All posts by mickeybarb@charter.net

Poland Has No Plans for New Fertilizer Subsidies Amid Falling Prices

News, News Briefs, Poland

Poland has no current plans to implement a new support mechanism for the country’s farmers given the recent declines in fertilizer prices and the hope that the recent falls will become a trend, according to Poland’s PAP Biznes, citing Poland’s Minister of Agriculture and Rural Development Henryk Kowalczyk responding to an MP inquiry.

According to the report, while the minister noted that despite fertilizer prices still staying at “very high” levels, price declines recorded in October and November “could mark the beginning of [an increasing] trend reversal … especially that gas prices on the European market are in a visible declining trend.”

Kowalczyk also pointed to “a slowly improving situation regarding fertilizer imports,” as indicated not only by increased imports of nitrogen fertilizers, but also multi-nutrient products.

Last March, Poland introduced a Pln3.9 billion (or approximately $913 billion at that time) program of subsidies to farmers due to rising fertilizer prices (GM March 25, 2022).

Poland’s biggest fertilizer producer, Grupa Azoty SA, lowered its prices of its fertilizer products effective from Feb. 1 (see Ammonia Markets ).The producer said the decision followed a stabilization of natural gas prices on the European market seen in January, and the price reductions were being implemented “despite strong year-over-year increases in the prices of other fertilizer production inputs, including electricity, coal, phosphate rock, and potassium chloride.”

Azoty highlighted that it was “another significant price revision” by the group in response to changing market conditions, following a similar one in October last year (GM Oct. 21, 2022).

The Polish group, though, is unhappy with what it described as “cheaper fertilizer products from around the world” being offered on the free market in the European Union (EU), “including fertilizers bought from Russia and Belarus, despite the war in Ukraine and sanctions, as well as the Middle East.”

Azoty said it does not comment on the quality of these “competitively priced” products from abroad or their efficiency in agricultural production, which, it said, are often impossible to verify before purchase.

The group also reminded that the costs of energy, raw materials, labor, and environmental fees in the aforementioned fertilizer producing countries are “significantly lower” compared with the EU.

Poland’s other fertilizer producer, Anwil SA, a unit of Poland’s biggest oil refiner, PKN Orlen SA, in a Jan. 28 statement highlighted that for its production it uses natural gas from outside of Russia, “the price of which is higher than that of raw material from the East.”

Anwil also reminded that in December last year, the European Commission decided to abolish import duties on ammonia and urea, which, it said “resulted in the inflow of these products from outside the EU and the deteriorating situation of European producers” (GM Dec. 23, 2022).

The company said it was considering “various options and scenarios for further action in response to the current macroeconomic conditions in order to optimize prices.”

In reference to certain publications, Anwil pointed out it has “only a 22% share in the Polish fertilizer market.”

Russia’s Fertilizer Output Falls 11% in 2022

News, News Briefs, Phosphate, Potash, Russia

Russian mineral fertilizer production fell 11% in 2022, to 23.5 million mt of active ingredient, Interfax reported, citing the Russian Federal State Statistics Service (Rosstat).

The overall year-over-year production decrease was due to a 32% fall in potassium chloride output, to 7.3 million mt of active ingredient.

In gross weight terms, potash output fell by 35%, according to the Russian Fertilizer Producers Association (RFFP). The drop was due to a reduction in exports due to sanctions and low demand among Russian farmers.

In contrast, phosphate fertilizer production rose 1%, to 4.4 million mt of active ingredient, and nitrogen fertilizer production was up 3.5% on the year, to 11.8 million mt.

In December alone, Russian fertilizer production fell 10% year-over-year to 2.1 million mt of active ingredient, but was nearly 14% higher than in November 2022, according to the report, citing Rosstat.

PhosAgro Posts 2022 Output of 11 Million Mt; Plans $955 M Capex in 2023

News, News Briefs, Phosphate, Russia

Russian fertilizer producer PJSC PhosAgro, Moscow, reported on Feb. 2 that its production of fertilizers increased to a record 11 million mt in full-year 2022, up from 10.31 million mt in the previous year, a year-over-year increase of nearly 7% (GM Dec. 23, 2022; Feb. 11, 2022).

PhosAgro CEO Mikhail Rybnikov said the production increase was achieved “in the face of external challenges” and the company maintained uninterrupted production, quickly redirected exports to new markets, and made a significant contribution to Russia’s food security by providing the country’s farmers with eco-efficient fertilizers.

