Lao Kaiyuan targets 2mn t/yr MOP capacity by end-2025

Market: Fertilizers
07/03/24

Laos-based potash producer Lao Kaiyuan has started construction of a third MOP unit, which is scheduled to be completed by the end of 2025 and take its production capacity to 2mn t/yr.

The third unit will have a 1mn t/yr capacity, up from a previously expected 500,000 t/yr, representing phase two of the company's expansion plans announced in 2022. Phase 1 involved building a 500,000 t/yr unit, which was commissioned in May 2023, taking current capacity to 1mn t/yr.

The company has also completed the expansion of its granulation unit from 200,000 t/yr to 400,000 t/yr.

Lao Kaiyuan is currently operating at full capacity.

By Julia Campbell and Huijun Yao

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

02/12/24

LAT Nitrogen curtails CAN, urea, NPK output at Linz

Amsterdam, 2 December (Argus) — Major European producer LAT Nitrogen has halted calcium ammonium nitrate (CAN), urea and NPK output at its Linz site in Upper Austria to at least the end of this year, citing the economic outlook and uncertain demand for straight-nitrogen fertilizers. The producer has not provided a fixed timeline for the curtailment but said it aims to resume output as soon as demand and "natural gas developments" allow. Nitrogen-fertilizer production at the Linz facility has been hampered since mid-September. The producer withdrew from the German nitrogen market on 14 November , citing a surge in gas costs. It carried out maintenance at the facility from mid-September to early November , affecting nitrogen-fertilizer output. The Linz site is a major source of fertilizers for central and eastern Europe, with CAN 27 production typically around 600,000 t/yr in recent years, according to the latest IFA data. LAT operates a significant distribution network in the region. The recent rise in European gas prices is pressuring nitrogen-fertilizer output on the continent and compounding lower grain prices and slim demand. Major supplier Yara halted production at its Ferrara urea plant in Italy from 7 November until at least the end of January. The facility has a capacity of 600,000 t/yr of ammonia and 600,000 t/yr of urea. Argus' day-ahead assessment of natural gas prices at the TTF rose by a fifth in November to close at around $14.5/mn Btu on Friday. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more

News

China's sulphur prices set to cool

02/12/24

News

02/12/24

China's sulphur prices set to cool

London, 2 December (Argus) — Prices of sulphur delivered to China are expected to lose momentum in the coming weeks, following lower volumes of phosphates exports. Sulphur prices have rallied over the past few months, with delivered granular sulphur prices to China rising $73.5/t, or 69pc, from the start of the third quarter to $179.5/t cfr as of 28 November, as a result of robust demand meeting tight supply in the sulphur market. Delivered prices are expected to now peak in the coming weeks, before softening. Scheduled refinery maintenance in Saudi Arabia, and port congestion at a few ports significantly reduced spot availability in the third quarter, and product moving from east to west of Suez during the fourth quarter also shortened supply to cover demand from east of Suez markets. Meanwhile an increase in sulphur burning activity in countries like India and Indonesia supported demand, with the latter purchasing as much as 350,000-370,000t of granular sulphur in just one round of buying. Domestic Chinese ex-works prices also rose by Yn507.5/t, or 48pc, over the same period to Yn1,565/t ex-works, equivalent to around $175.6/t cfr. However, talk of a potential halt DAP and MAP exports from December may soften domestic sulphur prices instead. Fertilizer producers are also expected to continue taking a cautious approach to raw material buying, and moderate any stockpiling while fertilizer exports are curbed. China's port stocks have been on a declining trend in recent weeks, as a low level of import bookings in the spot market during October and November has limited the replenishing of inventories, and end users have consumed some tonnes from existing stockpiles. Port inventories have dropped from 2.59mn t on 13 September to 2.18mn t on 29 November. This is expected to lead to some stock build from import buying in the run up to the lunar new year starting on 28 January 2025. This holiday typically marks the point by which fertilizer producers aim to have sufficient stocks to enable them to slow buying over the holiday period. Demand from southern Africa and Indonesia for December and January cargoes remains open, and buyers are expected to accept higher announced prices from the Middle East. Qatar's Muntajat/QatarEnergy increased its Qatar Sulphur Price (QSP) by $27/t to $163/t fob Ras Laffan/Mesaieed for December. Offer prices for delivered markets have reflected a rising cost level, with Indonesian offers against in the week of the 28 November ranging from the high-$180s/t cfr to the low $190s/t cfr for December-lifting Middle East parcels. Higher sulphur burning operations in both north Africa and Indonesia continue to drive demand in the short term. In north Africa, Morocco's OCP is ramping up its latest sulphur burner, and this is expected to contribute around 550,000 t/yr of sulphur demand at capacity. This is in addition to the sulphur burner with 417,000 t/yr capacity that started in the second quarter of 2024. The actual capacity usage is expected to be driven by market realities in the phosphate fertilizer market, with the producer typically tailoring capacity usage to market dynamics and demand levels. In Indonesia nickel-driven sulphur demand is also expected to continue growing. Indonesian sulphur imports for the year are expected to exceed the 3mn t threshold from 2.66mn t last year, following an increase in PT QMB New Energy's sulphur burning as part of its HPAL Phase 2 operations. This will contribute around 333,000 t/yr of additional sulphur demand when operating at full capacity, data show. By Deon Ngee and Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

