Fertilizers

HOUSTON (ICIS)–Fertilizer producer Atlas Agro and plant nutrient distributor International Raw Materials have announced a binding strategic offtake and partnership agreement for the green nitrogen fertilizer from Atlas Agro’s Pacific Green Fertilizer plant in Richland, Washington. The Pacific Green Fertilizer plant will be the first at-scale, low carbon fertilizer production facility in the world with it planned to produce 700,000 short tons of nitrogen fertilizer annually and serving farmers across the Pacific Northwest region. The facility will be in the Horn Rapids industrial park in Richland, Washington, and will produce green nitrogen fertilizers in liquid and solid form. Switzerland-based Atlas Agro recently completed its front-end engineering design (FEED) study for the project and received the environmental determination of non-significance from both state and federal agencies. The final investment decision (FID) is expected in early 2025. Atlas Agro’s fertilizer production process will use proven technologies and be powered by renewable energy sources with the company saying low carbon fertilizer products are essential to sustainable food production and addressing climate change. “Our partnership with IRM is a significant milestone in our progress to bring locally produced, green nitrogen fertilizer products to growers in the Pacific Northwest. IRM is a company renowned for its market knowledge and logistics capabilities with deep roots in the Pacific Northwest, and a commitment to bringing sustainable solutions to the agriculture supply chain,” said Petter Ostbo, Atlas Agro CEO. For its part International Raw Materials said adding the green fertilizer products to their marketing and distribution portfolio is well-aligned with the company’s commitment to agricultural sustainability. “We’re seeing increased demand for a variety of solutions across the supply chain as food companies respond to the needs of consumers and look for new tools to address their Scope 3 emissions,” said Tip O'Neill, International Raw Materials president.

23-Oct-2024

LIMA (ICIS)–Brazil’s GDP is expected to grow by 3% in 2024, up sharply from prior forecasts of 2.1% growth published in July, the IMF said this week. Mexico’s growth, however, is expected to slow down to 1.5%, down sharply from the previous 2.2% forecast. For the Latin America and the Caribbean region as a whole, growth is projected at 2.1% in 2024, slightly up from the 1.9% forecast published in July, said the IMF. “[Brazil’s GDP growth forecast] is an upward revision … owing to stronger private consumption and investment in the first half of the year from a tight labor market, government transfers and smaller-than-anticipated disruptions from floods,” said the IMF. “However, with the still-restrictive monetary policy and the expected cooling of the labor market, growth is expected to moderate in 2025.” The more conservative forecast for the Mexican economy reflects weakening domestic demand on the back of monetary policy tightening, said the IMF, who projected the country’s growth would continue slowing down in 2025. The Fund expects Argentina's GDP to fall by 3.5% this year, a forecast considerably more optimistic than most economists. For detailed country-by-country figures see bottom table. INFLATION BATTLE WON – MOSTLYThe IMF celebrated how for most countries in Latin America and the Caribbean inflation rates have dropped significantly from their peaks and continue to be on a downward trend. The Washington-based body highlighted, however, how in some countries inflation is ticking up on the back of, among other factors, weather events, which can suddenly push prices for agricultural products. “Large countries in the region have experienced upward revisions since the April 2024 World Economic Outlook that reflect a mix of 1) robust wage growth preventing faster disinflation in the services sector (Brazil, Mexico); 2) weather events (Colombia); and 3) hikes in regulated electricity tariffs (Chile),” said the IMF. “[For example] Coffee prices rallied, rising by 33.8%, following weather-related supply concerns in key producers Brazil and Vietnam.” Despite adverse weather events, Brazil’s national supply corporation Conab said earlier in October that the 2024-2025 fertilizers-intensive agricultural season is set to reach a record high. Conab is forecasting grain production to reach 322.47 million tonnes in the 2024-2025 harvest, up 8.3% compared with the previous harvest. IMF forecasts (in % change) GDP growth 2023 GDP growth forecast 2024 GDP 2025 growth forecast Inflation 2023 Inflation forecast 2024 Inflation forecast 2025 Brazil 2.9 3.0 2.2 4.6 4.3 3.6 Mexico 3.2 1.5 1.3 5.5 4.7 3.8 Argentina -1.6 -3.5 5.0 133.5 229.8 62.7 Colombia 0.6 1.6 2.5 11.7 6.7 4.5 Chile 0.2 2.5 2.4 7.6 3.9 4.2 Peru -0.6 3.0 2.6 6.3 2.5 1.9 Ecuador 2.4 0.3 1.2 2.2 1.9 2.2 Venezuela 4.0 3.0 3.0 337.5 59.6 71.7 Bolivia 3.1 1.6 2.2 2.6 4.3 4.2 Paraguay 4.7 3.8 3.8 4.6 3.8 4.0 Uruguay 0.4 3.2 3.0 5.9 4.9 5.4 Latin America and the Caribbean 2.2 2.1 2.5 14.8 16.8 8.5

