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EU sulphur shortage persists, limiting sul acid output

  • Spanish Market: Fertilizers
  • 02/01/25

Liquid sulphur in Northwest Europe is expected to remain short in 2025, with production limited by lower output from refineries, and demand outstripping supply.

Sulphur supply curbed

In the past two years sulphur output from European refineries has dropped as a result of poor refining margins and competition from imports from new mega-refineries out of region. Additionally, sanctions on Russian crude oil imports to European refineries have turned the crude slate in the region sweeter.

In 2024 refinery maintenance and unexpected outages resulted in lower production of molten sulphur. These were overdue following healthy refining margins in 2023 leading refineries to run at high rates and postponing maintenance, as well as earlier pandemic restrictions also limiting maintenance.

Further European refining capacity is at risk in 2025, as Petroineos' Grangemouth refinery in Scotland is expected to be converted to an import terminal, while in Germany, Shell will cease crude processing at its 80,000 t/yr Wesseling refinery. Additionally, BP has indicated plans to permanently shut down a crude unit and a middle distillate desulphurisation unit at its 210,000 t/yr Gelsenkirchen plant. Refineries could still delay some of these closures, provided that refining margins were supportive of this.

Sulphur consumption is higher though risks remain

Sulphur consumers were running at low rates in Europe over 2023 due to low demand and poor economics as well as high energy prices. By 2024 sulphur demand lifted, and many consumers were unable to source the larger quantity of sulphur.

The shortfall of molten sulphur bolstered quarterly contract prices during 2024; in the first quarter prices stood at $103.5-119.5/t cfr, rising 49pc on a mid-point basis to reach $158.5-174.5/t cfr in the fourth quarter.

Contract negotiations for the first quarter of 2025 started against a backdrop of a short market and firmer global prices weighed against competitiveness of the region's chemical industry, with consumers seeking a rollover or a smaller increase of $10-15/t cfr against suppliers pushing for a larger $25-30/t rise.

In 2025 liquid sulphur is expected to continue to be short in the region, with regular liquid imports. Discussions for an additional sulphur tanker are also expected to lead to more imported product entering the region by the second half of 2025.

Yara's sulphur remelter in Finland is expected to start in April 2025, but will have limited impact on the industrial cluster in the Benelux and German regions. Additionally, at least one new commercial sulphur burner is expected in Germany for a 2027 start to operations, with the Mitsui subsidiary Aglobis announcing preliminary agreements with port and logistics operators in Germany's Duisburg area.

Sulphuric acid implications

The shortage in liquid sulphur has resulted in a new reality sulphuric acid in Northwest Europe, resulting in a wider differential between sulphur-burnt and smelter-based acid, of up to €80/t, on the quarterly contracts.

The acid contracts for the first quarter of 2025 are not fully settled, the sulphur burnt contract was heard at a further increase of €15 added to the sulphur Benelux settlement, while an increase of around €10/t was heard for smelter-based acid.

Some sulphur-burners have been forced to shut down in the Benelux region, mainly due lack of liquid sulphur. Additionally, there is the risk that some end used may be pushed out of the market due to the increased cost of sourcing sulphur burnt acid.

And while some demand may continue to shift to smelter-based acid, not all sulphur burners or downstream industries can easily replace liquid sulphur as a feedstock due to purity or economic implications.


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India’s DOF proposes additional phosphate subsidies


10/04/25
10/04/25

India’s DOF proposes additional phosphate subsidies

London, 10 April (Argus) — India's Department of Fertilizers (DOF) has proposed additional subsidies on DAP and imported TSP for the April-September Kharif season, according to a document seen by Argus . The proposed compensations are on top of the current nutrient-based subsidy (NBS) and the 3,500 rupees/t special additional subsidy (other costs) on DAP that are already in place. If approved, they would balance DAP importers' losses at current rates. The DOF has proposed returning to DAP importers and producers 4pc of the maximum retail price (MRP), plus a rebate on the goods and services tax (GST) on the MRP. The DOF also has suggested paying importers the difference between the cfr prices for cargoes imported during this Kharif season and the average cfr price for DAP imports over the October 2024-March 2025 Rabi season. At current exchange rates, this would add $81-82/t to the subsidy on DAP imported in the mid-$670s/t cfr, broadly equal to the losses currently faced by importers. Importers buying DAP in the mid-$670s/t cfr are facing losses of about $84/t, given the US dollar/rupee exchange rate, the MRP of Rs27,000/t, the NBS of Rs27,799/t and the special additional subsidy of Rs3,500/t. The 4pc return on the MRP, plus GST, will fall slightly short of covering the $33/t losses incurred by DAP producers importing phosphoric acid at $1,153/t P2O5 cfr and ammonia at $350/t cfr. Producers making DAP with 30-31pc P2O5 phosphate rock imported at $153/t cfr, sulphur received at $300/t cfr and ammonia delivered at $350/t cfr already are making profits of about $50/t. But they also would still receive the 4pc MRP return and GST rebate. The same proposal applies to imported TSP. The DOF suggests paying 4pc of the Rs25,000/t MRP, and the GST, plus the increase from the average Rabi import cost to importers. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Flooding on US rivers mires barge transit


