Talking SOP september 2007 [PDF, 487.54 Kb] - Tessenderlo Group

Sulphate of Potash newsf from Tessenderlo Group
September 2007
SOP market looks set to remain
extremely tight going into 2008
As global demand for fertilizers remains strong, driven largely by the increasing
interest in biofuels, many MOP producers are reporting record earnings. In
recent weeks reports suggest that MOP prices continue to climb to unprecedented
levels, having reached US$330/mT CFR South East Asia for shipments of
standard MOP in the fourth quarter of 2007. Inevitably the high freight rates at
present are also having an impact on prices.
In this issue
Bananas: the most popular
tropical fruit p2, 3
Tessenderlo Group launches new
Customer Services Team for its
Inorganics Business Unit p4
Despite these price increases, the MOP market
remains very tight with many suppliers effectively
sold out until the end of 2007. Not surprisingly
many producers have initiated projects designed
to increase their production capacity but
additional tonnage will not be available
immediately. Indications suggest that a significant
part of the planned capacity increase will not be
realised before 2009-2010.
With global potash consumption predicted to
grow at a rate of 3-4% in the short to medium
term, it is likely that the supply and demand
balance may even tighten in 2008 as capacity
increases struggle to keep up with market growth.
In the medium term, however, the situation should
improve as the balance is restored.
Increased demand for SOP
SOP, a specialty potash fertilizer, represents only
around 6-7% of the total potash market but
demand for the product in recent years has grown
at a similar rate to that of the global potash
market.
Euro/US Dollar exchange rate: March - July 2007
With more than half the world’s SOP production
coming from the Mannheim or related processes
(those where potassium chloride is chemically
reacted with a sulphate source - sulphuric acid in
the case of the Mannheim process or alternatively
sodium sulphate), the market price for SOP is
inevitably linked to global MOP prices since SOP
producers have to secure a supply of their raw
materials on the open market. It is not surprising,
therefore, that SOP prices have risen sharply in
line with MOP prices, as SOP producers face
rapidly rising production costs.
In early May, prior to the IFA conference in
Istanbul, rumours were circulating of a €15-20/mT
increase in the price of MOP for the third quarter
of 2007. In reality the increase has been even
more drastic with actual increases reported to be
closer to €30/mT.
This increase is reflected in the new SOP prices
for the third quarter of 2007 which are generally
up €25-30/mT on the previous quarter, reflecting
not only the MOP price increase, but also
increases in the cost of sulphuric
acid and energy (the increase
has been even greater in those
countries where price levels were
below average).
Export market increases
While around half of the present
global SOP capacity is within
Europe, the consumption of SOP
here represents just under one
third of global consumption.
Consequently there is a net
export of SOP out of Europe,
which exposes producers to
fluctuations in the US$/€ exchange
rate. The steady weakening of
the US dollar against the euro
during the first half of 2007 has
meant that in many cases price
increases in export markets have
Nicolas White
Marketing Manager Fertilizers
been even more pronounced than in Europe, at
levels of US$45-50/mT.
“Somewhat ominously, reports are already
circulating that MOP producers will look for an
additional price increase of €10-15/mT for the
fourth quarter of 2007,” comments Nicolas White,
Marketing Manager for Fertilizers.
“Only time will tell whether this is achieved but
MOP suppliers continue to remain bullish. Any
further increase in MOP prices will inevitably have
an impact on the SOP market. Nevertheless, at
present Tessenderlo Group is effectively sold out
of SOP until the end of September and supply will
certainly remain tight in the near future.” ■
SoluPotasse ® GranuPotasse ® Standard SOP

Bananas: the most popular tropical fruit
Bananas are ranked second in world fruit production behind citrus fruit, which covers many different varieties. With more
than 80 million tons produced on 4.2 million hectares, bananas are the world's favourite tropical fruit, particularly as far
as children are concerned. Bananas have many benefits: they are full of energy, hygienically enclosed and easy to peel,
hold and eat. Although most bananas are grown by small farmers for local consumption, large plantations controlled by
three international companies produce 75% of the banana export market, mainly in the form of the 'Cavendish' variety.
The banana is an herbaceous plant from the
Musaceae family, originating from the tropical
areas of Southeast Asia and Australia. Its fruit
grows in hanging clusters, with up to 20 bananas
to a hand and between 8-20 hands to a bunch -
the total of the hanging clusters, which can weigh
from 30-50 kg. The average fruit weight is 125g of
which approximately 75% is water and 25% dry
matter.
The banana is a valuable source of potassium,
Vitamin A, Vitamin B6 and Vitamin C (see table 1).
