AMMONIA

U.S. Gulf/Tampa: The import and NOLA markets continue to be quiet; however, most players conceded that this cannot last for much longer. Citing expectations about weaker numbers in the Black Sea, sources expect November Tampa numbers to come off the $931/mt DEL that was posted for September and October. In addition, phosphate producers, who are seeking a $400/lt plus drop in sulfur prices, are also going to expect a significant cut from ammonia suppliers. For example, Mosaic has told analysts that despite lower phosphate prices it will continue to do well due to margins, and to get those margins sulfur and ammonia prices are going to have to come off. One reason they might is Mosaic’s own plans to cut 500,000-1 million tons of phosphate production over the next several months.

Eastern Cornbelt: The spot anhydrous ammonia market remained at a nominal $1,015-$1,050/st FOB regional terminals, with the low in Illinois. Spot business was all but nonexistent in the region, as most dealers have prepaid heavily for fall and remain jittery about market conditions going forward. Sources reported no firm offers for spring prepay ammonia.

Western Cornbelt: Anhydrous ammonia remained in the $985-$1,050/st FOB range for spot tons out of regional terminals, with no transactions reported to test the market.

Northern Plains: The ammonia market was pegged at $1,000-$1,050/st FOB terminals for spot tons, with delivered ammonia referenced at the $1,200/st mark in North Dakota. As with urea, sources said spot sales were all but nonexistent in the region in early October.

Eastern Canada: Little fertilizer activity was taking place due to a combination of factors, including a later-than-normal harvest activity and fall winter wheat planting, some recent wet weather, and likely rate cutbacks due to high input costs. According to one source, many farmers and dealers in the region are in “decision avoidance mode” due to mounting uncertainties about crop and fertilizer prices going forward.

As a result, spot pricing quotes for fertilizer were a little difficult to come by, with several sources acknowledging that “some of these need revision, but it’s very quiet.”

The dealer reference for ammonia was tagged at $1,315/mt FOB in Ontario for prompt tons, but sources said ammonia is a “non-event” in the fall and no spring prepay programs are circulating yet.

Black Sea: Sources remain concerned about the slide in prices. The Kiev Reference Price ?Çô the lowest price suggested by the national government ?Çô is currently at $800-$820/mt FOB, but Asian sources say the way the price is dropping the KRP will have to be changed quickly. Sources say each deal is fraught with the fear that the next one will be lower.

A little more than a month ago the industry was talking about a $900/mt FOB deal. Predictions of $1,000/mt FOB came freely from the bulls in the market. Now, only the most optimistic person is talking about the price staying in the $800s/mt FOB.

Middle East: In the absence of new spot business, sources say the price idea from the area remains in the low $900s/mt FOB. However, with the Yuzhnyy price sliding, eventually a new spot deal or tender from the area will have to reflect a significantly lower price.

UREA

U.S. Gulf: Across most markets last week, perhaps led by urea, there was a great hesitance to come forward and make a bid or buy product. The fear was too great that the next trade would be some $50/st below what you paid, so why not wait until the floor was clear. One player said buyers might bite if they could use an index; however, indexes need actual trades.

Several players honed in on $450/st FOB as a done deal later in the week. Others pegged the market still in the high $400s/st FOB to $500/st FOB earlier in the week. While some were skeptical of the $450/st FOB, others said the paper markets were trading in the low $400s/st FOB for November-December and had dropped below $400/st FOB for first quarter 2009.

Some players remained hopeful that in the near term demand from India and Brazil would help take up the slack. As for domestic producers, one noted that at least natural gas prices have weakened, which should help margins.

Galveston: Reports were that the CHS facility was able to load railcars last week and that it should not be long before it can receive vessel tonnage.

Eastern Cornbelt: Granular urea pricing continued a rapid decline last week. Sources quoted the regional market in a very broad range at $550-$650/st FOB to the dealer, with the upper end reported by Ohio sources early in the week and the low out of spot Illinois River locations as the week advanced. One Ohio source pegged the dealer price on Thursday at $565/st FOB in his location, although there was little business to actually test the market.

