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China’s Zangge plans end-2024 start on Laos MOP plant

  • Market: Fertilizers
  • 04/09/24

Chinese MOP producer Zangge expects to start construction of its 2mn t/yr plant in Laos by the end of this year.

The first 1mn t/yr phase is expected to be completed by the end of 2026, followed by exports in early 2027. The second phase of similar capacity is likely to start construction in 2027 and be completed in the second half of 2028.

Zangge will become the third Chinese-backed potash producer in Laos after Lao Kaiyuan and Asia Potash. Zangge will also produce 60pc white powder/crystal MOP and red granular MOP, targeting markets in China and southeast Asia.

Its mining area is situated in the Xaythany and Paknguem counties in Vientiane, Laos with a total mining area of nearly 400km².


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03/10/24

Australia’s Origin to exit Hunter Valley Hydrogen Hub

Australia’s Origin to exit Hunter Valley Hydrogen Hub

Sydney, 3 October (Argus) — Australian utility and upstream firm Origin Energy has decided not to proceed with its planned hydrogen development project, the Hunter Valley Hydrogen Hub (HVHH), in Australia's New South Wales. The decision to withdraw from the proposed 55MW HVHH and halt all hydrogen opportunities was made because of continuing uncertainty about the pace and timing of hydrogen market development, Origin said. The firm said the capital-intensive project, intended to progressively replace gas as a feedstock in a nearby ammonia manufacturing plant, carried substantial risks. Origin Energy had an initial agreement with Australian chemicals and explosives company Orica to take 80pc of the green hydrogen produced from the hub for Orica's 360,000 t/yr ammonia facility on Kooragang Island, near the city of Newcastle. Origin Energy and Orica in 2022 said they will study plans to develop the HHVH in Hunter Valley region of NSW, which is Australia's largest thermal coal-producing area. "It has become clear that the hydrogen market is developing more slowly than anticipated, and there remain risks and both input cost and technology advancements to overcome. The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project," said chief executive Frank Calabria on 3 October. Origin had planned to make a final investment decision on the project by late 2024. The hub, which was estimated to cost A$207.6mn ($143mn), had been allocated A$115mn in state and federal funding and was shortlisted for production credits under Canberra's Hydrogen Headstart programme. In July, Origin described the pace of development in the hydrogen industry as "slower than it had anticipated 12 months ago", said. The company expressed hopes that improved electrolysis efficiency would reduce the rising costs of production. The decision is a significant setback for Australia's green hydrogen ambitions, following the July decision by Australian miner and energy company Fortescue to postpone its target of 15mn t/yr green hydrogen output by 2030. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Tampa molten sulphur price rises for 4Q


02/10/24
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02/10/24

Tampa molten sulphur price rises for 4Q

Houston, 2 October (Argus) — Fertilizer producers Mosaic and Nutrien have settled the fourth quarter molten sulphur price with their suppliers at $116/long tonne (lt) delivered. The new settlement marks an increase of $40/lt from the third quarter price of $76/lt del, and follows the trend of firming sulphur markets during the third quarter amid resilient global fertilizer demand. Despite an active hurricane season in the US Gulf coast, disruptions to output have remained short-lived. But damage from Hurricane Helene last month has caused significant disruption to fertilizer production in the southeast US, with operations at two Florida-based phosphate fertilizer production facilities hampered. Mosaic's Riverview, Florida, facility is expected to return to normal capacity during the first half of October following water mitigation and site cleanup. Damage at Nutrien's White Springs, Florida, plant is still being assessed, with no clear timeline of when it will resume normal operations. Global solid sulphur contracts are beginning to settle for supply delivered during the fourth quarter at corresponding rises, with Middle East contracts rising by $39-43/t from the previous quarter to reach $110-122/t fob for Middle East for tonnes delivered to end users and traders. Additionally, delivered quantities for the north African market have been discussed in a range of mid-$130s to high $140s/t cfr depending on destination and cargo size for granular product from the FSU and the Middle East, though final confirmations remain outstanding. Crushed lump sulphur is expected to be priced below granular sulphur at the low end of the range. Some contract supply routes have not as yet been confirmed as having been finalized. By Chris Mullins and Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Urea futures slightly firmer on Middle East tensions