India's Fact tenders to buy sulphur

02/12/24

News

02/12/24

India's Fact tenders to buy sulphur

London, 2 December (Argus) — Indian fertilizer producer Fact issued a tender to buy 15,000-25,000t +/- 10pc of granular sulphur for 20-30 December arrival at Kochi Port on the east coast of India. The tender closes for offers on 5 December. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Pupuk Indonesia supplies 6.6mn t subsidised fertilizers

02/12/24

News

02/12/24

Pupuk Indonesia supplies 6.6mn t subsidised fertilizers

Singapore, 2 December (Argus) — State-owned Pupuk Indonesia has distributed about 6.6mn t of subsidised fertilizers to registered domestic farmers as of late November. This is around 87.7pc of the total contract volume of 7.54mn t with the Ministry of Agriculture, according to Pupuk on 2 December. The distributed volumes consists of 3.36mn t of urea, 3.21mn t of NPK fertilizers, and 38,400t of Pupuk's Petroganik organic fertilizers. The recent allocations of subsidised fertilizers aim to help domestic farmers maximise crop productivity during the seasonal crop application period from October to March. Farmers that are members of a farmers' group, individually registered with the Agricultural Extension Management Information System (SIMLUHTAN), and farm no more than two hectares of land are eligible to receive the subsidised fertilizers. The allocation of subsidized fertilizers is also limited to farmers who cultivate nine strategic crops: rice, corn, soybeans, chilli, onions, garlic, coffee, sugarcane, and cocoa. The Indonesian Ministry of Agriculture increased Pupuk Indonesia's 2024 subsidised fertilizer allocation volumes to 9.5mn t in April. This aimed to boost domestic agricultural productivity and support national food security efforts. Pupuk Indonesia is likely to continue increasing its production and distribution of subsidised fertilizers for the domestic sector next year, in line with the Indonesian government's plan to launch a program to develop around 3mn hectares of new rice fields . By Dinise Chng Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Abu Dhabi's Adnoc raises Dec sulphur price

01/12/24

News

01/12/24

Abu Dhabi's Adnoc raises Dec sulphur price

London, 1 December (Argus) — Abu Dhabi's state-owned Adnoc set its December official sulphur selling price (OSP) for the Indian subcontinent at $165/t fob Ruwais, up by a substantial $30/t on its November OSP. Adnoc's December OSP implies a delivered price of $183-184/t cfr India, with the freight cost for a 40,000-45,000t shipment to the east coast of India last assessed at $18-19/t on 28 November. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more