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Phosphates: Brazilian MAP imports recover in April

  • Spanish Market: Fertilizers
  • 14/05/24

Brazil's MAP imports in April reached their highest level so far this year, buoyed by plentiful supply from Russia and demand ramping up ahead of the main season.

Brazil imported 378,147t of MAP in April, of which Russia accounted for nearly 260,000t, Morocco 67,000t and Saudi Arabia 51,500t. Year-to-date imports for the January to April period reached 1.025mn t, of which Russia accounted for 76pc, Morocco 15pc and Saudi Arabia 6pc.

The main changes compared with 2023 are the nearly 600,000t fall in total MAP imports compared to last year. Russia has actually raised its market share from nearly 52pc last year to 76pc. Otherwise, Moroccan MAP exports fell from nearly 500,000t in 2023 to 158,000t, while US exports fell nearly 120,000t year-on-year. Saudi MAP exports almost halved from 109,000t in the first four months of 2023. Chinese MAP exports fell from over 37,000t in 2023 to just 9,000t in 2024.

Several reasons explain the changes. Overall imports are down on an exceptionally high first four months of 2023. Average imports for the last five years were around 1.15mn t, imports for 2024 are on par. Moroccan producer OCP concentrated more on DAP shipments to India east of Suez as well as MAP shipments to Australia. High domestic prices in the US cut export availability and pulled in non-Russian and non-Moroccan cargoes from other markets.

Saudi producers also concentrated more on DAP markets in India with Chinese phosphate supply out of play. Chinese producers concentrated more on the domestic market and faced customs inspections, which limited export availability for phosphates.


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31/10/24

Rise in phosphoric acid price to hit Indian producers

Rise in phosphoric acid price to hit Indian producers

London, 31 October (Argus) — Higher phosphoric acid prices for the fourth quarter will push India to rely more heavily on DAP imports and domestic production using imported phosphate rock and sulphur to build its DAP stocks. The Indian government said in a document issued in September that it will cover the losses incurred on imports over September 2024-March 2025, but it has not committed to covering the losses incurred on domestic production. Domestic DAP producers using imported phosphate rock and sulphur are achieving profits, but those using imported phosphoric acid are facing negative margins. Phosphoric acid price hike lifts cost of production Indian fertilizer importer and producer Coromandel this week agreed to a price of $1,060/t P2O5 cfr India for phosphoric acid in the fourth quarter with Jordanian supplier JPMC, which is up by $110/t P2O5 from the third-quarter phosphoric acid contract price. No other producer or importer has yet confirmed settling their respective phosphoric acid contract requirements for the fourth quarter. Argus calculates that importing phosphoric acid at $1,060/t P2O5 cfr and ammonia at $460/t cfr will bring the total cost of DAP production up to $647/t. Adding variable costs brings the total to about $684/t. This means that domestic DAP producers using imported phosphoric acid and ammonia will face negative margins of $64-65/t given the current maximum retail price (MRP) of 27,000 rupees/t ($321.12/t), nutrient-based subsidy (NBS) of Rs25,411/t — including the Rs3,500/t special additional package — and US dollar to rupee exchange. Without the Rs3,500/t special additional subsidy — due to expire at the end of December — the loss would rise to about $106/t. Meanwhile, with the delivered price at $635/t cfr, importers of DAP would currently face a loss of about $92/t, given the current MRP, NBS and exchange rate, and without the additional government support. Domestic DAP producers importing 67 BPL (30.66pc P2O5) phosphate rock at $145/t cfr and sulphur also at $145/t cfr will make a profit of about $47/t in current conditions. Firm interest in phosphate rock and disruptions to Syrian exports have supported prices for Jordanian product. Indications for 66-68 BPL (30.2-31.1pc P2O5) phosphate rock are now in the $130s/t fob Aqaba. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India's RCF issues tender to buy 15-15-15, 10-26-26


