With around 90 percent of global trade requiring sea transport, shipping remains the life blood of the world economy. Intercontinental trade, the bulk transport of raw materials, and the import/export of food and manufactured goods all rely on affordable and effective shipping.
Alistair Wallace , Head of Fertilizer Research, Argus Media, assesses price trends and the market outlook for nitrogen.
Ammonia prices have been on a rising trend over the past few months as plant closures begin to make themselves felt. Yara’s Baltic ammonia price also rose sharply at the start of October, and Nutrien’s announcement of the closure of its PCS-03 plant on Trinidad helped lift prices, with Yara and Mosaic’s contract prices rising $16/t in October.
Market Insight courtesy of Argus Media
The risk of a second Covid-19 wave over the winter period continues to fuel the trend of forward trading of sulphur cargoes. Downward pressure in some sectors for demand is likely as the macro economic forecast remains challenging.
Meena Chauhan, Head of Sulphur and Sulphuric Acid Research, Argus Media, assesses price trends and the market outlook for sulphur.
G. Bowerbank and W. Blas of Shell Catalysts & Technologies discuss low cost strategies to maximise value at existing gas processing facilities. Changing solvents, introducing advanced column internals or a combination of both are relatively simple and cost-effective options for boosting production or revenue with minimal investment.
Do you remember Peak Oil? This was the theory, driven by research originally conducted by petroleum geologist M.K. Hubbert in the 1950s, that oil production inevitably followed a bell curve, with supply eventually peaking as easier reserves were exhausted, leading to an inflexion point in production and a long tailing off. Originally Hubbert was talking solely about US oil production, and he seemed to have been borne out by the evidence. But a lack of discoveries of new large fields in the 1990s led to a revision of the theory that predicted a global production peak in 2005-6, potentially leading to rapidly rising oil prices until demand destruction occurred.
The ammonia market continues to be oversupplied, and prices have dropped to historically low levels. Yuzhnyy rates dropped to $175/t f.o.b. in July. In spite of shutdowns in Trinidad and elsewhere, demand remains sluggish and recovery from the Covid epidemic is patchy, especially in the US.
Spanish fertilizer producer Fertiberia is teaming up with energy firm Iberdrola to build Europe’s largest plant for generating green hydrogen for industrial use – in this case ammonia production. The 100MW solar plant and accompanying 20 MWh lithium-ion battery system and 20MW electrolytic hydrogen production system will be built at a cost of $174 million, and electrolyse water to produce 720 t/a of hydrogen. When fed into Fertiberia’s existing ammonia plant at Puertollano, 250km south of Madrid, the hydrogen will allow a 10% reduction in natural gas use by the plant, saving the company 39,000 t/a in annual CO 2 emissions. Start-up is planned for 2021. Fertiberia will also use electrolysis-generated oxygen as a raw material for nitric acid, which is used to produce ammonium nitrate at the site.