Fertilizers

HOUSTON (ICIS)–Although some locations still have some final acreage remaining, the latest US Department of Agriculture (USDA) weekly crop progress report is reflecting a completion of corn and soybean harvesting for 2024. While a final yield tally will not be immediately available, it has been discussed within agriculture and fertilizer segments as having been a more productive year – especially for corn – than was anticipated given the extremely hot and very dry conditions present this summer. For fertilizers, there is optimism remaining that over the next few weeks, winter will not quickly settle in and that weather conditions will be beneficial enough to see post-harvest applications gain more momentum. One product that is expected to see an uptick as long as there is no further rainfall is ammonia, with wet fields having been an issue for undertaking these end-of-the-year inputs through the first half of November in some states. The USDA did report there is now 77% of the cotton crop complete with the sorghum harvest having reached 95%. The next significant crop will be winter wheat, which the weekly update showed is now 94% planted with 84% having emerged. There is 49% of the crop rated as being in good to excellent condition.

18-Nov-2024

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 16 November. NEWS Brazil to investigate alleged US, Canada PE dumpingBrazil is to start an investigation into polyethylene (PE) arriving on its shores from the US and Canada and whether the material constituted dumping, the government said. Unipar sees light at tunnel end as prices rise, Argentina revivesManagement at Brazil’s chloralkali chain producer Unipar this week held onto improved financial results in Q3, quarter on quarter, to assert the industry may be finally going through the beginning of the end of the downturn. Mexico confident US will realize tariff-free trade benefits both – SheinbaumRenegotiation in 2026 will be key for Mexico to show the US how the United States–Mexico–Canada Agreement (USMCA) is equally beneficial for both countries, the Mexican president said this week. Pemex targets petrochemicals, fertilizers expansion, $2.4-billion savings in 2025Pemex is to overhaul its La Cangrejera and Morelos petrochemicals complex in Mexico’s southern state of Veracruz to sharply increase production, the state-owned energy major said this week. INSIGHT: Mexico’s manufacturers hopeful USMCA renegotiation could spare them from tariffsPolicymakers and companies in Mexico are coming to terms with a potential shift in trade policies in the US after Donald Trump’s decisive victory in the presidential election last week. Mexico in strong position to renegotiate USMCA, tariff panic premature – Braskem Idesa execA potential US import tariff of 10% on Mexican goods is looming large on the country's export and petrochemicals-intensive manufacturing sectors, but it is early days and the worries are premature, according to the head of institutional relations at polyethylene (PE) producer Braskem Idesa. Brazil's Petrobras begins commercial operations at gas processing unit in RioPetrobras has begun commercial operations at its Natural Gas Processing Unit (UPGN) at the Boaventura Energy Complex in Itaboraí, Rio de Janeiro state, the Brazilian state-owned energy major said on Monday. PRICING LatAm PP domestic, international prices stable on sufficient supply, soft demandDomestic and international polypropylene (PP) prices were assessed unchanged this week across Latin American countries. LatAm PE domestic prices steady to lower on weak demand, sufficient supplyDomestic polyethylene (PE) prices were assessed as steady to lower across Latin American (LatAm) countries while international prices were unchanged this week.

