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USCG updates ongoing lower Mississippi restrictions

  • : Agriculture, Coal, Fertilizers, Oil products, Petroleum coke
  • 24/09/17

The US Coast Guard (USCG) will further limit northbound movement for barges transiting the lower Mississippi River despite slightly higher water levels following Hurricane Francine's landfall late last week.

The USCG announced on 16 September that all northbound traffic traveling from Tunica, Mississippi, to Tiptonville, Tennessee, can only have five barges wide and only four of those can be loaded. Barges also cannot be loaded deeper than 9.5ft.

Any southbound traffic from Vicksburg, Mississippi, to Tunica cannot move more than seven barges wide or be drafted deeper than 10.5ft. Southbound traffic from Tiptonville to Tunica can only be six barges wide or less and cannot have a draft greater than 10ft.

The USCG has updated lower Mississippi river draft restrictions about four times since the end of August, but this is the third year in a row of notable low water for the fall on the lower Mississippi river which has triggered draft restrictions to arrive more quickly than previous years.

Hurricane Francine brought significant rainfall to the lower Mississippi at the end of last week. But this has not eased the minds of mariners, who anticipate the water may leave as quickly as it arrived.


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Hurricane Milton to further disrupt phosphate output


24/10/07
24/10/07

Hurricane Milton to further disrupt phosphate output

Houston, 7 October (Argus) — The US phosphate market anticipates Hurricane Milton's Florida landfall later this week will cause further disruptions to regional production as the Tampa area continues to recover from Hurricane Helene. Hurricane Milton intensified to a category 5 storm today in US Gulf waters and is on track to make landfall around the Tampa Bay area Wednesday evening as a category 3 hurricane, the National Weather Service said. Phosphate traders expect the storm will only further tighten the market as major fertilizer producers work to overcome production losses and power outages endured during Hurricane Helene on 26 September. One phosphate trader called the incoming storm "devastating", considering it will exacerbate existing fourth quarter scarcity from ongoing outages at Nutrien's White Springs and Mosaic's Riverview facilities. The area surrounding Tampa Bay is home to three major phosphate processing facilities owned by producer Mosaic — with capacity totaling 5.7mn metric tonnes (t)/year — and the mines that feed them. Finished phosphate product is shipped across the US by rail to end users and exported by vessel from the port. Mosaic's Riverview facility in Tampa experienced water intrusion from storm surge but was expected to be back to full production sometime this week, according to the company. The producer also expected some late third quarter shipments to be pushed into the fourth quarter because of the Tampa port closure. Fellow fertilizer producer Nutrien's White Springs phosphate facility is located north of Tampa and was still assessing damage following Hurricane Helene as of today, the company said. White Springs has annual production capacity of 2mn t/year. Nutrien said it is also monitoring Hurricane Milton's path and has emergency safety measures in place for the storm. Further production disruptions are likely with the arrival of Hurricane Milton. Fertilizer production sites in the path of major storms curb operations as a precaution and then have to assess and repair damage before restarting. There is an increasing risk of life-threatening storm surge and damaging winds for portions of the west coast of the Florida peninsula beginning Tuesday night or Wednesday morning, the NWS said. Storm surge in the Tampa Bay area could reach between 8-12ft, compared to storm surge of around 6ft from Helene. Portions of Florida can expect heavy rainfall today ahead of Milton, as well as later this week. Additionally, unlike with Helene, Mosaic's Bartow and New Wales facilities located further inland from Riverview are directly in the path of Milton on its current trajectory. If the storm stays on its current track, it will be the worst storm to hit the Tampa area in 100 years, the NWS said. Hurricane Ian damaged phosphate facilities in 2022 , causing Mosaic to reduce fourth quarter production guidance by 200,000-250,000t after the storm moved east across the Tampa Bay area. Florida ports are beginning to limit operations ahead of the storm. Port Tampa Bay initiated its Port Heavy Weather Advisory Group, which closely monitors impacts to the port and waterways in response to Hurricane Milton. Inbound and outbound vessel traffic to the port remains open and operations will continue "as long as safely possible," the port said. SeaPort Manatee is also open to vessel and landside traffic. Both ports will likely take further precautions closer to Milton's landfall. Mosaic did not respond to request for comment on the precautions it is taking for Milton. By Taylor Zavala Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's 3Q potash imports reach record 4mn t


24/10/07
24/10/07

Brazil's 3Q potash imports reach record 4mn t

London, 7 October (Argus) — Brazilian third-quarter imports of MOP reached a record 4.1mn t in July-September as buyers purchased the last lots for soybean crops in the first half of the quarter before turning their attention to next year's corn crop shortly afterward. Prices of granular MOP arrivals to Brazil eroded over the three-month period to $280-290/t cfr as of 26 September, from $305-320/t cfr at the start of July, reflecting the seasonal slowdown in demand. The signing of the new Chinese and Indian MOP contracts in early July at $273/t cfr and $279-283/t cfr with 180 days' credit, respectively, also placed some downwards pressure on pricing. Canada was the top supplier in the third quarter at 36pc, with 1.5mn t, followed closely by Russia with 35pc and 1.4mn t, GTT data show. Uzbekistan was noted as the third top supplier to Brazil — although this is likely Belarusian product — at 13pc with 557,000t from July-September. Israel took 5pc at 225,000t, while Jordan received 4pc at 169,000t and Germany 3pc at 121,000t. The five-year average of third-quarter imports to Brazil amounted to 3.7mnt, with potash imports steadily climbing over the period. Volumes declined in 2022 following strong panic buying earlier this year on supply uncertainty resulting from the escalation of the Russia-Ukraine conflict. Brazilian MOP imports from January-September totalled 11mn t, also a record high. A further 642,000t is slated for arrival in October, according to provisional vessel line-up data, suggesting that total 2024 imports are likely to be close to the record of 13.4mn t recorded last year. Full Argus data covering Brazilian MOP imports are available here . By Nykole King Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Fossil fuel cars phase-out comes up again in Brussels


