Kuwaiti state-owned KPC has set its November sulphur price at $135/t fob, up by $11/t from October.
This implies a delivered price to China of $158-164/t cfr at current freight rates, which were assessed on 31 October at $23-25/t to south China and $27-29/t to Chinese river ports for a 30,000-35,000t shipment.
London, 31 October (Argus) — Higher phosphoric acid prices for the fourth quarter will push India to rely more heavily on DAP imports and domestic production using imported phosphate rock and sulphur to build its DAP stocks. The Indian government said in a document issued in September that it will cover the losses incurred on imports over September 2024-March 2025, but it has not committed to covering the losses incurred on domestic production. Domestic DAP producers using imported phosphate rock and sulphur are achieving profits, but those using imported phosphoric acid are facing negative margins. Phosphoric acid price hike lifts cost of production Indian fertilizer importer and producer Coromandel this week agreed to a price of $1,060/t P2O5 cfr India for phosphoric acid in the fourth quarter with Jordanian supplier JPMC, which is up by $110/t P2O5 from the third-quarter phosphoric acid contract price. No other producer or importer has yet confirmed settling their respective phosphoric acid contract requirements for the fourth quarter. Argus calculates that importing phosphoric acid at $1,060/t P2O5 cfr and ammonia at $460/t cfr will bring the total cost of DAP production up to $647/t. Adding variable costs brings the total to about $684/t. This means that domestic DAP producers using imported phosphoric acid and ammonia will face negative margins of $64-65/t given the current maximum retail price (MRP) of 27,000 rupees/t ($321.12/t), nutrient-based subsidy (NBS) of Rs25,411/t — including the Rs3,500/t special additional package — and US dollar to rupee exchange. Without the Rs3,500/t special additional subsidy — due to expire at the end of December — the loss would rise to about $106/t. Meanwhile, with the delivered price at $635/t cfr, importers of DAP would currently face a loss of about $92/t, given the current MRP, NBS and exchange rate, and without the additional government support. Domestic DAP producers importing 67 BPL (30.66pc P2O5) phosphate rock at $145/t cfr and sulphur also at $145/t cfr will make a profit of about $47/t in current conditions. Firm interest in phosphate rock and disruptions to Syrian exports have supported prices for Jordanian product. Indications for 66-68 BPL (30.2-31.1pc P2O5) phosphate rock are now in the $130s/t fob Aqaba. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
London, 30 October (Argus) — Indian fertilizer importer and producer RCF has issued a tender to buy 30,000t each of NPK grades 10-26-26 and 15-15-15. The tender is to close on 8 November. RCF requests shipment from the loading port or ports by 20 November and delivery to India's east coast. The importer is also currently seeking 20-20-0+13S and/or phosphate rock in a tender that closes on 5 November. By David Maher Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
London, 29 October (Argus) — A group of three European companies has been selected for the first land allocation under the "Moroccan Offer" and intends to produce 200,000 t/yr of renewable ammonia for the European market in a first stage. France's TE H2, a joint venture between TotalEnergies and renewables developer Eren, has joined forces with Danish firms Copenhagen Infrastructure Partners (CIP) and A P Moller to develop the so-called Chbika project in the Guelmim-Oued Noun region on Morocco's Atlantic coast. They are planning to use 1GW of combined solar photovoltaic and wind power in the first phase for electrolysis of desalinated seawater to make hydrogen that will then be converted into ammonia. Production of 200,000 t/yr of ammonia could require some 35,000 t/yr of hydrogen. CIP and TE H2 will oversee development of power generation assets, hydrogen and ammonia plants, and A P Moller will develop a port in the area and associated logistics infrastructure. "This project will constitute the first phase of a development program aimed at creating a world-scale green hydrogen production hub," CIP said, suggesting that the companies could scale up operations at a later stage. The partners have signed a "preliminary contract for land reservation" with the government, CIP said, adding that this is "the first green hydrogen project" selected under the framework of the Moroccan Offer through which Rabat seeks to allocate land rights to project developers and to offer streamlined permitting procedures. The companies have not outlined a timeline for their project, but under the Moroccan Offer's framework they would have around two years to complete front-end engineering design (FEED) studies, before then signing a long-term land agreement. Through this first phase of the Moroccan Offer, Rabat is planning to make 300,000 hectares (ha) of government land available to 10-30 projects. As of early this month, the Moroccan Agency for Solar Energy (Masen), which is leading the process, had received some 40 applications for review. Masen was initially due to announce the first selections by the end of the third quarter. TotalEnergies previously already announced plans for renewable hydrogen production in Morocco, but it was not immediately clear if this joint project with CIP and A P Moller is related to these earlier ventures. Many large renewable hydrogen and ammonia projects are planned across Morocco as developers are hoping to capitalise on favourable renewable power conditions, but all are still in early planning stages. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Sao Paulo, 25 October (Argus) — Brazilian state-controlled oil company Petrobras will resume construction of its nitrogen-based fertilizer unit UFN-III in Tres Lagoas, in central-western Mato Grosso do Sul state. Petrobras' board of directors approved the restart of construction today. The unit — halted in 2014 — is 81pc complete and was initially scheduled to start operating in 2015. The company expects to invest R3.5bn ($614mn) to conclude the unit, whose operations may start in 2028. Petrobras will now start a process to contract third parties to resume building works. The announcement comes after Petrobras started a binding phase for the sale of the unit in August 2022, following a potential sale of the asset that was canceled in April 2022 . The decision is in line with the company's five-year strategic plan , which foresees increasing investments in the fertilizer sector. Petrobras announced in August investments of $159mn to restart its Araucaria Nitrogenados fertilizer unit. It also signed an agreement with Norway-based global fertilizer producer Yara to consider a potential partnership in Brazil's fertilizer sector and another agreement with Brazil's agriculture research center Embrapa to study the development of renewable feedstock for lower-carbon products such as fertilizers and biofuels. By Renata Cardarelli Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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