Banana plants are cultivated primarily for their
fruit, such as the dessert or sweet banana. Unripe
or "green" bananas and plantains are used in
cooking and banana plants are used, to a lesser
extent, for the production of fibres or as
Table 2: Banana producing and exporting countries
Producers Production (tons) Area (ha) Exporters Export (tons)
India 11,710,300 404,200 Ecuador 3,942,000
Brazil 7,088,000 504,074 Costa Rica 1,883,000
Philippines 6,794,560 428,804 Philippines 1,600,000
China 6,708,000 274,200 Colombia 1,524,000
Ecuador 6,118,400 221,085 Guatemala 801,000
Indonesia 4,503,500 315,000 Panama 537,000
Costa Rica 2,352,600 42,700 West Indies 403,000
Mexico 2,196,900 74,350 Ivory Coast 217,000
Thailand 1,864,800 140,935 Cameroon 206,000
Colombia 1,764,500 140,935 Honduras 150,000
Burundi 1,538,700 303,420 Belize 68,000
Vietnam 1,344,200 93,900 China 50,000
Guatemala 1,070,500 19,305 Nicaragua 45,000
World 80,000,000 4,546,000
Source: FAO 2006
Phosphorus is applied at planting and later
broadcast in ratoon crops. Nitrogen and
potassium are applied in split applications,
throughout the cropping period. Fertigation is the
best method of fertilizer application to match the
demands of the plant.
Table 1: Banana nutritional value
(per 100g)
Energy
Potassium
Calcium
Magnesium
Phosphorus
Sugars
Fibres
Protein
Vitamin C
Vitamin B1
Vitamin B2
Vitamin B3
Vitamin B5
Vitamin B6
90 kcal (370 kJ)
358 mg
5 mg
27 mg
22 mg
12.23 g
2.6 g
1.09 g
8.7 mg
0.031 mg
0.073 mg
0.665 mg
0.334 mg
0.367 mg
ornamental plants. The most important countries
exporting bananas are not the biggest producers
(see table 2) and export markets represent only
15% of world production.
General mineral nutrition
Balanced fertilization is the guarantee of high
quality, marketable fruit production, an important
issue for large plantations producing bananas for
export.
The banana plant prefers deep soils, good
drainage and a pH from 5.5 to 6.5, though it is
cropped on a wide range of soils. A standard field
production (50-60 t/ha) requires 500-600 kg N/ha,
200 kg P 2 O 5 /ha and 1,300-1,500 kg K 2 O/ha.
SoluPotasse ® GranuPotasse ® Standard SOP

Table 3: Effect of nitrogen and potasium
fertilization on banana production
Treatment*
Yield parameter
Tons/ Kg/ Hands/ Fruit/
ha bunch bunch hand
N1PK1 33.75 11.3 10.0 16.0
N1PK2 36.25 12.5 10.0 16.0
N1PK3 40.00 17.9 11.0 17.0
N1PK4 42.50 18.2 12.0 20.0
N2PK1 50.50 20.5 11.0 18.0
N2PK2 66.50 24.1 11.0 20.0
N2PK3 75.25 27.3 12.0 25.0
N2PK4 84.75 30.0 13.0 25.0
*N - N1: 250 kg/ha, N2: 500 kg/ha; K 2 0 - K1: 250 kg/ha,
K 2 : 500 kg/ha, K3: 750 kg/ha, K4: 1000 kg/ha)
Source: DRC Egypt 2007
Potassium, the key element
The banana plant has the highest requirement for
potassium among all crops and potassium plays
an essential role in fruit yield and quality. It
stimulates early shooting and significantly
shortens the time required for fruit to mature,
improving bunch grade and finger size.
Potassium deficiency symptoms include the
orange/yellow colour of old leaves, scorching
along the leaf margins, reduction in total leaf area,
curving of the midribs, etc. Leaf choking delays
flower initiation and leads to a reduction in fruit
yield and quality - the fruit is badly shaped, poorly
filled and unsuitable for market.
Potassium deficiency in banana leaves
Potassium sulphate for high quality
production
The banana plant is sensitive to chloride, which
affects fruit yield and taste. A high chloride
concentration disturbs the plant's water
exchange and reduces its element uptake from
the soil. The risk is enhanced in cases of saline
irrigation water or poorly draining soils.
A number of experiments comparing potassium
sulphate (SOP) and potassium chloride (MOP)
treatments at the same dose of potassium
illustrate the detrimental effect of chloride. A 12 to
20% increase in total production is usually
observed between treatments with potassium
sulphate over potassium chloride.
Potassium sulphate has also a positive effect on
quality parameters. The illustration below from an
experiment in India compares SOP and MOP
application at 330g/tree on total soluble sugar
and on the sugar /acidity ratio, as well as on
production parameters (see below).
150
130
110
90
70
50
MOP and SOP effect on quality
Sugar/acidity
Source: Ebert - India (2004)
Control MOP SOP
No. fingers/bunch
Sulphur also plays a key role, as it is the main
component of amino acids and vegetal proteins.
0.23% S in the banana leaf is
considered as the critical concentration.
Deficiency symptoms include
a generalized yellowing of the foliage,
with new leaves displaying light
colours.
This is consistent with the fact that
sulphur in not a mobile element
within the plant and deficiency
symptoms should be most apparent
on the youngest foliage. Plants with
severe sulphur deficiency will
develop necrotic leaf margins and a
slight thickening of the veins.
For standard production, SOP largely
covers the banana plant's sulphur
requirements.
The use of SoluPotasse ®
As with many fast growing plants, the banana
benefits from foliar application of fertilizers.