22-Oct-2024

HOUSTON (ICIS)–Affected by tropical weather impacts in late September, Canadian fertilizer major Nutrien confirmed its Florida phosphate facility in White Springs did restart late last week. While the producer has not revealed its post-storm assessment, it did say the operations were currently ramping up production. The site was among other Nutrien operations that were shut down under safety protocols during storm-induced power failures as Hurricane Helene made landfall. Following the storm, the company had stated all its colleagues were safe, but many area roads were closed due to downed power lines and flooding. The first storm was followed by the recent Hurricane Milton, but Nutrien said after that event it was not impacted at the White Springs phosphate facility and it was working with customers on any potential impacts to supply. There were no further details provided regarding supply disruption. Earlier in the day, producer Mosaic said all its Florida-based employees were safe and that the Riverview facility has resumed activity and should return to normal rates by the end of the week. Further, it stated all other Florida sites have resumed operations with its mining activity in the process of restarting. Due to the storm impacts, the company does anticipate a production decrease with it estimated to fall between 200,000-250,000 tonnes in Q4.

21-Oct-2024

HOUSTON (ICIS)–Rates for shipping containers from east Asia and China to the US continue to face downward pressure after an early end to the peak pre-holiday shipping season, but backlogs at some East Coast ports following a 3-day strike could lead to short-term delays. Rates to the US West Coast edged lower by 3% this week, according to online freight shipping marketplace and platform provider Freightos and as shown in the following chart. Judah Levine, head of research at Freightos, said transpacific rates are now down by 30% from the peaks during July but remain several thousand dollars higher than what would be typical peak season rates. They are also about $1,000/FEU (40-foot equivalent units) higher than the adjusted floor set in April to account for diversions away from the Red Sea. “As long as Red Sea diversions continue to absorb capacity on an industry level, prices may not fall much further than seen back in April,” Levine said. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks. PORT CONGESTION The International Longshoremen’s Association (ILA) strike at US Gulf and East Coast ports lasted just three days, and market analysts initially expected backlogs created by the work stoppage to be cleared up in two to three weeks. Some ports, such as the Port of New York/New Jersey, were expecting to be back to normal sooner than that. But Levine said the backlog at the Port of Savannah, Georgia still needs another two weeks to get back to normal as Hurricane Milton added to the number of waiting vessels. Ships are waiting more than two days to get into Savannah, and Levine said other ports are citing delays of one to four days, which he termed as significant congestion, but not extreme. Port Tampa Bay remains closed and is expected to reopen on Monday after damage caused by Milton, which will mostly impact the fertilizer industry. Levine said that some carriers have announced blank sailing in response to the congestion, but this may also be aimed at reducing capacity to adjust for the lower, post-peak season volumes. Visit the ICIS Logistics – impact on chemicals and energy topic page