Western Cornbelt: The falling urea market remained a topic of interest, with sources quoting the regional terminal market at $550-$600/st FOB last week. That range reflected another $150/st drop from the previous week, and was down some $230-$250/st from dealer pricing levels just three weeks ago. An Iowa source said some suppliers were trying to hold to the $600/st FOB dealer number, but sales were virtually nonexistent at any price.

Northern Plains: Sources reported minimal buying activity and rapidly falling urea prices. Granular urea was reported at $600-$625/st FOB the Twin Cities early in the week, but some said $550/st FOB was doable there as the week advanced. Delivered urea in North Dakota was reported in a broad range at $675-$750/st, but sources reported no actual business to test the market last week.

Northeast: Although there was virtually no business to test the spot fertilizer markets, sources talked of significantly lower urea prices in the region. Sources tagged the granular urea market at $609-$625/st FOB, with the low reported in Philadelphia and the upper number quoted in Baltimore to the dealer. Those numbers are down some $220/st from just three weeks ago.

Eastern Canada: Granular urea was reported by some Ontario sources at $900-$910/mt FOB, while others said dealer reference prices were still as high as $1,008/mt FOB. Both numbers were down considerably from last report.

India: Good news and bad news. IPL called a tender for an unspecified quantity late last week, to close Oct. 15. Industry observers hope that the tender will stabilize prices and absorb the growing excess in supply.

The bad news is that IPL has reportedly walked away from the deals it signed in its last tender, leaving many cargos homeless.

The decision to scrap the old deals and look for better prices came as the market began dramatically falling. The results of the IPL tender in July were at $828-$830/mt CFR. When STC closed its deal last month, the price was at $685/mt CFR.

One trader said the IPL representative he talked to pointed to the softening market and the need for the Indian government to save money.

With urea heavily subsidized, the drop in price by almost $200/mt represents a significant savings for the Indian treasury.

Sources report that IPL agents did not engage in the usual pre-tender talks in the hopes of nailing down a low price. One Asian player said the cancellation of the July orders left IPL with little credibility in the market.

Even with the complaints about the way IPL reportedly has handled its current commitments, sources say a lot of traders and producers will participate in the tender. The most commonly heard phrase was, “It’s the only game in town.”

With the rest of the Asian markets quiet and Latin American buyers sitting back waiting for better prices, India is indeed the only game in town.

How many tons IPL takes will depend on the offering price. Sources say the Middle East producers will most likely be very aggressive in their offers. At the same time, traders holding long positions of Yuzhnyy material are expected to fight for an award.

Black Sea: Sources report the price has dropped below $500/mt FOB and is expected to slide further. Initial hope that an IPL tender would stop the price slide has changed to hopes that it will slow down the slide.

Reportedly, a number of traders are holding long positions they are anxious to sell. The problem is that some of those tons were initially booked in the $600s/mt FOB.

Asian sources say the market is easy at $495-$500/mt FOB, with a good likelihood that the price could slide to $485-$490/mt FOB by the opening bell this week. The offers in the IPL tender that closes Oct. 15 will also probably indicate an even further slide.

Middle East: Asian sources say the Middle East producers will have to be very aggressive if they hope to secure an award in the IPL tender.

Producers offered tons at $705-$707/mt FOB in the STC tender last month. At the time those offers were aggressive but not enough to snare business, especially in light of the Helm offer that ended at $685/mt CFR.

Even though the regional producers have many contracts that involve shipments to places around the globe, sources now say some reserves are beginning to build up.

To be competitive as the week ended, sources said the producers would have to drop their prices to at least $520/mt FOB. By the time the IPL tender closes, however, observers say another $20-$30/mt will have to be shaved off.

Until the offers in the IPL tender are revealed, the regional market remains at $705-$707/mt FOB for prills and granular. The material that is being shipped is all under long-term contracts – such as the granular urea to the U.S. – or under special aid packages such as the urea flowing from Saudi Arabia to Pakistan.

Indonesia: Sources expect PIM to announce one more selling tender this week. They expect 20,000 mt to be offered for prompt loading. Chances are whatever is won in that tender will end up in India as part of an IPL award. Sources say the price will be significantly off the current $695/mt FOB that was paid in the last tender.

China: As expected, the government reduced the export duty on urea and other fertilizers to 25 percent from 35 percent. It kept in place the extraordinary export duty of 150 percent, for a total export duty of 175 percent.

