Urea and nitrates
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ICIS coverage includes urea, technical grade urea, ammonium nitrate, calcium ammonium nitrate, urea ammonium nitrate and ammonium sulphate.
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Urea and nitrates news
Genesis Fertilizers partners with CARBONCO to explore carbon capture project in Canada
HOUSTON (ICIS)–Fertilizer developer Genesis Fertilizers announced it has partnered with technology provider CARBONCO and has agreed to negotiate formal licensing and process design package services for a carbon capture and storage (CCS) project. Genesis said this collaboration marks a significant step toward the potential production of sustainable, low-carbon ammonia and urea nitrogen fertilizer for their farming partners and the broader fertilizer industry in North America. Under the terms CARBONCO would be responsible for implementing a solution capable of capturing approximately 1 million tonnes of carbon dioxide annually, which would then be transported directly to a sequestration hub. If implemented, the CCS project would be built at the proposed Genesis Fertilizers production complex to be constructed in Belle Plaine, Saskatchewan, Canada. The company said both parties are confident that this first-of-its-kind CCS project would play a pivotal role in supplying exceptionally clean grain to the market. “In line with our ultimate low carbon intensity fertilizer goal, Genesis Fertilizers has been working with CARBONCO and is pleased to welcome them as our technology provider to explore an exciting opportunity to implement their carbon capture solution,” said Jason Mann, Genesis Fertilizers CEO. “We believe that CARBONCO is the most suitable partner for our project, offering a robust solution that meets our technical and commercial needs.” The front-end engineering design (FEED) phase for Genesis Fertilizers project is expected to begin within the next few months. The company said the final investment decision will be made based on the results of the FEED work and other critical steps, but it is aiming to commence commercial operations by 2029. As proposed there would eventually be both ammonia and urea production with plans to have 75% of output locked into farmer commitments with the balance sold on the open market. Genesis has previously said the goal of this development is to help farmers have access to a vertically integrate fertilizer supply and enable the production of low carbon grain.
13-Sep-2024
Fertilizer industry back in action having emerged mostly unscathed by Francine
HOUSTON (ICIS)–As the remnants of what was Hurricane Francine continues to inundate and bring severe weather threats to parts of the southern US, the fertilizer industry in Louisiana was back in action on Friday having emerged mostly unscathed by the storm. Having escaped any confirmed property damage, with the largest obstacle the loss of power, plant facilities were said to be back online, with fertilizer producers including Nutrien having confirmed the lack of impact from Francine which made landfall on 11 September. Most of the problems faced in the last few days have been delayed and halted logistics given the fierce winds and heavy rains along with the brief stoppage of railroad and port operations. A common refrain was echoed by a producer source who said, “we had some logistical issues but no physical damage”. In Donaldsonville fertilizer producer CF Industries was heard to be back in production and loading supply as the storm brought some disruption to their transportation schedule. The company has not commented during this event but as a trader said, “CF now back running. Barges likely to get sorted over the weekend and river likely to be back open”. With the port in New Orleans (Nola) back in operation there was also further urea barges business done with expectations of a significant period of post-harvest application over the upcoming weeks not washed away by the recent weather. Harvesting campaigns have taken a hit and will be delayed for several days, possibly even longer depending on rainfall amounts. The concern is with a delay in these activities it creates an additional lag for starting post-harvest field activities like end of the year fertilizing. The real impact of this storm and its subsequent sway on domestic fertilizer direction likely comes once the extent of crop damage is understood, with the storm having arrived as there was considerable acreage nearing maturity or being harvested across several states. Lost of yields causing a reduction in income could mean a decrease in buying for immediate supply or reduced interest in pre-pay commitments.
