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Kenya’s NCPB reissues tender for 245,000t fertilizers

  • : Fertilizers
  • 24/09/09

Kenya's NCPB has issued a fresh tender, closing on 13 September, to buy around 245,000t of various fertilizers for the 2024-25 season under the country's fertilizer subsidy programme.

NCPB initially sought lower quantities in a tender that was to close on 26 August, requesting 82,868t of various fertilizers. But the tender was suspended, citing an appeal from the Public Procurement Administrative Review Board.

In its latest tender, NCPB said agreed contracts are renewable each season for a period of two years under the subsidy programme.

The 13 September tender requests the following:

  • 25,000t urea (500,000 x 50kg bags)
  • 40,000t CAN 26 (800,000 x 50kg bags)
  • 5,000t amsul (100,000 x 50kg bags)
  • 15,000t 17-17-17 (300,000 x 50kg bags)
  • 15,000t 25-5-5 (300,000 x 50kg bags)
  • 35,000t 23-23-0 (700,000 x 50kg bags)
  • 10,000t crop-specific NPK fertilizer for top dressing with a minimum nitrogen nutrient content of 26pc plus other micronutrients (200,000 x 50kg bags)
  • 70,000t crop-specific NPK fertilizer for planting with a minimum nitrogen nutrient content of 17pc and above, a minimum phosphorus content of 29pc and above, plus other micronutrients (1,400,000 x 50kg bags)
  • 30,000t crop-specific NPK fertilizer for planting with a minimum nitrogen nutrient content of 9-16.99pc, a minimum phosphorus content of 22-28.99pc and above, plus other micronutrients (600,000 x 50kg bags)

The complex fertilizers requested are to be chemically compounded.

Offers are to be made on a delivered-to-NCPB-depot basis.

The tender document also states that a supplier will not be awarded for the supply of more than two fertilizer types.


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24/11/14

LAT Nitrogen halts sales to Germany on high gas costs

LAT Nitrogen halts sales to Germany on high gas costs

London, 14 November (Argus) — Major European producer LAT Nitrogen has withdrawn from the German market today owing to a surge in gas costs. LAT Nitrogen produces nitrogen-based products for the fertilizer and industrial chemical markets. It sells CAN, ASN and NPK 15-15-15 to the German market. "We will closely monitor the development of gas prices before considering a return to the market," LAT Nitrogen market intelligence and demand planning analyst Harald Lindner said. Front-month natural gas prices on the Dutch TTF have climbed steadily over the past two months, reaching more than €45/MWh today, up by €10/MWh from September. CAN is a key nitrogen fertilizer used in the German market and spot prices have stagnated at about €280/t bulk cif inland and have failed to grow ahead of the season, despite higher list prices. Yara raised its CAN asking price on 16 October to €305/t bulk cif inland for delivery to Germany and the Benelux countries, up from its previous offer of €295/t bulk cif inland. Buying interest from farmers has been incredibly slow ahead of spring applications this year. Market coverage in Germany for nitrogen fertilizers for the 2024-25 fertilizer year is estimated to be 40-45pc, down from an average of 60-65pc by mid-November. Weak grain prices, reduced farm incomes and warehouses full of unsold agricultural produce are also said to be behind the lack of demand for fertilizers from consumers. Some wholesalers are expecting sales to remain slow until the start of 2025, which will give distributors logistical challenges to deliver product ahead of early spring applications. LAT Nitrogen began maintenance in mid-September on some of the lines at its Linz site in Austria, affecting downstream fertilizer output of ammonia, nitric acid, CAN and NPKs. This was due to be finished by early November. The Linz site is a major source of fertilizers for central and eastern Europe, with CAN 27 annual production roughly at or above 600,000t in typical recent years, according to latest IFA data. The 429,000 t/yr prilled urea plant at Linz was unaffected by the maintenance and is running as normal. By Suzie Skipper Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