16-Oct-2024

LIMA (ICIS)–Brazil’s Senate approved on 15 October the creation of a National Inventory of Chemical Substances aiming at “reducing negative impacts” of toxic chemicals on human and environmental health. The inventory and the associated public bodies to ensure compliance will put Latin America’s largest economy close to the EU’s Reach regulatory system regarding chemicals. In the 27-country EU, the stringent Reach has since its inception at the end of the 2000s banned several chemicals and put hundreds of others in the so-called list of Substances of Very High Concern (SVHC). While industry has repeatedly said it support the Reach principles, increased costs associated with complying with the regulation has put a burden in some small- and medium-sized enterprises (SMEs), a burden their peers in jurisdictions such China or the US do not have to face. Industry has also argued that while Reach may indeed avoid the entry of many toxic chemicals into the EU, those same chemicals are nonetheless still used in the manufacturing of many goods in overseas jurisdictions which end up entering the EU. On Tuesday, the trade group representing Brazil’s chemicals producers Abiquim welcomed the measure, arguing it had lobbying for the creation of the registry since 2014. The bill, called in Parliament’s jargon PL 6120/2019, now awaits presidential sanction from Brazil’s President Luiz Inacio Lula da Silva, and after that it will come into force. “[The Inventory] establishes rules for the assessment and control of the risk of substances used in the national territory, to be determined by committees of experts, and defines criteria for the manufacture, import, and use of chemical components,” said the Senate after passing the bill. “The bill creates the Technical Committee for the Evaluation of Chemical Substances and the Deliberative Committee on Chemical Substances, made up of experts with knowledge in the areas of the environment, health, trade and metrology. It also establishes the Registry of Chemical Substances, which will form the inventory and the public access database on substances imported or produced in Brazil.” The parliamentarians added that it will fall on manufacturers and importers of chemical substances to provide information to the inventory. If they do not comply in an orderly and timely manner, they will be subject to fines of up to 40,000 minimum wages – in 2024, Brazil’s minimum wage was set at Brazilian reais (R) 1,412/month ($249/month). The maximum fine, thus, would stand at nearly $10 million. However, the aim to control what chemicals are used and how in Brazilian manufacturing will stop at some substances which the regulators thought were of national interest, and the law does not apply to radioactive substances or substances intended for national defense, for instance. It will not apply either to products subject to control by specific legislation, such as food, medicines, pesticides, cosmetics, fertilizers, and veterinary products, among others. “In the case of new substances that require unprecedented studies in Brazil for the information to be made available, the bill guarantees the right to ownership of the studies for up to ten years,” said the Senate. “Other provisions of the project impose criteria for the evaluation of substances by the responsible committees, establish restrictions on the performance of tests on animals and establish the Registration, Evaluation and Inspection Fee for Chemical Substances.” BROAD DAYLIGHT CHEMICALSIn 2023, when the draft proposals were already gaining traction in Parliament, a consultancy focused on chemicals regulation, the Chemical Inspection and Regulation Service (CIRS) Group, summarized the regulation’s main point in a report titled "Brazil's REACH-like Regulation is Approaching". In it, it said from now companies’ declarations on the chemicals they use in their manufacturing processes must include the following aspects: – The identification data of manufacturers and importers specified in regulations – The annual production and import amount of chemical substances – The exact identification of chemicals including names and CAS number (if they exist) issued by the Chemical Abstracts Service (CAS) or the International Union of Pure and Applied Chemistry (IUPAC) – Hazard classifications made under the Globally Harmonized System (GHS) and current Brazilian regulation – Recommended uses of chemical substances You can read CIRS Group’s report here. CLARITY, TRANSPARENCY, PREDICTABILITYAbiquim welcomed on Tuesday the bill with open arms. It is worth noting the trade group represents large producers – Braskem has a commanding voice in the group, for instance – which tend to be the players more capable of dealing with new and extra regulation. According to Abiquim’s CEO, Andre Passos, the new bodies created with the bill will help optimize the use of public resources, as well as bring positive impacts to competitiveness, innovation and economic growth, he said. “We will be able to count on a regulatory model that, in fact, provides the sector with greater clarity of its requirements, transparency in its processes, and long-term predictability, thus allowing the chemical industry to define future investments in the country,” he said. “[With this measure] Brazil joins a select list of the most developed and economically sustainable nations.” Abiquim said several studies have backed having a strict registry of chemicals because official control – with companies collaboration – has helped reduce negative impacts some chemicals can have on human and environmental health. The trade group said the EU had been its paramount source of inspiration, but added that several jurisdictions, following the former’s example, have implemented or are aiming to implement similar regulations. “Based on these initiatives, whose monitoring of health and environmental results demonstrated a positive trend, we presented a proposal to the CONASQ [Brazil’s National Commission for Chemical Safety] Working Group that could be applied in Brazil,” said Camila Hubner, the trade group’s manager for regulatory affairs and sustainability. According to Abiquim, similar regulatory frameworks have been implemented or are in the phase of doing so in the following jurisdictions: the US, the EU’s 27 countries, Australia, New Zealand, Japan, South Korea, China, Switzerland, the UK (which, for now, has basically applied Reach post-exit from the EU), Turkey, the Eurasian Economic Union (which includes Russia, Kazakhstan, Belarus, and Armenia), Canada, Costa Rica, Ecuador, Chile, and Colombia. After naming the parliamentarians who lobbied hard to have these regulations approved, Abiquim’s Passos said: “It is very important to remember these names because they understood that regulation was needed based on science and the risks that chemical substances can present, prioritizing human health and the environment. “On behalf of the chemical industry, I would like to thank each congressman who made an effort.” Front page picture: Brazil’s Senate approves the creation of the National Inventory of Chemical Substances, 15 October 2024 Picture source: Brazil’s Senate news services (Agência Senado) Focus article by Jonathan Lopez