18-Nov-2024

HOUSTON (ICIS)–Canadian fertilizer developer Millennial Potash, which is advancing the Banio Potash project in Gabon, announced it has achieved progress at both the Mengali port construction site and the new thermal electricity plant. The company said the port and power generation station represent critical infrastructure enhancements and are integral for a successful potash project, with the Mengali port a key part of the Grande Mayumba Programme, a joint venture for sustainable development between the Republic of Gabon and the African Conservation Development Group. Currently international construction firm Covec Gabon is undertaking earthworks for the port with development set to proceed in phases, but it will eventually be able to accommodate barges and landing craft. Future phases will involve constructing a mineral terminal, storage area, and stacker reclaimer with a conveyor system for loading large ocean-going vessels. It is expected to provide a vital infrastructure link for the Banio project as it would allow for export of bulk potash to overseas markets. Millennial said construction has commenced on a thermal power generation station located south of Mayumba, near the airport, with present work including foundation construction within the facility compound. The power station is scheduled to arrive by barge at Mengali port later this year and is expected to be installed and operational by mid-2025. The construction of the first phase, with a capacity of 8.5 megawatts, is expected to be completed in July 2025. The power plant project is under the direction of contractor Nuez et Fils and it is estimated that the total investment will be approximately $125 million. The company said the new power plant at Mayumba is viewed as a major infrastructure advancement for the region and this new reliable power source is expected to stimulate regional development. “These infrastructure developments are crucial for advancing the project and enhancing the economic viability of our proposed solution mining and conventional processing methods for potash production. The construction of the port and power plant, along with the associated infrastructure, will significantly mitigate risks related to future mining, processing, and shipping operations,” said Farhad Abasov, Millennial Potash chair. “Millennial remains committed to supporting the Gabonese government’s efforts to develop infrastructure in southern Gabon and will keep shareholders informed on the progress of these projects.” The Banio project is in the south-west corner of Gabon, approximately 450 km south of Libreville along the Atlantic coast. The maiden mineral resource estimate showed an indicated mineral resource estimate of 656.6 million tonnes at a grade of 15.9%, with an inferred mineral resource estimate of 1.15 billion tonnes at a grade of 16%.

13-Nov-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 8 November. INSIGHT: Pile of chemical assets under strategic review grows. Who’s buying? Dow’s announcement that it will put its European polyurethanes (PU) business under strategic review adds to the growing pile of assets being evaluated for sale, restructuring or shutdown – mostly in Europe. A key question then becomes: Who, if anyone, could buy these assets? US Celanese to slash dividend, idle plants after big Q3 earnings miss Celanese plans to cut its quarterly dividend by 95% in Q1 2025 and idle plants in every region after third-quarter adjusted earnings fell well below guidance, the US-based acetyls and engineered materials producer said on Monday. Sharp auto decline drives massive Celanese earnings and outlook shortfalls; Acetyls plants idled A rapid decline in the automotive market, along with weak industrial demand – particularly in Europe – led to a major earnings shortfall for Celanese in Q3. Continued weakness and customer inventory destocking will drive an even bigger shortfall in Q4. INSIGHT: Trump to bring US chems more tariffs, fewer taxes, regulations US President-Elect Donald Trump has pledged to impose more tariffs, lower corporate taxes and lighten companies' regulatory burden, a continuation of what US chemical producers saw during his first term of office in 2016-2020. INSIGHT: Trump to pursue friendlier energy policies at expense of renewables Oil and gas production, the main source of the feedstock and energy used by the petrochemical industry, should benefit from policies proposed by President-Elect Donald Trump, while hydrogen and renewable fuels could lose some of the support they receive from the federal government. Labor disruptions at Canada West and East coast ports continue The labor disruptions at Canada’s West and East coast ports continued on Friday while the chemical, fertilizer and other industries keep warning about impacts on manufacturers and the country's overall economy.