Rybnikov said the company plans investments of nearly RUB67 billion (approximately $955 million at current exchange rates) this year.

He reiterated that PhosAgro’s most important project in 2023 will be when the phosphate-based fertilizer production facility in Volkhov in Russia’s Leningrad region reaches capacity. The company launched the first stage of MAP production at the new complex in March 2021, and under the original project plan was targeting ultimate capacity at the site of some 774,000 mt/y (GM March 12, 2021).

The CEO also said the implementation of the large-scale program for the development of the company’s ore and raw material resources in Kirovsk will continue, where the second start-up complex for the 10th horizon at the Kirovsky mine is expected to come online by the end of 2023.

In Cherepovets, in addition to the projects to support capacities for the production of ammonia, phosphoric acid, and sulfuric acid, PhosAgro plans to increase the processing of phosphate rock.

In Balakovo, the company said it is going to complete projects to increase the production of feed phosphates and sulfuric acid by the end of the year. Rybnikov added that PhosAgro will also be starting the third stage in the development of the Balakovo production facility by establishing a flexible arrangement for the production of MAP/DAP/NPS/NPK fertilizers this year.

Ukraine Includes Uralkali, Belaruskali in Latest Sanctions Round

Belarus, News, News Briefs, Potash, Russia, Ukraine

Ukraine has imposed fresh sanctions against Russia and Belarus, which include sanctions against Russian potash producer Uralkali PJSC and Belarus state-owned potash producer OJSC Belaruskali, according to a Reuters report, citing the list published by Ukraine’s National Security and Defense Council.

In total, Ukraine has implemented new sanctions against 182 Russian and Belarusian companies and three individuals. The sanctioned companies are primarily engaged in chemical production, the transportation of goods, and vehicle leasing.

Belarusian Railways, as well as transport leasing firms Russia’s VTB-Leasing and Gazprombank Leasing, have also been targeted in this latest round of sanctions.

Their assets in Ukraine are blocked, and their properties will be used for defense, the report cited Ukraine’s President Volodymyr Zelenskyy saying in a video address.

UK Delays Introduction of New Urea Fertilizer Rules

News, News Briefs, Specialty, United Kingdom, Urea

The UK’s Department for Environment & Rural Affairs’ (Defra) proposed solid urea fertilizer rules to be introduced to the “Red Tractor” farm assurance scheme from April 2023 have been delayed by a year, according to a report by Farmers Weekly.

Defra in March last year already had decided to delay the implementation until April 2023, at the earliest (GM April 1, 2022).

The original plan was for Red Tractor-assured farms in England to use only untreated urea fertilizers between Jan. 15 to March 31, and urease inhibitor-treated (a chemical that helps to slow the conversion of urea to ammonium) or protected urea fertilizers throughout the rest of the year.

However, given the current nitrogen fertilizer supply issues and price volatility, a formal request from an industry consortium, which included The National Institute of Agricultural Botany (Niab), The Association of Independent Crop Consultants, and the National Farmers Union (NFU), was made to delay the introduction until April 1, 2024, ahead of the 2025 fertilizer season.

Defra subsequently delayed the implementation, but is continuing to monitor progress on industry action and “will regulate if necessary,” according to the report.

The government department originally had been looking at a potential total ban on the use of solid urea fertilizer in the UK as the preferred option among two others, amid concerns that ammonia emissions from solid urea fertilizer use are harmful to the environment and to human health.

But Defra decided upon an alternative approach incorporating the two alternate options rather than a total ban.

Uralchem-Uralkali Humanitarian Shipment Reaches Mozambique

Africa, News, News Briefs, Russia

Russian fertilizer group Uralchem JSC said on Jan. 31 the 20,000 mt shipment of NPK fertilizers it donated free of charge to Malawi under the United Nations’ World Food Programme has been fully offloaded in Mozambique’s port of Beira for final onward transit by land (GM Nov. 11, 2022).

The tons were among other fertilizer tons produced by Uralchem and Uralkali PJSC (now owned by Uralchem) that have been held in EU ports as a result of sanctions on Russia.

The Malawi shipment is part of the group’s commitment to donating approximately 300,000 mt of mineral fertilizers to developing countries free of charge, said JSC CEO Dmitry Konyaev in the group’s Jan. 31 media statement.

K+S Tests Electromobility Underground

Germany, News, News Briefs

K+S Group, Kassel, is testing the use of electromobility in its German mines.

