FACT seeks offers for supply of ammonia

April 18: Fertilisers and Chemicals Travancore Limited (FACT) has invited bids for supply of 15,000 tonnes of fertilizer-grade anhydrous ammonia at Kochi.
8The required quantity is to be supplied in two shipments of 7500 tonnes each. First consignment should arrive during 28th May-1st June 2014 or earlier. The second shipment should arrive at Kochi during 11-15th June 2014.
8In its tender document, the company says: “FACT intends to avail credit up to 180 days from the B/L date. Bidders shall offer credit up to 180 days and indicate the applicable rate of interest per annum in the Price Bid Format.”
8It adds: “In case the bidder has not offered 180 days credit or has offered credit for a period shorter than 180 days, interest @ 14% per annum for the balance period up to 180 days shall also be loaded for evaluation.”   Details

FACT seeks bids for mega sale of phospho-gypsum

April 18: Fertilisers and Chemicals Travancore Limited (FACT) has invited tenders for sale of phospho-gypsum lying at gypsum dump yard in its Cochin division at Ambalamedu. The prospective bidders can submit offers for offtake of 30 lakh tonnes as a single lot or in lots of 10 lakh tonnes each.
8The total value of the lot is to be paid in advance, along with applicable
taxes and duties, at the commencement of the sale proceedings as per the sale order.
8According to the tender document, the entire material as per the sale order has to be lifted in a maximum period of four years in case of single lot of 30 lakh tonnes or in a maximum period of two years in case of smaller lot of 10 lakh tonnes, from the date of issue of Sale Order/Delivery Order.
8It says: “The buyers have to engage their own equipment, tools, vehicles and labour for reclamation of the gypsum from the gypsum dump yard, loading on to the vehicles placed by them and for transportation to their destination(s) after ascertaining the weight in the FACT-CD weigh bridge.”
8FACT produces phosphor-gypsum as by-product of its phosphoric acid manufacturing operations.
8A portion of the phospho-gypsum is being purchased by cement manufacturers for being used as filler material in their process. Another small portion of the phospho-gypsum is purchased by farmers for use as soil conditioner. The major portion of the phospho-gypsum remains in the dump yard. Presently, the accumulated gypsum is estimated to be around 44 lakh tonnes. Of this, about 40 lakh tonnes will be reclaimable.   Details

Global phosphatic fertilizers are high for Indian market: Agrium

April 17: Canada’s Agrium Inc. believes that prevailing global prices of phosphatic fertilizers are high when viewed against the backdrop of Indian subsidy regime. This forthright admission might well signal a decline in the prices in future Indian DAP and MAP imports.
8In its latest Crop Input Market Report released on 15th April 2014, Agrium notes: “Global prices have declined as the pace of demand has slowed. Furthermore, current FOB prices are above what Indian importers can afford to pay under the 2014/15 Nutrient Based Subsidy and Maximum Retail price schemes.”
8It says that gobal urea prices have declined over the past month, driven by the anticipation of a seasonal slow-down in global trade. Chinese urea exports have also been a factor. In January and February 2014, China exported 1.3 million tonnes of urea, the same volume as was exported from China in the first half of 2013. In contrast to the global market, the North American urea market has remained strong, driven by tight urea supplies, logistical constraints and slow offshore urea imports through the first half of the July-June fertilizer year.
8It adds: “Potash prices have remained firm over the past month. The logistics of moving potash to the end customer has been a constraint, tightening the potash supply/demand balance in some end-markets.”   Details

New gas price: Should it be based on Gross Calorific Value or Net Calorific Value?

April 16: Should the new gas price based on the Rangarajan Committee formula -- as and when it is notified -- be based on Gross Calorific Value or Net Calorific Value?
 8This is a question that is sought to be addressed through a background note under circulation in the petroleum ministry.
 8The current formula -- SP (in $ / mmbtu) = 2.5 + (CP - 25) A 0.15 -- is expressed in NCV terms, based on the thermal equivalence of natural gas with crude oil.
 8Under the Rangarajan formula, the weights given to Henry Hub (HH) and the National Balancing Point (NBP) are based on total consumption in North America and EU along with FSU countries.
 8In these two markets, there is no single basis for gas prices. Many contracts are volume based or based on thermal equivalence, either as NCV or GCV terms.
 8The paper claims that it will not be correct to conclude that HH / NBP prices will be only on GCV basis.
 8The note goes on to add that the gas pricing formula approved by the CCEA only provides for an approximate arm`s length price to which extant practice of using NCV shall be applied or gas prices should be notified in terms of GCV @ 90.2 % of the price arrived at by using the Rangarajan Committee formula.   Details

