Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (78212)	10/7/2025 9:45:50 AM
From: E_K_S	Read Replies (1) \| Respond to of 78466

Re ASIX - $/Ton for their fertilizer VS UAN well below the price charged for UAN For 2025, AdvanSix's granular ammonium sulfate production cost is indicated by netback prices around $280 per short ton (st) FOB New Orleans, which is a reference point for production cost excluding some distribution costs. Their summer-fill prices for delivered granular ammonium sulfate to Midwest warehouses, which represent their product sold to farmers in the Midwest region, generally range from about $295 to $330 per short ton, with some locations like Saginaw, MI and Amherst Junction, WI commanding around $330 per ton. For upper Mississippi River warehouses, prices can be about $320 to $325 per short ton FOB. Recent price increases in early 2025 have raised these prices further, with first-quarter offers reaching $355 per short ton FOB at Hopewell, VA and up to $385 per short ton delivered in the Upper Mississippi River region, driven by tight supply and high input costs like natural gas and sulfur. AdvanSix has also recently received USDA grants to expand production capacity by 195,000 tons per year at their Hopewell facility, aiming to improve efficiency while maintaining environmental stewardship. In summary, the production cost of ammonium sulfate is roughly in the $280 per short ton range FOB (netback), and the price charged to Midwest farmers ranges from about $295 up to $330+ per short ton delivered, with some premium pricing in certain delivery locations and seasons. This implies a gross margin on ammonium sulfate sales to Midwest farmers in the range of approximately $15 to $50 per short ton depending on location and market conditions in 2025. ----------------------------------------------------------------------- For me it's about diversification and the value proposition; I own both companies UAN & ASIX. I prefer no MLPs for all the various reasons Paul Sr has detailed. To each his own