The fertilizer and salt producer said the suitability of the charging infrastructure and safety underground are currently being tested in addition to everyday suitability and range of the vehicles in the Hattorf-Wintershall mine of the Werra Integrated plant.

In the long term, K+S aims to replace diesel-powered vehicles with electric vehicles in all its mines.

“Electric vehicle operation in a mine poses special challenges,” said Lars Rickfelder, Head of Underground Technology at K+S Mining in a Feb. 1 statement by the company.

“Due to general conditions such as high ambient temperatures of up to 50 degrees Celsius, uneven road surfaces, and large inclines, all vehicles must have good off-road capability, which also has an impact on power consumption,” he said. “Many of the off-road vehicles and pickups are on the road all day in multi-shift operation, covering up to 100 kilometers per shift. They can only ever be charged for short periods in between, and charging facilities cannot be made available everywhere in the mines.

“Making sure the vehicles are ready to go at all times is not a trivial task, certainly not in a mine,” said Rickfelder.

ExxonMobil Evaluates Blue Ammonia for Proposed Texas Hydrogen Production Site

Blue Ammonia, Featured, Hydrogen, News, News Briefs, Norway, Texas, United Kingdom

ExxonMobil, Irving, Texas, on Jan. 30 announced the next step in the development of what it calls the world’s largest low-carbon hydrogen production facility with a contract award to Technip Energies, Paris, for front-end engineering and design (FEED). A final investment decision for the project is expected by 2024, subject to stakeholder support, regulatory permitting, and market conditions.

“This project allows us to offer significant volumes of low-carbon hydrogen and ammonia to third-party customers in support of their decarbonization efforts,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “In addition, the project is expected to enable up to a 30% reduction in Scope 1 and 2 emissions from our Baytown integrated complex, by switching from natural gas as a fuel source to low-carbon hydrogen.”

The project targets 1 billion cubic feet of low-carbon hydrogen per day, while capturing more than 98% of associated CO2 emissions, or 7 million mt/y. Offtake agreements are under discussion with third party customers.

ExxonMobil did not offer an approximate ammonia production capacity at this time, though ammonia is definitely under evaluation. “We are currently evaluating size/scope of ammonia production, and business fundamentals such as customer demand, completion of engineering work, permitting, and approvals will be factors in our assessment,” a company spokesperson told Green Markets.

The startup of ExxonMobil’s Baytown low-carbon hydrogen, ammonia, and carbon capture facility is planned for 2027-2028.

ExxonMobil is also considering a similar facility for its Southampton Fawley complex in the UK.

ExxonMobil said it will pair the world’s largest low-carbon hydrogen facility with the largest olefins plant in the US to deliver more sustainable, lower-emissions products for customers and society.

Last year, ExxonMobil announced an agreement to collaborate with CF Industries Holdings Inc. and EnLink Midstream to capture and permanently store up to 2 million mt/y of CO2 emissions from CF’s Donaldsonville, La., manufacturing facility (GM Oct. 14, 2022). Start-up for that project is for early 2025. As a result, CF expects to market up to 1.7 million mt/y of blue ammonia from the complex.

As previously announced, CF is investing $200 million to build a CO2 dehydration and compression unit at the Donaldsonville facility to enable captured CO2 to be transported and stored (GM Aug. 12, 2022). ExxonMobil will transport and permanently store the captured CO2 in secure geologic storage it owns in Vermilion Parish. ExxonMobil plans to develop a 125,000-acre CO2 storage location in the parish. As part of the project, ExxonMobil will use EnLink’s transportation network to deliver CO2 to storage. EnLink already has a system of over 4,000 miles of pipeline in the state.

ExxonMobil is also advancing green hydrogen and ammonia production at its Slagen terminal in Norway, having signed a Memorandum of Understanding with Grieg Edge Maritime, Bergen, Norway; North Ammonia, Oslo; and GreenH, Oslo, in June 2022 to study the project.

The companies are looking at the use of hydroelectric power to produce up to 20,000 mt/y of green hydrogen and distribute up to 100,000 mt/y of green ammonia. They see a possibility of the terminal directly supplying low-emission maritime fuels as it is located at the opening of the Oslofjord, where more than 10,000 ships pass through every year.

Ammonia

Ammonia, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, Poland, South Central, Southeast Asia, Southern Plains, Tampa, U.S. Gulf, Western Cornbelt

US Gulf/Tampa:

Tampa prices for February continued at $790/mt CFR, down from January’s $975/mt CFR. Most sources saw continued downward pressure on the market, citing both low natural gas prices and plentiful ammonia inventories in Europe and the US Gulf.