Sources say the government is re-evaluating its export duty regime. More tons are staying in the country because of the high duty, depressing prices. The producers are upset with the losses they are beginning to face as the price drops.

Reportedly, the planners in Beijing are looking at ways to stabilize prices in a way that helps keep the plants running without subsidies and keeps the farmers from complaining about high-priced inputs.

Asia: Traders are reporting that credit for purchases is drying up on the heels of the global credit crunch.

Even as international traders are feeling the pinch, sources say local buyers are also having an increasingly difficult time securing the financing for inputs. The problems being faced by local farmers and distributors are working their way up the supply chain.

A doubling in short-term interest rates, along with less money being made available, is causing some potential buyers to rethink their purchasing strategies. At least one trading house has reported potential buyers citing the credit crunch as a detriment to finalizing a deal.

Pakistan: The MV Vertigo, carrying a quantity of 23,973 mt of urea from Saudi Arabia, has berthed at Karachi and started off-loading on a speedy basis, according to TCP. The urea will be going to the National Fertilizer Corp. for immediate distribution to growers. This is the second shipment in four weeks.

NITROGEN SOLUTIONS

U.S. Gulf: Finding actual new trades was difficult last week, as UAN may pose even more of a problem than urea. Sources say most inventories are full and there are few places to go with any new sales. While $470/st FOB appeared to be the last done, some players said they would not be surprised if the next actual business was sub-$400/st FOB.

Eastern Cornbelt: UAN was reported at $15.20-$16.00/unit FOB regional terminals, although according to one source, “no one is asking.”

Western Cornbelt: Although minimal new business was reported to test the market, most sources pegged the UAN range down slightly at $15.50-$16.00/unit FOB regional terminals last week. The upper end reflected dealer list prices from some regional suppliers.

Northern Plains: The UAN market was quoted at a nominal $16.00-$16.75/unit FOB regional terminals for spot tons to the dealer, but sources reported no sales to test the market.

Northeast: The UAN-30 market was quoted at $460-$465/st ($15.33-$15.50/unit) FOB Baltimore and Philadelphia to the dealer. Some speculated that spot deals could be had under that range, but no one was buying. The dealer market out of terminals in upstate New York was pegged at $16.50-$16.75/unit FOB.

As for replacement UAN values, sources were at a loss due to the lack of activity. One industry source, however, said the perception is that new replacement costs would be well under the last business done, which was at the $500/mt CFR level.

Eastern Canada: The UAN-28 market was also reported in a very broad range, with the low quoted at $540/mt ($19.28/unit) FOB for prompt tons and the high pegged in the $593-$596/mt ($21.18-$21.29/unit) FOB range. One Ontario source quoted the UAN-32 market last week at a $676/mt ($21.13/unit) FOB reference level to the dealer.

AMMONIUM NITRATE

U.S. Gulf: Unlike urea and UAN, sources said nitrate was more apt to do its own thing. Still, no new sales were reported last week to test the market. There was speculation that the next business might be within the $480-$490/st FOB range, but nothing firm was reported.

Western Cornbelt: Ammonium nitrate was pegged at $560-$575/st FOB in the region, down slightly from last report.

Eastern Canada: The most recent spot quote for ammonium nitrate was $875/mt FOB, but sources were unsure of the market last week.

AMMONIUM SULFATE

Eastern Cornbelt: Granular ammonium sulfate remained at $495-$505/st FOB in the region.

Western Cornbelt: Granular ammonium sulfate was quoted in a broad range at $475-$505/st FOB in the region, with the low reported on a spot basis in Missouri and the upper level reflecting dealer reference pricing from some suppliers.

Northern Plains: Granular ammonium sulfate was down from last report as well. As of Oct. 6, sources reported reference pricing at $470/st DEL in North Dakota, $475/st DEL in South Dakota, and $480/st DEL in northern Minnesota. Those prices reflect a $55/st drop from last report.

Northeast: Granular ammonium sulfate remained at $475-$500/st FOB in the region. The dealer market FOB Philadelphia was reported at $492-$500/st FOB last week.

Eastern Canada: Granular ammonium sulfate was reported at $592-$600/mt FOB in Ontario, with mid-grade sulfate referenced at the $585/mt FOB mark at some locations.

