through significant outages in the fourth quarter and look forward to the prospect for an improved 2017.”

The company began an extensive planned turnaround at numerous operating

see LSB, page 20

LSB losses grow in 4Q, year; Ag sales up on lower prices

Despite higher sales volumes for UAN, AN, and ammonia, a 35 percent drop in prices for its agriculture-related products kept LSB Industries Inc. in the loss column for the fourth quarter ending Dec. 31, 2016.

“While sales prices in the fourth quarter of 2017 were lower than in prior years, we saw agricultural market sales prices strengthen toward the end of 2016, which is carried over to our first- and second-quarter order book,” said President and CEO Daniel Greenwell. “We have seen an early ammonia application run in the Southern Plains and portions of the Midwest, which has led to very strong volumes during the first quarter of 2017.”

Greenwell said these better prices and sales have stretched into the second quarter.

Find more than 270 spot fertilizer prices at:


SPOT BARGE PRICES St/FOB U.S. Gulf

Urea (g) 218-230Potash 217-223DAP 333-345

*All prices, see pages 4-5

A Bloomberg BNA Business

®

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



2

MARKET WATCH

AMMONIAU.S. Gulf/Tampa: Nothing new was reported in Tampa

or NOLA last week, with those two markets remaining at $330/mt CFR and $310/st FOB barge, respectively.

March NYMEX natural gas rolled off the board Feb. 24 at $2.627/mmBtu. April closed March 2 at $2.804/mmBtu.

Eastern Cornbelt: Sources quoted the Illinois and Indiana ammonia market at $455-$465/st FOB in early March, with the low end of the range reflecting another $20/st increase from last report. Sources said ammonia reference prices from CF had firmed to as high as $500/st FOB Kingston Mines, Ill., Mount Vernon, Ind., Palmyra, Mo., and Henderson, Ky., but no actual sales were reported at these levels.

“They’re basically saying no prompt tons for sale at those terminals,” said one regional contact. “They are short at certain terminals,” added another source. “With this in mind, obviously the higher pricing is not to sell anything and is not a true mar-ket. I don’t know of any sales being done at those numbers.”

Western Cornbelt: Warm temperatures in February re-sulted in brisk ammonia applications in parts of Missouri, Nebraska, and southern Iowa, with one location reporting that it invoiced a record number of tons for the month. One source said applications in his area would likely resume by the second week of March, weather permitting.

The ammonia market was quoted at $425-$435/st FOB in Nebraska, with Iowa terminals pegged at $435/st FOB Fort Dodge, $445/st FOB Blair, and $450/st FOB Marshalltown

and Washington. Some suppliers had reportedly pulled pricing at several locations due to tight supply, while oth-ers jacked up prices to effectively take themselves out of the market. Sources reported no pricing being offered at Beatrice and Greenwood, Neb., during the week.

Out of Oklahoma terminals in the Southern Plains, the ammonia market continued to be quoted in the $420-$440/st FOB range for the week.

California: The anhydrous ammonia market was un-changed at $470/st DEL in California, with aqua ammonia referenced at the $133/st FOB level in the state.

Pacific Northwest: The anhydrous ammonia market had reportedly firmed to $450-$470/st DEL in the Pacific North-west, fueled by higher postings and strong early demand in other parts of the country. The aqua ammonia market was pegged at $112-$115/st FOB in the region.

Western Canada: Sources pegged the anhydrous ammo-nia market at $700-$730/mt DEL for spring tons in Western Canada, depending on location.

India: Sources said FACT awarded its tender to Trammo at $394/mt CFR with 180 days’ financing. Sources put the cash-equivalent price at $390/mt CFR. One trader called the price meaningful and a clear signal that buyers need to accept higher prices.

FACT usually pays a slight premium for its purchases be-cause of the small quantities in each order – 7,500 mt – and because they buy from tenders instead of long-term con-tracts. Even with that in mind, one trader said the message is clear to the country’s other buyers that pricing ideas of $300/mt CFR are long gone. Sources said the prices other buyers should expect to pay now are about $350/mt CFR on the West Coast and $370/mt CFR on the East Coast.

Black Sea: Quantity from Yuzhnyy remains limited and higher-priced. Sources now estimate the price out of the Black Sea port at $330/mt FOB.

Difficulties in getting product to the port remain the big issue in the area. The problems include technical issues with the pipeline moving product from plant to port, plant closures because of a lack of Russian natural gas to operate the facilities, and plant closures due to fighting between Russian-backed forces and Ukrainian troops.

Middle East: Arab Gulf product continued to hover around $345/mt FOB from a spot deal done a few weeks ago. The lack of loose tons for another spot deal prevents either confirmation of that price or movement of the needle in another direction.

Producers claim they are sold out for March and well into April with their contract business. Sources said they have seen little evidence to refute that claim.

North Africa: Morocco continues to need tons to keep OCP running. Sources said the phosphate giant is telling anyone who will listen that the market has peaked and is due for a downward correction. Unfortunately for the buyer, producers have other ideas and are sticking to their guns.

Southeast Asia: Sources report that the $410/mt CFR paid by South Korea to Mitsubishi remains the high point in pricing. However, said one source, the deal moved prices in the area past the $400/mt CFR mark.

100

150

200

250UREA UAN st AMMONIUM NITRATE

10-2

8-16

11-4

-16

11-1

1-16

11-1

8-16

12-2

-16

12-9

-16

12-1

6-1

6

1-6

-17

1-13

-17

1-20

-17

1-27

-17

2-3-

17

2-10

-17

2-17

-17

2-24

-17

3-3-

17

11-2

3-16

12-2

3-16

Cornbelt Eastern Canada Tampa

10-2

8-16

11-4

-16

11-1

1-16

11-1

8-16

12-2

-16

12-9

-16

12-1

6-1

6

1-6

-17

1-13

-17

1-20

-17

1-27

-17

2-3-

17

2-10

-17

2-17

-17

2-24

-17

3-3-

17

200

300

400

500

600

700

800

11-2

3-16

12-2

3-16

AMMONIA

U.S. GULF NOLAD

ocum

ent g

ener

ated

for

Geo

rge

Por

vazn

ik, g

eorg

e.po

rvaz

nik@

cgb.

com

on

2017

-03-

03 1

4:09

:18



3

Buyers were arguing that the Mitsubishi/Korea deal was a one-off purchase and that prices would return to the upper-$300s/mt CFR. That did not happen.

UREAU.S. Gulf: Prompt granular barge prices rose a bit last

week but sputtered on thin trading, according to sources. The top end achieved was reported to be $230/st FOB. By week’s end, however, sources were reporting prices had retreated to the $218/st FOB mark.

Prills were reported to be under pressure due to a new round of imports. Most sources put them in the $235- $240/st FOB range, at best.

Eastern Cornbelt: The granular urea market was quoted at $265-$285/st FOB in the Eastern Cornbelt, down $5-$10/st from last report, with the upper end inland and the low reported at spot river locations in the region. The market FOB Little Rock, Ark., was pegged at the $265/st level as well.

Western Cornbelt: The granular urea market had report-edly slipped to $260-$280/st FOB in the Western Cornbelt, down some $5-$15/st from the prior week, depending on location. The St. Louis, Mo., urea market was reported at $265-$270/st FOB, down $10/st from last report, while pric-ing in the Twin Cities market in Minnesota was quoted by several sources at the $260/st FOB level.

“The river is open and barges are coming in,” said one Iowa source at midweek. “This has depressed urea prices slightly, plus Port Neal is cranking at full production.” Sources said OCI’s plant at Wever, Iowa, was reportedly producing ammonia after a bumpy start, but no urea or UAN was com-ing out of the facility yet.

California: Granular urea was quoted at $320-$340/st FOB California terminals, with the low end of the range reflecting a $10/st decrease from last report. Rail-delivered urea remained in the $350-$360/st range in the state.

Pacific Northwest: The urea market was quoted at a firm $320/st FOB Rivergate, Ore., with delivered tons pegged at $350-$360/st in the Pacific Northwest.

Western Canada: Granular urea was tagged in a broad range at $485-$520/mt DEL in Western Canada, depending on location and time of shipment, with some describing the upper end of the range as a “producer wish list.”

Some sources relayed concerns about potentially tight urea supplies in the region, particularly if it’s a late spring. “The next several weeks will tell the story,” said one contact.

Indonesia: Kaltim announced that it will not be exporting any prills this month so that it can satisfy domestic demand. The prills that were up for sale last week were from Pusri. Sources said the 30,000 mt offered were eventually sold in the low-$240s/mt FOB this week.

The seller tried to sell prills at $255/mt FOB several weeks ago. When the highest bid came in at $230/mt FOB, the com-pany lowered its reserve price to $240/mt FOB. In the end, the tonnage sold for just a few bucks above the new price floor.

The granular material sold last week at $252-$255/mt FOB, along with the prills sold this week, are all expected to go to Southeast Asian buyers. Vietnam is a strong market

for Indonesian tons. The Vietnamese government does not impose an import tax in Indonesian urea, while it slaps Chinese urea with a six percent duty.

Besides Vietnam, Malaysia and the Philippines are also in the market for Indonesian product.

Middle East: Sources said the claim by Arab Gulf pro-ducers that they are sold out for the rest of this month is not wholly accurate. The producers are shying away from any spot deals, said one trader, to avoid confirming reports that the price has slipped a bit in the region.

Without new spot business to set a price mark, sources said the official public price remains in the upper-$260s/mt FOB for granular. One observer noted that discussions of prod-uct higher than $270/mt FOB seems to have disappeared.

Egypt settled another deal at $260-$261/mt FOB, con-firming a slide in prices on both sides of the Suez Canal.

Expectations that Sorfert in Algeria would be back up and running this week were dashed. Sources said the plant was still down as the weekend approached.

China: Prills have moved up in price, while granular prices are falling. Sources now peg the prilled market at $240-$245/mt FOB, with granular at $247-$250/mt FOB.

The shift came because of domestic demand. Sources report that regional buyers – Malaysia, Philippines, and Viet-nam – are looking to Indonesia instead of China to fulfil their needs. In some cases, such as Vietnam, the issue is straight financing. Vietnam has a six percent duty on imported Chi-nese urea while imposing no tariff on Indonesian product.

Sources noted that until the international market – notably India – steps in to take tonnage, the price of prills could soon top that of granular. Such a reversal in the traditional price difference is not unusual in China. In recent years, there have been times when prills were more expensive than granular urea. At other times, the price of prilled and granular have been at parity.

NITROGEN SOLUTIONSU.S. Gulf: UAN barge prices were reported higher at

$180-$190/st ($5.62-$5.93/unit) FOB for prompt trades.East Coast vessel price ideas were more contentious. While

some argued that new trades were as high as $208/mt CFR, others were expecting the next round of business to be easily sub-$200/mt CFR.

Eastern Cornbelt: Illinois sources quoted the UAN-32 market at $205-$225/st ($6.41-$7.03/unit) FOB in early March. The UAN-28 market remained at $184-$198/st ($6.57-$7.07/unit) FOB in Ohio and Indiana, depending on location.

Western Cornbelt: UAN-32 remained at $205-$230/st ($6.41-$7.19/unit) FOB in the Western Cornbelt, depending on location and time of delivery. Missouri and Nebraska sources pegged the terminal market at $205-$215/st ($6.41-$6.72/unit) FOB, while Iowa sources quoted the dealer market at $215/st ($6.72/unit) FOB Fort Dodge and $230/st ($7.19/unit) FOB Muscatine.

California: UAN-32 was reported at $225-$245/st ($7.03-$7.66/unit) FOB port terminals in California, depending on location and supplier, with the low end of the range reflecting a drop of some $10/st from last report.

