Fertilizers

HOUSTON (ICIS)–Canadian farmers reported growing more wheat, oats, soybeans, dry peas and lentils, but less canola, corn and barley in 2024, according to the production of principle fields crops report from Statistics Canada. The government agency said that overall yields were higher this year compared with 2023 but there were some areas where farmers continued to face issues related to dry conditions. This was true particularly in western Canada, which the report states had a promising start to the 2024 growing season. It noted that much of the prairies received timely precipitation during seeding, although cool conditions delayed crop development in some areas. Yet a lack of rain as the summer progressed, coupled with hot weather, resulted in lower yields in some areas compared with 2023. There were good field conditions throughout the fall months which allowed farmers to complete harvest ahead of schedule, with most crops out of the fields before data collection for the November field crop survey. The agency said there were locations that did receive above-average rainfall, specifically in Ontario and western Quebec, which when combined with increased summer heat benefitted growers with higher yields. Total wheat production rose 6.1% to 35 million tonnes in 2024, with Saskatchewan wheat production rising 12.2% to 16.5 million tonnes in 2024. In Alberta, higher yields resulted in a 6.4% increase in wheat production to 9.9 million tonnes, while Manitoba was up 0.7% to 5.5 million tonnes. Canola production decreased 7.0% nationally to 17.8 million tonnes in 2024, with this drop because of lower yields and harvested area, with the declined output attributed to the hot and dry conditions in parts of western Canada in July and August. Total corn for grain production fell 0.5% to 15.3 million tonnes in 2024 with harvested area down by 4.6% to 3.6 million acres, offsetting a 4.3% increase in yields to 168.7 bushels/acre. Ontario farmers, who grow almost two-thirds of Canada's corn were down 3.5% to 9.6 million tonnes, while Quebec rose 7.9% to 3.6 million tonnes in 2024. Manitoba farmers had 1.8 million tonnes in 2024 with lower harvested area, but yields were up 8.6% to 139.4 bushels/acre. Soybean production increased 8.4% nationally to 7.6 million tonnes in 2024 with the increase due to higher yields, which were up by 7.0% to stand at 49.1 bushels/acre, while the harvested area for the crop increased 1.3% to 5.7 million acres. In Ontario soybean production climbed 7.9% year on year to 4.4 million tonnes in 2024, while in Manitoba the harvested area fell 10.9% to 1.4 million acres in 2024. Production in Quebec rose 9.3% to 1.4 million tonnes in 2024, on higher yields and harvested area. Barley production was decreased by 8.6% to 8.1 million tonnes in 2024 because of lower harvested area, which the report said was partially offset by a 3.3% increase in yields to 63.2 bushels/acre nationally. Total oat production increased by 27.0% to 3.4 million tonnes as both harvested area and yields increased in 2024. The improvements in crop output reflects the sentiment towards fertilizer consumption within in Canada this year, with nitrogen and potash volumes having robust periods of consumption during the spring. There were additional stretches of demand with significant refill participant and a good post-harvest run of ammonia also taking place before the recent arrival of winter conditions. Sentiment is that spring demand could continue at a strong pace if nutrient values do not escalate over the coming weeks and if future crop prices either stay steady or can gain some slightly increase before sowings start again.

05-Dec-2024

HOUSTON (ICIS)–US Cargill announced that as part of a strategic effort introduced earlier this year designed to strengthen the almost 160-year-old company that the agribusiness major will be reducing their global workforce by approximately 5%. The process and timeline for this to be implemented was not revealed but the company said it will be different under the circumstance as it must comply with employment laws and practices in each geography. Yet with an estimated nearly 8,000 jobs set to be eliminated, Cargill acknowledges it was not an easy choice to make this move, and said this new long-term strategy not only continues their legacy but carries forward values and core strengths that have defined their success. “As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends in front of us, maximize our competitiveness, and, above all, continue to deliver for our customers,” said a Cargill in a statement. The company said as the world is changing it remains committed to transforming even faster to deliver for customers and fulfil the purpose of nourishing the world. “To strengthen Cargill’s impact, we must realign our talent and resources to align with our strategy. Unfortunately, that means reducing our global workforce by approximately 5%. This difficult decision was not made lightly. We will lean on our core value of putting people first as we support our colleagues during this transition,” Cargill said. Operating in 70 countries with approximately 1,000 locations worldwide Cargill handles not only food products and ingredients from the start of the supply chain with farmers all the way to the final consumer. They also undertake agricultural solutions including fertilizers and industrial products.

03-Dec-2024

HOUSTON (ICIS)–Australian fertilizer firm Minbos Resources, who is advancing the Cabinda Phosphate project in Angola, announced it has received the first funding from the Angolan Sovereign Wealth Fund for $6.4 million and expects to finalize the construction contract this month. The company said mobilization to the phosphate fertilizer plant, located at Subantando, a new industrial area between the mine site and Cabinda city, is also planned to commence this month with phase 1 to include earthworks, access roads, drainage and concrete foundations. Another $2.43 million will be released upon mobilization of the civil contractor and upon aligning the governance arrangements of the Angolan subsidiaries, with a third disbursement of $1.17 million upon finalizing project insurances and presentation of supplier quotations for project long lead items. Minbos Resources managing director Lindsay Reed said the receipt of this funding and the commencement of construction marks the end of one journey for the company and the beginning of another with the focus now switching to construction activities, sales and marketing and advance their future as a producer of phosphate fertilizer. The Cabinda project, located in northeast Angola, is being developed based on an initial name plate capacity of 150,000 tonnes/year of enhanced phosphate rock with initial production calculated at 50,000 tonnes/year. Previously Minbos said expansion will come in two stages with it planning to add a second and third granulation circuit to reach a name plate capacity of 450,000 tonnes/year after eight years of operations.

