Tag: Sulphur

Urea: Prices continued their global decline in mid-April, including at New Orleans. The notable exception was Brazil where prices firmed due to buyer interest in the market for May and beyond.

Sulphur plays an important role in crop nutrition. Indeed, sulphur is increasingly being recognised as the fourth major crop nutrient alongside N, P and K. However, a combination of intensive agricultural practices, increasing application of high-analysis fertilizers and tighter air quality regulations has led to increasing sulphur deficiency in soils. In this insight article, CRU’s Peter Harrisson looks at what’s driving sulphur deficiency and whether there’s a gap in the market for sulphur fertilizers.

Sulphur is a necessary nutrient for strong and healthy plant-growth and disease resistance. Fertipaq manufactures the liquid suspension fertilizer S-600 using sulphur recovered wastewater and biogas streams. This organic product is an ideal nutrient source for crops with a high sulphur requirement.

Sulphur benchmarks firmed around the globe in April. Although availability remains ample, downstream production is expected to rise in the weeks ahead and further upside for prices is expected, at least in the short term. Prices increased the Middle East, Indonesia, India, Brazil, and the Mediterranean. The Middle East spot price was assessed up an average $3/t at $83-88/t f.o.b. The previous low end of the range was no longer considered achievable. The price has climbed 27% since mid-February this year. The benchmark is down 53% from early December 2022, but had climbed 47% from the end of July 2023 to its mid-October average of $110/t f.o.b. before declines set in once again. Chinese buyers returned to the international spot market in late April following weeks of inactivity, lifting c.fr prices.

Though production, particularly from sour gas in Alberta, has declined, Canada remains the world’s second largest exporter of sulphur.

The Aecometric 3rd generation burner was developed, installed and commissioned for an SRU incinerator with increased stringent demands to reduce NOx emission and lower energy consumption. Mason Lee of Aecometric Corporation reports on the new burner design and performance. The emission test results show a significant improvement in addressing these environmental concerns to achieve low NOx (<50 mg/m3 ) combustion and minimise CO (<200 mg/m3 ) emissions.

Downstream phosphate production is expected to climb, with further sulphur price recovery expected. Overall, global demand remains lacklustre as downstream demand has yet to increase substantially in key markets and sulphur availability from most origins is ample.

Over the last six months, climate and geopolitical events have disrupted seaborne trade. A record drought in Panama and the unprecedented intensity of attacks on commercial ships by the Houthi rebels in the Red Sea are straining the freight market. Almost 150 ships have been targeted along the latter trade route since the first attack was registered to a non-commercial ship last year.

As refiners adapt to the transition to a lower carbon economy, different strategies are likely to impact upon sulphur output.

Morocco’s OCP is continuing to expand its phosphate fertilizer production capacity. This includes the construction of new sulphur-burning acid capacity to support phosphate production and provide carbon-free power.