Eastern Cornbelt:

Ammonia prepay remained at $1,095-$1,110/st FOB in the Eastern Cornbelt, with the low confirmed at Lima, Ohio. Most Illinois and Indiana terminals were unchanged at the $1,100/st FOB mark for prepay tons, but sources said they expect a downward reset from producers in the next 2-3 weeks.

Western Cornbelt:

Spring prepay offers for ammonia were unchanged at $1,050-$1,100/st FOB in the Western Cornbelt, with the low in Nebraska and the high at Palmyra, Mo. Iowa terminals were reported in the $1,060-$1,070/st FOB range in late January. Sources said they expect lower prepay prices to be announced in the coming weeks, however.

Southern Plains:

Although spring prepay ammonia offers were steady at $875/st FOB Woodward, Okla., $900/st FOB Pryor, Okla., and $950/st FOB Verdigris, Okla., sources said prompt ammonia was being priced at $820/st FOB Borger, Texas, and $865-$870/st FOB in Oklahoma.

South Central:

In the wake of the Tampa February ammonia price drop, truck pricing for ammonia out of Gulf Coast terminals fell to $700-$710/st FOB, well below the previous $875-$880/st FOB range. Sources continued to report no new offers out of El Dorado, Ark., Midway, Tenn., or Cherokee, Ala.

India:

Sources reported a few small shipments being picked up from Asian suppliers at $780-$790/mt CFR. Major buyers have also continued to receive larger cargoes under contracts with Arab Gulf producers at about the same price level.

International traders said the lack of transparency in deals cut with the Asia suppliers makes for nervous buyers in the area. The best that most have been able to do is to triangulate prices based on their discussions, while also trying to make a deal.

Middle East:

Sources said that a sale to Turkey at $750/mt CFR indicated a netback to the Arab Gulf of $680/mt FOB. This level matches values estimated from closing prices in East Asia.

Sources said that any deal West of the Suez Canal would have to be in the $680-$690/mt FOB range. At the same time, sales to East Asia would have to be closer to $700/mt FOB to work. The drop in pricing and expectations of lower prices from buyers reflects the general attitude in the market.

Arab Gulf producers claim they are fully booked and have no incentive to lower prices. However, one trader noted that some producers are pushing out cargoes that must wait several days to unload at the receiving port. There are reports that in some locations, more than one ammonia vessel is waiting to discharge its cargo.

One source said that by shipping out product, even with delays on the receiving end, the producers can honestly claim they have no excess tons. However, said one trader, eventually the delays in unloading product could make it difficult to secure vessels to continue the practice. If that happens, he said, the producers will end up building up reserves. Buyers would then be expected to become more aggressive in demanding lower prices.

Iranian exports for 2022 were reported at 556,000 mt by Trade Data Monitor, up marginally from 541,000 mt exported in 2021. India bought 460,000 mt, accounting for 83% of the exported material.

December exports were counted at 66,000 mt, up from the year-ago 24,000 mt. India took 74% of the exports with 49,000 mt, followed by Oman with 13,000 mt.

Northwest Europe:

Panic related to high prices and limited material has been replaced with a steady confidence in lower prices and more product. Sources reported that Yara closed a deal out of Algeria showing a Northwest Europe price of $780-$790/mt CFR. This transaction comes on the heels of earlier reports of late-January deals in the $820s/mt CFR.

Sources said the lower natural gas prices now indicate an ammonia production cost of about $700/mt ex-plant. One trader said that at this level, there is still more room for prices to drop.

The lower prices were attributed to larger-than-expected natural gas reserves. The gas supplies are in good shape, said one trader, because the winter in Europe has so far been milder than expected, and buyers were aggressive in finding plentiful gas resources to replace Russian product that is no longer being sent to Europe.

Ammonia imports by Turkey softened to 796,000 mt in 2022, Trade Data Monitor reported, falling from 839,000 mt in 2021. Buyers reached out to a wide variety of suppliers after both marine exports from the Black Sea were halted due to the war in Ukraine and the subsequent shutdown of the ammonia pipeline to Odessa. Russia, Bahrain, Indonesia, and Algeria combined for about 60% of imports for the year. Russia led the way with 178,000 mt, for 22% of the market.

December ammonia imports stood at 92,000 mt, up 17% from 78,000 mt in the prior December. China was the top seller with 22,000 mt, representing about 24% of the monthly market, and just under 3% of Turkey’s 2022 ammonia imports.