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



4

AMMONIA 3/3/2017 Year AgoTampa CFR mt 330 310U.S. Gulf NOLA CFR mt 335 315U.S. Gulf NOLA 310 285-292Cornbelt 425-465 415-470Northern Plains 370-400 430-440Northern Plains DEL 390-395 455-465Great Lakes 445-465 440-465South Central 415-445 400-450Southern Plains 420-440 370-410California DEL 470 545Pacific Northwest DEL 450-470 460-505Eastern Canada 635-655 675-705Western Canada DEL 700-730 730-740Black Sea 330 250-255Caribbean 285-290 265-270Middle East 345 270-275Western Europe CFR 390 310-315

AQUA AMMONIA 3/3/2017 Year AgoCalifornia 133 151Pacific Northwest 112-115 128-132

UREA 3/3/2017 Year AgoU.S. Gulf NOLA 218-230 260-270U.S. Gulf NOLA import prill 235-240 245-250Cornbelt 260-285 295-305Northern Plains 260-310 295-300Northern Plains DEL 295-325 312-339Great Lakes 285-325 300-315Northeast 285-295 290-300Southeast 295-305 290-300South Central 265-285 290-300Southern Plains 270-285 295-305California 320-340 320-325Pacific Northwest 320 330-340Pacific Northwest DEL 350-360 348-360Eastern Canada 435-465 470-485Western Canada DEL 485-520 505-515Black Sea prill 245-247 210-212Indonesia bulk 240-252 231Middle East granular 265-270 215-220Middle East prill 250-260 210-215

UAN 3/3/2017 Year AgoU.S. Gulf NOLA st 180-190 175-190U.S. Gulf NOLA 5.62-5.93 5.47-5.94Cornbelt 6.41-7.19 7.00-7.81Northern Plains 7.68-8.21 7.14Northern Plains DEL 7.86-8.39 7.86-8.21Great Lakes 6.79-7.89 7.00-7.50Northeast 6.09-7.25 5.94-7.13

UAN 3/3/2017 Year AgoSoutheast 5.88-6.25 5.78-6.56South Central 6.72-7.19 6.41-6.72Southern Plains 5.94-6.56 6.88-7.19California 7.03-7.66 7.34-7.66Pacific Northwest DEL 7.81-8.13 8.44-8.75Eastern Canada 10.00-10.54 11.25-11.36Western Canada DEL 10.89-11.43 11.43-11.61

AMMONIUM NITRATE 3/3/2017 Year AgoU.S. Gulf NOLA 195-200 205-215Cornbelt 250-265 275-280Southeast 225-230 295-300South Central 220-240 265-270Southern Plains 225-235 260-270Eastern Canada 435 460-555

CAN-17 3/3/2017 Year AgoCalifornia 250-273 303-325Pacific Northwest 250 290-300

AN-20 3/3/2017 Year AgoCalifornia DEL 275 295

AMMONIUM SULFATE 3/3/2017 Year AgoCornbelt 225-265 260-280Northern Plains 235-265 245-255Northern Plains DEL 245-275 265-275Great Lakes 255-270 280-295Northeast DEL 250-270 285-290Southeast 230-245 270-280Southeast DEL 250-280 290-305South Central 210-220 245-260Southern Plains 205-215 240-275California 265-305 265-305Pacific Northwest 260-270 275Pacific Northwest DEL 270-280 275-285Eastern Canada 365-415 480-495Western Canada DEL 405-435 425-440

AMTHIO 3/3/2017 Year AgoCornbelt 250-290 295-335Great Lakes 265-285 325-335South Central 265-270 295-305Southern Plains 215-230 285-295California 260-290 275-300Pacific Northwest 275-290 285-295

DAP 3/3/2017 Year AgoCentral Florida 350 370U.S. Gulf NOLA 333-345 330-345U.S. Gulf export mt 375 360

A Bloomberg BNA Business®

Price ScanUnless otherwise noted, all domestic U.S. prices are on a short ton, FOB basis. International prices are on a metric ton basis.

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



5

DAP 3/3/2017 Year AgoCornbelt 365-375 370-380Northern Plains 360-370 375-380Great Lakes 365-385 375-405Northeast 372-375 380-385South Central 365-370 365-375Southern Plains 365-375 400-405

MAP 3/3/2017 Year AgoCentral Florida 370 380-385U.S. Gulf NOLA 355-368 340-360Cornbelt 390-415 380-395Northern Plains 390-410 390-400Great Lakes 395-415 385-415Northeast 385-395 380-390Southern Plains 405-410 410-420California DEL 455-460 480-485Pacific Northwest DEL 443-450 455-465Eastern Canada 579-590 672-675Western Canada DEL 625-635 765-775

TSP 3/3/2017 Year AgoU.S. Gulf NOLA import 280 280-285South Central 315-320 335-340

10-34-0 3/3/2017 Year AgoCornbelt 335-390 475-510Northern Plains 355-365 485-490Northern Plains DEL 395 500-505Great Lakes 380-400 510Northeast 395-405 510-515Southern Plains 335-345 475-485California 417-422 484-489Pacific Northwest 384-399 461-476

11-37-0 3/3/2017 Year AgoCalifornia 452-457 525-530Pacific Northwest 410-425 502-517

16-20-0 3/3/2017 Year AgoCalifornia 357-369 395-407Pacific Northwest 344-349 NAPacific Northwest DEL 347-352 390-395

PHOS. ACID 3/3/2017 Year AgoCalifornia 8.90 10.85California DEL 8.70 10.65-10.70Pacific Northwest 8.20 10.15Pacific Northwest DEL 8.70 10.60-10.65India CFR 580 715

PHOS. ROCK 3/3/2017 Year AgoNorth Africa 85-110 97-132

POTASH 3/3/2017 Year AgoU.S. Gulf NOLA 217-223 190-200Cornbelt 250-265 240-245Northern Plains 250-260 240-250Northern Plains DEL 245-265 250-260Great Lakes 260-269 240-250Northeast DEL 260-270 260-267Southeast DEL 268-275 260-268South Central 240-245 240-250Southern Plains 255-265 240-245California 400-405 425-430California DEL 405-410 430-440Pacific Northwest 345-350 330-368Pacific Northwest DEL 348-358 368-372Eastern Canada 400 435-445Western Canada 345-365 385-390Western Canada (mine) 330-340 350-355Carlsbad standard 272 260Carlsbad granular 265 260-267Carlsbad soluble NA 267Saskatchewan standard st 222 210-215Saskatchewan granular st 222-232 215-220Saskatchewan soluble st 227-232 220-225Vancouver granular mt 217-224 311-320Vancouver standard mt 204-209 298-305

POTASSIUM SULFATE 3/3/2017 Year AgoCalifornia 580-605 682-695Eastern Canada 850 901-905

POTASSIUM NITRATE 3/3/2017 Year AgoCalifornia 830-920 950-1020

SOP MAGNESIA 3/3/2017 Year AgoPacific Northwest 302-332 443-463Eastern Canada 505-535 670-715

SULFUR 3/3/2017 Year AgoTampa c lt 75 95Houston DEL c lt 60 80U.S. Gulf NOLA c lt 64 84U.S. Gulf NOLA prill mt 80-85 75-80West Coast mt 85-87 70-80Alberta mt (-)55-20 (-)27-60Vancouver c mt 87-92 75-85Vancouver s mt 87-92 75-85

PRICE QUOTES DO NOT REFLECT ACTUAL TRANSACTIONS, BUT REPRESENT CURRENT MARKET CONDITIONS AS PERCEIVED BY SELECTED BUYERS AND SELLERS.PRICE NOTES: Prices are based on large transactions involving truckloads or larger volumes. All prices are net of discounts for volume, cash, or prompt payment, if such are offered. Prices listed on an FOB basis are at the producer’s plant gate, terminal, or pipeline point. CFR prices include transportation to the destination port. Delivered (DEL) prices include transportation costs to the retail dealer’s premises or the nearest accessible railhead. All prices are spot unless indicated with a (c) for contract. The notation (mt) denotes metric ton. The notation (lt) denotes long ton. The notation NA (not available) means that a current price is not obtainable. Price spreads shown for a region are attributable to localized price differences or differing sizes of purchase. CORNBELT: Price range includes both Eastern and Western Cornbelt regions. CANADA: Western and Eastern Canada prices are CAD per metric ton. Vancouver prices are USD per metric ton. Saskatchewan prices are USD per short ton. CHINA: Factory prices are CNY per metric ton, as provided by Sunsirs. Other China prices are USD per metric ton. COMMODITY NOTES: UAN: Domestic prices are quoted on the basis of nutrient units; to convert to short ton, multiply the nutrient value (e.g., 28, 30, or 32) by the price shown. UREA: All prices are granular unless indicated as prill, or a bulk which is both prill and granular. PHOSPHORIC ACID: Domestic prices are quoted on the basis of nutrient units; to convert to short ton, multiply the nutrient value (e.g., 54 for MGA, 68 for SPA) by the price shown. SULFUR: Recovered Tampa, New Orleans, and Houston prices are for 1st quarter.REGIONS: Visit www.FertilizerPricing.com/GM-PriceNotation for regional descriptions.

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



6

Pacific Northwest: UAN-32 was quoted at $240-$250/st ($7.50-$7.81/unit) FOB in the Pacific Northwest, with delivered tons roughly $10/st higher at $250-$260/st ($7.81-$8.13/unit) in the region.

Western Canada: UAN-28 was quoted at $305-$320/mt ($10.89-$11.43/unit) DEL for spring tons in Western Canada, depending on location, with the bulk of quotes reported at the upper end of that range.

AMMONIUM NITRATEU.S. Gulf: Ammonium nitrate barge prices remained in

the $195-$200/st FOB range.Western Cornbelt: The ammonium nitrate market re-

mained at $250-$265/st FOB in the Western Cornbelt, with the low in Missouri and the upper end in Iowa.

California: CAN-17 was quoted at $250-$273/st FOB in California, with the lower numbers reported at port terminals in the state. The market FOB Helm, Calif., was pegged in the $263-$273/st range in late February.

AN-20 was steady at $275/st DEL in California.Pacific Northwest: The AN-20 market was steady at

$250/st FOB and $260/st DEL in the Pacific Northwest, while CAN-17 was unchanged at $250/st FOB Kennewick, Wash.

AMMONIUM SULFATEU.S. Gulf: Ammonium sulfate barge prices continued to

be called $185-$195/st FOB, with most putting recent trades toward the lower end of the range.

Eastern Cornbelt: Ammonium sulfate continued to be reported in a broad range at $225-$265/st FOB in the Eastern Cornbelt, depending on location, with the lower end of the range quoted out of spot river locations for imported tons and the upper end out of inland terminals for domestic product.

Ammonium thiosulfate remained at $250-$280/st FOB in the Eastern Cornbelt, with the low in Illinois and the upper end reported in Indiana and Ohio.

Western Cornbelt: The granular ammonium sulfate market was quoted at $235-$265/st FOB in the Western Cornbelt, with the low end of the range up $10/st from last report. Sources pegged the St. Louis market at $240-$245/st FOB in early March, while domestic pricing out of spot Iowa locations was quoted firmly at the $265/st FOB level.

In the Southern Plains market, granular ammonium sulfate continued to be quoted in the $205-$215/st FOB range at Catoosa, Okla.

Ammonium thiosulfate was steady at $265-$290/st FOB in the Western Cornbelt, depending on location.

California: The ammonium sulfate market remained at $265-$275/st FOB port terminals and up to $305/st FOB at inland terminals in the Imperial Valley.

Ammonium thiosulfate was unchanged at $260-$290/st FOB in California, with the low for 11-0-0-24 FOB Stockton.

Pacific Northwest: Ammonium sulfate pricing continued to firm in the Pacific Northwest, with sources quoting the market at $260-$270/st FOB and $270-$280/st rail-DEL in the region. The upper end of both ranges reflected updated reference prices from IRM for Tranzform and WesternPre-mium ammonium sulfate.

Western Canada: Granular ammonium sulfate was up in Western Canada, with sources quoting the market at $405-$435/mt DEL, depending on location. “Ammonium sulfate is reported to be in short supply, so this may create some logistics problems,” said one regional contact.

China: Sources said the dramatic surge in ammonium sulfate prices experienced in January appears to have slowed down. Prices remain stable at the $130/mt FOB mark for the second week in a row.

Strong demand in Asia for ammonium sulfate is being met with a plentiful supply from Chinese producers.

PHOSPHATESCentral Florida: Truck-loaded DAP offered from the Central

Florida phosphate market was unchanged at $350/st FOB. MAP took a cue from increased premiums at both NOLA and a number of river markets, firming to $370/st FOB, up from $365/st FOB the week before.