30/10/24
30/10/24

India's RCF issues tender to buy 15-15-15, 10-26-26

London, 30 October (Argus) — Indian fertilizer importer and producer RCF has issued a tender to buy 30,000t each of NPK grades 10-26-26 and 15-15-15. The tender is to close on 8 November. RCF requests shipment from the loading port or ports by 20 November and delivery to India's east coast. The importer is also currently seeking 20-20-0+13S and/or phosphate rock in a tender that closes on 5 November. By David Maher Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

European firms get ‘Moroccan Offer’ for green NH3


29/10/24
29/10/24

European firms get ‘Moroccan Offer’ for green NH3

London, 29 October (Argus) — A group of three European companies has been selected for the first land allocation under the "Moroccan Offer" and intends to produce 200,000 t/yr of renewable ammonia for the European market in a first stage. France's TE H2, a joint venture between TotalEnergies and renewables developer Eren, has joined forces with Danish firms Copenhagen Infrastructure Partners (CIP) and A P Moller to develop the so-called Chbika project in the Guelmim-Oued Noun region on Morocco's Atlantic coast. They are planning to use 1GW of combined solar photovoltaic and wind power in the first phase for electrolysis of desalinated seawater to make hydrogen that will then be converted into ammonia. Production of 200,000 t/yr of ammonia could require some 35,000 t/yr of hydrogen. CIP and TE H2 will oversee development of power generation assets, hydrogen and ammonia plants, and A P Moller will develop a port in the area and associated logistics infrastructure. "This project will constitute the first phase of a development program aimed at creating a world-scale green hydrogen production hub," CIP said, suggesting that the companies could scale up operations at a later stage. The partners have signed a "preliminary contract for land reservation" with the government, CIP said, adding that this is "the first green hydrogen project" selected under the framework of the Moroccan Offer through which Rabat seeks to allocate land rights to project developers and to offer streamlined permitting procedures. The companies have not outlined a timeline for their project, but under the Moroccan Offer's framework they would have around two years to complete front-end engineering design (FEED) studies, before then signing a long-term land agreement. Through this first phase of the Moroccan Offer, Rabat is planning to make 300,000 hectares (ha) of government land available to 10-30 projects. As of early this month, the Moroccan Agency for Solar Energy (Masen), which is leading the process, had received some 40 applications for review. Masen was initially due to announce the first selections by the end of the third quarter. TotalEnergies previously already announced plans for renewable hydrogen production in Morocco, but it was not immediately clear if this joint project with CIP and A P Moller is related to these earlier ventures. Many large renewable hydrogen and ammonia projects are planned across Morocco as developers are hoping to capitalise on favourable renewable power conditions, but all are still in early planning stages. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Petrobras to resume construction of UFN-III


25/10/24
25/10/24

Petrobras to resume construction of UFN-III

Sao Paulo, 25 October (Argus) — Brazilian state-controlled oil company Petrobras will resume construction of its nitrogen-based fertilizer unit UFN-III in Tres Lagoas, in central-western Mato Grosso do Sul state. Petrobras' board of directors approved the restart of construction today. The unit — halted in 2014 — is 81pc complete and was initially scheduled to start operating in 2015. The company expects to invest R3.5bn ($614mn) to conclude the unit, whose operations may start in 2028. Petrobras will now start a process to contract third parties to resume building works. The announcement comes after Petrobras started a binding phase for the sale of the unit in August 2022, following a potential sale of the asset that was canceled in April 2022 . The decision is in line with the company's five-year strategic plan , which foresees increasing investments in the fertilizer sector. Petrobras announced in August investments of $159mn to restart its Araucaria Nitrogenados fertilizer unit. It also signed an agreement with Norway-based global fertilizer producer Yara to consider a potential partnership in Brazil's fertilizer sector and another agreement with Brazil's agriculture research center Embrapa to study the development of renewable feedstock for lower-carbon products such as fertilizers and biofuels. By Renata Cardarelli Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Seca no Brasil: Níveis dos rios voltam a subir