16-Oct-2024

HOUSTON (ICIS)–The fertilizer industry, like the rest of the Tampa, Florida, community, was still feeling the effects from Hurricane Milton even days after the storm as producers continue to assess damages and determine the impact this might have on their production. With electrical power steadily being restored, the cleaning up efforts are also making progress with flooding appearing to have had the most far-reaching consequences as the incredible powerful hurricane is estimated to have unleashed 3.4 trillion gallons of water upon Florida. As a key hub for fertilizers in the US, with both production and logistics as well as storage and corporate offices, there had been concerns over how much destruction could have been experienced if it had not weakened some before landfall or had made a direct strike into Tampa. Industry sources within the area said some normality to everyday life was returning with market activity likely needing several more days to recover.  As a participant said it is “all good here, got power everywhere now. No damage to the office or homes.” For producers, the review of the consequences of Milton were still at hand but considering the magnitude of the event it looks like the industry’s assets held up fairly well and that output of phosphates will only see a very short delay. With their White Springs phosphate facility located within Florida, Canadian fertilizer producer Nutrien had previously said it was not impacted by Hurricane Milton, but it was by the earlier strike of Hurricane Helene, with those affects still underway. “The timeline for re-starting our White Springs phosphate facility continues to be assessed. We are working with our customers on any potential impacts to supply,” said a Nutrien spokesperson. Having not completely escaped the wrath of Milton, Mosaic had confirmed on 14 October that there was limited damage to their facilities and warehouse product. The producer is expecting to resume full production in the coming days, and also said there was no significant environmental impacts that occurred due to the storm. It is understood that producer Yara did not suffer any damages or lost time at its ammonia plants from the hurricane.

15-Oct-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 11 October. Hurricane Milton on track to hit US fertilizer hub in Tampa Milton strengthened on Monday into a powerful Category 4 hurricane, and it is expected to continue strengthening before making landfall by midweek near Tampa, Florida, a major fertilizer hub that was drenched by an earlier major hurricane. Florida ports close as Hurricane Milton approaches Tampa fertilizer hub Ports along Florida's Gulf Coast are closed to vessel traffic as Milton approaches the state's fertilizer hub in Tampa as a Category 4 hurricane. Railroad shuts many Florida terminals ahead of Hurricane Milton Railroad company CSX is suspending operations at several of its intermodal and TRANSFLO terminals in Florida ahead of Milton, which has shifted its path away from Tampa, a major fertilizer hub. Hurricane Milton makes landfall in Florida as Category 3 storm Hurricane Milton has made landfall near Siesta Key, along Florida’s Gulf Coast in the US as a Category 3 storm, bringing strong winds and heavy rains, with warnings of a storm surge in effect at several locations. UPDATE: Hurricane Milton moves off Florida's east coast with damaging winds, heavy rainfall Hurricane Milton is moving away from Florida’s east coast but is still producing damaging winds and heavy rainfall in the state, according to the latest update on Thursday. INSIGHT: After Milton, global chems face future of rapidly intensifying hurricanes Warmer waters in the Atlantic Basin could make record-setting hurricanes like Milton and Beryl more common, which strengthened rapidly to become major storms that caused significant damage. Some Florida ports reopen while millions lack power after Milton Some ports in Florida have resumed operations while millions in the US state remain without power after Hurricane Milton made landfall earlier in the week, south of the fertilizer hub of Tampa.

