Tight supplies limit South Korea’s 1Q sulacid exports
South Korea exported 583,400t of sulphuric acid during January-March, 5pc less than a year earlier, according to GTT data, because of production issues and a scheduled turnaround.
Sporadic production issues at LS Metals and Materials' Onsan smelter from last year's final quarter reduced export availability from South Korea, pushing buyers to source cargoes from alternative origins like Japan or China. The producer also carried out a scheduled month-long maintenance in March, further cutting production.
Spot fob South Korea/Japan prices hovered between $5-13/t fob during this year's first quarter. This provided some much needed stability to prices compared with a year earlier, as high inventories at producers pushed prices into negative territory to a low of -$9/t fob on 23 February 2023.
Shipments to India and Thailand fell by 45pc and 21pc from a year earlier to 116,000t and 88,100t respectively, while exports to Saudi Arabia also fell by 78pc to 4,800t. Shipments to Chile more than trebled from the previous year to 161,200t, with the bulk of the cargoes booked to cover annual contracts. Deliveries to mainly high-pressure acid leaching projects in Indonesia rose by 51pc to 76,800t, to supplement operating rates before the start-up of several sulphur burners.
South Korea's sulphuric acid shipments in March rose by 5pc from a year earlier to 192,700t, following a round of spot buying from Indonesia and a shutdown at a sulphur burner in Vietnam.
Exports to Indonesia in March more than trebled against last year to 39,000t, following a round of spot buying from buyers like stainless steel producer Tsingshan. Exports to Vietnam also increased by 23pc to 9,200t, with cargoes replacing lost supplies because of the closure of a sulphur burner. Exports to India and Thailand slipped by 54pc and 63pc to 37,400t and 13,900t respectively.
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Pakistan's ECC approves urea imports of 200,000t
Pakistan's ECC approves urea imports of 200,000t
Amsterdam, 8 May (Argus) — Pakistan's Economic Coordination Committee (ECC) met on 7 May and has approved the import of 200,000t of urea for the Kharif summer season. The ECC did not disclose an exact timeline, but a tender will have to be issued shortly if the imports are to meet demand in Kharif, which runs from April to September with demand peaking in June-July. Pakistan occasionally enters the import market to plug supply gaps in key consumption periods. State-owned importer TCP previously agreed a deal with Azerbaijan's state-owned Socar in early December last year to source 200,000t of urea for arrival by 20 January. Domestic supplier Engro began maintenance at its 1.3mn t/yr granular urea Enven plant towards the end of April and is expected to return to production in mid-June. Pakistan's urea inventories started April at around 170,000t, but are set to be under significant pressure in June-July, data from the country's national fertilizer development centre (NFDC) show. Demand is set to hit over 800,000t in June and around 650,000t in July, outstripping typical domestic output of 520,000-555,000 t/month in the peak summer months. This has prompted the need for imports, given current stock levels. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Chile’s 1Q24 sulacid imports drop 19pc on port closures
Chile’s 1Q24 sulacid imports drop 19pc on port closures
London, 7 May (Argus) — Chile's sulphuric acid imports in the first quarter fell by 19pc on the previous quarter owing to heavy swells at Mejillones port. A total of 875,000t of sulphuric acid was imported in January-March, down by 19pc from 1.08mn t in October-December last year, GTT data show. They were also down by 15pc on the year. The drop was mainly down to heavy disruption at Mejillones, Chile's main import hub for sulphuric acid. The port, which hosts three sulphuric acid discharge terminals, was shut for a record 40 days in January-March owing to heavy swells. The port closures led to lengthy waiting times to discharge, with some ships experiencing nearly 3-4 weeks from arrival at the port, which resulted in high demurrage costs and a lack of spot demand. China regained its position as the key supplier to Chile, with imports rising by 19pc to 342,200t in the quarter, as Asian-origin cargoes looked economically viable owing to sliding fob values, while freight rates remained firm. Imports from South Korea rose by 34pc on the quarter to 145,300t, while Japanese shipments rose by 14pc to 114,300t. Chinese fob values averaged $16/t on a midpoint basis during the quarter, down from $32/t fob on a midpoint basis in the fourth quarter of last year. South Korea/Japanese