U.S. Gulf: Prices firmed on the NOLA DAP market last week. Sources reported prompt domestic barge sales top-ping out at $345/st FOB, a rise from the prior week’s $338/st FOB high end. Some market players trumpeted the upward move as a sign of positive spring sentiment, but a number of sources expressed an opposing view.

“DAP is under pressure, despite domestic sentiment,” said one trader, describing prompt DAP barges offered at $335/st FOB with no takers. “DAP has flat-lined compared to last week,” another source agreed.

Traders described DAP business as focused in the $335-$338/st FOB range, and a $333/st FOB DAP sale was recorded in late-week trading. Market players speculated that higher NOLA netbacks were achievable on barges located upriver.

MAP exhibited stronger fundamentals, some said, at least for the short-term. “MAP is more stable,” said one contact. “But a ship with a good mix of MAP arrives in 7-8 days. It will be interesting to see if the market holds up.” Prompt MAP was generally quoted in the $355-$368/st FOB range.

The longer-term outlook pointed to price softening for late-March and April delivery. Full-March physical DAP was called $333-$340/st FOB, with concluded paper swaps quoted down to $332/st FOB. April physical was called $320-$325/st FOB “with very little interest,” while paper trading was noted at $325/st FOB.

Sources blamed a raft of expected imports for the softer deferred pricing. Most sources counted five boats as loaded and en route to NOLA on March 2, all of which were ex-pected to arrive before the end of March. An additional two vessels rumored for mid-late March loading were thought due in April.

Sources quoted the prompt DAP market in a $333-$345/st FOB range, up from $335-$338/st FOB the week before. MAP was reported at $355-$368/st FOB, down from $357-$370/st FOB at last report. TSP was flat at $280/st FOB.

Eastern Cornbelt: DAP was quoted at $365-$375/st FOB in the Eastern Cornbelt, with MAP pegged at $390-$410/st FOB in the region.

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



7

10-34-0 remained at $380-$390/st FOB in the Eastern Cornbelt.

Western Cornbelt: DAP pricing inched up to $370- $375/st FOB in the Western Cornbelt.

MAP remained at a significant premium to DAP, driven by what one regional contact described as “very tight” supply. MAP was pegged at $395-$415/st FOB in the region, with the low quoted by Iowa sources out of spot Mississippi River locations and the upper end reported in western Iowa on the Missouri River. The St. Louis MAP market, in the meantime, had reportedly firmed to a solid $410/st FOB in early March.

10-34-0 was steady at $335-$385/st FOB in the Western Cornbelt, with the upper end in Iowa and the low in Ne-braska on a spot basis.

Agrium adjusted its phosphoric acid postings on March 1, with delivered SPA and MGA moving to $780/st of P2O5 in Colorado, Missouri, Iowa, Wisconsin, Kansas, and Nebraska; $790/st of P2O5 in Minnesota; and $800/st of P2O5 in the Dakotas, Oklahoma, and Texas.

California: Sources reported a slight uptick in phosphate pricing, but most described a “quiet” fertilizer market in Cal-ifornia as retailers and growers wait for fieldwork to begin.

MAP pricing in California had reportedly firmed to $455-$460/st FOB or DEL, up $10-$15/st from last report.

The TSP (0-45-0) market was quoted at $405/st FOB French Camp, up another $10/st from early February levels. The 16-20-0 market was higher as well at $357-$369/st FOB in the state, up some $5-$7/st from last report.

The phosphoric acid market was pegged at $8.70/unit rail-DEL in California, reflecting March 1 postings from Simplot after a $0.10/unit increase from February pricing levels. Simplot postings for MGA at Lathrop and El Centro also firmed $0.10/unit on March 1, moving to $8.90/unit FOB.

Agrium also raised its phos acid postings on March 1, moving to $870/st of P2O5 for delivered SPA and MGA in California and Arizona.

10-34-0 was pegged at $417-$422/st FOB in California, up $4/st from last report. The 11-37-0 market was up $4/st as well, with sources quoting the market at $452-$457/st FOB in the state.

Pacific Northwest: Sources reported firming markets for phosphates in the region, although the weather conditions kept fieldwork to a minimum in early March. “Fertilizer move-ment is slow due to wet conditions, but things will ramp up rapidly as fields dry out,” said one contact. “There is a lot of pent up demand because (the region) is some 2-3 weeks behind at this point in time.”

MAP was pegged at $442-$450/st FOB or DEL in the Pacific Northwest, up some $10-$20/st from last report. The TSP (0-45-0) market was higher as well at $395/st FOB Pocatello, Idaho, up another $15/st from last report.

16-20-0 was quoted at $347-$352/st DEL in the region, up $5-$7/st from early-February, while the FOB warehouse price was quoted at $344-$349/st FOB in the region.

Simplot raised its phos acid prices on March 1 to $8.20/unit FOB Pocatello and $8.70/unit rail-DEL for MGA and SPA in the region, up $0.10/unit from February pricing levels. Agrium

200

250

300

China Granular China Prill India CFR

10-2

8-16

11-4

-16

11-1

1-16

11-1

8-16

12-2

-16

12-9

-16

12-1

6-1

6

1-6

-17

1-13

-17

1-20

-17

1-27

-17

2-3-

17

2-10

-17

2-17

-17

2-24

-17

3-3-

17

11-2

3-16

12-2

3-16

INTERNATIONAL UREA

hiked its phos acid postings as well on March 1, moving to $870/st of P2O5 for delivered SPA and MGA in Washington, Idaho, Montana, and Oregon.

10-34-0 pricing in the Pacific Northwest was pegged at $384-$399/st FOB, up some $4-$9/st from last report, depend-ing on location. 11-37-0 was up as well at $410-$425/st FOB, reflecting a $4/st increase from February levels.

Western Canada: Sources reported a firming MAP mar-ket in Western Canada. MAP was quoted at $625-$635/mt DEL in the region, reflecting an increase of $15-$35/mt from early February pricing levels, depending on location. One source said he expects continued strength as the spring season approaches.

The 10-34-0 market remained at $600-$620/mt DEL in Western Canada.

U.S. Export: Mosaic reported a 12,000 mt sale of DAP and MAP to a buyer in Latin America last week. The cargo, priced at $375/mt FOB Tampa, was scheduled to ship in March.

The Gulf export market swelled to $375/mt FOB based on confirmed trades, an increase from $370/mt FOB at last report.

Rumors of recent loading difficulties exhibited by a Central Florida phosphate producer – difficulties potentially affecting cargoes destined for Australia and Latin America – may be overblown, observers indicated. Industry sources referred to the claims as “not exact” and “speculation.”

Negotiations for the contract price of phosphoric acid sold to India are ongoing, observers said. Moroccan producer OCP is believed to be operating on a $580/mt CFR Q4 contract, but U.S. producers have not announced a deal of their own since first-quarter 2016. That contract was valued at $715/mt CFR.

UREA DAP POTASH

200

250

300

350

400

10-2

8-16

11-4

-16

11-1

1-16

11-1

8-16

12-2

-16

12-9

-16

1 2-1

6-1

6

1-6

-17

1-13

-17

1-20

-17

1-27

-17

2-3-

17

2-10

-17

2-17

-17

2-24

-17

3-3-

17

11-2

3-16

12-2

3-16

CORNBELT

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



8

First-quarter speculation has centered on a potential $20-$30/mt drop from Q4.

Brazil: Sources called most-recent Brazil MAP business in the $390-$393/mt CFR range, up from $385-$393/mt CFR at last report. DAP trailed MAP by $5-$10/mt CFR.

North Africa: Sources noted a rise in the price of phosphate rock sold from North Arica. Recent business was called $85-$110/mt FOB, higher than the prior week’s $85-$105/mt FOB range.

Morocco: OCP has signed a Memorandum of Under-standing (MOU) with Guinea to supply the country with its entire 2017 phosphate fertilizer requirements, estimated at 100,000 mt, according to a statement by the producer.

The MOU was inked Feb. 24 with the Guinea government. Some 20,000 mt of the total volume to be supplied will be as a donation, according to local press reports.

India: The tender for 100,000 mt by NFL came and went. Once NFL rejected the $380-$390/mt CFR offers in the tender, it turned around and called a new one to close March 14. The guidelines for the tender are the same, with 50,000 mt to be shipped to a West Coast port by April 15 and 50,000 mt to be shipped to an East Coast port by April 25.

One trader said there is little chance that prices in the cur-rent tender will be any lower than the one earlier scrapped. Sources pointed to a continued strong price in China, an unwillingness by the Saudis to lower their price, and strong demand from Australia and Brazil to keep producers happy with orders.

The tender documents call for validity on the offers to hold until 10 working days after the tender closes. The material must then be delivered by April 15. Sources noted that this

leaves little time for a winner to secure the tons, book a vessel, and get the product to India.

Sources expect the tender to reflect the stronger phos-phate market compared to when RCF was last in the market in January. At that time, the company scrapped its tender because the lowest offer was $340.85/mt CFR for the DAP lite and $353.98/mt for the GMAP. One trader said the prices in the current tender will be much higher.

RCF has also issued a tender for the supply of 30,000 mt of 29 percent P2O5 phosphate rock for delivery in one shipment to MBPT (Hay Bunder) by April 30. The tender closes March 6, and offers are requested to remain valid for 30 days after tender closing.

China: The domestic market remains strong. Prices in the northeast of the country reportedly have surged upward, while prices in the central-eastern portion of the country have come off a bit. One source said the price variation is due to seasonal demand in the different parts of the country.

DAP continues to hold right around $370/mt FOB, with an occasional hard-fought deal in the upper-$360s/mt FOB.

Sources said vessels are lining up in the southern ports waiting to be loaded with DAP for export. Also, said one source, ships are queuing up in Nanjing for MAP. The most likely destinations are Australia and Africa.

For now, the domestic market continues to drive the international price and product availability.

Pakistan: Sources reported that Fauji closed a deal with Saudi Arabia for a cargo of DAP. The price, terms, and de-livery date are still closely held, said one trader.

POTASHU.S. Gulf: Prompt potash barges prices continued to

move up last week, with most putting the range between $217-$223/st FOB for recent import trades. Domestic product was posted at $230/st FOB for March.

Eastern Cornbelt: The potash market was pegged at $250-$265/st FOB in the Eastern Cornbelt, with the low quoted out of spot river locations and the upper end inland.

Western Cornbelt: Potash was quoted at $250-$265/st FOB in the Western Cornbelt, with the lower end of the range reported in the St. Louis market. Several sources quoted the market firmly at the $265/st FOB level out of inland warehouses.

California: The California potash market was quoted at $400-$405/st FOB and $405-$410/st rail-DEL, up $5-$10/st from last report.

Sulfate of potash (SOP) was pegged at $580-$605/st FOB in the state, depending on location, with the upper end reported in the Central Valley and reflecting a $15/st increase from last report.

Crystalline potassium nitrate remained at $830/st FOB for bulk tons and $920/st FOB for 50-pound bags.

Pacific Northwest: Potash was quoted at $345-$350/st FOB warehouses in the Pacific Northwest. Potash postings FOB mine locations at Moab and Wendover, Utah, remained at $290/st for 60 percent granular and $285/st FOB for 60 percent standard.

200

250

300

Carlsbad Mine New Orleans Barge Saskatchewan Mine

3-3-

17

10-2

8-16

11-4

-16

11-1

1-16

11-1

8-16

12-2

-16

12-9

-16

12-1

6-1

6

1-6

-17

1-13

-17

1-20

-17

1-27

-17

2-3-

17

2-10

-17

2-17

-17

2-24

-17

11-2

3-16

12-2

3-16

250

300

350

400

Central Florida New Orleans barge U.S. Gulf Export

10-2

8-16

11-4

-16

11-1

1-16

11-1

8-16

12-2

-16

12-9

-16

12-1

6-1

6

1-6

-17

1-13

-17

1-20

-17

1-27

-17

2-3-

17

2-10

-17

2-17

-17

2-24

-17

3-3-

17

11-2

3-16

12-2

3-16

DAP

POTASHD

ocum

ent g

ener

ated

for

Geo

rge

Por

vazn

ik, g

eorg

e.po

rvaz

nik@

cgb.

com

on

2017

-03-

03 1

4:09

:18



9

The sulfate of potash (SOP) market was unchanged at $560-$570/st FOB in the Pacific Northwest.