Southeast Asia:

Taiwan reportedly bought a cargo from China at $780/mt CFR. Sources said limited demand from the area is helping push down prices.

Many of the Asian buyers, including India, looked to Asian suppliers from Indonesia, Malaysia, and China for their ammonia. Sources said buyers may soon find that tonnage from China is limited, as softer worldwide ammonia prices are making it less fruitful for Chinese sellers to offer product.

Indonesia might see a large increase in available ammonia. Sources speculated that because of an upcoming national election, urea producers will kick up production at all of their facilities to ensure plentiful supplies for the domestic market. The action could produce more ammonia than needed for urea production. The excess material will be offered on the open market, further driving down prices from the region.

Ammonia exports from Indonesia have already stepped up, Trade Data Monitor reported, rising to 1.9 million mt in 2022, up 7.75% from 1.8 million mt in 2021. South Korea took 26% of the exported product at 511,000 mt, followed by India with 302,000 mt. Japan received 197,000 mt.

December exports were reported at 143,000 mt, up from the year-ago 136,000 mt. Fourth-quarter exports rose to 483,000 mt from 377,000 mt in 4Q 2021.

Imports of ammonia into Thailand for 2022 were reported at 317,000 mt, off 28% year-over-year from 438,000 mt. The top suppliers were Malaysia with 215,000 mt, for 68% of the imports, and Indonesia with 85,000 mt. December imports totaled 11,000 mt, down from the prior-year 62,000 mt.

Poland:

AGrupa Azoty spokesperson confirmed to Green Markets that the Polish fertilizer and chemicals group is producing ammonia at “stable levels,” and intends to continue production at similar levels going forward. The spokesperson declined to comment on actual production volumes, however, either for ammonia or downstream fertilizer products.

Grupa Azoty has the capacity to produce a total of 3.14 million mt/y of ammonia group-wide, according tothe Green Markets database.

Given the stabilization of natural gas prices seen from the European market in January, Azoty said it would lower its fertilizer product prices as of Feb 1, despite strong year-over-year increases in the prices of other fertilizer production inputs, including electricity, coal, phosphate rock, and potassium chloride. The company described the price revision as another significant response to changing market conditions, following a similar one in October (GM Oct. 21, 2022).

The updated pricing will be applied by authorized Azoty distributors countrywide.

Urea

Bangladesh, Black Sea, Brazil, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, South Central, Southeast, Southern Europe, Southern Plains, Thailand, Turkey, U.S. Gulf, Urea, Western Cornbelt

US Gulf:

NOLA granular urea prices were reported in the $340-$360/st FOB range, down from the week-ago $340-$392/st FOB. Early-week numbers were put at the higher end of the range at $350-$360/st FOB, with prices hitting the $340/st FOB mark later in the week.

Eastern Cornbelt:

Urea pricing fell to $400-$415/st FOB Cincinnati, Ohio, during the week, well below the prior week’s $460-$470/st FOB offers. The upper end of the Eastern Cornbelt market was pegged at the $420-$425/st FOB level in Illinois on a spot basis.

Western Cornbelt:

Urea dropped to $380-$400/st FOB in the Western Cornbelt, down from the prior week’s $400-$450/st range. Sources pegged the St. Louis urea market at $390-$400/st FOB, well below the previous week’s $430-$450/st FOB range, while pricing in the Northern Plains slipped to $415-$430/st FOB St. Paul, Minn., down from $430-$460/st FOB the week before.

Southern Plains:

Urea slipped to $410-$430/st FOB Catoosa/Inola, Okla., with the lower numbers reported as the week progressed. Reference pricing at Houston, Texas, remained as high as $495/st FOB during the week, but sources reported no new business to test that level.

South Central:

Urea prices continued to fall in the South Central region. The market in early February was reported at $410-$425/st FOB, down from $430-$460/st the previous week, with the low confirmed at Memphis, Tenn., and the high at Convent, La.

Southeast:

Urea pricing out of port terminals in the Southeast fell to $460-$470/st FOB during the week, down from $490-$510/st at last report, with the low confirmed at Wilmington, N.C., and the high at Charleston, S.C.

India:

The IPL tender, calling for 600,000 mt to be shipped over a one-year period, closed on Feb. 1. As Green Markets went to press, no data from the tender was available. The tender was an unusual move, but one apparently designed to secure a steady supply of urea at rates lower than seen in the market’s occasional large spot tenders.

