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Port Tampa Bay begins hurricane recovery: Update

  • Spanish Market: Fertilizers, Oil products
  • 10/10/24

Adds comments from Florida governor, information on fuel supplies.

Port Tampa Bay, Florida, docks did not sustain significant damage from Hurricane Milton, the port authority said early today, a positive sign for resuming fuel imports into the storm ravaged state.

Some port buildings were damaged and power remains out, according to preliminary assessments, but the port docks appear to have escaped major damage, according to the port authority. Many roads leading to the port remain flooded, but the port's main gates are accessible.

Florida governor Ron DeSantis said Thursday that Port Tampa avoided the worst-case scenario in terms of storm surge and that eastern Florida ports on the opposite side of the state from where Milton made landfall appear largely undamaged.

The state has 1.5mn USG of diesel and about 1.1mn USG of gasoline available to deploy in its emergency response, DeSantis said. Florida's highway patrol continues to escort fuel tankers making deliveries to gas stations and has completed about 130 escorts after some stations ran dry earlier this week as Floridians stocked up on fuel and evacuated coastal regions.

DeSantis said today he expects gas stations to reopen "very quickly, at least that's our hope."

Port Tampa Bay officials are working with the US Army Corps of Engineers, US Coast Guard and others to assess landside and seaside operations. There is no currrent timeline for the port's re-opening.

More than 3mn Floridians are without power today after Hurricane Milton came ashore south of Tampa Bay late last night as a category 3 storm. Utility crews are assessing the damage from high winds, tornadoes and flooding, and starting to restore power.

Nearly half of Florida's supply of petroleum and refined products passes through Port Tampa Bay, the majority via waterborne cargo from the US Gulf coast. Tampa Bay is also the site of major fertilizer operations, including Mosaic's Riverview phosphate plant.

Chevron's Tampa refined products terminal remains closed and damage assessments will begin once crews can safely access the facility, a company spokesperson said just after 11am ET today. The company's terminals in Panama City and Port Everglades are operational.

Fuel terminal operators at Port Tampa Bay such as Citgo, Kinder Morgan, Global Partners and Buckeye Partners told Argus they are currently evaluating their facilities to determine when they can resume operations. Individual port tenants will decide independently when to restart their own activities.


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02/01/25

Viewpoint: USGC diesel exports may get European boost

Viewpoint: USGC diesel exports may get European boost

Houston, 2 January (Argus) — US Gulf coast (USGC) diesel exports were on pace to rise in 2024, and growing demand from Europe could sustain the trend into 2025 as Brazil demand may falter. US Gulf coast diesel exports rose to an estimated 242mn bl, or 661,000 b/d in 2024, up by 9.5pc from 2023, according to oil analytics firm Vortexa. Figures are still subject to revisions as more information about cargoes and destinations in the final weeks of December become known. Exports strengthened in the second half of 2024 despite headwinds. From July through December, exports rose to 728,000 b/d, up from 593,000 b/d in the first half of the year. Europe was the top destination for US Gulf coast diesel exports in 2024, receiving 216,000 b/d, or 33pc, of the region's exports, up from 135,000 b/d, or 22pc, in 2023. South America was the second biggest destination for US Gulf coast diesel exports in 2024, even as the continent's share fell to 29pc from 35.5pc in 2023. Central America and Mexico received 24pc of US Gulf coast diesel exports in 2024. US Gulf coast diesel exports to Mexico dropped to 103,000 b/d during the second half of the year, down by 21pc from the first half of 2024, according to Vortexa. Mexico's energy policies aim to drive the country closer to energy independence, and Pemex's new 340,000 b/d Dos Bocas refinery is one tool to achieve that goal. The refinery was scheduled to fully be on line in 2024 but operated only intermittently during the year. It is expected to run more steadily in the first quarter 2025, according to market sources. This could further reduce shipments from the US Gulf coast to Mexico. But demand in other markets may mitigate this loss. While the total volume of diesel shipped to Mexico, Central and South America dropped by 12.2pc in 2024, diesel exports to the regions are expected to remain resilient in 2025, despite a traditional slowdown in the first two months of the year. Typically, US Gulf coast diesel exports in January and February slow as winter weather clips European demand while South American demand drops after the main summer planting season concludes and as summer holidays reduce the number of trucks on the road. Exports will likely pick up in March and continue to increase as the soybean harvest in Brazil, Argentina and Paraguay boosts demand. Warmer weather in Europe will also increase demand as driving increases while European refiners undergo maintenance turnarounds in March and April. EU diesel demand was strong in 2024 even as the energy transition advances renewable diesel and cleaner fuel sources. Among newly registered heavy trucks in the EU, 96.6pc run on diesel and 67pc of buses run on diesel, according to the European Automobile Manufacturers' Association. European lawmakers plan to phase out sales of new diesel trucks and cars by 2040 and 2035, respectively, delayed from a prior 2030 deadline. This will ensure demand remains stable, if not higher, for 2025. Russia's lower-priced diesel exports fulfilled Brazil's external needs for diesel in the first half of 2024. But in June, Russian refiners were unable to produce enough diesel to meet the country's demand, boosting US Gulf coast exports to Brazil to 43,000 b/d in the second half of the year, almost five times higher than the first half. Still, total US Gulf coast export volumes to Brazil for full-year 2024 were down by half when compared with 2023, as Russian exports to Brazil grew by 17pc to 150,000 b/d in 2024. Slowing growth in Brazil is also likely to curb diesel demand next year. Brazil's central bank forecasts economic growth to slow to 2pc in 2025 from 3.5pc in 2024 on expectations for higher borrowing costs, as the depreciation of the real currency accelerated at the end of the year. Even so, US Gulf coast exporters will be poised to fill whatever demand Brazil can offer next year. Going into the new year, US Gulf coast refiners seeking to export diesel will face challenges, but enough demand remains to keep volumes on track or even higher than 2024 levels. By Carrie Carter Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: North American BZ, SM output to dip in 2025


