Profit jumps at Jordan's JPMC on high phosphate prices

: Fertilizers
21/07/30

Fertilizer producer Jordan Phosphate Mines (JPMC) swung to a profit in the first half of the year, posting a 50pc jump in revenue, with earnings buoyed by the rally in global phosphate prices.

Revenue hit 405.46mn Jordanian dinars ($571.88mn) in January-June, up by 50pc on sales of JD270.17mn in the first half of last year. Second-quarter revenue rose to JD221.1mn, up from JD184.36mn in January-March and JD138.28mn in the second quarter last year.

The firm swung to a profit of JD90.09mn in the first half of the year, from a loss of JD20.16mn a year earlier.

JPMC is the sole producer of phosphate rock in Jordan and operates a processed phosphates production facility, selling 776,000t of DAP last year. JPMC also owns a 70pc share in fellow Jordanian supplier Nippon Jordan Fertilizer, which has an annual capacity of 300,000 t/yr of DAP, MAP, NPKs and NPS.

JPMC outlined plans to build a new 1.5mn t/yr rock processing unit earlier this week.

The firm has boosted its production of phosphate rock in recent months, with prices at multi-year highs and exports hitting a record 555,000t in June. The firm sold 2.1mn t of phosphate rock in the first quarter, its preliminary results show.

JPMC forecasts rock production of 9.9mn t this year, of which 6mn t will be exported, according to its latest annual report.

US key to JPMC's earnings

The producer's improved results reflect not just the surge in overall phosphates prices, but its position to cater to demand in the US, among the premium destination markets globally.

Phosphate prices have soared on supply concerns and bottlenecks in the Americas following the decision to implement countervailing duties on Moroccan and Russian product in the US. The Argus DAP index, a weighted basket of DAP fob prices from the five largest export markets, is up by 57pc since the start of the year (see chart).

JPMC has capitalised on the reduced availability in the US, with Jordan now the top supplier of DAP and MAP imports behind Saudi Arabia. JPMC inked an offtake agreement in mid-June to ship up to 400,000t of DAP to the Americas, running to February 2022.

By Harry Minihan

Argus DAP index

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CBAM documents outline preliminary ammonia values

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Mosaic halts SSP production in Brazil

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Mosaic halts SSP production in Brazil

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Mosaic pauses Esterhazy potash mining after fatality

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Mosaic pauses Esterhazy potash mining after fatality

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US-Belarus potash trade may soften MOP pricing outlook

25/12/15

US-Belarus potash trade may soften MOP pricing outlook

London, 15 December (Argus) — Potash trade between the US and Belarus is set to be reinstated after an absence of almost four years, following the lifting of US sanctions on Belarusian potash on 13 December with immediate effect — a move that could soften the outlook for global MOP prices as supply options increase. The relationship between the US and Belarus had started to ease earlier this year when Belarus agreed to release 52 political detainees from its prisons in exchange for the lifting of some sanctions on Belarusian flagship airline Belavia in September. This limited rapprochement generated talk among market participants of the possibility of a further lifting of US sanctions on Belarus, which could affect Belarusian potash. US sanctions on Belarusian potash , which is produced by state-owned Belaruskali and marketed by BPC, have been in place since 2021. But the announcement over the weekend has largely caught the market by surprise. 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Belarusian MOP has not touched US soil since February 2022, but in 2017-21 an average of 635,000 t/yr of Belarusian MOP was brought into the country. This policy change also comes just days after US president Donald Trump claimed he could impose severe tariffs on Canadian fertilizer imports, and the return of trade with Belarus may be used as leverage for the US in the current tariff war between the two countries. But the US will not be able to replace all of the 11mn-12mn t/yr of Canadian potash it needs with Belarusian product. It is also in line with Trump's strategy to secure the country's critical minerals needs. Trump included potash in the administration's list of American critical minerals this year and ordered the US government to fast-track permit reviews for critical minerals projects . 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Without access to the US and EU markets, Belarus has leaned heavily on markets such as Brazil, China and southeast Asia, often pricing aggressively to maintain market share. The reopening of US trade offers a chance to reduce dependence on these regions. The lifting of the sanctions will also make it significantly easier for companies to trade Belarusian potash around the world, except in the EU and the UK, where sanctions remain on Belarus. Importers that had previously stopped taking Belarusian MOP may now be open to trading with Belarus again. By having an additional supply option, buyers may find they have a stronger negotiating position with existing suppliers, which could put downward pressure on prices. Conversely, markets where Belarus has a strong presence could see a reduction of Belarusian volumes if product shifts toward the US, potentially making those regions less competitive. The policy change also comes at a time when Belarusian MOP capacity is increasing capacity, with the 2mn t/yr Nezhinsky MOP project scheduled for commissioning in the second quarter of 2026, and underscores Belarus' commitment to continue growing its footprint in the global potash market. By Julia Campbell and Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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