Tampa molten sulphur price rises for 4Q

Spanish Market: Fertilizers
02/10/24

Fertilizer producers Mosaic and Nutrien have settled the fourth quarter molten sulphur price with their suppliers at $116/long tonne (lt) delivered.

The new settlement marks an increase of $40/lt from the third quarter price of $76/lt del, and follows the trend of firming sulphur markets during the third quarter amid resilient global fertilizer demand.

Despite an active hurricane season in the US Gulf coast, disruptions to output have remained short-lived. But damage from Hurricane Helene last month has caused significant disruption to fertilizer production in the southeast US, with operations at two Florida-based phosphate fertilizer production facilities hampered.

Mosaic's Riverview, Florida, facility is expected to return to normal capacity during the first half of October following water mitigation and site cleanup. Damage at Nutrien's White Springs, Florida, plant is still being assessed, with no clear timeline of when it will resume normal operations.

Global solid sulphur contracts are beginning to settle for supply delivered during the fourth quarter at corresponding rises, with Middle East contracts rising by $39-43/t from the previous quarter to reach $110-122/t fob for Middle East for tonnes delivered to end users and traders.

Additionally, delivered quantities for the north African market have been discussed in a range of mid-$130s to high $140s/t cfr depending on destination and cargo size for granular product from the FSU and the Middle East, though final confirmations remain outstanding. Crushed lump sulphur is expected to be priced below granular sulphur at the low end of the range.

Some contract supply routes have not as yet been confirmed as having been finalized.

By Chris Mullins and Maria Mosquera

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03/10/24

Indonesia’s Ni expansion via HPAL could face challenges

Singapore, 3 October (Argus) — Indonesia is expected to continue expanding its nickel production in the coming years, especially through increasing its high-pressure acid-leaching (HPAL) capacity, but the lack of readily available sulphuric acid and proper management of the tailings waste could pose challenges to this plan. Production is expected to rise despite an anticipated surplus in the supply of nickel in the market. Sulphuric acid is used in the HPAL process to separate nickel and cobalt from nickel ore to produce mixed hydroxide precipitate (MHP), which is the feedstock for the downstream processing of nickel sulphate, cathode and battery. Indonesia is expected to produce 325,000-345,000t of MHP this year, up from around 269,000t of in 2023, according to market sources. But with several MHP projects planned to come online in the next few years, MHP output for the next three years is projected to treble to 800,000-900,000t, according to the country's deputy minister for the co-ordinating ministry for maritime and investment affairs Septian Hario Seto on 2 October at a metal event in London. As this would require a lot more nickel ore and sulphuric acid, there are concerns that the availability of limonite ore could deplete as fast as the saprolite ore supply, which is mainly used for nickel pig iron and matte production. There were also discussions that the Indonesian government will convene with nickel market participants to discuss about the supply situation of limonite ore. There are currently four HPAL facilities operating in Indonesia. This includes Huayou's Huayue and Huafei projects , GEM's QMB project and Lygend's HPAL project. Others were also concerned that the availability of sulphuric acid could be a limiting factor to Indonesia's rapid expansion of HPAL production, as sulphuric acid demand from Indonesian HPAL projects is expected to reach 7.12mn t in 2025, almost 40pc increase from this year's demand at 5.17mn t, according to Argus estimates. Indonesia has been importing sulphuric acid from mainly China and South Korea to meet the growing demand for its production units at Obi Island and Sulawesi. But a ramp-up in sulphur-burning operations has pushed several MHP producers like Halmahera Persada Lygend to switch to buying lower-cost sulphur instead. For most sulphur burners, 1t of sulphur produces around 3t of sulphuric acid. The startup of Freeport McMoran's Manyar smelter in Java integrated industrial and port estate in East Java's Gresik, coupled with mining firm Amman Mineral Nusa Tenggara's (AMNT) copper smelter in the West Sumbawa regency of Nusa Tenggara province, is also expected to alleviate some supply concerns, with the two expected to add at least 3mn t/yr of acid capacity by the end of 2025. Proper disposal of tailings waste could pose another challenge to Indonesia's planned HPAL expansion, particularly with increasing scrutiny on the environmental, social and governance (ESG) standards by Indonesia's mining industry. The HPAL process generates a large volume of tailings, with energy consultancy Wood Mackenzie estimating an output of 1.4-1.6t of waste from every 1t of nickel produced through HPAL. There are three common ways to dispose tailings waste – tailings dam, deep sea tailings and dry stacking. Dry stacking is more widely used because it is considered as the more sustainable option. But dry stacking also comes with its own environmental and biodiversity risks, as Indonesia's seasonal wet weather and seismic activity of the site could be a problem for waste storage. To ensure a smooth expansion in HPAL production, it is crucial for Indonesia to find ways to secure the necessary sulphuric acid supplies and to adopt appropriate methods for tailings waste disposal. By Sheih Li Wong and Deon Ngee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Offers total 2.57mn t of urea in RCF tender: Update 2