02/01/25
02/01/25

Viewpoint: North American BZ, SM output to dip in 2025

Houston, 2 January (Argus) — North American benzene (BZ) and derivative styrene monomer (SM) production and operating rates may decline in 2025 as production costs climb. SM and derivative output will likely see a drop due to the permanent closure of a SM plant in Sarnia and an acrylonitrile butadiene styrene (ABS) plant in Ohio. In 2024, SM operating rates averaged about 71-72pc of capacity, up by 1-2 percentage points from the year prior, according to Argus data. In 2025, operating rates are expected to pull back closer to 70pc due to lackluster underlying demand, offsetting the impact of the two plant closures. Many SM producers on the US Gulf coast are entering 2025 at reduced rates due to high variable production cash costs against the SM spot price. The BZ contract price and higher ethylene prices recently pushed up production costs for SM producers. A heavy upstream ethylene cracker turnaround season in early 2025 will keep derivative SM production costs elevated in Louisiana, stifling motivation for some downstream SM operators to run at normal rates. Gulf coast BZ prices typically fall when SM demand is weak. But imports from Asia are projected to decline, leading to tighter supply in North America that could keep BZ prices elevated. BZ imports from Asia are expected to decline in 2025 because of fewer arbitrage opportunities, as Asia and US BZ prices are expected to remain near parity in the first half of the year. The import arbitrage from South Korea to the Gulf coast was closed for much of the fourth quarter of 2024. Prices in Asia have garnered support because of demand from China for BZ and derivatives, as well as from aromatics production costs in the region that have increased alongside higher naphtha prices. In January-October 2024, over 60pc of US BZ imports originated from northeast Asia, according to Global Trade Tracker data. Losing any portion of those imports typically tightens the US market and drives up domestic demand for BZ. But tighter BZ supply due to lower imports may be mitigated by SM producers, if they continue to run at reduced rates in 2025. The US Gulf coast is around 100,000 metric tonnes (t) net short monthly on BZ, but market sources say the soft SM demand outlook for 2025 will cut US BZ import needs almost in half. Despite fewer BZ imports to North America, reduced SM consumption could hamper run rates for BZ production from selective toluene disproportionation (STDP) unit operators. The biggest obstacle for STDP operators in 2025 will like be paraxylene (PX) demand. Since STDP units produce BZ alongside PX, there needs to be domestic demand for PX. But demand has been weak due to PX imports and derivative polyethylene terephthalate (PET). STDP operations increased at the end 2025 after running at at minimum rates or being idled since 2022. This came as BZ prices consistently eclipsed feedstock toluene prices. The BZ to feedstock nitration-grade toluene spread averaged 30.5¢/USG in 2024 and the BZ to feedstock commercial-grade toluene (CGT) spread averaged 49.25¢/USG, according to Argus data. This means that for much of the year STDP operators could justify running units at higher rates to produce more BZ and PX. But another challenge to consider on STDP run rates in 2025 is the value of toluene for gasoline blending compared to its value for chemical production. In 2022 and 2023, the toluene value into octanes was higher than going into an STDP for BZ and PX production. Feedstock toluene imports are poised to fall in 2025, a factor that would narrow STDP margins and further hamper on-purpose benzene production in the US in 2025. By Jake Caldwell Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ethiopia’s EABC counters at $639/t cfr for DAP