DOF to discuss monitoring of MRP of NBS fertilizers with CEOs of firms

April 16: The Department of Fertilizers (DOF) has convened a meeting of chief executive officers (CEOs) of fertilizer companies on 5th May to discuss a mechanism for proper monitoring of maximum retail prices (MRP) of decontrolled fertilizers covered under nutrient-based subsidy (NBS) scheme.
8In its meeting notice, DOF has reminded companies that they are required to file MRPs of their products in the web-based Fertilizer Monitoring System (FMS) to help it assess whether the reasonableness of prices and whether the subsidy is being passed on to the farmers.
8The notice says: “However, delay in reporting of MRPs for different states, the practice of reporting of MRPs by companies and blank entries in some months/days, different MRPs for different states, the practice of reporting higher MRPs to provide discounts/rebates to farmers, absence of a proper mechanism to cross very the genuineness of the MRPs reported etc. are causing difficulties in collection of actual farm gate prices of fertilizers and monitoring of the MRPs to find out the reasonableness of the prices.”   Details

MOEF panel asks GSFC to respond well to public concerns over its Sikka project

April 16: The Ministry of Environment and Forests’ (MOEF’s) expert committee for appraisal (EAC) of infrastructure projects has advised Gujarat State Fertilizers & Chemicals (GSFC) to respond more positively to issues raised at public hearing on its Rs 119-crore project to improve the logistics and storage for imported intermediates at its Sikka DAP complex in Gujarat.
8According to the minutes of EAC’s recent meeting, “the EAC suggested to the
PP (project proponent) to submit the revised CRZ map showing all the proposed components, MNP & S with their boundary, dredge location, dredge material disposal etc. The EAC also wanted a more positive and reassuring response on Public Hearing issues like protection of bus facility for school children and disposal of arsenic etc.”
8The project envisages dredging of the berthing area for ships at captive jetty in the Sikka creek of the Gulf of Kachchh, laying of ammonia and phosphoric acid pipeline between the marine terminal and the DAP plant and installation of additional storage tanks for these two intermediates.   Details

DOF unveils norms for handling of cases of imported sub-standard fertilizers

April 15: The Department of Fertilizers (DOF) has issued guidelines for expeditious response of stakeholders to the cases of import of non-standard fertilizers.
 8DOF has prefaced the guidelines with the disclosure that certain instances of imported fertilizers failing quality test at designated fertilizer quality check laboratories have come to its notice.
 8It adds: "Generally, there is time lag between the time sample of imported fertilizer is taken and report submitted by the laboratory. During this time gap, there are chances of sub-standard material being sold to the farmer. To avoid such situations, following guidelines should be followed strictly by all concerned."
 8The first step under the guideline is the laboratory sending the test report to both DOF and the company concerned. Immediately after the receipt of the report, DOF would inform its Movement Division, which in turn, would ask the importer to furnish the requisite details of dispatches done from the consignment declared sub-standard.
 8The guidelines say: "Movement Division, on receipt of date-wise, state-wise, district-wise and rake-wise details from the concerned company, may also write to the state agencies for their information and action as per of Fertilizer Control Order (FCO)."
 8The guidelines have also drawn the attention of all stakeholders to strict legal action that can be taken in the cases involving import and marketing of sub-standard fertilizers.   Details

ABNL's urea plant restarts production after attaining turnaround

April 15: Aditya Birla Nuvo Limited (ABNL) has resumed urea production at its Indo-Gulf division after about 42-days planned shut-down of the plant.
 8In a brief disclosure to the BSE, Mumbai, the company today stated: "with effect from April 08, 2014, the Company has resumed production at the Urea Plant at Jagdishpur (U.P.), which was under maintenance shutdown."
 8The shut-down, which commenced on 26th February, was utilized by the company to implement to implement its debottlenecking and energy saving project.   Details