03/10/24

Offers total 2.57mn t of urea in RCF tender: Update 2

Adds table of offers Amsterdam, 3 October (Argus) — Indian fertiliser importer RCF closed its tender to buy urea today, with 21 suppliers offering a total of 2.57mn t across both coasts. There were 20 offers for the east coast for a total of 1.37mn t and 17 for the west coast for 1.2mn t. Trading firms Agricommodities/ETG and Midgulf offered the largest quantities, submitting 150,000t each for both coasts ( see table below ). The quantities offered include the usual double- and triple-counting of volumes available to trading firms. There were 22 valid offers totalling 3.87mn t under the previous Indian tender on 29 August, which eventually saw just 1.13mn t bought. Most expectations before the tender's close had been for prices around the $370s/t cfr west coast and above, having risen higher over the week as tensions in the Middle East roiled the urea market. Prices offered will emerge in the coming days. RCF requested offer validity until 14 October and cargoes to ship from load ports by 20 November. By Harry Minihan RCF 3 October urea tender quantities t Supplier East coast West coast Total Agricommodities/ETG 150,000 150,000 300,000 Midgulf 150,000 150,000 300,000 Dreymoor 50,000 50,000 100,000 Sun International 50,000 0 50,000 Samsung 76,500 76,500 153,000 Sabic 100,000 100,000 200,000 Fertistream 47,500 0 47,500 Medallion 50,000 50,000 100,000 Ameropa 52,400 52,400 104,800 Agrifields 40,000 0 40,000 Fertiglobe 45,000 45,000 90,000 Indagro 45,000 45,000 90,000 Alkagesta 45,000 45,000 90,000 Koch 47,500 47,500 95,000 Macrosource 45,000 45,000 90,000 Aditya Birla 100,000 100,000 200,000 Continental 100,000 100,000 200,000 Liven 30,000 50,000 80,000 OQ 100,000 0 100,000 Hexagon 50,000 50,000 100,000 Keytrade 0 40,000 40,000 Total 1,373,900 1,196,400 2,570,300 Market sources - subject to confirmation Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Origin to exit Hunter Valley Hydrogen Hub

03/10/24

Australia’s Origin to exit Hunter Valley Hydrogen Hub

Sydney, 3 October (Argus) — Australian utility and upstream firm Origin Energy has decided not to proceed with its planned hydrogen development project, the Hunter Valley Hydrogen Hub (HVHH), in Australia's New South Wales. The decision to withdraw from the proposed 55MW HVHH and halt all hydrogen opportunities was made because of continuing uncertainty about the pace and timing of hydrogen market development, Origin said. The firm said the capital-intensive project, intended to progressively replace gas as a feedstock in a nearby ammonia manufacturing plant, carried substantial risks. Origin Energy had an initial agreement with Australian chemicals and explosives company Orica to take 80pc of the green hydrogen produced from the hub for Orica's 360,000 t/yr ammonia facility on Kooragang Island, near the city of Newcastle. Origin Energy and Orica in 2022 said they will study plans to develop the HHVH in Hunter Valley region of NSW, which is Australia's largest thermal coal-producing area. "It has become clear that the hydrogen market is developing more slowly than anticipated, and there remain risks and both input cost and technology advancements to overcome. The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project," said chief executive Frank Calabria on 3 October. Origin had planned to make a final investment decision on the project by late 2024. The hub, which was estimated to cost A$207.6mn ($143mn), had been allocated A$115mn in state and federal funding and was shortlisted for production credits under Canberra's Hydrogen Headstart programme. In July, Origin described the pace of development in the hydrogen industry as "slower than it had anticipated 12 months ago", said. The company expressed hopes that improved electrolysis efficiency would reduce the rising costs of production. The decision is a significant setback for Australia's green hydrogen ambitions, following the July decision by Australian miner and energy company Fortescue to postpone its target of 15mn t/yr green hydrogen output by 2030. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Urea futures slightly firmer on Middle East tensions

01/10/24

Urea futures slightly firmer on Middle East tensions

Amsterdam, 1 October (Argus) — Urea futures rose today on a ratcheting up of tension in the Middle East, but the reaction has been limited with November Arab Gulf derivatives up by $2.50/t on the day. The November Arab Gulf futures contract has traded multiple times today at $355/t fob, up by around $2.50/t on recent levels, with the deals taking place towards the high end of brokers' ranges for yesterday. But spot availability of physical cargoes in the region is limited, and there has been no fresh business. Suppliers are holding back from the market until RCF's buy tender in India on 3 October. Argus assessed granular urea spot prices at $350-356/t fob last week. The Israeli military said earlier today the US has identified an "Iranian network" that is preparing to launch a missile attack on Israel "in the near future", which has stoked a jump in oil prices. Israel began ground operations in southern Lebanon on 1 October, following the ramping up of an aerial strike campaign, while its military struck the Houthi-controlled Red Sea port of Hodeidah in Yemen on 29 September. Front-month Ice Brent crude futures hit an intraday high of above $74.50/bl earlier, up by nearly $3/bl from yesterday's close. Iran on 13 April launched more than 300 drones and missiles, marking its first ever direct attack of Israel from Iranian soil. Almost all those weapons were intercepted before they reached Israeli airspace, and no fatalities were reported by Israel. The Middle East is the largest export region globally of urea and ships around 20mn t/yr, of which Iran accounts for about a quarter. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Nutrien’s Georgia plant in restart process

01/10/24

Nutrien’s Georgia plant in restart process

Houston, 1 October (Argus) — US fertilizer producer Nutrien expects its Augusta, Georgia, nitrogen plant to restart in the next 1-2 days after Hurricane Helene caused it to close late last week. The Augusta facility is currently restarting processes at the plant, according to the company. The plant was closed on 26 September from storm-induced power outages. The nitrogen plant produced 740,000 metric tonnes (t) of ammonia in 2023 and 560,000t of urea. Alongside Augusta, Nutrien's White Springs phosphate plant in Florida shut down when Hurricane Helene made landfall on the Florida panhandle bringing power outages, flooding and catastrophic winds to the southeastern US. Roads near the White Springs facility are still closed because of flooding and downed power lines. The company said it could take several more days before a full post-storm assessment is complete. The White Springs facility still does not have a timeline for restart. 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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