02/01/25
02/01/25

Ethiopia’s EABC counters at $639/t cfr for DAP

London, 2 January (Argus) — Fertilizer importer Ethiopian Agricultural Businesses (EABC) has countered offers for lots 1, 2, 3, 5 and 6 at $639/t fob under its 23 December tender to buy DAP. Suppliers have until 10:00am on 5 January to respond. Reports that EABC awarded lot 4 — 60,000t with laycan 9-15 February — to trading firm Midgulf International at the offered price of $639/t fob Jordan have emerged. But Jordanian producer JPMC has so far not committed to supplying this cargo to Midgulf International. EABC has not given counterbids for lots 7, 8 or 9, and has probably scrapped these lots. Offers for DAP from Jordan, Egypt, Saudi Arabia and China totalled 780,000t and ranged $639-705/t fob . EABC had initially sought to buy 611,000t in the tender. The importer stipulated laycans for its counterbids in a document seen by Argus as follows: Lot 1: 16-22 January Lot 2: 25-30 January Lot 3: 1-5 February Lot 5: 10-15 February Lot 6: 21-25 February Each lot is for 60,000t. Initially, the laycans for lots 5 and 6 had been 21-27 February and 5-11 March, respectively. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India extends special DAP subsidy and keeps MRP steady


02/01/25
02/01/25

India extends special DAP subsidy and keeps MRP steady

London, 2 January (Argus) — The Indian government yesterday extended the special DAP subsidy of Rs3,500/t into the new year, while local sources say the maximum retail price (MRP) will remain unchanged. The special subsidy, which was approved in July 2024 and valid from April 2024 , was initially set to end on 31 December. It will now remain in place until further notice. This subsidy supplements the existing nutrient based subsidy (NBS) of Rs21,911/t for the 2024-25 rabi season (October-March). In mid-December local sources reported that the government would allow the MRP to rise by around Rs4,000/t to about Rs31,000/t from 1 January. But sources now state the MRP will remain at Rs27,000/t. DAP importers buying at $632/t cfr face losses of around $101/t with the current dollar-rupee exchange rate, MRP and NBS including the special subsidy. The government is set to keep compensating importers for these losses until the end of March. Provisional data indicates India was on track to end 2024 with 1.2mn t of DAP in stocks because of slowing imports, well below a comfortable 2mn t, as had been maintained in previous years. By Adrien Seewald Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Pakistan's NRL issues tender to sell January bitumen


02/01/25
02/01/25

Pakistan's NRL issues tender to sell January bitumen

Singapore, 2 January (Argus) — Pakistani refiner NRL is offering bulk and drummed bitumen cargoes totalling 8,000t for loading over January, in their latest export tender. The refiner is seeking fixed price bids on a fob Karachi basis for 2,000t of pen 80/100 drummed bitumen cargo and 6,000t of pen 60/70 bulk bitumen cargo. The drummed cargo tender is expected to be closed on 9 January and loaded within 30 days from the date of award, while the bulk cargo tender will close on 6 January, sources involved with the tender process said. The refiner had awarded its December-loading cargo to Switzerland-based trading firm Element Alpha, after withdrawing two previous tenders for loading over October and November. Pakistani cargoes are typically sought by international bitumen traders for delivery into South Africa. By Sathya Narayanan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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