Ammonia prices have rebounded. This rebound comes after a low in August when it dipped below 150 US$/tonne. According to the Food and Agriculture Organisation (FAO), the price continued the upward trend at the end of the year due to lower supplies in the Black Sea where portions of ammonia were diverted to produce urea.
This also corresponded to a slightly higher natural gas price which started to increase due to higher heating needs in the northern hemisphere.
Amid the rallying price, PotashCorp and Agrium pushed forward and have completed their merger, forming Nutrien. According to a press release by Nutrien, the new company will be creating the world’s premier provider of crop inputs and services. Nutrien is said to have the largest crop nutrient production portfolio combined with an unparalleled global retail distribution network that includes more than 1,500 farm retail centres. With nearly 20,000 employees worldwide, and operations and investments in 14 countries.
PotashCorp has a large presence in Trinidad and Tobago through its subsidiary, PCS Nitrogen. The subsidiary holds four plants and produces more than 160,000 metric tonnes (MT) of ammonia per month and exports most of what is produced.
Chuck Magro, President and Chief Executive Officer of Nutrien (previously Agrium CEO), said, ‘…we are proud to launch Nutrien, a company that will forge a unique position within the agriculture industry’. He added, ‘Our company will have an unmatched capability to respond to customer and market opportunities, focusing on innovation and growth across our retail and crop nutrient businesses. Importantly, we intend to draw upon the depth of our combined talent and best practices to build a new company that is stronger and better equipped to create value for all our stakeholders’.