Swiss agribusiness Ameropa has tapped fertilizer subsidiary head Josh Zacharias to serve as chief executive starting today.
Zacharia succeeds former chief executive William Dujardin, who resigned 30 November for personal reasons after nearly four years in the role.
Zacharias was promoted from chief executive of Ameropa's subsidiary Azomures, a nitrogen fertilizer producer in Romania.
New York, 30 December (Argus) — Low appetite for crude oil and dry bulk commodities in China will keep a lid on next year's shipping rates, which are steaming toward their lowest fourth quarter since pandemic-hobbled 2021. China remains the world's top oil importer, receiving about a quarter of what oil tankers carry on a given day, but the country's oil consumption is slowing. China's turn toward electric vehicles, LNG-powered trucks and high-speed rail will continue to eat into the country's oil demand, even as its economy continues to grow. China's economy is expected to expand by 4.7pc in 2025, below this year's 4.9pc, but the country's oil demand is set to rise by only 2pc. In September-November this year, China's waterborne crude imports dropped by the equivalent of 10 2mn bl very large crude carriers (VLCCs) per month. And with the Chinese government's decision to cut rebates for refined product exports to 9pc from 13pc , the country's refiners will be further discouraged from importing crude. The lack of China-bound cargoes has lowered the average VLCC rate on the Mideast Gulf-China route to $1.64/bl so far in the fourth quarter, its lowest fourth quarter level since 2021 and down by 25pc year over year. While longer-haul tanker voyages resulting from Houthi attacks in the Red Sea and sanctions on Russian oil will continue to exert upward pressure on the tanker market into next year, barring any geopolitical breakthroughs, the lack of crude cargoes to the world's top oil importer will keep crude freight rates subdued. VLCC weakness is trickling down Rates for 1mn bl Suezmaxes and 700,000 bl Aframaxes are feeling the pain too as those segments compete with VLCCs in many regions such as the US Gulf coast, west Africa and the Middle East. Like the Mideast Gulf VLCC market, the US Gulf coast-Europe Aframax rate for 90,000t cargoes is on track for its lowest fourth quarter average since 2021 as well, falling by 20pc to $3.47/bl from a year earlier. The weakness will not be confined to the dirty tanker market. Next year, low dirty tanker rates will likely continue to encourage ship operators to move more VLCCs into clean freight service. This typically rare practice has become more common this year and is putting downward pressure on the product tanker market. So far in the fourth quarter, the Mideast Gulf to Asia-Pacific clean long range (LR1) rate is down by 31pc year over year and the US Gulf coast-Chile clean medium range (MR) rate is down by 29pc. With shipyards delivering 2-3pc of existing tanker capacity to the water next year, the tanker fleet is likely to be sufficiently supplied to meet the world's ocean-going oil transportation demands unless tanker scrapping activity accelerates. Demand for older tankers plying sanctioned trades and middling scrap steel prices are keeping mass tanker demolitions in check. Dry bulk operators feel China housing blues In the dry bulk market, fleet growth of around 3pc will be enough to accommodate what is expected to be modestly increased demand for shipping dry commodities such as iron ore, coal, and grains next year. China plays an even more outsized role in the dry bulk market because it receives nearly 45pc of the world's dry bulk cargoes. The country's bearish real estate sector threatens the dry bulk market's largest demand driver, iron ore. A 10pc decline in investment in its real estate sector this year spells weak construction demand in the next and bodes poorly for dry bulk ship operators hoping for a resurgent appetite for iron ore to make steel. Sluggish growth in China-bound iron ore shipments has already helped pull the Brazil-to-China Capesize iron ore freight rate down by 15pc to $21.30/t so far in the fourth quarter from a year prior. Capesize operator earnings have fallen below $10,000/d, near operating expense levels, for the first time since August 2023. By Nicholas Watt Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Houston, 30 December (Argus) — Vastly different dynamics are expected for the western and eastern US sulphuric acid markets in 2025. Lower output from producers in the western US and Canada will keep supply constrained for much of 2025, likely driving west coast US sulphuric acid imports higher during the year. But balanced dynamics will keep the southeastern US and Gulf coast markets competitive, shielding both regions from the global market dynamics. Deliveries of sulphuric acid to the US west coast from January-October of 2024 climbed by 35pc on the year to 188,700t, according to US Census data, making up for lower-than-expected output from producers, which squeezed availability throughout the region. The closure of Simplot's Lathrop, California, sulphur burner at the beginning of 2024 had already reduced baseline supply on the US west coast. Market sources expect output at Teck's Trail Operations in British Columbia, Canada, to be reduced through at least the first half of 2025 because of technical issues with the facility's electrolytic zinc plant following a fire in late September. Sources said that less volumes were available from the company's western Canadian facility during annual contract negotiations this year as a result. In its third quarter earnings release Teck reduced outlook for 2024 zinc production from its Trail Operations facility by 13.3pc as a result of the fire at the plant, but has not provided guidance for byproduct acid production or zinc production in 2025. In Utah, lower output from Rio Tinto's 1mn t/yr Kennecott smelter is expected to continue into 2025. Reduced copper ore quality