SOP Magnesia was steady as well at $302-$322/st FOB in the region.

Western Canada: Potash was unchanged at $330- $340/mt FOB Saskatchewan mines, with regional ware-house pricing reported in the $345-$365/mt FOB range, depending on location.

China: Active first-round talks between some of the main producers and China’s buying consortium are reported to be underway on the new supply contract price. Producers are reportedly said to be asking for a $20-$30/mt increase, while the buy-side is said to be looking for a rollover on last year’s contract price of $219/mt CFR.

There are unconfirmed reports that the focus is on pricing for first-half or even first-quarter volumes only. Up until 2015, some deals were done on a half-year basis, and occasionally on a quarterly basis.

Producers are hopeful of a timely settlement. Andy Jung, The Mosaic Co.’s director of market and strategic analysis, is among those who think a settlement is not “too far off.” Speaking in a Mosaic presentation at the Bank of America Merrill Lynch Global Agriculture and Chemicals Conference March 1 in Fort Lauderdale, Fla., Jung said inventories in China are down by 750,000 mt year-over-year at the ports, and the company believes inland inventories are down by an even larger amount.

“So the Chinese should be at the negotiating table in a serious way in the very near future,” Jung said.

Belarus: According to a statement from Belarusian Potash Co. (BPC), the company met with the China potash buying consortium (CNAMPGC, Sinochem, and CNOOC) in Beijing on Jan. 23-25, and all parties expressed hope for a prompt start to this year’s contract talks, with a settlement to follow soon.

It was agreed, BPC said, that the parties should strengthen cooperation in order “to take a weighted and mutually ac-cepted decision” on potash pricing for shipments to China in 2017, which would “definitely support further rebound of the global potash market and become a new step in its development.”

India: National Fertilizers Ltd. (NFL) on Feb. 28 closed a tender for the supply of 25,000 mt of potash for delivery in one shipment to the East Coast ports of Vizag/Gangavaram/Kakinada by March 10. NFL has issued two further potash tenders for a total of 60,000 mt, both closing March 17.

An official announcement on potash subsidies is not antic-ipated for a few weeks. But even if the proposed 17 percent cut to Rs7,669/mt ($114.5) is adopted for fiscal 2017/18, Joc O’Rourke, Mosaic’s president and CEO, is among those who believe the proposed changes in the near term will not have “a massive effect” on India’s potash demand.

“While over time we are going to see India’s potash demand grow at a reasonable rate, we still say it’s going to be flat for the next [fiscal] year,” O’Rourke said in response to an analyst’s question at the BMO Capital Markets 26th Global Metals & Mining Conference in Hollywood, Fla., on Feb. 28.

Sulphur & Sulphuric Acid Summit, May 8, GA

IFA Annual Conference, May 22-24, Morocco

SW Fertilizer Conference, July 15-19, TX

Specialty Fertilizer Global Summit 2017, December 7, NC

Join Green Markets at these upcoming conferences

India’s imports of potash for direct application were run-ning 12 percent higher in the first 11 months of fiscal 2016/17 at 3.47 million mt, up from the prior-year’s 3.10 million mt, according to Department of Fertilizers’ data. February 2017 arrivals totalled 273,000 mt, compared with 160,000 mt a year earlier.

Brazil: Sources said $245/mt CFR is now being widely achieved on bigger volumes sales of granular potash. As previously reported, smaller volumes sold in recent weeks were transacted at the $250/mt CFR level.

Northwest Europe: Good demand from NPK producers is providing a boost for potash prices, with the lower end of the Northwest Europe range moving up to €240/mt CIF and the upper end unchanged at €245/mt CIF.

SULFURTampa: Questioning the established narrative of a stable

domestic sulfur market heading into March, some observ-ers expressed frustration with what they described as a notable disparity between U.S. pricing and a number of international sulfur markets.

The U.S. Gulf market, which is a traditional indicator for Tampa pricing, remained of particular interest. Last-done cargoes have firmed by a reported $5-$10/mt in recent weeks. Nevertheless, the market remains behind the Middle East’s mid-$90/s mt level by $10-$15/mt FOB.

“Tampa now trades $10-$20/t below the other world markets,” said one source. “It doesn’t seem sustainable.”

The first-quarter Tampa molten contract was valued at $75/lt DEL.

Refinery utilization grew last week, the first weekly increase reported by the U.S. Energy Information Admin-istration (EIA) in 2017. Refiners operated at 86.0 percent capacity for the week ending Feb. 24, a 1.7 percent rise from the previous week’s 84.3 percent. The number was still shy of both the year-ago 88.3 percent and the 86.7 percent five-year average.

A spate of planned March refinery turnarounds prompted some to predict a return to falling refining rates headed into Q2.

Daily crude inputs rose accordingly. The EIA noted an average 15.664 million barrels/d processed for the week, a 393,000 barrel/d jump from the prior week’s 15.271 mil-lion barrels/d.

U.S. Gulf: Last-done Gulf prill was priced in the $80- $85/mt FOB range. Included in the market’s recent business was a 57,000 mt vessel reportedly purchased by Brazilian fertilizer producer Copebrás, valued at $105/mt CFR.

The Marathon Petroleum Corp. refinery at Texas City, Texas, entered a full maintenance turnaround on Feb. 24,

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



10

Grain Futures: As of 4 p.m. on March 2, corn and soybean futures traded higher than the week before, but wheat was pointed down.

Corn for May 2017 was $3.795/bushel, up from $3.725/bushel at last report. The July 2017 price for corn was $3.8625/bushel, and December 2017 corn contracts checked in at $3.985/bushel, an increase from $3.9175/bushel in the previous week.

The May 2017 soybean price was $10.3725/bushel, rising from $10.225/bushel the week before. Soybeans for July 2017 were $10.4575/bushel, while soybeans for November 2017 were posted at $10.2175/bushel, up from $10.045/bushel at last report.

Wheat for May 2017 was $4.7025/bushel, down from the prior week’s $4.715/bushel. July 2017 wheat fell to $4.8175/bushel from $4.83/bushel the week before, while September 2017 wheat contracts traded at $4.955/bushel.

Eastern Cornbelt: A powerful storm system on Feb. 28 produced a number of deadly tornadoes that battered Il-linois, Indiana, parts of Ohio, and southern Michigan.

Illinois locations that were particularly hard hit included Ottawa, Crossville, Naplate, and Washburn, with reports of winds that reached 155-160 mph. Indiana towns that suffered tornado damage included Ireland and Poseyville, while three separate tornadoes caused structural damage in the Michigan towns of Niles, Dowagiac, and Vandalia.

Leesburg, Ohio, was also the scene of a possible tornado at midweek, while high water and flooding were reported at numerous locations across the state, from southwestern Ohio up toward Cleveland. Late in the week, wind chills in the teens and several inches of lake effect snow were expected in northeastern Ohio.

Western Cornbelt: A wide band of severe weather churned through parts of eastern Iowa and Missouri on Feb. 28, producing tennis ball-sized hail in parts of Iowa and spawning more than 20 tornadoes that caused con-siderable damage and a number of deaths in Missouri and Illinois.

Some of the worst tornado damage was reported near Perryville, Mo., where more than 100 homes were severely damaged and numerous vehicles were tossed off of Inter-state 55. The final days of February also brought unsettled weather to parts of Nebraska, with up to 22 inches of snow reported in Alliance on Feb. 23.

The wild weather followed what one regional source described as “the mildest February on record in Iowa.”

Reuters reported. Workers began by shutting down the plant’s 55,000 barrel/d fluidic catalytic cracking unit, and are expected to power down a pair of crude distillation units as well.

Work at the 86,000 barrel/d refinery is scheduled to conclude in mid-late April. Marathon’s other Texas City plant, the 450,000 barrel/d Galveston Bay Refinery, is on turnaround through March 10-11.

Vancouver: Last-done spot sales into China were flat at $105-$110/mt CFR for the week, sources reported. The market’s resilience continued to surprise many, as conventional wisdom pointed to a decline in post-Lunar New Year pricing.

Last-done Vancouver tons continued at $87-$92/mt FOB, although some speculated that the market was due for an increase in the next round of business, based on China.

Alberta producer netbacks held firm at (-)$55-$20/mt FOB. Prilled tons sold on the Vancouver export market comprised the high end of the range, while Fort McMurray-area molten tons contractually bound for the U.S. market were said to account for the low.

Aramco: Saudi Arabian state-run petrochemicals giant Saudi Aramco issued firmer price guidelines on solid sulfur cargoes loading in the current month. March tons were of-fered at $94/mt FOB Jubail, up from $90/mt FOB quoted for January. Sources traced the increase to the firming Chinese market, with freight called “around $15/mt.”

Aramco announced a progress update at its Jazan Refinery and Terminal construction project, reporting development at 70 percent complete. The facility is slated to produce 400,000 barrels/d upon completion.

ADNOC: The Abu Dhabi National Oil Co. listed March pricing at $95/mt FOB Ruwais, a $3/mt increase from $92/mt FOB in January.

QPSPP: Qatar Petroleum marketing arm QPSPP an-nounced a price increase on prills. March tons were offered at $92 mt/FOB Ras Laffan, a $4/mt FOB rise from the Febru-ary price of $88/mt FOB.

India: The Bharat Petroleum Corp. (BPCL) will stop produc-tion at its 120,000 barrel/d Mumbai refinery in early March for scheduled maintenance, The Times of India reported. The facility is expected to remain offline for about a month. BPCL will also curtail production at its nearby 240,000 barrel/d refinery.

SULFURIC ACIDU.S. Gulf: Market players continued to put price ideas in

the $40-$45/mt CFR range on vessels imported to the Gulf of Mexico. Brazil trading was flat at $45-$50/mt CFR based on recent business, and observers quoted the Northwest Europe smelter price at $5-$10/mt FOB, unchanged from last report. Material bound for Chile was said to run $40-$45/mt CFR.

Domestic business was called in the $80-$90/t range for tons delivered to the Midwest. The West Coast was re-ported flat at $100-$110/t/DEL, ahead of tightening supply predicted in the second quarter. Gulf buyers were said to pay $80-$90/t DEL.

SPECIALTYEast Dubuque, Ill.: Tessenderlo Group, Brussels, re-

ported on March 1 that its two new Thio Sul ® plants are on schedule to be completed in second-half 2017. They are in East Dubuque, Ill. (GM Nov. 3, 2014), adjacent to the CVR Partners LP nitrogen plant there, as well as in Rouen, France.

CROPS/WEATHER

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



11

California: Torrential winter rains in California caused February flooding in northern and central areas of the state, pushing rivers and reservoirs to their limits and causing a rapid retreat in drought conditions.

Year-to-date rainfall and snowpack levels across the state stood at 186-230 percent of average as of Feb. 21 follow-ing an onslaught of storms through January and February. While moderate to severe drought persisted in parts of Southern California, Northern California was completely drought-free in late February. Central California was also mostly drought-free, with small patches of abnormally dry to moderate drought showing up on the map.

Growers were just starting to make their way back into the field in parts of Central California as the week progressed, but reports persisted of a “fair amount” of flooded farmland in the Central Valley. “Water should not be a problem this year,” said one source, adding that he expected field activi-ties to “really boom” in his trade area during the second week of March.

That sentiment was echoed by others. “The rains have finally backed off, and I think it is safe to say that the drought is over for most of California,” said one regional contact.

Pacific Northwest: Winter weather settled over much of the Pacific Northwest in late February and early March. Sources reported cool temperatures and plenty of rain in western Oregon and Washington, with snowfall at eleva-tions above 1,000 feet.

Eastern Washington and northern Idaho were hit with heavier snows, including eight inches in the Spokane area and up to 14 inches at higher elevations. Cold, windy weather also blew into western Montana as the week progressed, following heavy snows that blanketed parts of Montana and southern Idaho in late February.

Western Canada: Much of Western Canada experienced a cold blast during the last days of February. Extreme cold warnings were issued for northern Manitoba at midweek, with lows dipping to the negative 30s and wind chills down to minus 50 C in some locations.