The urea industry is still waiting for word that a spot tender will be called. Bets are still being placed on the call to happen in the last half of February.

India’s fiscal-year 2023 national budget indicated a drop in urea subsidies. The total support for urea in the new budget was put at $16 billion, down from the fiscal-year 2022 budget allotment of $18.7 billion. Subsidies for domestically produced urea will be reduced to $12.7 billion from $14.4 billion in the prior period. The amount to support imported urea was pegged at $3.8 billion, down from $4.7 billion in fiscal-year 2022.

Middle East:

Arab producers keep holding to prices in the $420s/mt FOB despite being rejected by all buyers. Sources said the current price for any business to be completed is $400-$420/mt FOB. Buyers point to the paper market quotes of $385-$400/mt FOB for February to bolster their argument.

There have also been rumors of small deals that show a netback to the Arab Gulf of $340/mt FOB, although sources could not confirm the quantities or buyers. Some expressed doubts that such a low price was done so quickly.

The softer market is clear, however. Egypt producer MOPCO reportedly closed a deal at $410/mt FOB for February shipment, representing a drop of about $30/mt from Egypt’s last concluded business.

Urea exports from Iran grew by one-third in 2022, Trade Data Monitor reported. Exports were noted at 5 million mt for the year, up from 3.8 million mt in 2021. Turkey led buyers with 1.97 million mt, followed by 554,000 mt purchased by South Africa.

December exports were 440,000 mt, up 23% from the year-ago 359,000 mt, while July-December exports were put at 2.9 million mt, above 2.2 million mt in second-half 2021.

Thailand:

Trade Data Monitor reported 2022 urea imports at 1.8 million mt, off 21% from 2.2 million mt in 2021. The market’s primary suppliers were Saudi Arabia with 697,000 mt, Malaysia with 414,000 mt, and Qatar with 396,000 mt.

December imports rang in at 47,000 mt, more than double the market’s prior-year 20,000 mt total.

Indonesia:

The industry is still waiting for a selling tender, as expectations of a late-January tender were dashed. Now speculation is settling on the second half of February.

Sources said the delay may be part of an effort to ensure a plentiful supply of urea for the domestic market. National elections will be held later this year, and sources said the government does not want to have farmers concerned about urea supplies just as voters go to the polls.

Urea exports for 2022 totaled 1.8 million mt, Trade Data Monitor reported, off 13% from 2 million mt reported for 2021. Australia was the largest buyer with 373,000 mt, followed by India and the Philippines, taking 368,000 mt and 204,000 mt, respectively.

December exports were 40,000 mt, down from the prior-year 54,000 mt. By December, producers will normally have exhausted their export permits, so the shipment of small cargoes in for the month is not unusual. Tonnage shipped in December typically consists of deals made in October and November.

Turkey:

Imports of urea for 2022 were counted at 2.6 million mt, according to Trade Data Monitor, down slightly from 2.7 million mt imported in 2021. Turkey’s main suppliers were Oman with 1.5 million mt, accounting for 58% of the import market, and Egypt with 309,000 mt, for 12% of the market.

December imports stood at 332,000 mt, up 69% year-over-year from 196,000 mt. Egypt and Oman split the December market, with each sending about 126,000 mt.

Brazil:

Expectations of a softer market were borne out by prices reported at $390-$400/mt CFR. Sources said the downward drift is not yet done, as aggressive buyers are now pushing for tons in the $370s/mt CFR.

Rondonopolis reported priced down to $590/mt FOB ex-warehouse on limited trading.

Bangladesh:

State-owned Chittagong Urea Fertilizer Ltd. (CUFL) is re-commissioning its production facilities in mid-February, nearly three months after production was stopped on Nov. 22 following a fire at the ammonia plant in a reformer pipe (GM Nov. 25, 2022), according to a report by the country’s New Nation.

However, there are doubts whether the plant will actually restart production given ongoing gas shortages. The plant has a rated urea production of 1,200 mt/d and 1,000 mt/d of ammonia.

Southern Europe:

Buying interest for urea remains low and warehouse stocks high. In Turkey, there are reports of recent small sales of Egyptian granular tons in the mid-$440s/mt CFR duty paid.

Black Sea:

Sources now estimate the Black Sea prilled urea price at $315-$380/mt FOB. Availability of Russian urea remains limited, with product coming only from the limited ports on the far-eastern side of the Black Sea.