has contributed to lower copper concentrate production from the facility. The company is expected to continue to purchase copper concentrate from a third-party supplier to support smelter utilization. Balance rules in the east But in the eastern US, steady output from domestic producers has matched, and sometimes outpaced, demand in the region. This trend has kept prices relatively steady and spot import demand reduced from previous levels. Despite a 6.3pc year to year increase to total US sulphuric acid imports during January-October to 2.9mn t, the bulk of the increase came from higher volumes of spot imports into Houston, Texas, according to US Census data. Deliveries to other major ports in the US Gulf and east coast sank by 28pc. Deliveries of sulphuric acid into the port of Houston from January-October jumped to 264,200t, more than doubling the 115,100t arriving during the same period in 2023. Sulphuric acid imports to other ports in the Gulf coast and east coast fell significantly from January-October, dropping by 28pc to 359,800t compared with 497,900t during the same time in 2023. Spot trade into the US Gulf coast and southeast has been quiet for much of the year, aside from consistent spot shipments into Houston. Market participants expect the balanced nature of the market to continue through much of 2025, reducing the need for imports on contract and spot basis. Prices in a tightly-supplied global merchant market remain largely uneconomic for US-based distributors. The imbalanced relationship of prices in the US and the merchant market has kept bids far from offers, slowing spot trade into the Gulf coast and southeast. By Chris Mullins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
London, 30 December (Argus) — State-owned QatarEnergy Marketing raised its January Qatar Sulphur Price (QSP) to $166/t fob, up by $3/t from December's $163/t fob Ras Laffan/Mesaieed. The January QSP implies a delivered price to China of $185-191/t at current freight rates, which were last assessed on 19 December at $19-21/t to south China and $23-25/t to Chinese river ports for a 30,000-35,000t shipment. The announced montly QSP fob price has risen by $92/t over a year, from $74/t fob Qatar in January 2024. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Sao Paulo, 27 December (Argus) — Brazil is set to enter 2025 with a last-minute surge in demand for nitrogen-based fertilizers, as farmers continue to postpone purchases for the 2024-25 second corn crop. Around 10-15pc of all fertilizer needs have yet to be purchased for the corn crop, whose planting is expected to start by February in central-western Mato Grosso state. Brazilian farmers have been delaying agreements for inputs as they wait for lower fertilizer prices and higher grain prices. The most delayed fertilizer acquisition is urea, with buyers expecting further price drops before committing to volumes. Granular urea prices were at $359/metric tonnes (t) cfr Brazil by 19 December, $39/t above the same period in 2023. The overall pace of input purchases is in line with farmers' buying patterns for the 2023-24 corn crop and 2024-25 soybean crop, when growers also waited until the last minute to secure final volumes. Traditional 4Q buying surged delayed Brazilian buyers used to speed up the pace of fertilizer purchases in the fourth quarter to supply the second corn crop. This would give them time to receive the inputs in time for application, without last-minute logistic concerns. But unexpected changes in fertilizer price trends, combined with changes in the timing of the soybean crop, led farmers to change this buying pattern and wait as long as possible before concluding deals. Farmers' saw this last-minute buying strategy rewarded in early 2024 when urea prices were about $393/t cfr Brazil, below levels seen earlier in October 2023. And a delay in the 2024-25 soybean planting because of unfavorable weather conditions also contributed to postponed fertilizer acquisitions for corn, since the soybean harvest would likely be delayed and force farmers to plant corn outside the ideal period. Those factors are set to again push final urea purchases to January. Some volumes traded in November-December may discharge in ports in January, intensifying deliveries in the first months of the year. Brazil imported 7.6mn t of urea in January-November, 19pc above the same period in 2023. The latest lineup data from 26 December points to around 400,000t to be delivered at ports in December and 422,000t in January, according to maritime agency Unimar. Farmers focused on acquiring ammonium sulphate (amsul) volumes in the past three months, as prices carried a discount considering the nitrogen content compared with urea while also adding sulphur. There is plenty of available compacted/granular amsul, with Chinese producers eyeing Brazil as an outlet for the product. Imports of amsul totaled 5.1mn t in the first 11 months of the year, 18pc above the same period last year. A total of 596,000t and 1.2mn t were set to discharge in ports in December and January, respectively, according to Unimar's lineup data from 26 December. The trend is the same in the domestic market, with purchases advancing slowly. Some cooperatives and retailers bought volumes to guarantee availability when farmers decide to buy. Farmers are most advanced in theirs potash (MOP) acquisitions, as its lower-than-usual price has motivated farmers to buy the fertilizer for 2025-26 corn and soybeans. Market participants estimate that around 50pc of MOP needs in Mato Grosso for the 2025-26 soybean crop were purchased by early December. Demand has been high for the first quarter of 2025, leading to expectations of intense MOP deliveries at ports. This would mean a high flow in the inland market, competing with urea volumes handling in January-February. By Gisele Augusto Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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