European urea market braces for CBAM impact in 2026


24/11/14
24/11/14

European urea market braces for CBAM impact in 2026

London, 14 November (Argus) — European producers and traders of urea are preparing for the phase-in of the EU's Carbon Border Adjustment Mechanism (CBAM) in early 2026. While EU producers expect their market share to rise, questions about the implementation, pricing, and oversight remain, leading to uncertainty among agricultural urea traders. The European AdBlue market is also weighing the possible impact. Under CBAM, which was passed by the EU in May 2023, urea importers will have to buy certificates to cover the carbon emitted during production wherever the plant is located. In the UK, the government confirmed its CBAM application on fertilizers and other commodities from 1 January 2027. CBAM is aimed at creating a level playing field for imports to the EU and the UK, while nudging non-EU countries towards climate action. European producers of urea currently have to contend with lower margins because their production cost is higher than that of non-EU manufacturers since the introduction of the EU Emissions Trading System (EU ETS). European producers are therefore at a disadvantage. The transition period in the EU for CBAM began on 31 October and will last until 31 January 2026. During this time, urea importers must provide quarterly reports on their imports and the carbon emitted during production. In February 2026, the phase-in for CBAM will begin. After that point, importers must buy enough CBAM certificates to cover at least 80pc of embedded carbon each quarter. Urea imports will therefore become more expensive in 2026. The exact increase in fertilizer prices, including urea, will depend on the cost of CBAM certificates, which in turn will be based on the weekly average price for EU ETS allowances. EU ETS certificates are currently priced at €66/t CO2 but are due to rise in the future. Calculating an exact price for CBAM certificates is difficult, Argus was told by affected parties. But estimates range anywhere from average indications of €10-20/t or even up to €80-100/t for imported urea. Higher prices will inevitably be passed on to the end-user. However, if one assumes that CBAM will add €10-20/t on the price of agricultural grade urea, then the estimates suggest that the cost of a loaf of bread will rise by €0.10-0.50, which is negligible, a European fertilizer wholesaler suggested. Given the uncertainty of CBAM's effect on pricing, some suppliers are cautious about trading too far into the future. Agricultural buyers purchase product in advance of the key application seasons, but importers often attempt to time purchasing around dips in international prices. European producers welcome CBAM European urea producers have welcomed the introduction of CBAM. They have sold automotive grade urea (AGU) at a premium to imports for several years, and as a result, they have lost market share. Norwegian fertilizer producer Yara said in its third-quarter results that it plans to only progress projects with the highest returns and concrete potential margins, driven by firm regulatory changes like the EU ETS and CBAM. The ETS and CBAM policies are likely to lift urea prices in Europe , and this would trigger increased nitrate fertilizer and NPK margins for Yara, if upgraded from low-carbon ammonia, according to the producer. Some traders expect AGU imports to fall with the phase-in of CBAM, and domestic producers' market shares to increase again. However, the European market relies on imports for both agricultural and automotive grade urea so heavily that a lasting, significant drop in imports seems unlikely, analysts said. "Fertilizer import quantities, including agricultural grade urea, will not be negatively affected by CBAM as importers will absorb the new costs, as those that are subject to duties have done so previously," a German trader said. There is, for example, not nearly enough prilled or granular urea production in Europe to cover demand, making imports impossible to avoid. In 2023, the EU 27 imported just over 5mn t of urea from just the top three non-EU suppliers — Egypt, Algeria and Russia — with an additional 6.3mn t from both within the EU and outside. Urea imports in January-August 2024 were 7.2mn t, down by 8pc from 7.8mn t in the first eight months of 2023. During this period imports from Egypt, Russia and Algeria accounted for almost 51pc. Furthermore, European urea traders have expressed concerns that it may be difficult for authorities to check carbon emissions at plants outside the EU, and that potential loopholes could allow foreign product to enter the market at discounted rates. There are also questions surrounding how the EU will regulate issuing CBAM certificates. Importers will not have to buy CBAM certificates, for example, if the producer has already paid a carbon price in the country of origin. Impact on AGU and Europe's AdBlue market The European AdBlue market might also feel the effects of the CBAM. AdBlue is produced by mixing AGU with deionised water. While most AdBlue in Europe is produced by primary producers using domestic urea, there are an increasing number of so-called diluters, which import competitively priced urea, and then offer AdBlue at a discount. If the price gap between domestic and foreign urea is closed, diluters might be forced to increase their prices as well. AdBlue traders in Germany and the Netherlands suggest that a narrowing price gap between these secondary producers and primary ones could affect the former's market share. The market share has been growing steadily in the past few years. That growth might be halted or even partially reversed once CBAM comes into effect. According to Argus calculations, AGU consumption in Europe will continue to rise until 2027, in line with the projected growth in AdBlue demand ( see graph ). AGU imports, similarly, are expected to grow until 2029, peaking at about 85,000 t/yr. By Natalie Müller and Suzie Skipper Projected growth in Europe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Bangladesh’s BCIC issues phosrock buy-tender