The chilly weather extended down to southern areas of the region as well, with lows on Feb. 28 dropping down to the negative teens and 20s in southern Manitoba and parts of southern Saskatchewan. Fortunately, warmer weather was on tap for the coming weekend, with one source saying that highs in the 50s were possible in his location by March 4.

Minimal snow cover was reported in Western Canada after an unseasonably warm spell earlier in February. As a result, one Manitoba source said growers there were “a little more optimistic” about an April start to spring planting. Dealers across the region were busy positioning tons for the spring season, with reports of a few dry spreaders working on frozen ground in parts of Saskatchewan.

“It’s usually an early spring if guys start seeding in late March, and a late spring if they start in late April or early May,” said one contact. “It’s too early to tell as March could be a wet month. Often times the season starts around Easter weekend, which happens to be later in April this year.”

U.S. Gulf: Fog delays plaguing the Gulf shipping region in recent weeks were mostly absent for the week, but shippers expected low-visibility conditions to return on or around March 4.

Algiers Lock was closed for repairs on March 2. Additional work scheduled for March 6-9 will close the lock to daytime traffic. Port Allen Lock will be offline 6:30 a.m. to 6:30 p.m. on March 6-17 for maintenance and repairs. Shippers expect considerable delays resulting from both closures.

Industrial Lock waits were quoted in a 2-4 hour range, while delays at both Port Allen Lock and Bayou Sorrel Lock were quoted at 5-6 hours.

Fast currents at the Brazos Floodgates triggered restric-tions, shippers noted, with tows limited to a single loaded barge or two empties per pass. Combined with the towing restrictions, a fog-caution warning in effect for the week resulted in delays of 1-2 days.

Pipeline work underway at the West Canal’s Matagorda Bay (Mile 471) is projected to block overnight transits through March 4. The area is closed to navigation daily between 6:00 p.m. and 6:00 a.m.

Mississippi River: Lock 21 length and width restrictions ended on Feb. 28, returning operations to normal. Wait times at the lock were quoted at three hours on March 1.

Shippers plan to begin releasing northbound tows from St. Louis no later than March 7. Locks 15, 16, and 17 are expected to reopen on March 3, sources said. The National Weather Service is forecasting minor flooding between Lock 25 and MacGregor Lock.

The Corps has indefinitely delayed the start of the 2016-2017 Thebes, Ill., rock pinnacle project due to uncooperative river levels. The Corps requires the Cape Girardeau, Mo., gauge to read 15-feet or less for the duration of work at the site, a level now deemed unlikely until summer. Levels stood at 19.6 feet on March 1, and were predicted to rise to 25.0 feet on March 12-13.

Missouri River transit is expected to begin for the spring season on April 1.

Illinois River: Forecasts predicted fresh fog delays for March 4-5. Marseilles Lock and Dam reported transit delays in a 4-9 hour range for the week, while boats noted intermit-tent waits of up to six hours at Starved Rock Lock. Falling water levels prompted the Peoria and LaGrange Locks to resume locking last week.

Ohio River: Shippers predicted a return of foggy condi-tions on or around March 4. Fog has been responsible for frequent 5-10 hour delays in recent weeks.

High water levels on the Upper Ohio River prompted Lock 52 operators to lower dams on Feb. 28, allowing vessels

TRANSPORTATION

Join the Green Markets Fertilizer Forum at LinkedIn.com. Participate in online discussions, comment on recent articles, and expand your network!

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



12

Gavilon buys warehouse from Intrepid Potash

St. Joseph, Mo.—Gavilon Fertilizer LLC announced March 2 that it has completed the purchase of the Intrepid Potash Inc. warehouse facility in St. Joseph, Mo. Gavilon plans to combine this new facility with their neighboring liquid and dry fertilizer facility to help serve their growing customer base in the area. “Our existing facility has allowed us to become familiar with the local wholesale fertilizer market around St. Joseph,” said Brian Harlander, Gavilon president. “By purchasing the Intrepid location, we will be able to improve our efficiency with unit train service, expand our presence in the area, and continue to provide our customers with the high level of service and products that they require.” Denver-based Intrepid announced its own purchase of the facility in November 2013 (GM Dec. 2, 2013) from United Suppliers Inc., Eldora, Iowa. At the time, Intrepid said the purchase of the 20,000 st facility would support its ag market strategy by transitioning some customers in the region from direct rail shipments to warehouse purchasing. The company has since eliminated conventionally-mined potash production and relies on solar production, as well as its specialty Trio product.

Simplot expands with Hawaiian acquisitions

Boise, Ida.—The J. R. Simplot Co. announced in Febru-ary that it has purchased the assets of two businesses on the Hawaiian Islands – Hawaii Grower Products Inc., and Pacific Agricultural Sales and Services Inc. The acquisition adds three locations to Simplot’s Turf and Horticulture business, which the company said provides “full service to the state” with facilities at Kapolei, Kahului, and Kailua-Kona. “We continue to look for opportunities to expand our geographic reach, and expansion to Hawaii fits the plan,” said Jeff Roesler, vice president of Simplot’s Spe-cialty Business Units. “Hawaii Grower Products and Pacific Agricultural Sales and Services have been long-time Sim-plot business partners who know their customers, their geography, and the opportunities for growth. This fits our strategy.” Simplot said location operations, as well as sales

Ray Starling has been appointed as special assistant to the president for Agriculture, Trade, and Food Assistance, a position that resides within the National Economic Council. Starling was previously chief of staff for Sen. Thom Tillis (R-N.C.), and also served as Tillis’ chief counsel. In addition, he has served as senior agriculture advisor in the North Caro-lina General Assembly and general counsel for the North Carolina Department of Agriculture and Consumer Services.

Starling’s appointment was applauded by Richard Gup-ton, the Agricultural Retailers Association’s (ARA) senior vice president of public policy and counsel. “Ray has spent the majority of his career working on agricultural policy and is very familiar with the current challenges faced by America’s agricultural industry,” Gupton said. “ARA is excited to con-tinue working with Ray and the administration on policies that will help the nation’s agricultural retailers and their farm and ranch customers continue to produce the safest, most affordable, and abundant food supply while preserving their freedom to operate.”

The Fertilizer Institute (TFI) on Feb. 28 kicked off its Congressional Fertilizer Caucus, a bipartisan coalition of members of Congress who work together to support America’s fertilizer industry and farming community. TFI President Chris Jahn said the caucus will be led by Rep. Dan Newhouse (R-Wash.), Rep. Kathy Castor (D-Fla.), Rep. Frank Lucas (R-Okla.), and Rep. Jim Costa (D-Calif).

“We thank the caucus co-chairs for leading the Congres-sional Fertilizer Caucus, and look forward to working with

to transit without locking. Performed mostly by hand, the lowering of the Lock 52 wickets forced a temporary backlog of 10-15 hours. Lock 53 also lowered dams, triggering 8-10 hour waits on Feb. 28 and March 1.

The New Cumberland Lock auxiliary chamber closure is on track to wrap up by March 17. The auxiliary chamber’s closure has created minimal disruption since work began on Feb. 6, but intermittent main chamber shutdowns as-sociated with the repairs are another story, sources said, and the disruptions are predicted to continue through the end of the project.

The Markland Lock auxiliary chamber is scheduled to shut down March 6 through April 26 for repairs and main-tenance, and Meldahl Lock will undergo extended main chamber work between May 1 and Sept. 29. Shippers expect substantial delays.

Demolition of the Ironton-Russell Bridge (Miles 326.5-327.5) will force daytime navigation closures on May 17, May 19, and June 15.

On the Cumberland River, Barkley Lock repair is sched-uled to conclude March 9. The Allegheny River’s Lock 6 remains closed to transit due to a hydraulic leak and related mechanical failures, effectively shutting the river to com-mercial navigation.

MANAGEMENT BRIEFS

NEWS BRIEFS

them and the 115th Congress, Jahn said. “The Congressional Fertilizer Caucus is a great opportunity for us to share this positive story with Members of Congress and for them to engage on the challenges facing our industry and to learn about our commitment to sustainability. Through the caucus, Members of Congress will learn more about our efforts to address water quality and nutrient runoff through the 4R program, and our efforts to promote the safe storage and handling of fertilizers through the ResponsibleAg program.” Jahn noted that the fertilizer industry accounts for more than 14,000 direct jobs and contributes nearly $13 billion in economic impact in the home states of the co-chairs.

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



13

people and support staff, will remain the same at each location, with Ken Findeisen and Gilbert and Carol Araki, the business’s previous owners, continuing in leadership positions as Simplot employees. Simplot said the timing of the acquisition also fits well with the expanded production capabilities and product offerings at Simplot’s Lathrop, Calif., operations. Simplot recently announced several new products (GM Dec. 2, 2016), including GAL-XeONE® controlled release polymer coated fertilizer and FŪSN® Fused-Safe Nutrients, which it said are “ideally suited for the Turf and Horticulture applications and the Hawaiian marketplace.”

Chemtrade sells international unit to Mitsui

Toronto—Chemtrade Logistics Income Fund reported Feb. 27 that it entered into a definitive agreement Feb. 24 to sell its International business segment – Chemtrade Aglobis AG, Zug, Switzerland – to Mitsui & Co. Ltd., Tokyo, for €34 million. Chemtrade said the unit encompassed its sulfur and sulfuric acid businesses outside of North America, and operated in Switzerland, Germany, the Netherlands, and Chile. The unit removes, markets, and distributes sulfuric acid, liquid and solid sulfur, and base metals produced by oil refineries, based metal smelt-ers, and other industrials in Europe, Africa, Central and South America, Australia, and the Middle and Far East. It operates storage and distribution facilities in Rotterdam, the Netherlands, and Mejillones, Chile, and a trucking company, Ruhrtrans, which transports molten sulfur and sulfuric acid for Chemtrade Aglobis and a wide range of other industrial liquid chemicals for third parties. The unit reported a full-year loss of C$11.5 million on revenues of $159.9 million, compared to 2015 net earnings of $10.4 million on revenues of $237.4 million. The deal still awaits regulatory approval.

LOL Crop Input results up on United addition

Arden Hills, Minn.—Land O’Lakes Inc. (LOL) reported that its Crop Inputs and Insights segment delivered 2016 pretax earnings of $202.9 million on sales of $5.5 billion for the year ending Dec. 31, 2016, up from 2015’s $189.6 million and $4.8 billion, respectively. It was the first full year the unit included the crop protection assets of United Suppli-ers. The full unification with United Suppliers takes place Oct. 1, 2017, adding crop nutrients to the portfolio. LOL said the Crop Input performance, along with the growth in other core businesses, moved company-wide net earn-ings for 2016 to $319.9 million on sales of $13.2 billion, up from 2015’s $304.2 million and $13 billion, respectively. However, net earnings attributable to LOL were down at $244.9 million from the year-ago $307.6 million. LOL said for 2016 it returned a record $187 million in cash to member-owners, compared to 2015’s $161 million. “We are pleased with another record year, particularly under current market conditions, and appreciate the dedication of our workforce and the support of our farmer owners,”

said President and CEO Chris Policinski. “We attribute our continued strong performance to our ‘marketplace back’ approach to doing business, which is different from the production orientation of many of our competitors. Our strategy is based on deeply understanding what our consumers, customers, and farmers need to be successful, and developing innovative, value-added products – and increasingly services – to meet those needs. We know that our success depends on their success.” LOL said it currently touches 50 percent of the harvested acres and 25 percent of the producers in the nation through its independent retail-owner network. Fourth-quarter net earnings were $73 million on sales of $3.3 billion, down from the year-ago $116 million and $3.3 billion, respectively.

Agro unit off for Tessenderlo in 2016

Brussels—Tessenderlo Group reported a 15.7 percent drop in its 2016 Agro unit REBITDA, to €118.7 million on revenues of €571.4 million from 2015’s €140.7 million and €626.8 million, respectively. The company cited Agro’s SOP Plant Nutrition results for the decrease, both for the year and fourth quarter. The company said SOP had lower revenues, volumes, and prices. Positive results from the two other Tessenderlo units – Bio-valorization and Industrial Solutions – helped boost company-wide REBITDA to €195.5 million on revenues of €1.59 billion from 2015’s €182.3 million and €1.59 billion, respectively. However, the company said positive results in other two units could not overcome Agro’s performance in the fourth quarter, causing company-wide REBITDA to drop 16.8 percent for the period, to €31.8 million on revenues of €342.9 million, versus the year-ago €364.4 million and €374.4 million, respectively.

