Agriflex to supply phosphoric acid to Lithium Australia
Australia-based phosphate rock producer Agriflex has agreed to supply high-quality phosphoric acid to Lithium Australia for its lithium-iron phosphate (LFP) or lithium manganese iron phosphate (LMFP) production.
The firms have signed a non-binding initial agreement, which envisages Lithium Australia building a demonstration plant with an estimated capacity of 250 t/yr of LFP or LFMP, potentially in Queensland. The plant will require around 200-300 t/yr of phosphoric acid, Agriflex's parent company Centrex said on 16 April.
Lithium Australia will move on to build a commercial plant with an estimated capacity of around 25,000 t/yr of LFP or LMFP if the demonstration plant is successful and following pre-qualification of cathode powders. The commercial plant will need 20,000-25,000 t/yr of phosphoric acid. No timelines were provided, except that the initial agreement will run for a period of 24 months.
Agriflex will conduct a study to produce high-quality phosphoric acid with low impurity content in Queensland for supply to Lithium Australia.
The two firms are committed to building a battery supply chain domestically in Australia, to provide global battery producers an alternative supply source for LFP and LFMP.
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Brazil's 3tentos cuts soy crop outlook amid floods
Brazil's 3tentos cuts soy crop outlook amid floods
Sao Paulo, 9 May (Argus) — Brazilian agribusiness company 3tentos cut its soybean crop outlook for this season because of the floods ravaging southern Rio Grande do Sul state. An important part of 3tentos' operations is headquartered in Rio Grande do Sul, the second-largest soybean producer in the country, which has been facing heavy rainfall since 29 April that has killed 107 people, according to the state's civil defense. As a result, Rio Grande do Su's soybean crop may drop to 20mn-21mn metric tonnes (t) from 23mn-24mn t previously predicted, according to 3tentos' chief executive Luis Osorio Dumoncel. At least 80pc of soybeans harvested this year are stored in warehouses or ports. "We have been working tirelessly to maintain all operations in the supply of inputs, grains, feed and biofuels," he said during a quarterly earnings call. The company sees a "tiny risk" to its supply chains of pesticides, seeds and fertilizers because of the floods. On the logistics side, alternative export routes have also been used to ship products such as soybean meal, chief operating officer Joao Marcelo Dumoncel said. 1Q results 3tentos' first quarter sales reached R2.68bn ($520mn), a 48.5pc hike from the same period a year earlier, driven by the industry, biodiesel and soybean meal segments. The industry segment, the firm's largest, accounted for R1.52bn in sales, rising by 69pc year-over-year. Soybean meal and other products' revenues totaled R927.6mn, 72pc higher than in the first quarter in 2023. Biodiesel sales increased by 64pc to R591mn, thanks to the increase in biofuel blending mandate to 14pc from 12pc since March. "We are confident that the biodiesel operation will help the company's margin this year," Dumoncel said. The firm's soybean crushing margins rose by 3.3pc in the quarter, settling at R442/t, driven by biodiesel production. 3tentos' grain sales grew by almost 27pc to R560mn. Revenues in the agriculture feedstocks segment — such as fertilizers, pesticides and seeds — reached R601mn in the first quarter, up by 35pc from a year prior. The company's first quarter income totaled R156.44mn, a 51pc increase from the same period last year. 3tentos also started to build its first corn crushing unit to produce ethanol and dried distillers' grain (DDG). The company completed the issuance of debt securities worth R560.73mn this week. By Alexandre Melo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Floods to sow chaos for Brazil’s South logistics
Floods to sow chaos for Brazil’s South logistics
Sao Paulo, 9 May (Argus) — Unprecedented floods in Brazil's southern Rio Grande do Sul state are expected to create even more chaotic logistics situation in the country and could cut fertilizer usage for 2024-25 soybean crop in the state. Heavy rainfall has hit the state since 29 April, culminating in the worst floods ever registered in Rio Grande do Sul. The floods have reached the central part of the state, closing the ports of Pelotas and Porto Alegre, which both handle agricultural commodities, including grains, oilseeds and fertilizers. The high waters are expected to move south, reaching Rio Grande port. The three Rio Grande do Sul ports handled about 44.8mn metric tonnes (t) in 2023, with the larger Rio Grande port accounting for at least 42.6mn t, according to port data. The state's geographic layout and a particularly narrow channel for floodwaters to reach the sea suggests the worst is yet to come in the southern part of the state. Water levels are about to increase in the Lagoa dos Patos, a lagoon that receives water from many rivers and flows to the Atlantic Ocean. But operations are running normally in the Rio Grande port as of 9 May. The national association of cereal exporters Anec project that 343,250 t of soybeans and 131,778 t of soymeal will be shipped in the week ended 11 May, according to port schedule data. Shipments between 28 April and 4 May — which account for the days where rainfall reached its peak and the state began to flood — totaled 183,559t and 133,424t for soybean and soymeal, respectively. Lineup data from maritime agency Williams predicts that soybean exports may total 838,600t, nearly doubling the volumes from the forecast a week ago. The estimated average waiting time for shipping rose to just three days from the two days projected on 29 April. The Rio Grande port was the fifth largest soybean exporter in 2023, with 3.8mn t shipped last year, according to the National Waterway Transportation Agency (Antaq). Waiting time for discharge fertilizers is at around one day, unchanged from the previous week. Rio Grande port was third in terms of fertilizer import volumes in the first quarter 2024, according to lineup data from maritime agency Unimar. Paranagua, in Parana state, received 2mn t of fertilizers, followed by Santos port and Rio Grande, with 1.9mn t and 990,640t, respectively. Lineup data for May and June suggest that Rio Grande is about to receive 540,900t and 66,375t of fertilizers, respectively. Vessels lined-up for Rio