14-Oct-2024

HOUSTON (ICIS)–Entering day two of post-hurricane activities and as the community of Tampa and surrounding cities attempt to clean up and dry out, the fertilizer industry is still assessing damage with flooding appearing to have had the biggest impact on production sites. Striking as a Category 3 hurricane late 9 October the storm brought intense and life-threatening conditions to a section of Florida that had already faced such a threat less than two weeks before. It particularly impacted the Tamp, Florida area, which is a key hub of the US fertilizer industry. Market sources, based in this region, said most of the focus on Friday was cleaning up and trying to determine how much damaged had been caused. The extent of impacts to fertilizer facilities were not fully clear but producer Mosaic did say it had some issues because of the storm but that once it had the full updates about Hurricane Milton's impact on their facilities it would post on their website. As was the fear of environmentalists the gypstacks that are a fixture of phosphate production experienced problems with the water supporting the storage at the Mosaic Riverview facility having likely entered the Tampa Bay because of the extreme rainfall. “Back-to-back historic storms crossed our operational areas. Our sites withstood the conditions with few challenges. Our Riverview site, which has operated on Tampa Bay for the last century, received nearly 15 inches of rain during Hurricane Milton less than two weeks after Hurricane Helene,” said Mosaic. “A water collection system supporting our closed gypstack became overwhelmed, pushing excess water out a manhole on our property. At this time, we believe some of that impacted stormwater made its way to an outfall which discharges into Tampa Bay.” Mosaic said the issue was addressed on 10 October and is not continuing but added that the volume may have been greater than the 17,500-gallon reporting standard. “We expect water quality impacts, if any, to be modest. We’ve been in constant communication with regulators who are onsite today,” Mosaic said. Florida environmental authorities have not made any statement but ahead of the storm had said they were preparing and would have all resources available to oversee the regulated facilities and operations.

11-Oct-2024

HOUSTON (ICIS)–Some ports in Florida have resumed operations while millions in the US state remain without power after Hurricane Milton made landfall earlier in the week, south of the fertilizer hub of Tampa. A few ports in Florida have maintained Port Condition Zulu, under which they are closed to inbound and outbound vessels. Others have reopened and have set Port Condition IV, which is a hurricane seasonal alert to which ports return after a storm. The following table summarizes the port conditions in Florida. Port Status Condition Port of Pensacola Open Normal Port Panama City Open Draft restrictions Port St Joe Open Normal Port Tampa Bay Closed Zulu SeaPort Manatee Closed Zulu PortMiami Open IV Port Everglades Open IV Port of Palm Beach Open IV Fort Pierce Open with Restrictions IV with restrictions Port Canaveral Open IV Jaxport Open IV Port of Fernandina Closed Zulu Source: US Coast Guard OUTAGESFlorida has more than 2.2 million reported outages, according to the website poweroutage.us. That is down by more than 1 million versus the immediate aftermath of the hurricane. Prolonged outages can disrupt economic activity and slow down demand for plastics and chemicals. CSX WARNS OF RAIL DELAYSThe railroad company CSX warned of delays while it works to clear tracks, install generators and conduct repairs. All routes north of Jacksonville, Florida are open with no anticipated issues, it said. The area south, from Callahan to the north end of Anthony, is also clear. Work continues in central Florida, and CSX is addressing washouts on the Carter and Vitis subdivisions. The CFR line should be open later Friday night, providing a potential route into Winter Haven. CSX is making contingency plans for possible issues with a gas pipe washout near the Miami area. IMPACT ON FERTILIZERS, PHOSPHATES, CHEMSFor chemicals, there is some epoxy resin, phenolic resin and unsaturated polyester resin (UPR) production in Lakeland and Kathleen, Florida. Milton will make landfall far from Pensacola, Florida, which has plants that make nylon and thermoset resins. Tampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Fertilizer producer Mosaic has its headquarters in Tampa. The company has not issued any statements regarding its corporate operations. A source at the fertilizer company Yara said it was shutting down its Tampa offices to comply with the evacuation orders. Near Tampa is Florida's phosphate mining operations in Bone Valley, which covers parts of Hardee, Hillsborough, Manatee and Polk counties. In all, Florida has 27 phosphate mines, of which nine are active, according to the Florida Department of Environmental Protection. Canadian fertilizer producer Nutrien has yet to restart its White Springs phosphate operations following Helene, an earlier hurricane that made landfall farther north in Florida’s Big Bend region. On 30 September, Mosaic said its Riverview operations were off line following water intrusion from a storm surge caused by Hurricane Helene. Thumbnail Photo: Hurricane Milton. (By Cira/Noaa/Planet Pix via ZUMA Press Wire/Shutterstock)