Chemtrade posts 4Q earnings, annual loss

Toronto—Chemtrade Logistics Income Fund reported a net loss from continuing operations of C$1.2 million for the year ending Dec. 31, 2016, compared to 2015’s loss of $58 million. Revenues dropped to $1.07 billion from 2015’s $1.13 billion. The company cited lower selling prices for sulfuric acid and sulfur in its Sulphur Products and Performance Chemicals unit, and lower volumes of certain products in its Water Solutions and Specialty Chemicals segment. The company reported a net loss of $12.6 million, compared to a year-ago loss of $47.6 million. Chemtrade took a $58.8 write-down on the value of its Augusta, Ga., sulfuric acid plant in 2016 (GM Aug. 19, 2016). It reported adjusted EBITDA from continuing operations of $180.4 million, down from 2015’s $220.9 million. Chemtrade had fourth-quarter net earnings from continuing operations of $6.4 million on revenues of $251.7 million, up from the year-ago loss of $82.6 million and $277.5 million, respectively. It reported a fourth-quarter net loss of $8.9 million, compared to the year-ago $80.1 million. Adjusted fourth-quarter EBITDA from continuing operations was $31.6 million, down from the year-ago $47.1 million.

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



14

jobs, increased worker and community safety, and helped conserve land, energy, land, water, and air resources. TFI reported that land reclamation remains a “high priority” for the fertilizer industry, with the equivalent of 4,200 football fields of land reclaimed or restored in 2015. TFI also noted in the report that the fertilizer industry employed 1,127 certified crop advisors in 2015, who helped “guide farmers to make sustainable choices and use 4R Nutrient Stewardship with their fertilizer use.” TFI said the report was done with input from key players in all segments of the supply chain, from manufacturing to retail, accounting for 93 percent of total fertilizer production capacity in the U.S. “The future of the fertilizer industry depends on our ability to provide good and services that help growers feed the world, improve lives, and protect the environment, or in short, sustainable growth,” said Chris Jahn, TFI president. “The data in this report show-cases the significant steps the industry is taking to make positive contributions and ensure its viability in the future.” More information is available at tfi.org/stateoftheindustry.

Court rules NH3 tank emptied by April 1

Haifa, Israel—The Haifa District Court has rejected an appeal by Haifa Chemicals against a lower court decision ordering the closure of its 12,000 mt ammonia storage facility in Haifa. The court ruled that the facility is to be completely emptied by April 1, and that no new vessels of ammonia will be allowed to supply it in the interim. Haifa Chemicals said it is studying the ruling. The company could appeal to Israel’s Supreme Court. The closure is prompted by threats from Hezbollah terrorists to attack the tank. Although Israel’s Environmental Protection Agency ordered the complex to be shut down by June 1 (GM Feb. 24, p. 14), the court order supersedes the ministry decision. Haifa Chemicals imports about 10,000 mt monthly, mainly to supply its own needs and those of Israel Chemicals Ltd.’s (ICL) Fertilizers and Chemicals unit, as well as an estimated 100 smaller users. It is unclear at this stage how imports will continue and what impact the court decision will have on Haifa Chemicals and ICL. Haifa Chemicals has reportedly been assessing various options, including moving some of the production abroad. Meanwhile, Israeli officials are reportedly studying whether to grant Haifa Chemicals a 40 percent subsidy for setting up an ammonia production plant in southern Israel. The proposal follows the failed 2016 tender by the government to set up an ammonia plant in southern Israel (GM Nov. 18, 2016). The new direct subsidy would reportedly provide over $120 million for setting up the plant, nearly double the amount offered in the earlier tender. The government also considered transferring the storage facility to a site along Israel’s southern Mediterranean Coast in Asheklonm, but the regional council rejected the proposal.

Knesset committee weighs ICL decision

Tel Aviv—The Knesset Finance Committee will oversee the government’s negotiations with Israel Chemicals Ltd. (ICL) on extending the company’s license for mining potash in the Dead Sea. Committee Chairman Moshe Gafni said the

Pinnacle announces exchange offer results

Loveland Colo.—Pinnacle Agriculture Holdings LLC on Feb. 24 announced the early tender results of its previously announced offer to exchange newly issued 9.00 percent Senior Secured Notes due 2023 of Pinnacle Operating Corp. (POC) and Class A-2 Participating Preferred Units of Pinnacle Agriculture Enterprises LLC for any and all of POC’s validly tendered and accepted outstanding 9.00 percent Second Lien Senior Secured Notes due 2020 (Old Notes). As of 5 p.m. on Feb. 24, New York City time, Pinnacle said approximately $272,280,000, or 90.76 percent, of the ag-gregate principal amount of outstanding Old Notes had been validly tendered and not withdrawn in the Exchange Offer. Pinnacle said it intends to accept for exchange all of the Old Notes tendered. In addition, Pinnacle announced that it has entered into an amendment to its ABL facility with lenders holding over 90 percent of the commitments under the facility to extend the maturity date to Nov. 15, 2020, and to increase the applicable interest rate margins. As previ-ously reported (GM Feb. 10, p. 14), Pinnacle entered into an amendment with lenders holding more than 90 percent of its loans that will provide for a three-year extension of maturity on the loans to November 2021, a 3.5 percent increase in the interest rate on the Extending Term Loans, and certain modifications to covenants and other provisions in the First Lien Credit Agreement that are intended to benefit the lenders. The amendment was agreed to in connection with a financial recapitalization plan (GM Feb. 4, p. 17) that will reduce Pinnacle’s overall debt, reduce cash interest costs, increase the company’s liquidity, and strengthen its overall capital structure. The recapitalization is expected to reduce Pinnacle’s consolidated debt by approximately $200 million, reduce annual debt service costs by over $5 million, and result in a capital infusion of more than $125 million into Pinnacle Agriculture Enterprises LLC. Pinnacle reported on Feb. 24 that it believes the remaining conditions to the Exchange Offer will be satisfied, and that the closing of the Exchange Offer and new capital investment of more than $125 million will occur during the week of March 6, 2017.

TFI releases State of the Fertilizer Industry report

Washington—The Fertilizer Institute (TFI) on Feb. 27 released its 2016 State of the Fertilizer Industry report, which tracks industry performance on key environmental, economic, and social indicators such as safety, energy and environment, and jobs. Report data represents products produced in, imported to, or transported in 2015. Highlights include the fact that the fertilizer industry generates more than $154 billion in economic benefit and provides 89,000 direct jobs and 406,000 indirect jobs, for a total of 495,000 U.S. jobs. TFI said the fertilizer industry dedicated in excess of 2,600 hours to training emergency responders in 2015, and ex-perienced fewer than one-half the safety incidents of peers in the chemical manufacturing and merchant wholesaler industries. The industry also invested $5.1 billion in capi-tal infrastructure projects in 2015, which TFI said created

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



15

committee will demand a detailed plan from the govern-ment for extending the license and will take an active role. A senior Finance Ministry official said that several options are under discussion, including extending the license for ICL, issuing an open tender, and even nationalizing the company. He said final recommendations by a finance ministry team will be presented by June. In January, the finance ministry’s outgoing Accountant General Michal Abadi Boiangiu recommended an open tender (GM Jan. 20, p. 12) for mining rights at the Dead Sea when the ICL’s license expires in 2030.

EuroChem completes purchase of Agrium unit

Sofia—EuroChem Group AG has confirmed the acquisition of a 100 percent interest in Agricola Bulgaria, Bulgaria’s leading fertilizer distribution company. It will be renamed EuroChem Agro Bulgaria. The deal, made via EuroChem Trading GmbH, was approved by Bulgaria’s competition regulator last month (GM Feb. 17, p. 16). The Pleven, northern Bulgaria-based distribution firm was owned previously by Agrium Europe NV. It has annual fertilizer sales of some 70,000-80,000 mt, accounting for around nine percent of the Bulgarian fertilizer distribution market, according to EuroChem. EuroChem CEO Dmitry Strezhnev said the acquisition is in line with the group’s expansion strategy in Eastern Europe, where it sees strong demand for fertilizers.

Indorama eyes Aditya Birla’s fert business

Mumbai—The Aditya Birla Group, one of India’s largest conglomerate corporations, is reported to be in talks with Singapore-headquartered Indorama Corp. Pte. Ltd. to sell its fertilizer business. Aditya Birla’s fertilizer business is managed by Indo Gulf Fertilisers Ltd., which produces and markets urea. It is India’s eighth-largest urea producer, operating more than 900,000 mt/y of urea manufactur-ing capacity in Jagdishpur, Uttar Pradesh. Birla has been looking to exit the fertilizer business for several years, as part of its strategy to get out of low-margin businesses in government-regulated sectors. Birla is said to be looking for around $500-$600 million for the fertilizer business, according to an Economic Times India report. Indo Gulf posted a four percent fall in EBITDA in the first nine months of fiscal 2016/17 (April 1-Dec. 31), down to Rs1.81 billion ($27 million) from Rs1.89 billion for the same prior-year quarter. Revenues fell 18 percent to Rs16.78 billion, down from Rs20.45 billion. Fiscal nine-months manufactured urea sales were two percent higher at 916,000 mt, up from the same prior-year’s 897,000 mt. Birla had not re-sponded to enquiries by press time, and Indorama could not be reached for comment. Indorama has been invest-ing heavily in fertilizers in recent years, and is said to be keen to establish a presence in India. It commissioned a greenfield 2,300 mt/d ammonia and 4,000 mt/d (1.4 mil-lion mt/y) urea plant at Port Harcourt, Nigeria, last year (GM March 25, 2016), and in 2014 acquired a 78 percent stake in Industries Chimiques du Sénégal (ICS) (GM April

29, 2016). Other investments include a $4.5 billion agree-ment with Algeria last July to develop phosphate mining and downstream facilities, as well as TAN/CAN production in the country (GM July 22, 2016), and an acquisition of a controlling stake in a new fertilizer joint venture being created in Uzbekistan (GM Jan. 6, p. 13).

Uralchem sees production boost at VMF

Moscow—Uralchem JSC produced three percent more fertilizers in 2016, producing 6.06 million mt compared with the previous year’s 5.89 million mt. The biggest gains were seen in output of compound fertilizers and DAP/MAP, which increased 22 percent and 24 percent, respectively. Compound fertilizers production reached 751,000 mt, up from 617,000 mt, while DAP/MAP output increased to 129,000 mt, up from 104,000 mt. The company attributed the production gains to subsidiary Voskresensk Mineral Fertilizers JSC (VMF) returning to full-scale operation and production rates. In July 2016, VMF completed a phosphoric acid upgrade, which raised capacity by 20,000 mt/y P2O5, to 180,000 mt/y P2O5 (GM July 15, 2016), and a year earlier had resolved the plant’s apatite concentrate supply issues with PhosAgro (GM Sept. 21, 2015). However, Uralchem’s production of nitrogen products was lower overall in 2016, resulting, the company said, from the extension of the renovation project at its Azot branch subsidiary and the completion of a long-term investment program to upgrade the ammonia unit at subsidiary Perm Mineral Fertilizers, JSC. Company-wide output of ammonium nitrate and its deriva-tives increased marginally to 2.95 million mt, up from 2.93 million mt in 2015, but urea production was off 2.4 percent at 1.16 million mt, and merchant ammonia output down 2.6 percent to 804,000 mt.