11-Nov-2024

TORONTO (ICIS)–The labor disruptions at Canada’s West and East coast ports continued on Friday while the chemical, fertilizer and other industries keep warning about impacts on manufacturers and the country's overall economy. WEST COAST PORTS At Vancouver and other west coast ports, a strike and lockout by some 730 ship and dock foremen, who supervise more than 7,000 workers, was in its fifth day on Friday. Employers and union officials are due to meet on Saturday, 9 November, for further negotiations, the British Columbia Maritimes Employers Association (BCMEA) said in an update. At the Port of Vancouver, which is Canada’s largest port by far, the disruptions impact BCMEA member terminals that employ workers represented by labor union International Longshore and Warehouse Union Local 514. Operations at the ports auto and breakbulk sectors and at four container terminals are impacted by the disruptions, and rail embargoes have been put in place, the Port of Vancouver said. However, the port remains open. PORT OF MONTREAL In Montreal, a strike at two of the ports four container terminals and a strike on overtime at all four terminals was in its ninth day on Friday. The two terminals account for about 40% of the port’s total container handling capacity. The port’s logistics dry bulk and liquid bulk terminals, and its grain terminal remain in service. The Maritime Employers Association (MEA) said on Thursday that it made a final wage offer and wants a reply from labor union Syndicat des debardeurs by Sunday, 10 November, 10:00 local time. If no agreement is reached, only essential services and activities unrelated to longshoring would continue at the port, starting 10 November, 21:00 local time, MEA said. CALL FOR GOVERNMENT TO INTERVENEThe CEO of the Montreal Port Authority (MPA), Julie Gascon, on Thursday called for federal government intervention to end the dispute. “There's no denying that our reputation has been harmed by uncertainty over the reliability of our activities, and in the long run, we are losing competitiveness,” she said. Federal labor minister Steven MacKinnon reminded port employers and unions that “public services, such as ports, exist to serve the needs of Canadians”. The negotiations to settle the disputes were “progressing at an insufficient pace”, he said, adding: “The parties must reach an agreement quickly.” In August, the government intervened in a labor dispute at the country’s freight railroads, ordering the railroads and workers to end their rail shutdown and resume service. However, political commentators said that the minority government under Prime Minister Justin Trudeau was hesitant to intervene in the port labor disputes as it relies on the left-leaning New Democratic Party (NDP) for support in parliament to stay in power. The NDP is close to labor unions. A couple of days after the government’s intervention to end the freight rail labor dispute, the NDP ended a “supply and confidence agreement” from 2022 under which it had committed to supporting the Liberals until June 2025. The NDP now votes in parliament on a case-by-case basis, it has said. This means that the NDP could vote with the opposition Conservatives to bring the government down and trigger an early election. The Conservatives are far ahead of the Liberals in opinion polls. Thumbnail photo source: Port of Vancouver

08-Nov-2024

HOUSTON (ICIS)–Nutrien said demand in North America for the fall fertilizer application has been supported by a relatively early harvest along with the need to replenish soil nutrients following a period of lower field activity in the third quarter. In its latest market outlook, the Canadian fertilizer major said favorable growing conditions in the US have supported expectations for record corn and soybean yields and significant soil nutrient removal in 2024. The company did note that prospective crop margins have declined compared to the historically high levels in recent years, however Nutrien’s view is most growers in the key region of the US Midwest remain in a healthy financial position. One positive factor that the producer sees is that global grain stocks remain below historical average levels which support export demand for North American crops and firm prices for key agriculture commodities such as rice, sugar and palm oil. Looking at crop nutrient, Nutrien said it has raised 2024 global potash shipment forecast to 70 million – 72 million tonnes primarily driven by stronger expected demand in Brazil and Southeast Asia. The company said it believes the increase in global shipments this year has been driven by an underlying increase in consumption in key markets. The forecast for global potash shipments in 2025 is between 71 million – 74 million tonnes, which Nutrien said supported by the need to replenish soil nutrient levels and the relative affordability of potash. It does anticipate limited new capacity next year and the potential for incremental supply tightness with demand growth. Regarding global ammonia the producer said prices have been supported by supply outages, project delays and higher European natural gas values. For urea Nutrien said that Chinese export restrictions, production challenges from major exporters and strong demand from India and Brazil have tightened the global urea market. It noted that US nitrogen inventory was estimated to be well below average levels at the end of the third quarter, and the company is expecting it will support demand in the fourth quarter of 2024 and early 2025. For global phosphates, the situation remains tight which is furthered by Chinese export restrictions and production outages in the US. Nutrien said it anticipates some impact on global demand due to tight supply and weaker affordability relative to potash and nitrogen.