07/04/25
07/04/25

Flooding on US rivers mires barge transit

Houston, 7 April (Argus) — Barge transit slowed across the Arkansas, Ohio and lower Mississippi rivers over the weekend because of flooding, which prompted the US Army Corps of Engineers (Corps) to close locks and issue transit restrictions along the waterways. The Corps advised all small craft to limit or halt transit on the McClellan-Kerr Arkansas River Navigation System (MCKARNS) in Arkansas because flows reached above 200,000 cubic feet per second (cfs), nearly three times the high-water flow. The heavy flow is expected to persist throughout the week, posing risks to those transiting the river system, said the Corps. Some barges have halted movement on the river, temporarily miring fertilizer resupply efforts in Arkansas and Oklahoma in the middle of the urea application season. The Corps forecasts high flows to continue into Friday, and the National Weather Service predicts several locations along the MCKARNS will maintain a moderate to minor flood stage into Friday as well. Both the Arthur V Ormond Lock and the Toad Suck Ferry Lock, upriver from Little Rock, Arkansas, shut on 6 April because of the high flows. Flows along the Little Rock Corps district reached 271,600cfs on 7 April. The Corps forecasts high flows to continue into Friday. Ohio and lower Mississippi rivers The Corps restricted barge transit between Cincinnati, Ohio, and Cairo, Illinois, on the Ohio River to mitigate barge transportation risks, with the Corps closing two locks on the Ohio River on 6 April and potentially four more in the coming days. Major barge carrier American Commercial Barge Line (ACBL) anticipates dock and fleeting operations will be suspended at certain locations along the Mississippi and Ohio rivers as a result of the flooding. NWS forecasters anticipate major flooding levels to persist through the following week. Barge carriers also expect a backlog of up to two weeks in the region. To alleviate flooding at Cairo, Illinois, where the Ohio and Mississippi Rivers meet, the Corps increased water releases at the Barkley Dam on the Cumberland River and the Kentucky Dam on the Tennessee River. The Markland Lock, downriver from Cincinnati, Ohio, and the Newburgh lock near Owensboro, Kentucky, closed on 6 April. The Corps expects the full closure to remain until each location reaches its crest of nearly 57ft, which could occur on 8 or 9 April, according to the National Weather Service (NWS). Around 50 vessels or more are waiting to transit each lock, according to the Lock Status Report published by the Corps on 7 April. The Corps also shut a chamber at both Cannelton and McAlpine locks. The John T Myers and Smithland locks may close on 7 April as well, the Corps said. The Olmsted Lock, the final lock before the Ohio and Mississippi rivers, will require a 3mph limit for any traffic passing through. The NWS expects roughly 10-15 inches of precipitation fell along the Ohio and Mississippi River valleys earlier this month, inducing severe flooding across the Ohio and Mississippi River valleys. A preliminary estimate from AccuWeather stated an estimated loss of $80-90bn in damages from the extreme flooding. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Atome signs EPC contract for Paraguay CAN project


07/04/25
07/04/25

Atome signs EPC contract for Paraguay CAN project

Singapore, 7 April (Argus) — London-listed energy firm Atome has signed a definitive engineering, procurement and construction (EPC) contract with Swiss contractor Casale for its renewable CAN project in Paraguay. Atome has signed a fixed-price $465mn EPC agreement with Casale for the 260,000 t/yr CAN plant at Villeta, Paraguay. The deal marks the latest step towards Atome taking a final investment decision for its project targeting towards the end of the first half of 2025, the firm said today. This follows Atome's agreement with French clean hydrogen infrastructure fund Hy24 earlier this year. The CAN at the plant will be made using ammonia produced from hydroelectricity, and output is scheduled to start in 2027. Atome is targeting first sales of "green" fertilizer in 2028. The project, when complete, would be the world's first large-scale carbon-free fertilizer facility. By Dana Hjeij Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Funding cuts could delay US river lock renovations


03/04/25
03/04/25

Funding cuts could delay US river lock renovations

Houston, 3 April (Argus) — The US Army Corps of Engineers (Corps) will have to choose between various lock reconstruction and waterway projects for its annual construction plan after its funding was cut earlier this year. Last year Congress allowed the Corps to use $800mn from unspent infrastructure funds for other waterways projects. But when Congress passed a continuing resolutions for this year's budget they effectively removed that $800mn from what was a $2.6bn annual budget for lock reconstruction and waterways projects. This means a construction plan that must be sent to Congress by 14 May can only include $1.8bn in spending. No specific projects were allocated funding by Congress, allowing the Corps the final say on what projects it pursues under the new budget. River industry trade group Waterways Council said its top priority is for the Corps to provide a combined $205mn for work at the Montgomery lock in Pennsylvania on the Ohio River and Chickamauga lock in Tennesee on the Tennessee River since they are the nearest to completion and could become more expensive if further delayed. There are seven active navigation construction projects expected to take precedent, including the following: the Chickamauga and Kentucky Locks on the Tennessee River; Locks 2-4 on the Monongahela River; the Three Rivers project on the Arkansas River; the LaGrange Lock and Lock 25 on the Illinois River; and the Montgomery Lock on the Ohio River. There are three other locks in Texas, Pennsylvania and Illinois that are in the active design phase (see map) . By Meghan Yoyotte Corps active construction projects 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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