13-Sep-2024
Australia BCI Minerals granted environmental approval for Mardie salt and potash project
HOUSTON (ICIS)–Australian BCI Minerals announced the government has granted environmental approval for the Mardie salt and potash project in Western Australia. With this approval secured, BCI Minerals said it will commence operations by filling three evaporation ponds starting 10 September. Once filled, BCI Minerals will update its groundwater monitoring and management plan using data from extensive monitoring bores and additional studies. It will then resubmit the plan to the local and federal environmental regulators for approval prior to filling the remaining evaporation ponds. The company said construction at Mardie of the salt-first component is progressing at 48% completed, with further section work set to commence on 10 September. BCI added it remains on track to achieve first salt on ship in Q2 2027. Located 80km south of Karratha, in the Pilbara region, Mardie is anticipated to produce 5.35 million tonnes/year of high-quality industrial salt for export and 140,000 tonnes/year of sulphate of potash (SOP). It has an operating life expected to exceed 60 years with the export jetty finished and the crystallizer construction now at more than 19% completed. “This is an important and pivotal moment for BCI Minerals as we move into the next phase of becoming Australia’s newest, high-quality industrial salt producer. Australia hasn’t developed a salt project of this significance in 25 years, and the Mardie project will be Australia’s largest solar salt project and the third largest globally,” said David Boshoff, BCI Minerals managing director. “With the projected growth in demand for high grade industrial salt in our target Asian markets, BCI Minerals is strongly positioned to supply global markets with Mardie salt for generations.”
10-Sep-2024
Messer and US producer LSB Industries renew long-term CO2 agreement
HOUSTON (ICIS)–Industrial gas firm Messer announced it has entered into a long-term renewal of a carbon dioxide (CO2) purchase and sale agreement with US fertilizer producer LSB Industries. As part of the agreement, Messer said it will subsequently commit more than $9 million into the liquid CO2 plant at LSB’s Cherokee, Alabama, facility with a focus of this investment on the continued safe and reliable operations at the site. The plant manufactures fertilizers including ammonia, urea and urea ammonium nitrate (UAN) and it also makes industrial and mining offerings including ammonium nitrate (AN) solutions and diesel exhaust fluid (DEF). Messer said this deal will help increase security of its CO2 supply and provide continuity to customers for decades to come. “The efficiency upgrades for the plant modernization effort will add more molecules to our network and reduce CO2 emissions at the site in-line with our sustainability goals,” said Chris Ebeling, Messer executive vice president, sales & marketing, North America.
09-Sep-2024
USDA announces $35 million in further funding to boost fertilizer production
HOUSTON (ICIS)–The US Department of Agriculture (USDA) announced it is partnering with business owners to expand innovative fertilizer production, create more rural jobs and strengthen local economies by awarding $35 million through the Fertilizer Production Expansion Program (FPEP). Appearing at the annual Farm Progress Show in Boone, Iowa, USDA Secretary Tom Vilsack revealed the agency is granting funds for seven projects in seven states through the FPEP, which is funded by the Commodity Credit Corporation. This program provides grants to independent business owners to help them undertake such efforts as modernize equipment, adopt new technologies and build production plants. “The investments announced today will increase domestic fertilizer production and strengthen our supply chain, while creating good-paying jobs to benefit all Americans,” said Vilsack. USDA has invested $286.6 million in 64 projects across 32 states through FPEP. These projects have created 768 new jobs and will help increase domestic fertilizer production by over 5.6 million short tons. The FPEP was created with a commitment of up to $900 million in funding to address issues facing farmers due to rising fertilizer prices due to a variety of factors including the Ukraine conflict and a lack of industry competition. Citing examples of the investments, the agency highlighted that in Virginia ammonium sulfate producer AdvanSix will expand a facility utilizing an almost $12 million grant. The company currently provides 31,400 agricultural producers with ammonium sulfate on the East Coast and in the Midwest. Through this project, AdvanSix will expand their operational capacity by 195,000 short tons/year and increase their total output to more than 36,000 agricultural producers.