Grande may be diverted to other ports, specially for Sao Francisco do Sul, in Santa Catarina state, and Paranagua according to market participants. Even if fertilizer volumes would be discharged as initially planned, the flow to agriculture producing areas would be compromised. The main access to the port, the BR-116 roadway, is already partially blocked, hampering truck flows in the state. Drivers have already been searching for short-stretches to move goods, as long-stretches force them to look for longer alternatives, considering there are around 88 partial and full road blockages in the state as of 9 May. Logistics company Rumo also partially interrupted operations in Rio Grande do Sul state on 6 May. The company has a grain terminal in Rio Grande port and a rail network of around 7,220km in Brazil's South region, which includes Rio Grande do Sul, Santa Catarina and Parana states. Fertilizer companies that operate in Rio Grande do Sul are reportedly trying to move their product to warehouses away from the rivers. Considering the agricultural production, volumes that had already been sowed and were in silos are now soaked. With more damage expected to be measured farmers in Rio Grande do Sul may be discouraged from investing in technology and fertilizers for the upcoming 2024-25 soybean crop. More rain forecast for the weekend Brazil's national meteorological institute Inmet expects rainfall to intensify once again in Rio Grande do Sul starting this Friday between the state's center-north and west portions. Rain levels are expected to subside by 12 May, but may surpass 100mm before then. The coastal areas in the north regions and south of Santa Catarina state are also expected to be affected, according to Inmet. By Renata Cardarelli and Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Tata Steel UK unions vote to strike
Tata Steel UK unions vote to strike
London, 9 May (Argus) — Workers at Tata Steel's Port Talbot plant in south Wales have voted to strike in response to the company's plan to stop iron-making and cut thousands of jobs. Over 3,000 members of Community Union have been balloted, with more than 85pc in favour of industrial action — this is despite the company threatening to withdraw its proposed support package in the event of strikes. "It should be noted this resounding mandate has been delivered in spite of the company's bullying and unacceptable threats to slash redundancy payments," Alun Davies, Community's national officer for steel, said. He urged Tata to "get back around the table" to prevent a major industrial dispute. Workers at Unite the union have already voted in favour of strike action, which is set for 30 May. Unions — and the Syndex consultancy that has represented them in talks with Tata — have called the company's agreement with the government a "bad deal". They have requested more financial support to help Tata with decarbonisation, and for a blast furnace to be maintained. The government is giving Tata £166/t towards its decarbonisation — less than many European competitors receive from their governments. The low level of state support played into Tata's decision to move to one large electric-arc furnace, which has been roundly criticised by unions. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Jakarta forum calls for exploring Ni price references
Jakarta forum calls for exploring Ni price references
Singapore, 9 May (Argus) — The global nickel market should explore different price references for nickel products to reduce price uncertainty, panellists said at the Third Nickel Producers, Processors and Buyers Conference in Jakarta, Indonesia. The London Metal Exchange (LME) nickel price, which is the global benchmark for class 1 nickel products, has been volatile for years now since LME suspended nickel trading in early March 2022, when prices surged above $100,000/t overnight. There were hopes late last year that prices would become more stable this year. But the price outlook has been uncertain since the turn of the year, with class 1 prices on the London Metal Exchange (LME) slumping to a four-year low of $15,877.50/t on 6 February on expectations of weak Chinese stainless steel and electric vehicle demand, before rebounding to a six-month high of $19,387.50/t on 26 April because of a delay in Indonesian RKAB mining right approvals and a reviewed forecast suggesting a significant smaller surplus for this year. There should be a new reference to counter price volatility, some conference participants said, while others suggested decoupling class 1 and 2 nickel prices. "[Prices are volatile now because] most prices are referenced to class 1, so maybe we can explore further with more price references, like class 2 nickel pig iron (NPI) and mixed hydroxide precipitate (MHP)," Ray Gunara, president-director of Indonesian coal producer Harum Energy, said on 7 May. Harum Energy this year bought a majority stake in an Indonesian nickel processing and refining business. Most conference participants agreed that a different price reference would help maintain nickel price stability. "[NPI prices now are] difficult to predict because the class 1 [prices] are no longer linked to the product we are selling," Indonesia miner Trimegah Bangun Persada (Harita Nickel)'s president-director Roy Arman Arfandy said. Indonesia is the world's largest nickel producer. The correlation between the monthly average of the LME class 1 cash official price and Argus ' NPI ex-works China index has fallen to close to 0.41 between January and May, from 0.91 in 2023. The correlation between the LME class 1 cash official price and Argus ' class 2 nickel benchmark Indonesian Nickel Index (INI) for 10-14pc NPI fob Indonesia was 0.52 between January and May. Market participants at the conference also expressed hope for more government support. "Currently there is an imbalance between local and foreign investments, so we are hoping that the government can give more support to local players like us," one producer said. Another conference participant said that they would aim to build a precursor cathode active material plant if given more support. Argus ' class 2 nickel INI for 10-14pc NPI fob Indonesia stood at $118.70/mtu on 3 May. The INI for 37pc MHP was at $142.80/mtu fob Indonesia and 70pc matte was at $148.90/mtu fob Indonesia on the same day. By Sheih Li Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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