A combination of factors pushed corn prices higher, including increased demand from China and other countries and dry conditions in South America and the western United States, the company said. Restricted supplies of maize “have pushed maize prices to levels well above the average of the past seven years, despite a recent decline from the highest levels,” LSB said. He added that “this is translating into high demand and a significant increase in the prices of fertilizers.”

Industrial enterprise

The company said its industrial business “continues to benefit from strong demand from key end markets, including housing construction and power generation.”

The company said auto sales fell “after rebounding from pandemic lows in early 2020 and hit record highs in April 2021 due to a shortage of microprocessors,” adding that it had no reduction in demand for nitric acid was seen, “in part to a large multi-year contract that we started in the first quarter of this year.”

The company also said that “the strength of the ammonia price in Tampa also has positive implications for our industrial operations, as many industrial chemicals contracts are pegged to the price of ammonia in Tampa.”

Outlook

“Collectively, these factors make us very optimistic about continuing strong sales and adjusted EBITDA levels for the remainder of 2021 through 2022, which, combined with our lower cost capital structure, should allow us to generate a constant positive free cash flow that we plan to invest. in earnings growth initiatives, ”said LSB Industries.

The company said it manufactures and sells chemicals for the agricultural, industrial and mining markets.

Write to Stephen Nakrosis at [email protected]