Nitrogen
Overview
The ease of urea availability east and west of Suez has shaped the current trade flows of this key nitrogen fertilizer. Despite challenges posed by energy prices and military conflicts, key import markets such as India, Australia, and Latin America remain robust. But structural oversupply and the role of China as a swing exporter have led to price volatility as this fast-moving market seeks equilibrium, more so during seasonally high-demand periods.
Our extensive nitrogen coverage includes prilled and granular urea, UAN, ammonium nitrate, and ammonium sulphate. Argus has many decades of experience covering the nitrogen market and incorporates our multi-commodity market expertise in key areas including ammonia and natural gas to provide the full market narrative.
Argus support market participants with:
- Daily and weekly nitrogen price assessments, proprietary data and market commentary
- Short and medium to long-term forecasting, modelling and analysis of urea prices, supply, demand, trade and projects
- Bespoke consulting project support
Latest nitrogen news
Browse the latest market moving news on the global nitrogen industry.
Ukraine's Rivneazot restarts CAN production
Ukraine's Rivneazot restarts CAN production
Athens, 24 October (Argus) — Ukrainian fertilizer firm Ostchem will resume calcium nitrate (CAN) production at its Rivneazot plant in November, after it was forced to shut in August. The closure allowed for maintenance and reconstruction of several units — including the energy supply system — Rivneazot chairman Mikhail Zabluda said. The CAN line is now back at capacity, Zabluda said, running at 38,000 t/month. Rivneazot AN production restarted earlier this month . AN and CAN production was halted following damage to the region's energy infrastructure from shelling, according to Zabluda. Rivneazot, in northwest Ukraine, is producing 40,000 t/month of AN and also running its 650 t/d ammonia line and 1,000 t/d nitric acid unit. By Nykole King Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indonesian rice field growth to lift fertilizer demand
Indonesian rice field growth to lift fertilizer demand
Singapore, 24 October (Argus) — Indonesia's government plans to launch a program to develop around 3mn hectares (ha) of new rice fields from next year, which will likely lift domestic fertilizer demand in 2025. The first phase would involve developing around 1mn ha of paddy in Merauke, West Papua. This is expected to create local demand of around 500,000 t/yr for urea and NPK fertilizers, according to a source at state-controlled fertilizer group Pupuk Indonesia. President Prabowo Subianto supports this paddy expansion program to bolster Indonesia's national food security. The expansion plan also includes increasing the number of harvests from one harvest each year to around 2-3 harvests annually. Pupuk Indonesia is building a 1mn t/yr granular urea plant in Fakfak Regency, West Papua, which is expected to be completed in 2028, targeted to cater to potential growth in demand from expansions in rice planting areas. The group is also building a 400,000 t/yr prilled urea plant Pusri 3B in Palembang to replace its older prilled urea units. The plant is expected to come on line in 2025. Pupuk Indonesia is required to continue producing large volumes of subsidised fertilizers for the domestic industry. The government allocates approximately 25 trillion rupiah/yr ($1.6bn/yr) to aid farmers in obtaining affordable fertilizers, according to Pupuk Indonesia. The government increased the fertilizer subsidy allocation by around 14 trillion rupiahs this year to benefit more farmers. Pupuk Indonesia will distribute around 9.55mn t of subsidised fertilizer allocation in 2024, with around 4.63mnt consisting of urea fertilizers, 4.42mn t of NPK fertilizer including special formula NPKs, and 500,000t of organic fertilizers. Subsidised fertilizer allocations have also increased across all regions, with West Java receiving 1.21mn t, Central Java 1.51mn t, East Java at 1.92mn t, South Sulawesi 798,200t, and Lampung at 803,700t. Pupuk Indonesia currently has a fertilizer production capacity of over 14.6mn t/yr. The increase in domestic demand for fertilizers like urea and NPK could potentially result in fewer exports from Indonesia in 2025, as more production is prioritised for the domestic markets. By Dinise Chng Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia's Jan-Aug urea imports beat 2023 record high
Australia's Jan-Aug urea imports beat 2023 record high
Sydney, 24 October (Argus) — Australia's urea imports over January-August surpassed record-high levels in the whole of 2023, GTT data show, because of exceptional grain output and favourable weather conditions. Urea imports into Australia reached 3.35mn t in the first eight months of the year, already breaking the previous record high of 3.18mn t of imports in the whole of 2023 (see graph). Urea imports were notably at 768,800t in June, up by 66pc compared to the same month of 2023 when 463,200t was imported. Market participants have attributed the large increase to exceptional grain output across Australia, especially in New South Wales and Queensland, which has been supported by favourable rainfall. One urea importer noted imports could have been higher last year but many farmers put off their urea purchases, because of an El Nino forecast which failed to materialise, and this slowed imports. Saudi Arabia has been Australia's largest supplier so far this year at 597,000t, followed by the UAE, Indonesia, Qatar, Oman and Malaysia with 571,400t, 539,200t, 497,300t, 493,500t and 309,600t respectively. Imports from Indonesia have been notably much higher this year, more than tripling from 172,900t in the whole of 2023. But imports from China dropped significantly from 118,000t to just 17,000t on the back of export controls. Australian urea imports typically peak in the middle of the year before trailing off until January and then picking up again. Australia imported 625,200t of urea from September to the end of the year in 2023. Assuming imports stay at that level or are surpassed, as has been the case for most months this year, total imports could reach 4mn t, double the 1.99mn t of urea imported in 2019. Australia became entirely dependent on imports for urea in December 2022 after fertilisers and chemicals producer Incitec Pivot (IPL) shut down its Gibson Island fertiliser plant in Brisbane, Queensland. Market participants expect urea imports to remain strong until Australian fertilizer producer Perdaman's A$6bn ($4bn) urea project at Burrup Peninsula, Karratha Western Australia project is completed. Construction of the project started in late April and is expected start producing around 2.3mn t/yr of urea in 2026. The plant has a 20-year agreement with Woodside's Scarborough Gas Project to utilise its natural gas as feedstock while the plant also has a 20-year urea offtake agreement with IPL , with urea expected to be marketed to domestic and international export destinations. By Tom Woodlock Australia urea imports (t) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
IRM, Atlas reach green nitrogen offtake agreement
IRM, Atlas reach green nitrogen offtake agreement
Houston, 23 October (Argus) — Green nitrogen fertilizer startup Atlas Agro secured an offtake agreement from its plant in Richland, Washington, with major fertilizer distributor International Raw Materials (IRM) IRM will distribute green nitrogen fertilizer from the Pacific Green Fertilizer (PGF) plant in Richland to farmers across the Pacific Northwest. Which nitrogen products and the volumes agreed to were not specified by Atlas, but the company will produce several fertilizer products with its green ammonia, including calcium ammonium nitrate and ammonium nitrate. The Richland plant finished its front-end engineering design (FEED) and is expected to complete its final investment decision in early 2025. PGF is anticipated to produce 700,000 tons of green nitrogen fertilizer for farmers in the Pacific Northwest. Distributing green nitrogen fertilizer aligns with IRM's "agricultural sustainability" plan, and increasing demand from consumers to reduce Scope 3 emissions across the food supply chain, said IRM president Tip O'Neill. PGF is also involved with the Pacific Northwest Hydrogen Hub program which is funded by the US Department of Energy. 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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