11-Oct-2024

HOUSTON (ICIS)–Roaring ashore as a Category 3 hurricane late 9 October and bringing fierce winds, heavy rainfall and significant inland storm surge Hurricane Milton inundated the Tamp, Florida area, which is a key hub of the US fertilizer industry. In the aftermath of the storm there were market sources, based in this region, who were reporting being unharmed but that they were now facing considerable flooding, which was causing property damage in places and overall restricting public movement. The section of Florida pounded by Milton is the location of not only production sites but also storage and logistic operations as well as corporate office facilities and the home to the numerous employees of the local fertilizer industry. The Port of Tampa, which handles about 25% of domestic fertilizer exports, said on their website that recovery efforts have begun, and that staff is working with the US Army Corps of Engineers, US Coast Guard and other maritime partners to assess landside and seaside operations. “Our port is currently without power. Some damage was observed to buildings but there has been no significant damage to docks, so far. The port is accessible through main gates, but please be advised there are road closures and flooding concerns in the surrounding roadways to our port,” the Port of Tampa announced. “We are working with our fuel terminal operators to assess their facilities and learn when they will be able to return to service. Individual port tenants will make independent decisions on when to resume their operations.” The extent of impacts to the fertilizer industry were not yet clear but Canadia fertilizer producer Nutrien, who only has the White Springs phosphate facility within Florida, said the company is still dealing with the impacts of the last storm but was able to avoid further issues from this hurricane. “While Nutrien’s White Springs phosphate facility was not impacted by Hurricane Milton, we are continuing to assess the timeline for White Springs’ restart following Hurricane Helene.  Nutrien’s nitrogen facilities were not impacted by Hurricane Milton,” said a Nutrien spokesperson. Fertilizer titan Mosaic, who not only has their headquarters within Tampa but also has numerous assets for production and logistics, said their immediate focus is on their workforce. “As Hurricane Milton has now passed through central Florida, we are working to contact our employees and confirm their safety. When conditions allow, we'll begin assessing the impacts on our operations,” said Mosaic. There were concerns ahead of the storm over the potential environmental consequences of Milton as Florida has 25 stacks of slightly radioactive phosphogypsum waste that are a by-product of phosphate fertilizer production. The fear that the winds and rains could release the material across the land and water resources that are nearby as has occurred in past hurricane events. There was no immediate report of the conditions of the stacks as of late 10 October but ahead of the storm Florida environmental officials had said they were preparing and would have all resources available to oversee the regulated facilities and operations. Sources said the areas that were more south of Tampa were apparently struck harder but there has not been full confirmation of the damages inflicted with a source saying it is a “different story down there”. There were weather reports of over 18 inches of rain having been received in nearby St Petersburg, Florida. The hurricane also generated several strong tornadoes as it approached which are being blamed for some of the physical damage to structures. A market participants said that with it being less than 24 hours since landfall it was going to take some time for the fertilizer industry to assess the scale of the impacts from Milton, saying it is “too soon for that”. Federal and state officials have not yet projected an estimated amount of damages as assessments were just barely getting underway. It likely did great harm to the Florida citrus industry with orange groves bearing fruit and drawing close to their harvest period. It is feared that it will be determined in the coming days that the storm’s intensity will result in a substantial decline in production this season, with others crops having also been exposed to harm like sugarcane and strawberries.

10-Oct-2024