06-Nov-2024

HOUSTON (ICIS)–As a fresh labor union strike halted activity at Canadian ports along its west coast on Monday, US fertilizer participants were watching the latest worker strife unfold with only moderate concerns over how this activity might disrupt nutrient flow. Fertilizer sources noted that the sentiment currently is that this work stoppage could be short in duration, as other recent strike actions have turned out with similar results. As a US trader said, the prior halt of the railroads in Canada “didn't seem to have much effect on the market last time”. If this strike activity were to carry forward, domestic sources highlighted that it would not be a widespread event for fertilizers in the US as it would be felt primarily within the potash segment as well as for sulphur movement. With a domestic participant commenting that for the other nutrients, especially the nitrogen-based offerings, that this latest event “hasn't yet affected us or any pricing”. This segment of west coast ports is estimated to move over 21,000 tonnes of potash daily for oversea shipment, with Fertilizer Canada calculating this latest shutdown could cost the industry around (C$) 9.7 million ($7.0 million) per day in lost sales revenue. The industry group had cautioned ahead of the strike occurring that another disruption to Canada’s supply chains would further damage the country’s reputation as a dependable trading partner and jeopardizes food security around the world. “We are once again on the brink of losing access to a critical trade corridor, and potash fertilizer will be one of the hardest hit commodities,” said Karen Proud, Fertilizer Canada president and CEO. The group noted that the 2023 labor disruption of west coast ports cost the fertilizer industry over C$126 million and took 13 days to resolve and that Canada lost significant market share to Russia in key markets such as Indonesia and Malaysia afterwards. Fertilizer major Nutrien said its main concern was that the strike action will prevent potash marketing agency Canpotex from exporting volumes out of the Port of Vancouver. “Canpotex is exploring alternatives to mitigate the potential impact to customers, however a prolonged disruption could negatively impact farmers and food security around the globe,” said a Nutrien spokesperson. “We urge the parties to come to an agreement before damage is done to Canada’s reputation as a reliable, global potash supplier.” ($1 = C$1.39)

04-Nov-2024

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 1 November. Brazil’s chemicals trade deficit keeps rising; producers entrust recovery to higher tariffsBrazilian chemicals producers’ market share continued to be threatened in the January-September period, with the industry’s trade deficit rising to $36.2 billion, up 1% year on year, the country’s chemicals producers trade group Abiquim said this week. Brazil’s chemicals output up 2% in September, plastics and rubber up 6.5%Brazil’s chemicals output rose by 2% in September, year on year, although it fell compared with August by 2.7%, the country’s statistics office IBGE said on Friday. Brazil's manufacturing keeps momentum in October, export orders robustBrazil's petrochemicals-intensive manufacturing sectors continued expanding in October, the tenth consecutive month of growth, analysts at S&P Global said on Friday. Mexico’s manufacturing recovers slightly in October but poor demand keeps it contractionMexico's petrochemicals-intensive manufacturing sectors continued to contract in October, although it slightly improved its performance month on month, analysts at S&P Global said on Friday. Colombia’s manufacturing output booms in October, central bank cuts rates to 9.75%Colombia's petrochemicals-intensive manufacturing sectors made a decisive return to growth in October on the back of a healthy increase in new business, analysts at S&P Global said on Friday. Brazil’s chemical producer prices up nearly 11% in SeptemberBrazil’s chemicals producer prices rose in September by nearly 11%, year on year, as the sector recovers, the country’s statistics office IBGE said this week. Mexico’s GDP recovers strongly in Q3, more rate cuts dependent on US election – analystsMexico’s GDP grew by 1% in Q3, quarter on quarter, confirming the economy “pulled out of the slump” of the first half of the year, analysts said on Wednesday. Brazil's Braskem Q3 resin sales down 2% due to higher PE and PVC stocksResin sales in Braskem's domestic market dropped by 2% in Q3 year on year, mainly due to the higher levels of polyethylene (PE) and polyvinyl chloride (PVC) stocks in the transformation chain, the Brazilian petrochemicals major said on Wednesday in its quarterly production and sales report. Brazil Petrobras to continue advancing nitrogen project in Tres LagoasBrazil producer Petrobras announced that its board of directors has decided to continue implementing the nitrogen fertilizer unit (UFN-III), located in Tres Lagoas, Mato Grosso do Sul. PRICINGDomestic, international PE prices steady to lower on falling US export offersDomestic, international polyethylene (PE) prices were assessed as steady to lower across Latin American countries on the back of competitive offers from the US. Domestic PP prices fall in Colombia, Mexico on lower feedstocksDomestic polypropylene (PP) prices fell in Colombia and Mexico tracking lower feedstock costs. US October propylene contracts settled at a decrease on falling spot prices. Brazil hydrous ethanol sees small rise, anhydrous stays steadyPrices for hydrous ethanol saw a slight increase at the lower end of the range, with demand demonstrating stable sales in Q4. Chile and Colombia PET CFR prices decline amid Asia price reductionsChile and Colombia's CFR prices fell on the lower end of the range reflecting the recent price reduction in Asia.