24/11/14
24/11/14

Bangladesh’s BCIC issues phosrock buy-tender

London, 14 November (Argus) — Bangladeshi fertilizer producer and importer BCIC has issued a tender to buy 30,000t of phosphate rock of at least 70 BPL (32pc P2O5), closing on 31 December. BCIC wants the cargo to be shipped to Chattogram within 30 days from issuing the letter of credit. Bangladeshi demand has added support to phosphates in the east and helped to tighten availability. BCIC will also close tenders to buy phosphoric acid on 18 and 20 November, and 1 January. And Bangladesh's ministry of agriculture has reportedly awarded cargoes under its 10 November private-sector tender after getting offers for 94,000t of DAP ranging $692-697/t cfr and 30,000t of TSP at $573/t cfr. The awarded prices, volumes and origins have not yet emerged. The ministry will close another private-sector tender seeking 200,000t of DAP and TSP on 18 November. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's MAP imports were above average in October


24/11/12
24/11/12

Brazil's MAP imports were above average in October

London, 12 November (Argus) — Brazil imported 441,000t of MAP in October, slightly above the five-year average for the month, according to Global Trade Tracker (GTT) data. Morocco's share of MAP exports fell on the year and was exceeded by the market shares of Saudi Arabia and Russia. MAP imports last month were below the 470,000t recorded in October last year but slightly above the 2019-23 October average of 424,000t. Receipts in the first 10 months of this year totalled about 3.76mn t, a sharp decline from 4.32mn t a year earlier, but only slightly below the 3.9mn t average over 2019-23. Since July, receipts have been above the norm, helping offset below-average imports in the first half of this year. A total of 457,000t of MAP are lined up to arrive in November so far, according to Unimar line-up data. This is below the 496,000t in November last year but above 411,000t in November over 2019-23. A further 28,000t have already been earmarked for December arrival. Brazilian MAP imports typically peak in July and remain at above 400,000t from July-November, according to the five-year average. Morocco's share falls Morocco's market share of the Brazilian MAP market fell by 20.2 percentage points on the year to 26pc last month, or 115,000t. Russia was the largest-single exporter to Brazil last month at 179,000t, representing a 40.5pc market share compared with 25pc in October last year. Saudi Arabia's share rose by 8.8 percentage points to 28.8pc, or 127,000t, also surpassing Morocco's share. Russia has remained the top MAP exporter to Brazil every month this year apart from in August, when it was surpassed by Morocco. And for the first month since July last year, Saudi Arabia's share of Brazilian MAP imports outweighed that of Morocco. About 44.9pc of November MAP deliveries to Brazil were of Russian origin, against only 8.8pc for Morocco and 16.8pc for Saudi Arabia, Unimar line-up data suggest. The US is set to deliver 25.8pc of November volumes. Moroccan phosphates exports to Brazil have focused more heavily on TSP this year. GTT data suggest that from January-August, Morocco sent 772,000t of MAP and 973,000t of TSP to Brazil, compared with more than 1mn t of MAP and 589,000t of TSP in the same period in 2023. And 542,000t of MAP is lined up to leave Jorf Lasfar in September-November, along with 438,000t of TSP, according to line-up data. Line-up data show that last year, 778,000t of MAP and 265,000t of TSP left the port over the same period. With lower volumes of Moroccan MAP on offer to Brazil this year, importers had to turn to Russia to secure the volumes they needed. Russia last week sold 30,000t MAP in the high $670s/t cfr to India, netting back to $623-627/t fob. This sale is above the netback of $603-605/t fob that Russia could have achieved with Brazil. By Adrien Seewald Brazil monthly MAP imports t Month 2024 2023 2019-23 October 441,000.0 470,000.0 424,000.0 September 430,000.0 474,000.0 475,000.0 August 564,000.0 532,000.0 475,000.0 July 525,000.0 519,000.0 501,000.0 — GTT Brazil monthly MAP imports by origin '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Indonesian granular urea discussed up to $350s/t fob


24/11/12
24/11/12

Indonesian granular urea discussed up to $350s/t fob

London, 12 November (Argus) — Indonesian Pupuk subsidiary Kaltim closed a sales tender for 30,000-45,000t of granular urea today, with bids heard in the $340s/t fob. A sale has yet to conclude, but negotiations are reportedly ongoing in the $350s/t fob. There was no comment from the parties involved. The tonnage is for loading in November-December. Kaltim had sought $370/t fob under the tender. Urea fob prices have reset lower in the wake of the 11 November buy tender in India, with producers having targeted granular urea at around $370/t fob southeast Asia last week . But the levels under discussion in Indonesia still mark a premium to netbacks from the ongoing Indian tender, where the lowest price of $362/t cfr west coast would net to the mid $330s/t fob southeast Asia. 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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