01/10/24
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01/10/24

Urea futures slightly firmer on Middle East tensions

Amsterdam, 1 October (Argus) — Urea futures rose today on a ratcheting up of tension in the Middle East, but the reaction has been limited with November Arab Gulf derivatives up by $2.50/t on the day. The November Arab Gulf futures contract has traded multiple times today at $355/t fob, up by around $2.50/t on recent levels, with the deals taking place towards the high end of brokers' ranges for yesterday. But spot availability of physical cargoes in the region is limited, and there has been no fresh business. Suppliers are holding back from the market until RCF's buy tender in India on 3 October. Argus assessed granular urea spot prices at $350-356/t fob last week. The Israeli military said earlier today the US has identified an "Iranian network" that is preparing to launch a missile attack on Israel "in the near future", which has stoked a jump in oil prices. Israel began ground operations in southern Lebanon on 1 October, following the ramping up of an aerial strike campaign, while its military struck the Houthi-controlled Red Sea port of Hodeidah in Yemen on 29 September. Front-month Ice Brent crude futures hit an intraday high of above $74.50/bl earlier, up by nearly $3/bl from yesterday's close. Iran on 13 April launched more than 300 drones and missiles, marking its first ever direct attack of Israel from Iranian soil. Almost all those weapons were intercepted before they reached Israeli airspace, and no fatalities were reported by Israel. The Middle East is the largest export region globally of urea and ships around 20mn t/yr, of which Iran accounts for about a quarter. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Nutrien’s Georgia plant in restart process


01/10/24
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01/10/24

Nutrien’s Georgia plant in restart process

Houston, 1 October (Argus) — US fertilizer producer Nutrien expects its Augusta, Georgia, nitrogen plant to restart in the next 1-2 days after Hurricane Helene caused it to close late last week. The Augusta facility is currently restarting processes at the plant, according to the company. The plant was closed on 26 September from storm-induced power outages. The nitrogen plant produced 740,000 metric tonnes (t) of ammonia in 2023 and 560,000t of urea. Alongside Augusta, Nutrien's White Springs phosphate plant in Florida shut down when Hurricane Helene made landfall on the Florida panhandle bringing power outages, flooding and catastrophic winds to the southeastern US. Roads near the White Springs facility are still closed because of flooding and downed power lines. The company said it could take several more days before a full post-storm assessment is complete. The White Springs facility still does not have a timeline for restart. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Some eastern US rail shipments restart after Helene


30/09/24
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30/09/24

Some eastern US rail shipments restart after Helene

Washington, 30 September (Argus) — Some railroad operations in the southeastern US have resumed in the aftermath of Hurricane Helene, but major carriers warn that some freight may be delayed while storm-damaged tracks are repaired. Rail lines in multiple states were damaged after Hurricane Helene made landfall on the northeastern Florida coast on 26 September as a category 4 storm and traveled northwards as a downgraded but still dangerous storm into Georgia, Tennessee, and the Carolinas. The storm left significant rain and wind damage in its wake, including washed-away roads, flooded lines, downed trees and power outages. Eastern railroads CSX and Norfolk Southern (NS) said they are working around the clock to restore service to their networks. Norfolk Southern said it had made "significant progress" towards its recovery with most major routes back in service including its Chattanooga, Tennessee, to Jacksonville, Florida, line as well as its Birmingham, Alabama, to Charlotte, North Carolina route. Norfolk Southern said freight moving through areas that are out of service could "see delays of 72 hours". Several of Norfolk Southern's other routes remain out of service, including rail lines east and west of Asheville, North Carolina, because of historic levels of flooding. There are multiple trees to remove along a 70-mile stretch from Macon, Georgia, to Brunswick, Georgia. And downed power lines are keeping the railroad's lines from Augusta, Georgia, to Columbia, South Carolina, and Millen, Georgia, out of service. CSX said "potential delays remain" but did not provide specifics. However, the railroad said it had made "substantial progress" in clearing and repairing its network. The railroad's operations in Florida have mostly reopened, as have rail lines in its Charleston subdivision, which crosses South Carolina and Georgia. But bridge damage and major flooding has kept CSX's Blue Ridge subdivision out of service. A portion of the line running from Erwin, Tennessee, to Spartanburg, South Carolina, has been cleared, but CSX said "a long-term outage" is expected for other parts of the rail line. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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