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Released August 11, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--A head-on collision between skyrocketing demand and weak supply is driving crop prices to multi-year highs, benefiting growers and those in related industries, such as fertilizer production. Nutrien Limited (NYSE:NTR) (Saskatoon, Saskatchewan), a leading North American fertilizer producer, expects the beneficial environment "to continue beyond this season and be supportive of crop prices and grower margins into 2022," according to a recent earnings-related report. Industrial Info is tracking more than $2.2 billion worth of active projects from Nutrien, about half of which is attributed to capital-spending projects in the U.S.
Click on the image at right for a graph detailing Nutrien's U.S.-based capital-spending projects, by state.
Extreme weather conditions and continued unpredictability surrounding the COVID-19 pandemic's Delta resurgence have resulted in U.S. and Canadian crop supply constraints, which Nutrien's executives say will not let up anytime soon: "Global potash shipments are projected to reach a record 69 to 71 million tons in 2021, while inventories in key regions are expected to be historically low going into 2022. This is supported by strong potash consumption, backed by favorable agricultural fundamentals, with further upside limited by global supply issues and most producers operating at peak rates."
Not all of Nutrien's products benefited from the tight supply environment. Sales volumes for nitrogen products were lower in the second quarter and first half of 2021, compared with the same periods in 2020, due to higher turnaround activities, temporary production outages, and lower inventories at the beginning of 2021. But the company has been considering a significant expansion to its fertilizer complex in Geismar, Louisiana, which would add an ammonia synloop unit that would expand the ammonia plant's capacity by 4,000 tons per day.
Ammonia, which is one of the top nitrogen-containing products used in the agricultural market, is expected to see continuous demand growth worldwide in the coming years. A Nutrien representative recently told Chemical & Engineering News that the company is particularly bullish on low-carbon "blue" ammonia: "We have a low-carbon solution that significantly reduces carbon intensity at a much lower cost than the 'green' technology today." The Geismar addition has faced a series of scheduling delays related to the COVID-19 pandemic, but the company expects to make a final investment decision sometime in 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a detailed project report.
The Geismar facility is in the process of closing a phoshogypsum stack, which stores waste that is created during fertilizer production, and is considering several proposed improvement projects, such as a debottlenecking of the fertilizer plant's Urea Unit 2. Subscribers can learn more from Industrial Info's detailed reports on the phoshogypsum stack and urea unit.
The global market for urea, another nitrogen fertilizer, also is expected to grow in the coming years. North American producers such as Nutrien might further benefit from decreased competition: According to Reuters, several of China's top fertilizer companies are temporarily suspending exports to assure domestic supply after prices in China, one of the world's biggest grain producers, hit record levels earlier this year.
Nutrien already is underway on a series of reliability upgrades to its agricultural ammonia and urea plant in Borger, Texas, including the replacement of two towers, electrical equipment and multiple pumps, and is evaluating a proposed replacement of urea vessels. Subscribers can learn more from Industrial Info's project reports on the reliability upgrades and vessel replacements.
As a result of the strong global demand, Nutrien is raising its 2021 potash sales outlook by about 1 million tons, to between 13.5 million tons and 13.9 million tons.
Nutrien's net earnings totaled $1.11 billion in second-quarter 2021, a 45% increase from second-quarter 2020. Consolidated sales totaled $9.76 billion, a 16% increase from the same period last year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a graph detailing Nutrien's U.S.-based capital-spending projects, by state.Extreme weather conditions and continued unpredictability surrounding the COVID-19 pandemic's Delta resurgence have resulted in U.S. and Canadian crop supply constraints, which Nutrien's executives say will not let up anytime soon: "Global potash shipments are projected to reach a record 69 to 71 million tons in 2021, while inventories in key regions are expected to be historically low going into 2022. This is supported by strong potash consumption, backed by favorable agricultural fundamentals, with further upside limited by global supply issues and most producers operating at peak rates."
Not all of Nutrien's products benefited from the tight supply environment. Sales volumes for nitrogen products were lower in the second quarter and first half of 2021, compared with the same periods in 2020, due to higher turnaround activities, temporary production outages, and lower inventories at the beginning of 2021. But the company has been considering a significant expansion to its fertilizer complex in Geismar, Louisiana, which would add an ammonia synloop unit that would expand the ammonia plant's capacity by 4,000 tons per day.
Ammonia, which is one of the top nitrogen-containing products used in the agricultural market, is expected to see continuous demand growth worldwide in the coming years. A Nutrien representative recently told Chemical & Engineering News that the company is particularly bullish on low-carbon "blue" ammonia: "We have a low-carbon solution that significantly reduces carbon intensity at a much lower cost than the 'green' technology today." The Geismar addition has faced a series of scheduling delays related to the COVID-19 pandemic, but the company expects to make a final investment decision sometime in 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a detailed project report.
The Geismar facility is in the process of closing a phoshogypsum stack, which stores waste that is created during fertilizer production, and is considering several proposed improvement projects, such as a debottlenecking of the fertilizer plant's Urea Unit 2. Subscribers can learn more from Industrial Info's detailed reports on the phoshogypsum stack and urea unit.
The global market for urea, another nitrogen fertilizer, also is expected to grow in the coming years. North American producers such as Nutrien might further benefit from decreased competition: According to Reuters, several of China's top fertilizer companies are temporarily suspending exports to assure domestic supply after prices in China, one of the world's biggest grain producers, hit record levels earlier this year.
Nutrien already is underway on a series of reliability upgrades to its agricultural ammonia and urea plant in Borger, Texas, including the replacement of two towers, electrical equipment and multiple pumps, and is evaluating a proposed replacement of urea vessels. Subscribers can learn more from Industrial Info's project reports on the reliability upgrades and vessel replacements.
As a result of the strong global demand, Nutrien is raising its 2021 potash sales outlook by about 1 million tons, to between 13.5 million tons and 13.9 million tons.
Nutrien's net earnings totaled $1.11 billion in second-quarter 2021, a 45% increase from second-quarter 2020. Consolidated sales totaled $9.76 billion, a 16% increase from the same period last year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