03-Dec-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 22 November. Eastern EU nations call for duties on imports of fertilizers from Russia and Belarus Countries such as Poland, Lithuania, Latvia and Estonia have submitted a letter to the European Commission calling for customs duty to be imposed on imports of fertilizers from Russia and Belarus, the Polish Ministry of Development and Technology has confirmed. Europe apathetic to PO asset reviews as oversupply plagues market Two propylene oxide (PO) plants have been added to the pile of European assets under review as the market grapples with chronic oversupply, low utilisation and persistent low demand. Chems firms struggle to gain traction in Q3 The chemicals sectors’ third-quarter earnings period has underlined how little momentum has built up in the last 12 months, and how tepid expectations are for the closing months of the year. Tightening Russia oil supply may support oil benchmarks as Russia-Ukraine conflict marks 1,000th day Global oil benchmarks could find support from tighter Russian oil supply in coming weeks amid calls for stricter EU sanctions and escalating geopolitical tensions. Europe, US chemicals have most to lose from a new trade war Donald Trump’s resounding victory in the US presidential election gives him a powerful mandate for a policy agenda which includes ramping up trade tariffs across the board as he pursues his re-shoring agenda.

25-Nov-2024

LONDON (ICIS)–Countries such as Poland, Lithuania, Latvia and Estonia have submitted a letter to the European Commission calling for customs duty to be imposed on imports of fertilizers from Russia and Belarus, the Polish Ministry of Development and Technology has confirmed. The duty being discussed is 30-40% for nitrogen, phosphate and potash fertilizers. Market participants believe a duty is unlikely to be imposed given Europe’s dependence on Russian fertilizer, especially when gas prices are rising, which could hit domestic production in Europe. European buyers have delayed imports, including of urea, to the first quarter of 2025. It is unlikely any government would want to antagonize the farming community further when there have been protests by farmers across many countries over the cost of inputs and taxes. Domestic producers, including in northwest Europe such as Germany, have been campaigning for duties on Russian fertilizers, but met with no success. Local producers say imports are available at competitive prices, partly due to the low cost of Russian natural gas. This puts pressure on European producers, particularly when it comes to remaining competitive while maintaining profitability. The concern is that the lower Russian prices could lead to an oversupply, creating unfair competition for European suppliers who may not be able to match those prices. There is also a broader concern about Europe, and Germany in particular, becoming too dependent on Russian resources – both in terms of urea and potentially other agricultural inputs. Data from the first eight months of the year shows an increase of more than 50% in fertilizer imports to the EU from Russia compared with the same period last year. In January-August, Russia was the biggest supplier of urea to Poland, at 426,342 tonnes, more than double the 207,981 tonnes in the same period of 2023, according to customs data. Additional reporting by Julia Meehan Thumbnail image source: Shutterstock

22-Nov-2024

HOUSTON (ICIS)–Fertilizer developer Genesis Fertilizers announced it has signed a Front-End Engineering Design (FEED) agreement with South Korean construction firm DL Engineering & Construction (DL E&C) for their proposed low-carbon nitrogen fertilizer facility in Saskatchewan, Canada. The company said DL E&C’s expertise in world-class fertilizer plant design is evident in their successful of the Ma’aden Ammonia III project in Saudi Arabia and exemplifies their ability to deliver complex projects on time and under budget. Genesis Fertilizers also noted that the FEED phase will establish the essential technical and design groundwork for building a facility that is both safe and efficient with DL E&C set to collaborate with Canada’s PCL Construction throughout preconstruction. They will be charged with creating a comprehensive blueprint, which integrates advanced carbon capture technology, that can deliver sequestration of up to 1 million tonnes of CO₂ annually. The FEED phase is scheduled to start in December and begin setting defined timelines for the project as the company is targeting to have commercial operations underway by 2029. “This FEED agreement is a monumental step in our journey to deliver sustainable, low-carbon fertilizer for Western Canadian farmers,” said Genesis Fertilizers CEO Jason Mann. “Thanks to years of planning, and support from our farming community, we now have a clear path forward for the design of the facility.” “While there is still work to do to finance and construct a cutting-edge fertilizer plant, we are excited to collaborate with DL E&C and PCL Construction to make this vision a reality and bring lasting benefits to Canadian agriculture.” As proposed, there would eventually be both ammonia and urea production at the site with plans to have 75% of output for farmer commitments with the balance sold on the open market. As a vertically integrated, farmer-owned initiative, Genesis Fertilizers intends to return profits directly to its farmer-owners and the company said it recognizes the critical role of farmers, whose support to date has driven this initiative forward. The company said through this project it is seeking to reduce dependency on imports of nitrogen fertilizers by providing a sustainable, farmer-owned alternative.

21-Nov-2024

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