PHOSPHATES

Central Florida: A few months ago when the market was still a charging bull, Mosaic took a lot of orders at prices that soon trailed the market – and some questioned that decision. A bit more recently the market hit a soft spot on the road and ground to a halt, and now Mosaic looks like a rocket scientist since it was still loading those old orders last week. More than a month had passed last week and not a single new sale has been made, at least nothing more than could be called a tidbit.

“It’s hard to tell what’s going on in the market when nothing is moving,” a trader said, and added he hadn’t even seen an offer for Central Florida phosphate in over a month.

Farmers have not started harvesting their corn crops and will not begin buying fertilizers of any kind until that job is done. A source said, “They don’t seem to be in any hurry.”

Mosaic had already begun the curtailment of production at various plants that it recently announced, but no specific plant was cited. Instead, reduction in production at multiple facilities will occur, and the time will be used to make repairs and improvements to various facilities at the processing plants during that time. The curtailment will likely amount to between 100,000 st and 150,000 st a month, and will total 500,000 to 1 million st.

Agrifos was in the process of restarting its processing plant at Pasadena last week after repairs from damage done by Hurricane Ike were completed. Barring any unforeseen problems, some production should have begun by the end of last week. The company has not set prices as of last week. Production lost due to storm damage was approximately 5,000 st.

The Central Florida DAP price range last week remained at $1,070-$1,080/st FOB, but the real price will be lower once the fall season begins. PCS Sales’s Central Florida reference price was unchanged at $1,070/st FOB for DAP and had a $25/st FOB premium for MAP. Mosaic’s asking price was $1,090/st FOB for DAP and $1,115/st FOB for MAP. CF’s price was $1,040/st FOB for DAP, and its MAP was priced at $1,100/st FOB. In Texas, Agrifos’ last price for DAP was $1,050/st FOB for trucks and $1,045/st FOB for rail shipments, but new prices were expected after production resumes.

U.S. Gulf: The NOLA DAP barge prices continue to fall. Last week, onlookers finally got a good look at what’s happening – to the chagrin of some and down to the expectations of others. A deal was done at a price far below anything conducted during the past couple of months – three to four barges priced in the range of $832-$835/st FOB. Offers were made, but not accepted, at prices between $810/st FOB and $815/st FOB. However, there was a hook – not that many NOLA DAP barges were even on the river.

The strange situation was that farmers had not harvested their corn crops in most of the Midwest, dealers still had plenty of product in inventory, and prices were coming down, but if demand was to suddenly take off, there would not be enough available to meet the need. The law of supply and demand was being observed about as well as spitting on the sidewalk. It really doesn’t matter as long as no one slips and falls.

The exception was Oklahoma, where winter wheat was finally going in the ground and warehouse sales were just beginning to take off, although how busy and how much will be used there were still unknown late last week.

In order to get a barge to beat the closed river it would have to have been on the water and moving last Friday. With farmers in no particular hurry to harvest their crops, dealers can take their time selling what they have before reordering. When the dealers’ supplies run out, the beneficiaries are going to be those with tons in place in the closed river area – mostly producers.

Cutbacks in production by Mosaic at both Donaldsonville and Central Florida and the loss of Agrifos’ production for a month (about 5,000 st) should mean inventories were down, but they were not. However, product will still have to start moving before any of that will help – when it’s needed.

The price of corn dropped steadily last week, down to $4.11/bushel on Wednesday, but that should not be a problem. Much of the corn was sold at significantly higher prices earlier in the season, and current input cost – fuel and fertilizer – for farmers has been dropping rapidly. Overall, balance should be achieved.

The credit crisis had not hit the fertilizer and agricultural industries last week for a couple of reasons. One was that both had very good seasons recently and have cash on hand, and the other was the delay of the fall season, so the money was not needed – yet.

There was no doubt farmers will need phosphate for the fall season – the questions were how much and when.

The NOLA DAP barge price range dropped last week to $832-$835/st FOB based on actual sales. MAP barges were running $25-$60/st FOB more than DAP. Mosaic’s asking price for NOLA DAP barges was $1,100/st FOB and $1,125/st FOB for MAP. CF was seeking $1,050/st FOB for DAP and to $1,110/st FOB for MAP for prompt deliveries. As of last week, asking prices meant little to the market.