SoluPotasse ® , Tessenderlo Group's soluble grade
of potassium sulphate, contributes to high quality
production and a better efficiency of a basal
dressing.
SoluPotasse ® can also be used in fertigation to
allow growers to apply nitrogen and potassium
separately. An example of a fertigation programme
for standard banana production is presented in
table 4 below.
Table 4: Typical fertigation programme
for bananas
N P 2 O 5 SoluPotasse ®
Weeks after (kg/ha/week) (kg/ha) (kg/ha/week)
planting
0 to 6 10 200 35
6 to 12 15 - 50
12 to 18 20 - 50
18 to 24 15 - 85
24 to 30 15 - 65
30 to 36 15 - 50
36 to 42 15 - 85
Total 630 kg/ha 200 kg/ha 2,520 kg/ha*
* (1,260 kg K 2 O)
Bananas are an essential food in many developing
countries where they form the basis of nutrition.
Banana production also plays an important role in
the world economy.
Potassium is necessary for banana growth and
SOP contributes in an important way to high
quality production. ■
SoluPotasse ® GranuPotasse ® Standard SOP

Tessenderlo Group launches new Customer
Services Team for its Inorganics Business Unit
As part of our continuing drive to improve the relationship with our customers, Tessenderlo Group has been in the
process of re-organizing its supply chain. One of the outcomes of this project is the creation of a new centralized
Customer Services Team under the direction of John Kraft, based at our site in Tessenderlo. The Team became
operational at the beginning of July.
The new Customer Services Team for the
Inorganics Business Unit is led by Ariane
Goovaerts and is made up of Customer Service
Representatives (CSRs) who handle the complete
end-to-end order process, from customer order
intake right through to shipment and invoicing.
This change gives the CSRs complete control
over the whole order processing chain, ensuring
that our customers can be quickly updated on the
progress of their orders.
The CSRs are now at your disposal to handle
order intakes, transport booking and call-offs,
invoicing and all order-related questions. Each
CSR has responsibility for a portfolio of clients and
products, which are shown in the table below.
Naturally, all commercial topics, such as pricing
and sales conditions, will remain the responsibility
of your Sales Manager.
Clients in Spain, Italy, Germany, Holland and the
UK and Ireland should continue to contact their
respective local offices in Madrid (TC España);
Cologna Veneta (Italphos); Hamburg (HGS);
Rotterdam (TCR) and Leeds (Britphos) for all
enquiries related to order processing.
When placing orders and communicating with the
Customer Services Team, clients should ensure
that from now on correspondence is sent by e-
mail, post or fax to the following centralised
coordinates:
Central fax (France): +33 3 20 22 58 07
Central fax (Other countries): +32 2 647 3692
Central e-mail: inorganics.sales@tessenderlo.com
Postal address: Tessenderlo Chemie N.V.,
Department OTC (Inorganics), Heilig Hartlaan 21,
3980 Tessenderlo, Belgium.
Director John Kraft outside the Customer Service Team
building at Tessenderlo.
Client/product responsibilities Customer Services Telephone number
Representative
Team Leader Inorganics Ariane Goovaerts +32 13 612752
France & Belgium Olivier Dubois +33 3 20 22 58 11 (France)
(SOP & Phosphates)
+32 13 612747 (Other countries)
Trade Products & DCP 17 Evy Soentjens +33 3 20 22 58 43 (France)
(all countries)
+32 13 612748 (Other countries)
Valérie Gochel +33 3 20 22 58 54 (France)
+32 13 612750 (Other countries)
Sonia Viaene +32 13 612759
Peggy Verboven +32 13 612749
Overseas Export Gabriele Mini +32 13 612751
(SOP & Phosphates)
Katrien Bylemans +32 13 612753
Jessie Alenteyns +32 13 612754
Netherlands; Germany; FSU & Eastern Maarten Verheyen +32 13 612755
Europe (SOP & Phosphates) Dajana Cotza +32 13 612730
Claims Processing Guy Sevenants +32 13 612715
“The centralized coordinates will help ensure all
orders receive immediate attention even in the
absence of your regular CSR. In addition, all
orders received via these coordinates will be
automatically archived in case of queries at a later
date,” explains John Kraft.
“When using these new coordinates, we
guarantee that your order will be handled
immediately. You are therefore requested not to
use the old telephone and fax numbers from now
on, otherwise you may find that your order is not
processed. You are, of course, free to copy
communications sent to the central coordinates
to your regular CSR and Sales Manager if you feel
that this is necessary.”
“Tessenderlo Group is convinced that working
with dedicated Customer Service Representatives
will strengthen our co-operation. Your help in
ensuring a smooth transition is greatly
appreciated.” ■
More information on Tessenderlo Group’s activities can be
found at: www.tessenderlogroup.com
Tessenderlo Group Fertilizers
giving nature a helping hand
www.sopib.com
Tessenderlo Chemie N.V.
Heilig Hartlaan 21, B-3980 Tessenderlo, Belgium
Tel: +32 13 612211 Fax: +32 2 647 3692
www.tessenderlogroup.com
fertilizers@tessenderlo.com
SoluPotasse ® and GranuPotasse ® are registered trademarks of Tessenderlo Group.