25/10/24
25/10/24

Seca no Brasil: Níveis dos rios voltam a subir

Sao Paulo, 25 October (Argus) — Os embarques brasileiros de grãos e fertilizantes seguem em risco devido ao baixo nível dos rios ao longo das principais hidrovias, uma vez que a pior seca na história do Brasil continua dificultando a navegação. Porém, os rios registraram recuperação esta semana, devido ao aumento das chuvas no país, com seus níveis subindo novamente após quase um mês de quedas consecutivas. Hidrovia do Madeira A hidrovia Madeira liga Porto Velho, capital do estado de Rondônia, ao porto de Itacoatiara, no estado do Amazonas, e é a segunda maior da região Norte. Em outubro, o porto de Itacoatiara deve receber cerca de 70.634 toneladas (t) de fertilizantes, de acordo com dados de lineup da agência marítima Unimar. O nível do rio Madeira em Porto Velho aumentou para 91cm em 23 de outubro, ante 46cm em 18 de outubro, de acordo com dados do monitoramento do Serviço Geológico Brasileiro (SGB). Porém, a navegação permanece suspensa no porto, depois da Sociedade de Portos e Hidrovias do estado (SOPH) interromper as operações em 23 de setembro porque o Rio Madeira registrou seu menor nível desde que o monitoramento começou em 1967. Hidrovia do Solimões-Amazonas A hidrovia Solimões-Amazonas é a principal do Norte do Brasil, movimentando cerca de 65pc dos volumes da região, segundo o Departamento Nacional de Infraestrutura de Transportes (DNIT). Ela liga a capital do Amazonas, Manaus, à capital do Pará, Belém. Em 23 de outubro, o nível do Rio Negro estava em 12,56m no ponto de monitoramento do SGB em Manaus, acima dos 12,46m de 18 de outubro. Isso ainda supera o menor nível histórico de 12,7m registrado em 121 anos de monitoramento. Hidrovia do Tapajós-Teles Pires É uma hidrovia importante para transportar os volumes produzidos na porção norte do estado de Mato Grosso até o porto de Santarém, no Pará. O porto de Santarém deve receber 130.234t de fertilizantes em outubro, de acordo com dados de lineup da agência marítima Unimar. A hidrovia Tapajós-Teles Pires também enfrenta uma situação crítica. A Agência Nacional de Águas e Saneamento Básico (ANA) declarou escassez hídrica no Rio Tapajós em 23 de setembro. O clima mais seco do que o normal reduziu os níveis dos rios — especialmente no trecho entre as cidades de Itaituba e Santarém, no Pará — para abaixo dos níveis mínimos históricos. O nível do Rio Tapajós no ponto de monitoramento de Itaituba, onde está localizado o ponto de transbordo para a hidrovia em Miritituba, estava em 1,03m em 23 de outubro, acima dos 92cm em 18 de outubro, mas ainda abaixo da mínima recorde de 1,32m, de acordo com dados do SBG. No ponto de monitoramento de Santarém, o Rio Tapajós estava em 27cm, um nível considerado de seca. O nível era de 28cm em 18 de outubro. O mínimo histórico no local é de -55cm abaixo do ponto de referência do porto. Um nível abaixo de zero não significa que o rio está seco, mas indica condições extremamente baixas. Hidrovia Tocantins-Araguaia A hidrovia Tocantins-Araguaia abrange os Rios Araguaia e Tocantins. Ela vai da cidade de Barra do Garças, em Mato Grosso, pelo Rio Araguaia, ou da cidade de Peixes, no estado do Tocantins, pelo Rio Tocantins, até o porto de Vila do Conde, no Pará. Soja, milho, fertilizantes, combustíveis, óleos minerais e produtos derivados são transportados pelas hidrovias do Norte. O porto de Vila do Conde deve receber 245.500t de fertilizantes em outubro, de acordo com a Unimar. O SGB possui dois pontos de monitoramento no Rio Araguaia. Na cidade de Nova Crixás, em Goiás, o rio estava em 3,11m em 23 de outubro, acima dos 2,85m de 18 de outubro e superando o mínimo histórico anterior de 3,10m. Na cidade de São Félix do Araguaia, em Mato Grosso, o rio estava a 2,71m, acima dos 2,56m de 18 de outubro, se recuperando dos níveis extremos de seca e se afastando da mínima histórica de 2,51m. Por João Petrini Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

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