fob values averaged $8/t on a midpoint basis during the first quarter, down from $31/t the previous quarter. Imports from neighbouring Peru dropped by 34pc on the quarter on a combination of logistical issues stemming from the congestion at Mejillones and some unplanned output issues faced earlier in the year by a supplier in Peru. Imports from European countries continued to slow in the first quarter, falling by nearly 60pc on the prior quarter, as heavy buying by key Moroccan buyer OCP and transport restrictions through the Panama Canal affected trade flows. Belgium was the largest European supplier to Chile, shipping 33,000t, compared with 86,000t the previous quarter. By Lili Minton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canadian rail workers vote to launch strike: Correction
Canadian rail workers vote to launch strike: Correction
Corrects movement of grain loadings from a year earlier in final paragraph. Washington, 2 May (Argus) — Workers at the two major Canadian railroads could go on strike as soon as 22 May now that members of the Teamsters Canada Rail Conference (TCRC) have authorized a strike, potentially causing widespread disruption to shipments of commodities such as crude, coal and grain. A strike could disrupt rail traffic not only in Canada but also in the US and Mexico because trains would not be able to leave, nor could shipments enter into Canada. This labor action could be far more impactful than recent strikes because it would affect Canadian National (CN) and Canadian Pacific Kansas City (CPKC) at the same time. Union members at Canadian railroads have gone on strike individually in the past, which has left one of the two carriers to continue operating and handle some of their competitor's freight. But TCRC members completed a vote yesterday about whether to initiate a strike action at each carrier. The union represents about 9,300 workers employed at the two railroads. Roughly 98pc of union members that participated voted in favor of a strike beginning as early as 22 May, the union said. The union said talks are at an impasse. "After six months of negotiations with both companies, we are no closer to reaching a settlement than when we first began, TCRC president Paul Boucher said. Boucher warned that "a simultaneous work stoppage at both CN and CPKC would disrupt supply chains on a scale Canada has likely never experienced." He added that the union does not want to provoke a rail crisis and wants to avoid a work stoppage. The union has argued that the railroads' proposals would harm safety practices. It has also sought an improved work-life balance. But CN and CPKC said the union continues to reject their proposals. CPKC "is committed to negotiating in good faith and responding to our employees' desire for higher pay and improved work-life balance, while respecting the best interests of all our railroaders, their families, our customers, and the North American economy." CN said it wants a contract that addresses the work life balance and productivity, benefiting the company and employees. But even when CN "proposed a solution that would not touch duty-rest rules, the union has rejected it," the railroad said. Canadian commodity volume has fallen this year with only rail shipments of chemicals, petroleum and petroleum products, and non-metallic minerals rising, Association of American Railroads (AAR) data show. Volume data includes cars loaded in the US by Canadian carriers. Coal traffic dropped by 11pc during the 17 weeks ended on 27 April compared with a year earlier, AAR data show. Loadings of motor vehicles and parts have fallen by 5.2pc. CN and CPKC grain loadings fell by 4.3pc from a year earlier, while shipment of farm products and food fell by 9.3pc. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s Coromandel to build Kakinada fertilizer complex
India’s Coromandel to build Kakinada fertilizer complex
Singapore, 2 May (Argus) — Indian fertilizer producer Coromandel International will build a 650 t/d phosphoric acid-sulphuric acid complex facility in Kakinada, Andhra Pradesh with an investment of approximately 10bn rupees ($120mn). The project is expected to commission in two years' time, CIL's executive chairman Arun Alagappan said on 26 April. Phosphoric acid and sulphuric acid are used in the production of phosphate fertilizers like DAP and NPKs. CIL's new phosphoric acid facility aims to provide for its fertilizer manufacturing and to replace more than 50pc of the plant's import requirements. It also plans to build a 1,800 t/d sulphuric acid plant to supplement phosphoric acid production. By Deon Ngee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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