Petrobras leases fertilizer units to Brazilian Unigel

Spanish Market: Fertilizers
22/11/19

Brazilian state-controlled oil company Petrobras has agreed to lease its fertilizer units in the northeastern states of Bahia and Sergipe to Brazilian company Proquigel Química, part of the Unigel group.

The total value of the 10-year deal is 177mn reals ($42.1mn), renewable for the same term, Petrobras said. The deal awaits approval from antitrust agency Cade, and the issuance of necessary licenses.

Fafen-BA, the Bahia unit, is a nitrogen fertilizer producer at the Camacari petrochemical complex. It can produce 1,300t/d of urea and also sells ammonia, carbon dioxide and diesel exhaust fluid.

Fafen-SE at Laranjeiras, Sergipe, and can make 1,800t/d of urea. This unit also sells ammonia, carbon dioxide and ammonium sulfate.

By Kauanna Navarro

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28/04/25

Brazil to hold auction to recover degraded land

Sao Paulo, 28 April (Argus) — Brazil's finance, environment and agriculture ministries will host a second auction to recover 1mn hectares (ha) of degraded lands in all Brazilian biomes except the Amazon, the national treasury said on Monday. The auction will be a part of Eco Invest, a currency-hedging program targeting renewable and low-carbon projects to draw foreign investment, announced in February 2024. The finance ministry and central bank developed the program with the World Bank and the Inter-American Development Bank. The auction is part of New Brazil, a wider energy transition project within the finance ministry. The project aims to finance conversions of degraded lands in different biomes to sustainable and productive ecosystems through private investments. The Amazon biome, the most hit by deforestation, will receive a "customized and exclusive auction" that will be announced later, the environment ministry said. Participants must submit project proposals to the national treasury by 13 June. The government expects to raise up to R10bn ($1.76bn) in the auction. Land-use change and deforestation Emissions from land-use change and deforestation in Brazil reached 1.06bn metric tonnes of CO2 equivalent (tCO2e) in 2023, down by 24pc from a year earlier, according to greenhouse gas tracking platform SEEG. These activities have been leading Brazil's total emissions since 1990 — when historic tracking began — followed by agriculture and cattle raising and the energy sectors. There are currently 280mn ha of farmlands, of which around 29pc are degraded. The government aims to recover up to 40mn ha of grasslands in the next 10 years, the environment and climate change ministry said. The Eco Invest auction will finance the first round of the initiative, dubbed the Green Way program, according to the agriculture ministry. Brazil aims to reduce its total greenhouse gas emissions by 67pc by 2035 from its 2005 levels and sees reducing deforestation as one of its main ways to achieve that goal. The country will host the upcoming UN Cop 30 climate summit in Belem city, in the Amazon biome, as the administration looks to lead the global energy transition . By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Little impact on Iran urea exports from port explosion

28/04/25

Little impact on Iran urea exports from port explosion

London, 28 April (Argus) — Iran's urea exports are likely to be little affected by the explosion at Iran's Bandar Abbas port on 26 April, with impacts limited to cargoes in container. Most of Iran's urea exports are in bulk, so the impact to exports should be a curtailment of 50,000-150,000t in May. Loading and discharging activities of bulk cargoes have resumed today at Bandar Abbas. It is not clear how long it will take for full operations at the port to resume, but some local market participants expect this by the end of May. Producers Shiraz and Khorasan are the main exporters from Bandar Abbas port, while Lordegan, Kermanshah, MIS and Razi mainly export from Bandar Imam Khomeini. Pardis exports urea mainly from Assaluye. Both Bandar Iman Khomeini and Assaluye ports are currently operating normally. The explosion , which occurred in the sulphur storage area of the port, has led to force majeure being declared on exports from the port. By Dana Hjeij Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