Nigeria targeting own NPK production

Abuja—Nigeria has produced more than 4,000 mt of local-ly-blended NPK fertilizer under a recent presidential fertilizer initiative aimed at stimulating local fertilizer production and making fertilizer more affordable for the country’s farmers, according to a report by the country’s This Day Live, citing a government statement. The Presidential Fertiliser Initiative, launched in December, is being executed by the Nigeria Sovereign Investment Authority via a Special Purpose Vehicle that is targeting the production of one million mt of NPK fertilizer in five 200,000 mt batches in time for the 2017 wet season farming, according to the report. Production of the first batch is expected to be completed by the end of this month. Under a Memorandum of Understanding signed between Nigeria’s Fertilizers Producers and Suppliers As-sociation (FEPSAN) and OCP in December, the Moroccan fertilizer producer, among other areas of collaboration, was to assist in strengthening the country’s NPK blending capabilities through leveraging technical know-how and engineering capabilities (GM Dec. 9, 2016). Nigeria is said to have around four million mt/y NPK blending capacity, but much of this is moribund. OCP is said to be supplying

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



16

the DAP for the local NPK production, while urea is coming from the Indorama Eleme Fertilizer & Chemicals Ltd.’s plant at Port Harcourt. Nigeria hitherto has been importing most or all of its NPK fertilizer requirements.

Arab Potash taking Tamar gas

Tel Aviv—Following the completion of a link at the Dead Sea border between Israel and Jordan to Israel’s natural gas distribution network, Israel’s Tamar consortium has started supplying Jordan’s Arab Potash Corp. (APC) with natural gas. APC and subsidiary Jordan Bromine signed a long-term supply agreement in February 2014 with Noble Energy Inc., the Houston-based partner in Tamar. Tamar will supply two billion cubic meters of gas over a 15-year period. According to Israeli press reports, the price of the gas is $5.50/mmBtu. The gas field, located off Israel’s Mediterra-nean Coast, is currently the sole supplier of natural gas to the Israeli domestic market, including several Israel Chemi-cals Ltd. companies. The proximity of the Jordanian plants to their Israeli counterparts enabled the relatively speedy hook-up via a 16-kilometer-long pipeline.

Green Markets offers spring fert outlook; demand good, but prices pressured

Panelists for the Green Markets Spring 2017 Fertilizer Out-look webinar on March 2 addressed key issues impacting global fertilizer supply and demand, as well as the latest U.S. acreage estimates and how weather conditions are impacting the spring planting season.

Seth Meyer, senior economist with USDA, gave the lat-est planting projections for 2017, with corn estimated at 90 million acres, soybeans at 88 million acres, wheat at 46 million acres, cotton at 11.5 million acres, and rice at 2.6 mil-lion acres. Meyer said overall crop area in the U.S. is down 3.6 million acres from 2016, or 1.4 percent, driven by a 4.3 percent decline in corn acreage, an 8.3 percent drop in wheat acreage, and a 17.4 percent decline in rice acreage.

Meyer said soybean acreage will be up 5.5 percent from last year, however, with soybean prices showing the highest ratio to corn prices since 1997. Winter wheat planted acre-

SQM boosted by lithium in 2016; CEO says K production, sales may decrease

A surge in Lithium segment results boosted Sociedad Quimica y Minera de Chile SA (SQM) net income for the fourth quarter and year ending Dec. 31, 2016. Fourth-quarter net income was $80.9 million ($0.31 per share) on revenues of $553.8 million, up from the year-ago $44.6 million ($0.17 per share) and $411.3 million. Full-year net income was $278.3 million ($1.06 per share) on revenues of $1.94 billion, up from 2015’s $213.2 million ($0.81 per share) and $1.73 billion, respectively.

“We ended 2016 with a very strong fourth quarter; our EBITDA reached $238.9 million, and contributed to the EBITDA of $761 million that we reported for the year,” said Patricio de Solminihac, SQM CEO. “Higher lithium sales volumes and higher lithium average prices were the main contributors to these strong fourth-quarter results; higher sales volumes related to potassium chloride, iodine, and solar salts also played an important role.”

“Lithium sales volumes almost reached 50,000 mt for the year, and average prices during the fourth quarter surpassed prices seen in earlier quarters during 2016,” he added. “Sales volumes seen during the fourth quarter exceeded 14,000 mt, a record for us. We remain uncertain about future lithium prices, as new supply and timing of new projects will be an important factor during 2017. It is anticipated that new supply could enter the market during the second half of 2017. We believe lithium demand could grow over 10 percent per year in the near term.”

Fourth-quarter Lithium revenues were $176.8 million, up from the year-ago $63 million. Full-year revenues were $514.6 million, up from 2015’s $223 million.

The CEO had some words of caution on potash. “As we

look to take advantage of the strong lithium market, we will focus our production process on maximizing lithium yields, trying to reach similar sales volumes in 2017 as seen in 2016. This in turn could lead to a decrease in potassium chloride production in 2017, and potassium chloride sales volumes, which were up over 24 percent in 2016 compared to 2015, could decrease in the future. We believe in recent months, potassium chloride prices have reached a bottom, and in some cases, we have seen slight price recovery. However, we still believe that average prices in 2017 will be lower than average prices seen during 2016. In the Specialty Plant Nutrition (SPN) business line, prices decreased during 2016, and could decrease further in coming quarters.”

The company said average prices in its Potassium Chloride segment, which also includes potassium sulfate, were off 24 percent in 2016 from 2015, reaching $263/mt. However, it noted that fourth-quarter prices were up six percent from the third quarter.

Potassium Chloride volumes were up 24 percent for the year, to 1.53 million mt from 2015’s 1.24 million mt, however, revenues were off six percent, to $403.3 million from $430.6 million. Fourth-quarter volumes were up 26 percent, to 410,600 mt from 326,100 mt, while revenues were up 11 percent, to $107.3 million from $96.8 million.

SPN volumes in 2016 were up one percent to 840,800 mt from 2015’s 831,900 mt, while revenues were off four percent, to $623.9 million from $652.3 million. Average prices in 2016 were down 5.4 percent.

Fourth-quarter SPN volumes were down three percent, to 189,900 mt from the year-ago 195,600 mt, while revenues were off nine percent, to $136.8 million from $149.9 million, respectively.

Going forward for SPN, the company expects to see continued growth in the water soluble market by about five percent. It also remains confident in the future of potas-sium nitrate and specialty fertilizer markets, and said it will continue to develop and expand the market.

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



17

SULPHUR & SULPHURIC ACIDSummit 2017

May 8, 2017Hyatt Regency Atlanta, GA

NEW Insight on the Forces Acting on Sulphur and Sulphuric Acid Markets

This unique event gives stakeholders across the market a detailed view of the influences on supply, demand and pricing, while uncovering the business considerations for the future.

The expert insight and guidance included in this convenient, affordable, one-day Summit includes:

Speakers Include:Usman Khalid, Marketing Manager, Tiger-Sul

Neil Fleishman, Head of Research, Green Markets

Adrian Tolson, Senior Partner, 20|20

Vince Piazza, Senior Energy Analyst, Bloomberg Intelligence

Greg Miller, Economic Consultant

Fiona Boyd, Director, Acuity Commodities

Christopher Luettgen, Professor, Georgia Tech

Ken Hoffman, Global Head of Metals & Mining Research, Bloomberg Intelligence

Hugh MacGillivray, Executive Vice President Marketing and Business Development, Anuvia Plant Nutrients

Kurt Bitting, Director of Marketing and Sales, Eco Services

For more information and to register visitFertilizerPricing.com/SulphurSummit

• An update and outlook for the global supply of both sulphur and sulphuric acid, with details on the North American market

• Opportunities and outlook within downstream markets including pulp & paper and agriculture

• Insight into the sulphur market impact of bunker fuel regulation

• Analysis of the long awaited sulphur surplus including updates on new supply projects

• Analysis of supply/demand shifts that could impact the North American market and trade flows

• The impact of developments like new forming capacity in Canada and Mosaic's melter

...and MUCH more!

The Sulphur Summit 2017 is co-produced by Green Markets and Acuity Commodities, bringing together expertise from agricultural and industrial sectors to

provide perspective that‘s unavailable anywhere else.

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



18

Industry groups applaud as Trump signs executive order aimed at WOTUS

President Trump on Feb. 28 signed an executive order (EO) aimed at rolling back the Waters of the United States (WOTUS) rule, the 2015 measure proposed by the U.S. En-vironmental Protection Agency and the U.S. Army Corps of Engineers to more broadly define the types of waters gov-erned by the Clean Water Act and to clarify their jurisdiction.

Trump’s executive order directs EPA and the Corps to review the rule and ultimately to rescind or revise it, “as appropriate and consistent with law.” WOTUS was cited by Trump on the campaign trail as an example of regulatory overreach, and he assured attendees at a farm roundtable in Florida in October (GM Nov. 11, 2016) that he was “going to get rid of” the rule. Trump’s team also updated the White House website on the day of the inauguration to provide policy specifics for his “America First Energy Plan,” includ-ing eliminating WOTUS and the Obama administration’s Climate Action Plan (GM Jan. 27, p. 1).

“A few years ago EPA decided that navigable waters can mean nearly every puddle, or every ditch on a farmer’s land or anywhere else that they decide. It was a massive power grab,” Trump said at the EO signing. “With today’s executive order, I’m directing the EPA to take action, paving the way for the elimination of this very destructive and horrible rule.”

As he signed, Trump turned to the group of supporters around him and asked, “How important is this?” The response was a chorus of “Huge,” with one official adding, “All rural America thanks you.”

Although WOTUS has been tied up in litigation since 2015 (GM Oct. 19, 2015) when the Sixth Circuit Court of Appeals issued a national stay on the rule, Trump said that EPA regulators “were putting people out of jobs by the hundreds of thousands,” and that EPA regulations were “treating our wonderful small farmers and small businesses as if they were a major industrial polluter. They treated them horribly, horribly.”

The EO was praised by numerous farm and agriculture industry groups that have long opposed the WOTUS rule, including the Agricultural Retailers Association (ARA) and the American Farm Bureau (AFB).

“The WOTUS rule gave overreaching powers to the EPA to regulate private lands without authorization from Con-gress,” ARA president Daren Coppock told Green Markets. “If implemented, WOTUS would have restricted the use and application of proven safe and effective crop production products and nutrients. This EO preserves a federal role in protecting waterways while restoring (the) states’ key regu-latory role. It will also help ensure that future regulation in-cludes adequate input from stakeholders within agriculture. ARA is pleased President Trump is upholding his campaign promise to reduce regulation that inappropriately restricts or impacts American businesses, including ag retailers and their farmer customers.”

“Our constant message has been that regulators need to go back to the drawing board to get this rule done right,” Said Mace Thornton, AFB’s executive director of com-

age, by contrast, is at its lowest level in the U.S. since 1909. “The story is really the strength in the soybean market, and how that will pull from other crops,” he said.

Meyer said crop prices are expected to edge up in 2017/18 for corn, soybeans, wheat, and rice, but decline some 5.8 percent for cotton.

Neil Fleishman, head of research for Green Markets, said “cyclical oversupply” for all major nutrients will continue to pressure fertilizer markets in 2017. Although the industry has observed “very good demand patterns,” Fleishman said the markets will remain “exceptionally challenged” due to capacity expansions – nitrogen in the U.S., potash in Canada, and phosphates in North Africa and the Middle East.

Fleishman said potash demand growth has been fueled by lower prices, which will also benefit long-term demand. Greenfield capacity expansions could potentially add 0.7 million mt of potash to the market this year, however, and “those tons have to find a home,” he said.

Fleishman said the key for phosphates will be how OCP in Morocco and Ma’aden in Saudi Arabia will compete as new capacity comes online. “Historically, these two players have been very disciplined,” he said.

As for nitrogen, Fleishman said capacity growth will out-pace demand growth for the next 2-3 years. Noting new capacity from CF, Agrium, and OCI, he said export availability is rising while import demand is waning in North America. He said the net effect of the North American capacity expan-sion is that “inland premiums will start to fade.”

Fleishman also addressed China, saying the country’s importance is fading in terms of nitrogen exports, but it is still capable of market shocks. “The cycle rests in the hands of Chinese producer discipline,” he said.

Greg Swanson with the J.R. Simplot Co. wrapped up the event with a detailed look at California’s drought recovery and how it will impact fertilizer demand in the state. “Surface water availability for agriculture should not be an issue this spring,” he said, noting that most reservoirs in California are at or above historical averages.

Swanson said wet weather has delayed the start of the spring season in California and the Pacific Northwest, however. While crop acreage should not be affected as a result, Swanson warned that additional weather delays will condense the season even more, and could result in idled acreage. He said standing water is evident in many fields in the Western U.S.