RCF seeks bids for supply of rock phosphate

April 14: Rashtriya Chemicals and Fertilisers Limited (RCF) has invited offers for supply of 90,000 tonnes of rock phosphate of “73/75 BPL Grade.”
8The company intends to procure the total quantity in three lots of 30,000 each. The first shipment of 30,000 tonnes is required in May 2014. The balance quantity has to be delivered during July 2014 and March 2015 as per RCF’s requirements.
8RCF says: “The price quoted shall be based on minimum P2O5 content offered on dry basis. In case the P2O5 content is found to be less than the offered minimum P2O5 and is not below 33.40% based on analysis reports submitted by separate independent inspection agencies, appointed by RCF and supplier at load port, pro-rata rebate in the invoice shall be given at the applicable CFR price.”
8It continues: “In case P2O5 content is found to be below 33.40%, RCF shall have right to reject the consignment or accept at its sole discretion. However, in case RCF accepts the consignment at its sole discretion, in such case the mutually agreed damage on account of lesser P2O5 shall be equivalent to five times prorata rebate for P2O5 content lower than guaranteed minimum P2O5 percentage upto actual analyzed P2O5 percentage. The rebate shall be applicable on CFR price.”
8The last date for submission of bids is 18th April 2014.   Details

MOEF panel clears CIL's plea for a new phos acid pipeline at Kakinada unit

April 14: The Ministry of Environment and Forests’ (MOEF’s) expert committee for appraisal (EAC) of infrastructure projects has cleared Coromandel International Limited’s (CIL’s) proposal to set up an additional phosphoric acid pipeline for transportation of acid from jetty to its DAP/NPK fertilizers plant at Kakinada in Andhra Pradesh.
8According to the minutes of EAC’s recent meeting, “The EAC after deliberation recommended the project for grant of clearance stipulating following conditions:
(i) As regards continuous monitoring of the pipelines CCTV arrangement shall be provided as committed by PP. (ii) There shall be storage of only the permissible products within CRZ area. (iii)All the conditions stipulated by APCZMA shall be strictly complied with.”
8CIL has also proposed to install two new sulphuric acid storages with total capacity of 10,000 tonnes at the plant site.
8At present both Sulphuric acid and Phosphoric acid are transported through one single dedicated pipe line from the Port and these acids are stored in storage tanks located in the plant premises.   Details

Uralkali sounds cautious on Indian potash market outlook

April 11: Russia’s Uralkali is exuding cautious optimism at the prospects of recovery in the Indian demand for potash.
8In its annual results release, Uralkali says: “In India, demand challenges due to the weak rupee and fiscal uncertainty are expected to continue in 2014. India’s full-year demand is likely to reach 3.5-4.0 million tonnes.”
8In a presentation accompanying the release, Uralkali says: “Limited potential potash demand upside. The continued subsidy issues to pressure growth. Weak rupee and high retail prices have a detrimental effect on potash consumption.”
8The presentation captioned ‘FY 2013 IFRS Results and Potash Market Update, the company has, however, noted that global potash market recovery would gain momentum following the resumption of contract shipments to China and India. The fresh contracts with the companies from these countries have helped to restore market confidence, it adds.
8According to the release, “Overall, Uralkali expects that the positive market environment should lead to substantial growth in potash demand globally. In 2014, global deliveries are expected to reach 56-58 million tonnes, as recent contract agreements bolster confidence and limited inventory levels support increased demand.”   Details

RCF seeks offers for supply of 80,000 tonnes of DAP/MAP

April 11: Rashtriya Chemicals and Fertilisers Limited (RCF) is seeking bids for supply of 80,000 tonnes of mon ammonium phosphate (MAP)/diammonium phosphate (DAP) during 2nd half of May to 2nd half of July 2014.
8The company has asked for firm offer for supply of 20,000 tonnes of powder MAP and another set of firm offers for delivery of 40,000 tonnes of granular MAP or DAP in two parcels of 20,000 tonnes each.
8In addition to this, RCF is seeking bids for supply of 20,000 tonnes of granular MAP or DAP at RCF’s option.
8The tendering competition is open to both foreign and Indian firms with the latter required to supply fertilizers on high sea basis.   Details