28-Aug-2024
Producer Nutrien sees favorable global potash, nitrogen demand during H1 2024
HOUSTON (ICIS)–Nutrien said global potash demand during H1 2024 has been supported by favorable consumption and low channel inventories in North America and southeast Asia, with global nitrogen being boosted by steady demand and continued supply challenges in key producing regions. In its Q2 earnings release the Canadian fertilizer major said it is also seeing that there are expectations which have been created for record US corn and soybean yields, that have pressured crop prices. For the potash segment Nutrien said the settlement of contracts with China and India in July is expected to support demand in standard grade markets in the second half of this year. The producer said that the uptake on the summer fill program it offered in North America has been strong, and as such it has raised full-year global potash shipment forecast from 69 million tonnes to 72 million tonnes. It further said it expects a relatively balanced market in H2 2024. The company showed that potash sales volume guidance has been increased from 13.2 million tonnes to 13.8 million tonnes due to expectations for higher global demand in 2024. It noted that the range does reflects the potential for Canadian rail strike in the second half which would have a relatively short duration. Looking at the situation with global nitrogen, Nutrien said Chinese urea export restrictions have been extended into the second half and natural gas-related supply reductions could continue to impact nitrogen operating rates in Egypt and Trinidad. The company said US nitrogen inventories were estimated to be below average levels entering H2 2024, contributing to strong engagement the summer fill programs. Nitrogen sales volume guidance has been narrowed from 10.7 million tonnes to 11.1 million tonnes as Nutrien continues to expect higher operating rates at their North American and Trinidad plants, It is also counting on a growth in sales of upgraded products such as urea and nitrogen solutions. While end user demand has taken its typical summer slump, Nutrien said they expect buying for crop inputs in North America to remain strong in Q3 as growers aim to maintain optimal plant health and yield potential. With that view it noted that good affordability for potash and nitrogen will be supportive of the upcoming fall application rates “Crop input demand remains strong, and we raised our full-year outlook for global potash demand due to healthy engagement in all key markets,” said Ken Seitz, Nutrien president and CEO. “Our upstream production assets and downstream retail businesses in North America and Australia have performed well in 2024.”
08-Aug-2024
US CF Industries projects global nitrogen balance will remain constructive in the near-term
HOUSTON (ICIS)–CF Industries said in its latest nitrogen fertilizer market outlook that in the near-term it expects the global supply-demand balance to remain constructive, led by nitrogen import requirements through year-end for Brazil and India. The producer also anticipates there will be continued wide energy spreads between North America and high-cost production in Europe. The fertilizer producer said from the end of the second quarter of 2024 into the third quarter of this year this segment of fertilizers has faced challenges which include gas curtailments in Egypt and Trinidad, along with scheduled outages and a lack of substantial urea export availability from China. These factors the producer said have actually been beneficial for supporting global nitrogen pricing during a period of year that typically sees lower prices and low global shipments as demand shifts from the northern hemisphere to the southern hemisphere. “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, the Company believes the global nitrogen cost curve will remain supportive of strong margin opportunities for low-cost North American producers,” said CF Industries. “Longer-term, management expects the global nitrogen supply-demand balance to tighten as global nitrogen capacity growth over the next four years is not projected to keep pace with expected global nitrogen demand growth of approximately 1.5% per year for traditional applications and new demand growth for clean energy applications.” It further said that global production is expected to remain constrained by the ongoing challenges related to cost and availability of natural gas. Looking specifically at North America the producer said it believes nitrogen channel inventories in the region for all products are below average based on strong demand for urea and UAN during the spring application season and higher-than-expected planted corn acres. CF added that reported UAN and ammonia fill programs achieved prices above 2023 levels despite softening farm economics in the region as corn and soybean prices have fallen due to higher forecasted production in 2024 in the US and Brazil. For Brazil urea consumption is forecasted to increase 3% year over year to more than 8 million tonnes, supported by improved supply availability and lower global urea prices. Urea imports to Brazil in 2024 are expected to be in the range of 7 million to 8 million tonnes as domestic production remains limited. Regarding India CF said the country is expected to be active importing urea through the second half as the country secured lower-than-expected volumes in its two most recent tenders. In addition, urea consumption is expected to rise to support rice, wheat and other crop sowings. Currently CF expects urea imports to India in 2024, including volumes supplied on a contractual basis, to be in a range of 5 million to 6 million tonnes as there are recently revitalized plants and new facilities operating at higher rates. For Europe, the producer said there was approximately 25% of ammonia and 30% of urea capacity reported in shutdown or curtailment mode in early July. CF said because of this situation it anticipates ammonia operating rates and overall domestic nitrogen product output in Europe will remain below historical averages over the long-term, especially given the region’s status as the global marginal producer. As a result, the company does expect imports of ammonia and upgraded products to the region to be higher than historical averages. Looking at China, CF said the ongoing urea export policy continues to cause limited urea export availability from the country. For the first six months of 2024, China exported 140,000 tonnes of urea, which is 86% lower year-on-year. For Russia, the producer said their view is that urea exports will increase this year due to the start-up of new urea granulation capacity and the willingness of certain countries to purchase those volumes, including the US and Brazil, Russian ammonia exports are projected to rise with the completion of the country’s Taman ammonia terminal in the second half, though annual ammonia export volumes are projected to remain below pre-war levels.
