Tag: Ma’aden

In October, ammonia benchmarks were more or less stable across the board. West of Suez, supply from Algeria was constrained by an ongoing turnaround at one of domestic player Sorfert’s production units. Still, demand from NW Europe remained quiet, although CF was set to receive a 15,000 tonne spot cargo from Hexagon some time in November, reportedly sourced somewhere in the region of $530/t f.o.b. Turkey. While regional supply appeared tight, steadily improving output from Trinidad and the US Gulf could alleviate recent pressures, with many players of the opinion that Yara and Mosaic could agree a $560/t c.fr rollover for November at Tampa as a result.

A report on CRU’s annual Sulphur+Sulphuric Acid Conference, held in Barcelona, in early November.

OCP’s recent award of a contract to Worley Chemetics for three new greenfield sulphuric acid plants has confirmed the phosphate giant’s plans for its new Mzinda Phosphate Hub in Morocco, one of the largest investments in new phosphate capacity anywhere in the world over the next few years. It is part of a number of new investments under way in Morocco as OCP continues to expand its already considerable phosphate facilities. Three new fertilizer lines came onstream at Jorf Lasfar in 2023 and 2024, each with a capacity of 1 million t/a of diammonium phosphate (DAP). The Mzinda mega-project will add another 4 million t/a of triple superphosphate (TSP) capacity by around 2028-29, and will relieve some of the issues that OCP has in importing ammonia for DAP production, as TSP only requires phosphate rock and phosphoric acid. There is also an additional 1 million t/a of TSP capacity under construction at Jorf Lasfar, which is expected to be completed next year, and OCP also announced last year that it would build an integrated purified phosphoric acid (PPA) plant at Jorf Lasfar. The first phase of the project consists of 200,000 t/a of P2 O5 pretreated phosphoric acid capacity, 100,000 t/a (P2 O5 ) of PPA capacity, and 100,000 t/a of technical MAP (tMAP) capacity. The site will also be home to downstream production of phosphate salts and lithium iron phosphate (LFP) capacities. The initial plants will be delivered starting in mid-2026, carrying through into 2029, constructed in conjunction with JESA, a joint venture between OCP and Worley.

Market snapshot, 17th October 2024 Urea : Prices firmed in a thin market in mid-October. Middle East values shot up $20/t on expectations that Indian Potash Limited (IPL) would announce another tender to secure tonnes for India in December. If correct, this will follow hot on the heels of the latest Rashtriya Chemicals and Fertilizers (RCF) purchase tender for 0.56 million tonnes of urea. Sohar International Urea & Chemical Industries (SIUCI) sold a November cargo at $390/t f.o.b. with further trader interest reported at $385/t f.o.b. This demand was probably generated by traders positioning themselves for IPL’s expected tender, given that other markets generally remained quiet.

Join us at the CRU Sulphur + Sulphuric Acid 2024 Conference and Exhibition in Barcelona, 4-6 November, for a global gathering of the sulphur and sulphuric acid community. Meet leading market and technology experts and producers, network, share knowledge, and learn about market trends and the latest developments in operations, process technology and equipment.

Market snapshot, 15th August 2024 Urea: A stand-off between buyers and sellers has left prices fairly flat in recent weeks with little liquidity. India's latest import tender was, however, finally confirmed for 29th August closing. The tender’s long shipment window allows NFL to secure tonnages through to end-October and took the market by surprise. This is a bearish signal that should increase dramatically the volume offered to NFL. The tender could exclude volumes from China with supply instead focused on the Middle East and Russia.

Sophisticated control of phosphates production is now possible thanks to the availability of real-time process analysers. The emergence of laboratory robots is also improving process efficiency and delivering cost savings.

Ammonia benchmarks west of Suez remain supported by limited availability at key regional export hubs amid increased potential for cargoes to arrive from the East, where availability is far healthier, and prices appear under pressure. The disparity in prices was illustrated towards the end of August, when Nutrien sold 25,000 tonnes to multiple buyers in NW Europe for 1H September delivery at $550-555/t c.fr. When netted back to Trinidad, the price marks a sizeable premium on the $375/t f.o.b. last achieved by Nutrien back in late June, although given that last business in Algeria was fixed at $520/t f.o.b., it appears there is room for delivered sales into Europe to move up further. Regional availability is still limited, with extreme weather conditions in the US Gulf and North Africa potentially impacting supply further over the coming weeks.

Market as of 20th June 2024. Urea: Prices remain stable while the market awaits clear price direction on whether to hold current f.o.b. levels or to push higher.

Brazilian phosphate producer Galvani says that it has begun work on its major phosphate expansion in Bahia state, including a new production plant at Ceará, in partnership with Indústrias Nucleares do Brasil (INB). The company aims to reduce Brazil’s northern and northeastern regions’ reliance on imported fertilizers. The first phase includes $133 million of investment, including $76 million for new phosphate mining at Irecê, and $38 million for Luís Eduardo Magalhães factory, also in Bahia. This expansion will take capacity from 600,000 t/a to 1.2 million t/a by 2026. The expansion at Luís Eduardo Industrial Complex includes expansion of sulphuric acid capacity from 165,000 t/a to 250,000 t/a.