04-Nov-2024

HOUSTON (ICIS)–Fertilizer producer Atlas Agro announced it has signed a memorandum of understanding (MOU) with renewable energy company Casa dos Ventos with a goal of utilising wind and solar projects to supply renewable energy for green fertilizer produced using green hydrogen. The company said the partnership seeks to combine the competitiveness of Casa dos Ventos’ renewable portfolio and solutions to produce hydrogen at Atlas Agro’s Uberaba fertilizer plant, contributing to the expansion of the renewable energy matrix and the sustainability of Brazilian agriculture. The Atlas Agro project is expected to start commercial operations in 2028 with the capacity to produce approximately 530,000 short tons/year of green ammonium nitrate, considered essential for reducing carbon emissions in agricultural production. The plant will require an average of 300 megawatt of renewable energy, which will be supplied by Casa dos Ventos. The project aims not only to produce a more sustainable input, but also to reduce Brazil’s dependence on imports as the country is currently the largest global importer with an estimated 41 million short tons arriving in 2023. “Atlas Agro’s mission is to decarbonize global nitrogen production. Cost-competitive and reliable energy is the basis for producing sustainable nitrogen fertilizers at affordable prices for local farmers,” said Knut Karlsen, Atlas Agro Brazil president. “We are excited to partner with Casa dos Ventos to bring green and locally produced nitrogen fertilizers to Brazilian agriculture.”

31-Oct-2024

HOUSTON (ICIS)–CF Industries said in its latest nitrogen fertilizer market outlook global pricing was supported in the third quarter of 2024 by strong global demand, lower supply availability due to natural gas shortages, China’s absence in urea exports and planned maintenance activities in the Middle East. The US fertilizer producer said that in the near-term their management expects the global supply-demand balance to remain constructive, as inventories globally are believed to be below average and energy spreads continue to be significant between North America and high-cost production in Europe. CF said for North America that while grains prices are under pressure from expected high crop production it is their belief that the fall ammonia application season for the US and Canada will be positive if weather is favorable. US crop returns for 2025 are forecast at similar levels to 2024, which is expected to support stable planted corn acres year on year. The producer said over the medium-term, significant energy cost differentials between North American producers and high-cost producers in Europe and Asia are expected to persist. As a result, CF believes the global nitrogen cost structure will remain supportive of strong margin opportunities for low-cost North American producers. Looking at Brazil the producer said through September 2024 that urea imports to the country were 5.4 million tonnes, 13% higher than through the same period in 2023. CF said Brazil is expected to import 2.0-2.5 million tonnes of urea in the fourth quarter due to forecast higher planted corn acres and nominal domestic production. For India the company feels there is significant urea import requirements remaining through March 2025 due to favorable weather for rice, wheat and other crop production as well as lower-than-targeted domestic urea production driving greater import need. Regarding Europe CF said there is approximately 20% of ammonia and urea capacity which was reported in shutdown or curtailment modes as of September 2024. The company said management believes that ammonia operating rates and overall domestic nitrogen product output in Europe will remain below historical averages over the long-term given the region’s status as the global marginal producer. For China the producer noted that the ongoing urea export controls by the government continues to limit urea export availability from the country. Through September 2024, China has exported 254,000 tonnes of urea, 91% lower than the same period in 2023. In Russia the company said the urea exports have increased by 5% this year due to the start-up of new urea granulation capacity and the willingness of certain countries to purchase Russian fertilizer, including Brazil and the US. Exports of ammonia are expected to rise with the completion of the country’s Taman port ammonia terminal though CF noted that annual ammonia export volumes are projected to remain below pre-war levels. Looking at the longer-term view of nitrogen the producer is expecting the global supply-demand balance to tighten as global capacity growth over the next four years is not projected to keep pace with expected global lift in demand of approximately 1.5% per year. As far as global production CF said it is expected to remain constrained by continued challenges related to cost and availability of natural gas.

30-Oct-2024