China's NP/NPS exports hit record high in January-March

28/04/25

China's NP/NPS exports hit record high in January-March

Singapore, 28 April (Argus) — China's NP/NPS exports jumped by more than eightfold to an all-time high of about 614,000t over January-March, latest trade data show, as it is a more affordable alternative to DAP/MAP, given tighter phosphate export availability and higher fertilizer prices globally. This was largely driven by record-high shipments to Brazil and India in the first quarter, both of which did not receive any NP/NPS exports a year earlier. Shipments to Brazil and India reached 315,000t and 94,000t respectively in January-March. China exported more formulas, including NP 8-40-0, to Brazil so far this year as a lower-priced alternative to MAP, given higher fertilizer prices in Brazil. Indian importers are also seeking more NPKs and NPS, such as 20-20-0+13S, because of a lack of DAP fertilizer supply out of China. Such imports into India also allow the importer to maintain a positive margin under the current subsidy and maximum retail price, as compared to importing DAP. China's NPK exports over January-March also nearly tripled from a year earlier to 169,000t, which is also a four-year high, largely driven by an eightfold increase in shipments to the Philippines, its largest importer at about 63,000t. Favourable weather conditions this year led to more local rice production, according to the Philippines' Department of Agriculture, likely contributing to an increase in demand for complex fertilizers. The El Niño phenomenon hit the Philippines in the first quarter of 2024, when prolonged periods of dry spells damaged about 780,000 hectares of crops across 271,000t of agricultural land, which likely affected fertilizer demand and affordability last year. Lower prices of 16-20 from China in the first quarter compared to a year earlier, according to Argus , also likely boosted affordability levels. Some Chinese DAP producers have switched their production line to producing NP/NPS to cater to the growing demand from overseas buyers, alongside the end of the domestic spring season and slowing domestic demand for DAP. The lack of clarity on DAP/MAP exports also supported Chinese phosphate producers in pivoting to more NP/NPS exports . Exports availability of phosphates may reduce shipments of NP/NPS in favour of DAP/MAP. Suppliers are also expecting more demand from Brazil this year, according to market participants, as China is likely to import more soybeans from Brazil in light of recent tariffs imposed on US imports. Firm DAP prices in India are also likely to continue pushing Indian importers to buy more NP/NPS. Importers in India have cancelled at least three sales of DAP above $690/t cfr from Russia and Tunisia. But there was no confirmation of the cancellations from the suppliers. By Camila Tay China NP/NPS exports 2024 (t) Brazil India Australia Vietnam Others Total January 60,600 26,500 38,196 16,219 10,514 152,029 February 129,553 0 12,520 13,993 68,689 224,755 March 124,680 67,900 0 15,481 29,524 237,585 Total 314,833 94,400 50,716 45,693 108,727 614,369 Source: GTT China NPK exports 2024 (t) Philippines Myanmar Laos Australia Others Total January 24,064 8,654 8,977 832 23,449 65,976 February 3,168 12,080 2,628 286 18,916 37,078 March 35,640 10,744 2,009 15,481 2,315 66,189 Total 62,872 31,478 13,614 16,599 44,680 169,243 Source: GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Norway’s Yara fertilizer output, deliveries rise in 1Q

25/04/25

Norway’s Yara fertilizer output, deliveries rise in 1Q

London, 25 April (Argus) — Norwegian fertilizer producer Yara posted an increase in its output, earnings and deliveries in January-March compared with the previous year. Yara's finished-fertilizer output in the first quarter rose to 4.9mn t, up by 6pc on the year, driven by increased demand. Yara's financial year runs from January to December. Yara's first-quarter urea production stood at just over 1.1mn t, down by 5pc on the year, while nitrate output jumped to 1.48mn t, up by 19pc on the year. First-quarter NPK output also rose to 1.59mn t, up by 7pc on the year. Its ammonia output in the quarter stood at 1.72mn t, marking a slight 1pc decline from the 1.74mn t produced a year earlier. Yara's first-quarter fertilizer deliveries rose to 5.8mn t, up by 10pc on the year, mainly driven by Europe and Brazil. Its first-quarter earnings before interest, taxation, depreciation and amortisation (Ebitda), excluding special items, stood at $638mn, a jump of 47pc from a year ago, owing to increased deliveries, mainly driven by Europe and Brazil, higher margins and reduced fixed costs. US tariffs limit impact on urea markets Although the geopolitical landscape is shifting rapidly, the US tariffs announced in April have had a "limited impact on the global urea markets so far but could lead to altering trade flows", according to Yara. The producer's imports into the US are limited and represent less than 5pc of consolidated revenues and delivered volumes, it said. Yara said that it is prioritising higher-return core assets and is therefore targeting a reduction of fixed cost and capex of $150mn by the end of 2025. The producer said that it is on track to ensure that the fixed cost run-rate inflation of $2.38bn pre-2026 will be achieved. Yara expects to see a tightening global supply balance in the future as industry projections for supply growth for 2025 onwards are significantly below trend consumption growth. "Combined with strong demand fundamentals, this indicates a tightening global supply/demand balance in the coming years, improving European production margins as gas prices are expected to be lower," Yara said. But China's export policy remains a key uncertainty, especially for the short-term global supply/demand balance. By Suzie Skipper Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Water levels delay Tennessee River lock reopening

24/04/25

Water levels delay Tennessee River lock reopening

Houston, 24 April (Argus) — The US Army Corps of Engineers (Corps) will delay the reopening of the Tennessee River's Wilson Lock by three weeks after high floodwater disrupted repair plans. The Wilson Lock is now planned to reopen in mid-June or July, the Corps said this week. The lock's main chamber has been closed since September after severe cracks were found in the structure. The Corps initiated evacuation procedures so personnel and equipment could be removed before any water entered the dewatered lock and ruined repairs after high water appeared too close to the lock's edge. The water did not crest above the temporary barrier the Corps installed to keep water out. Delays at the lock averaged around 10 days as of 24 April, according to the Corps. Barge carriers fees have been in place for each barge that must pass through the auxiliary chamber of the lock since 25 September, when the lock first closed. Restricted barge movement placed upward pressure on fertilizer prices in surrounding areas as well. The lock still requires structural repairs to the main chamber gates, including the replacement of the pintle components, the Corps said. This is the fourth opening delay the Corps have issued for the Wilson Lock, with the prior opening dates being in November , then April and then in June . The Wilson Lock will enter its eighth month of repairs next month. By Meghan Yoyotte and Sneha Kumar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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