24/10/07
24/10/07

Fossil fuel cars phase-out comes up again in Brussels

Brussels, 7 October (Argus) — The European parliament will this week debate a "crisis" facing the EU's automotive industry which could lead to "potential" plant closures, putting discussions on already-decided CO2 standards for vehicles on the forefront. Members have faced increased efforts by industry arguing for or against speedy review of the EU's regulation on CO2 emission standards for cars and vans. The regulation sets a 2035 phase-out target for new fossil fuel cars. The European commission is expected to give a statement to parliament, but a spokesperson told Argus that any change to the EU CO2 standards for cars and light vehicles would require a legal proposal by the commission to both parliament and EU member states. The priority, the spokesperson said, is on meeting 2025 targets for fleet CO2 reductions, agreed in 2019, but the commission is aware of "different opinions" in industry. Automakers association Acea has been calling for a "substantive and holistic" review of the CO2 regulation. The transition to zero-emission vehicles must be made "more manageable", assessing real-world progress against the ambition level. On the other hand, European power industry association Eurelectric today told members of parliament that bringing forward a review of the EU's regulation on CO2 standards for cars and vans to the start of 2025 would only encourage carmakers to hold off on making lower-priced and smaller electric vehicles (EV). The next CO2 target for car fleets is set to take effect in 2025. It requires a 15pc cut in emissions for newly registered cars. Some member states view the CO2 target cuts, and phase-out of the internal combustion engine (ICE) by 2035, as contentious. The regulation was only approved after a delay to normally formal approval. And parliament's largest centre-right EPP group is calling for a revision of CO2 standards for new cars to allow for alternative zero-emission fuels beyond 2035. As a counterweight to such pressure, Austrian, Belgian, Dutch and Irish ministers today called on commission president Ursula von der Leyen to step up EU action to push decarbonisation of company vehicles, notably light duty vehicles. "We need to consider action on the demand side in order to push zero-emission vehicles sales. Corporate fleets are the EU's most important market segment," the four ministers told von der Leyen. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Concerns remain over plans of firm tapped to run Citgo


24/10/07
24/10/07

Concerns remain over plans of firm tapped to run Citgo

London, 7 October (Argus) — The top bidder in the auction for Venezuelan state-run PdV's US refining subsidiary, Citgo, says it plans to reinvest in its 804,000 b/d of refining capacity, but concerns remain over the private equity-backed buyer's intentions. Amber Energy was selected on 27 September as the top bidder in an auction for the seventh-largest US refiner, with a bid of $7.3bn. The company, backed by investors including Elliott Investment Management, says it would focus on "enhancing the value of its [Citgo's] core assets" by prioritising "operational excellence", reinvesting in the business and pursuing "strategic investments". Amber is led by industry veterans Gregory Goff and Jeff Stevens. The latter was chief executive of Western Refining from 2010-17, while Goff ran refiner Andeavor from 2010-18, during which time it changed its name from Tesoro, bought Stevens' Western Refining and was then bought by Marathon Petroleum. Goff and Stevens' refining pedigree has not allayed concerns in the market that one of their investors, Elliott, and other undisclosed backers, want to split up the assets and sell them for a combined price higher than the investment group's $7.3bn bid. Elliott's track record of activist investing in North American refiners shows a clear preference for improving the core business of processing crude into fuels, with little interest in what the investment firm views as non-core assets. Elliott pushed Canadian integrated energy company Suncor in 2022 for board changes and divestment of its 1,500 retail stores, which it ultimately did not sell. The firm had more luck with Marathon, which agreed to sell its 3,900-store Speedway network in 2019, the year after it bought Andeavor. Last year, Elliott purchased a $1bn stake in Phillips 66 and called for the company to refocus on its refining business and reduce operating costs. Phillips 66 divested some of its retail network and pipelines this year. The investment group, which started out trading in the 1970s but has since expanded into a multi-strategy hedge fund and private equity firm, has shown a clear preference for merchant refiners within its activist investments, and criticised the strategy of integrated refining companies. It is not clear whether that preference carries through to its private-markets investment in Amber, which could also be eyeing an initial public offering for the assets down the line. Elliott did not respond to requests for comment on its strategy. A spokesperson for Amber declined to discuss details of the company's strategy on the record. Seeking closure Amber said it expects the sale to close in mid-2025, pending regulatory approval and a final recommendation by the US Court for the District of Delaware. But investors involved in the auction process and other downstream operators told Argus that higher bids from other refiners or groups are likely, as Amber's bid is considered relatively low for what are widely viewed as attractive refining assets. The auction comes at a time of flatlining domestic demand for road fuels such as gasoline, and ongoing worries about the future of the US refining industry, where smaller and less profitable plants are the most likely to shutter operations. But Citgo's two Gulf coast assets — a 455,000 b/d refinery in Louisiana and a 165,000 b/d plant in Texas — are large, complex refineries that could benefit from access to export markets as domestic demand wanes and the Gulf coast readies for the 2025 closure of LyondellBasell's 264,000 b/d Houston plant. Citgo's 184,000 b/d Lemont refinery in Illinois could gain access to cheap Canadian heavy crude and sell products to the US market when major plants such as ExxonMobil's 252,000 b/d Joliet refinery in Illinois and BP's 435,000 b/d Whiting facility in Indiana are off line owing to outages or maintenance. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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