07-Aug-2024
With difficult market conditions having eased, OCI seeing better performance so far in 2024
HOUSTON (ICIS)–OCI said after facing difficult fertilizer market conditions in 2023 it is having a much better performance through Q2 of this year. The producer said they continue to see progress in efficiency gains as it remains focused on its global decarbonization strategy. In addition, over the past quarter OCI said it has taken significant steps towards advancing its strategic aims, which include accelerating expansion plans fueled by green methanol adoption and further diversification their European nitrates portfolio. “Following extremely challenging market conditions in 2023, conflated with prolonged turnarounds at some of OCI’s assets, OCI benefited in the second quarter of 2024 from sustained improved asset reliability across the business,” said Ahmed El-Hoshy, OCI Global CEO. “OCI’s manufacturing excellence program and investments to improve reliability continue to drive productivity gains, with asset utilization rates surpassing historical levels across both the nitrogen and methanol complex.” The producer said OCI Beaumont achieved a 96% rate through Q2, while OCI Nitrogen saw both ammonia lines running at approximately 90% level during the quarter. “The OCI team continues to do an outstanding job driving forward our operational excellence program, focused on reliability and process safety fundamentals,” El-Hoshy said. The producer also said their Texas Blue Clean Ammonia facility in Beaumont is on track to commence production in 2025.
02-Aug-2024
AdvanSix Q2 profit rises on stronger sales, firm acetone pricing
LONDON (ICIS)–AdvanSix’s second-quarter net income increased by $6.2 million year on year, with sales rising by 6% over the same period, the US-based producer said on Friday. (in thousands US$) Q2 2024 Q2 2023 Sales 453,479 427,940 Net income 38,927 32,728 Adjusted EBITDA 78,141 65,785 KEY POINTS- Adjusted EBITDA rose to $78.1 million, a $12.4 million increase, driven by stronger sales and firm acetone pricing. – Operating cash flow surged 43% to $50.2 million due to higher net income and favorable changes in working capital. – The performance, by an improved portfolio mix, reflected a 24% increase in earnings per share at $1.55. AdvanSix achieved targeted utilization rates across its value chain, delivering strong earnings and cash flow while increasing capital expenditures by $14.2 million to $33.5 million for maintenance and enterprise programs. OUTLOOK Higher ammonium sulphate (AS) pricing expected in Q3 2024, though typical seasonal declines are anticipated in the US and Canada. Modest improvement in North American nylon industry spreads expected through 2024. Capital expenditures for 2024 are expected to be $140 million-$150 million, focusing on risk mitigation and growth projects. Pre-tax income impact of planned plant turnarounds is expected to be $38 million-$43 million in 2024.
02-Aug-2024
US CVR Partners views Q2 results as solid despite decrease in income and sales
HOUSTON (ICIS)–Although net income and sales fell year on year, US fertilizer producer CVR said it had a solid result for Q2 2024, which was driven in part by a combined ammonia production rate of 102%. The producer of ammonia and urea ammonium nitrate (UAN) announced during the period it had a net income of $26 million and net sales of $133 million for Q2 compared to net income of $60 million and net sales of $183 million for the second quarter of 2023. CVR said its facilities remained consistent compared to this quarter in 2023 as they produced 221,000 short tons of ammonia, of which 69,000 net tons were available for sale. The remaining balance was upgraded to other products, including 337,000 short tons of urea ammonia nitrate (UAN). In Q2 2023, those levels were at 219,000 tons of ammonia, with 70,000 net tons available to sale with the remainder upgraded, including 339,000 short tons of UAN. The average realized gate prices for UAN has also decreased with it down by 15% to $268/short ton, while ammonia dropped 26% to $520/short ton year-on-year. During this period in 2023 the average realized gate prices for UAN and ammonia were at $316/short ton and $707/short ton respectively. “CVR Partners reported solid operating results for the second quarter of 2024 driven by safe, reliable operations and a combined ammonia production rate of 102%,” said Mark Pytosh, CVR Partners CEO. “The spring planting season experienced some weather interruptions, however, planted acreage was higher than expected and demand for nitrogen fertilizer was strong.” Pytosh added that they expect to see good demand for nitrogen fertilizer remaining throughout 2024 even with prices being higher than experienced in 2023. “Our focus for the remainder of the year will continue to be on safe, reliable operations and maximizing our free cash flow generation,” Pytosh said.
30-Jul-2024
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