Swanson said the wet conditions have caused a shift from liquid to dry fertilizers in some parts of California, but prices have remained firm for nitrogen and phosphates. “We anticipate strong prices for the duration of the season,” he said. The next 30 days are critical, however. “Dealers and growers are just really ready to get this season going,” he said.

The webinar, presented on the cusp of the busy spring planting season, was the 12th annual spring outlook event sponsored by Green Markets. The 90-minute, interactive webinar allowed registrants to listen via computer or telephone, to submit questions in a live Q and A, and to view some 60 slides and graphs delivered electronically. A recording of the webinar can be ordered by visiting http://fertilizerpricing.com/spring-outlook-webinar-2017/.

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



19

AdvanSix, from page 1

demand and improved pricing during the fourth quarter.“As we look into 2017, we expect to see the full benefit

of recent potash price increases and the margin benefit of solar potash tons,” he added. “We have placed Trio® tons in strategic locations both domestically and abroad, and be-lieve we are well-positioned to capitalize on a strong spring season. Moving forward, we remain focused on selectively selling potash into high-margin opportunities, expanding our global presence for Trio®, improving our overall cost profile, and optimizing our asset portfolio.”

The company said it has sold its conventionally-mined granular potash inventory and is fully booked for the spring season. In addition, it said it has experienced its first sequen-tial increase in average net realized potash prices per ton in nine quarters. In potash, it said it is focused on its local, truck, and regional markets.

And for Trio, the company said that since last June, its sales team has visited over 20 countries and has confirmed sales with ten of those, expecting to double its international footprint over the next few quarters. The international focus is on sending product through Galveston, Texas, to Central and South America and the Far East. The company said an “abundance of new warehouses has been added in the U.S.”

Intrepid is also focusing on marketing byproducts, includ-ing magnesium chloride, feed and industrial salt, and brines, as well as excess water rights.

Full-year adjusted losses were $61.9 million ($0.82 per share) on sales of $210.9 million, up from 2015’s $22.9 million ($0.31 per share) and $287.2 million, respectively. The full-year net loss was $66.6 million ($0.88 per share) compared to 2015’s loss of $524.8 million ($6.94 per share), while adjusted EBITDA was a loss of $10.2 million, compared to 2015’s positive $44.7 million.

The company retained Cantor Fitzgerald in December to assist it with its strategic options, though Jornayvaz indicated that this action was part of its negotiation with noteholders.

Potash 4Q-16 4Q-15 2016 2015

Sales $31,246 $27,648 $159,494 $217,467

Gross Deficit ($4,128) ($28,644) ($28,652) ($26,540)

Production Vol. 110 218 493 768

Sales Vol. 134 89 681 587

Avg Price $/st $185 $277 $195 $339

Trio® 4Q-16 4Q-15 2016 2015

Sales $10,942 $15,171 $51,454 $69,716

Gross Deficit/Margin

($2,876) $185 ($595) $11,063

Production Vol. 79 46 279 162

Sales Vol. 38 38 146 163

Avg Price $/st $230 $330 $287 $364

*Price is average net realized sales price per st; figures are in 000’s except for $/st.

Intrepid, from page 1

units in early October 2016. However, on Oct. 31, the company announced that the turnaround would be extended due to additional, unplanned maintenance of its ammonia plant within the Hopewell, Va., facility. While operations resumed Nov. 21, on Dec. 8 the company announced a subsequent outage at Hopewell, reducing caprolactam production and leading to a reduction in resin production at its downstream Chesterfield polymerization plant.

Overall sales volumes during the quarter decreased 18 percent versus the prior year, including a 23 percent unfavorable impact from lower production rates. Price was approximately flat overall in the quarter, with two percent higher raw material pass-through pricing offset by the two percent unfavorable impact of market-based pricing. While the company said at the time that it had to declare force majeure on some of its products at the time (GM Dec. 9, 2016), that was not the case for ammonium sulfate (AS), as it had product in inventory. The company said AS prices remain stable sequentially, though agriculture fundamentals remain challenging in 2017.

Full-year net income was in the plus column at $34.1 million ($1.12 per share) on sales of $1.2 billion, down from 2015’s $63.8 million ($2.09 per share) and $1.33 billion, re-spectively. EBITDA for 2016 was $95.9 million, down from 2015’s $136.6 million.

Annual sales volumes were down only one percent versus the prior year, including a five percent unfavorable impact from the fourth-quarter outages. Volumes were up five percent for the first nine months due to improved production rates.

munications. “We welcome this action, but realize a lot of work lies ahead to secure a policy that works in a fair and transparent manner.”

Legal experts were divided on what effect the EO will have, since it does not repeal WOTUS and only directs the federal agencies to review it for consistency with existing law. The EO does, however, instruct the U.S. Attorney General to go back to the Sixth Circuit and “take appropriate steps to hold that case in abeyance” while EPA and the Corps conduct their review, according to the New York Times, citing a senior administrative official.

Legal experts also noted that any rescission or revision of WOTUS will be subject to the notice and comment requirements applicable to federal rulemaking, and will also have to address the scientific record compiled by EPA in support of the rule, a process that could take years to complete.

“EPA intends to immediately implement the Executive Order and submit a Notice to the Office of the Federal Register announcing our intent to review the 2015 Rule, and then to propose a new rule that will rescind or revise that rule,” said EPA Administrator Scott Pruitt. “The president’s action today preserves a federal role in protecting water, but it also restores the states’ important role in the regula-tion of water.”

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8



20

Customer Service Email: [email protected]

Phone: 800.531.0140 / +1.603.357.8103 Web: www.FertilizerPricing.com

Having difficulty downloading your weekly issue of Green Markets? Do you wish to add readers to your subscription? Interested in a company wide site license? Need an ID/PW reminder? Contact Customer Service at the number and email address above.

Steve Seay, Associate Publisher .............+1.603.357.8245 ([email protected])

Daniel Cole, Senior Editor, North America ...............................................+1.603.357.8218 ([email protected])

Dan Kubiske, Senior Correspondent, International ...............................+1.703.678.6833 ([email protected])

Ryan Boyle, Correspondent, Phosphates/Sulfur ..................................... +1.415.967.3693 ([email protected])

Jason Larareo, Associate Creative Director ................... ([email protected])

Daniel Houder, President & Publisher .......................... ([email protected])

Headquarters: 24 Railroad Street, Keene, NH 03431-3744 USA, with correspondents in major trading centers worldwide.

Information has been obtained by Green Markets from sources believed to be reliable. How-ever, 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.

*By purchasing an individual subscription, you expressly agree not to reproduce or redistribute our content without permission, including by making the content available to non-subscribers within your company or elsewhere. For multi-user and firm-wide distribution programs or for copyright permission to republish articles, please contact our licensing department at +1.603.357.8160 or by email at: [email protected].

Notice: It is a violation of federal copyright law to reproduce all or part of this publication or its contents by any means. The Copyright Act imposes liability of up to $150,000 per issue for such infringement. Information concerning illicit duplication will be gratefully received. To ensure compliance with all copyright regulations or to acquire a license for multi-subscriber distribution within a company or for permission to republish, please contact Green Markets corporate licensing department at +1.603.357.8160, or e-mail [email protected]. Reporting on commercial products herein is to inform readers only and does not constitute an endorsement. Green Markets (ISSN 0149-5569) is published by Kennedy Information, LLC, A Bloomberg BNA Business, 24 Railroad Street, Keene NH 03431-3744 USA. Tel: 800.531.0140 / +1.603.357.8103. Fax: +1.603.357.8111.

Base subscription rates: If you are interested in subscribing to Green Markets, call 800.531.0140 / +1.603.357.8103. Green Markets is published Fridays, 51 weeks a year. ISSN 0149-5569.

Historical Database: Green Markets price statistics, going back as far as 1977, are available for purchase. For more information, contact Jonathan Wentworth-Ping at +1.603.357.8160 or e-mail [email protected].

Reprints: Articles appearing in Green Markets can be reprinted on stock paper in specified quanti-ties. Contact Jonathan Wentworth-Ping at +1.603.357.8160, or e-mail [email protected].

While the company expects some “seasonal moderation,” it does not feel prices will dip as low as second half 2016. “We believe the market now realizes the low prices in the second half of 2016 were unsustainable,” he said. He believes the market has digested new North American nitrogen capacity, and that distribution channels are being worked out.

The company reported a fourth-quarter loss from continu-ing operations of $25.2 million ($1.19 per diluted share) on net sales of $85.4 million, compared to the year-ago loss of $11.1 million ($0.61 per share) and $90 million, respectively. The company reported an adjusted EBITDA of a positive $2.8 million, up from a year-ago loss of $2.5 million.

LSB reported problems at its El Dorado ammonia and nitric acid plants in the fourth quarter, and said replacement components are expected to be covered under warranty. A new heat exchanger is on order for the ammonia plant, as well as a nitrous oxide abatement vessel for the nitric acid plant. Both plants are operational until the new equipment is installed.

LSB sold approximately $5 million worth of idled equip-ment in the fourth quarter and anticipates the sale of an additional $15-$20 million assets in 2017, including equip-ment, real estate, and its engineering products business, as well as its natural gas stake in the Marcellus Shale region (GM Nov. 5, 2012). LSB bought a small natural gas stake in Wyoming County, Penn., in 2012 for $49 million.

The company took a $1.6 million impairment charge in the quarter, representing a non-cash write-off of goodwill that was created when El Dorado was purchased in the early 1980s.

Fourth-quarter Ag revenues were off 17 percent, to $32.8 million from the year-ago $39.5 million, while Industrial, Min-ing, and Other sales were up 4.2 percent, to $52.6 million from $50.5 million.

As earlier promised (GM Aug. 12, 2016), LSB, citing a weak-ening coal market, has pushed deeper into Ag AN sales, with those up 64 percent, to 49,086 st on lower average prices ($168/st) for the quarter, compared to the year-ago 30,010

LSB, from page 1 st ($255/st). The company has placed AN at its Cherokee, Ala., and Pryor, Okla., production locations to move into those regional markets. In addition, it is casting a broader net for its nitric acid, saying it is moving product into the Western U.S. and Canada.

Fourth-quarter UAN sales were up 2 percent, to 87,662 st ($135/st) from 85,978 ($201/st). Ag ammonia was up 8 percent, to 22,770 st ($284/st) from 21,155 st ($444/st). Ag-other sales were 4,264 st, up from 3,076 st.

On the Industrial side, fourth-quarter ammonia sales were up significantly, to 43,876 st from the year-ago 5,974 st. AN sales improved to 31,095 st from 15,309 st, as did overall nitric acid to 27,399 st from 12,881 st. Nitric acid-Baytown was off 25 percent, to 99,055 st from 132,956 st. AN solution was off slightly, at 19,538 st from 19,909 st.

LSB reported a full-year loss from continuing operations of $88.1 million ($5.28 per share) on sales of $374.6 million, compared to 2015’s loss of $46.1 million ($2.17 per share) and $437.7 million, respectively.

The company received cash proceeds of $358 million during the year from the sale of its Climate Control business (GM May 12, 2016). The company used some $100 million of the proceeds to pay down debt. This gain pumped up 2016 net income attributable to common stockholders to $64.8 million ($2.54 per share) from 2015’s loss of $38 mil-lion ($1.67 per share). Annual adjusted EBITDA was a loss of $4.5 million, down from the year-ago positive $13.6 million.

For 2017, LSB projections for Ag volumes include UAN at 475,000-500,000 st; AN 260,000-280,000 st; and ammonia 95,000-105,000 st. Industrial projections are ammonia at 200,000-225,000 st; AN and AN solution 140,000-160,000 st; nitric acid/other mixed acids 90,000-110,000 st; and nitric acid-Baytown 475,000-500,000 st.

LSB expects its three ammonia plants to operate at an average on-stream rate of 95 percent for the full year. The only major turnaround planned for the year is at Pryor for 21 days in the fourth quarter.

In the meantime, the company continues to weigh its strategic options.

A Bloomberg BNA Business

®

Doc

umen

t gen

erat

ed fo

r G

eorg

e P

orva

znik

, geo

rge.

porv

azni

k@cg

b.co

m o

n 20

17-0

3-03

14:

09:1

8

a bloomberg bna business - constant...

Documents