Eastern Cornbelt: Sources continued to talk of growers scaling back phosphate and potash application rates this fall, with one calling it a “backlash” from growers faced with substantially higher retail prices.

The DAP market was reported in a broad range at $965-$1,020/st FOB, with the upper end reported in Ohio early in the week. Those numbers reflected another drop from the previous week. MAP was $25/st higher than DAP. 10-34-0 was quoted at $1,150-$1,200/st FOB for very limited tons, with the low in Ohio on a spot basis.

Western Cornbelt: DAP pricing continued to slide. Sources quoted the dealer market at $960-$1,000/st FOB regional warehouses, with the low FOB St. Louis. An Iowa source reported a $995/st FOB number late in the week. MAP was $25/st higher than DAP. Sources reported no sales taking place.

10-34-0 remained at $1,200-$1,250/st FOB in the region.

Northern Plains: DAP was quoted at $980-$1,020/st FOB regional warehouses to the dealer, with MAP $25/st higher. A North Dakota source quoted delivered MAP at the $1,050/st level from western shipping points, which was down some $100/st from last report. North Dakota sources also quoted delivered 10-34-0 last week at $1,325/st.

Northeast: The DAP market was quoted at $1,032-$1,050/st FOB, with the low in Philadelphia. MAP was tagged at $1,047-$1,067/st FOB in the region. Both ranges were down considerably from last report. One Pennsylvania dealer said he anticipates sizable cutbacks in fall phosphate and potash usage, noting a big drop in winter wheat acres in his trade area.

10-34-0 remained at $1,100/st FOB in the region.

Eastern Canada: MAP was tagged at $1,325-$1,387/mt FOB in the region, with DAP reported at $1,300-$1,350/mt FOB. One Ontario source quoted the TSP market firmly at the $1,340/mt FOB level last week. Sources said many dealers were loaded to the rafters with phosphates and potash.

U.S. Export: PhosChem sold a panamax load of DAP, about 50,000 mt, to India at a price that worked out to around $1,015 mt, based on a delivered price of $1,070/mt with a freight cost of about $55/mt. The Indian customer was also believed to have purchased about 250,000 mt from other vendors, most likely Russian. All of those prices were below the previous range based on actual sales, but above the estimated price. A source said the reason for the lower price was that India subsidizes fertilizer purchases, which was an incentive for the customer to buy.

Other possible markets for relatively small loads were in Latin America, but generally export sales are slow at this time of year.

Based on the sales to India last week, the export DAP price range fell from $1,160-$1,215/mt FOB to $1,013-$1,015/mt FOB.

Bangladesh: BCIC has reissued a tender to import 15,000 mt (72 percent BPL Min.) of phosphate rock. Offers are due Oct. 22 and are to remain valid for 30 days.

India: Sources report that a small amount of new phos acid business may have been negotiated at $1,920/mt CFR. However, citing lower sulfur prices, other buyers are seeking $1,650-$1,750/mt CFR.

POTASH

Eastern Cornbelt: Although there were some claiming isolated spot sales of potash available from resellers for as low as $870/st FOB last week, most continued to place the dealer market in the $900-$930/st FOB range. Some also talked of reference levels as high as $950/st FOB for brokered tons in early October.

Western Cornbelt: Potash was steady at $900-$935/st FOB regional warehouses, depending on grade and location.

Northern Plains: Potash remained at $900-$925/st FOB level for brokered or resellers tons out of Minnesota warehouse locations. A Dakota source pegged the delivered potash market in a broad range at $900-$950/st, with the upper end on the western edge of the state. Potash postings FOB Saskatchewan mines for the Sept. 1 through Nov. 30 shipping period include $767/st FOB for standard, $780/st FOB for soluble, $772/st FOB for granular, and $780/st FOB for white granular.

Northeast: The potash market was tagged at $897-$950/st FOB, with the upper level reported for very limited tons of brokered white soluble potash. The low end was reported for coarse potash FOB E. Liverpool.

Eastern Canada: Potash was quoted at $932-$941/mt FOB and $949-$958/mt rail-DEL in Ontario, depending on grade, with the upper end of both ranges reported for white granular product.

The potash price at the mine FOB Sussex, N.B., was at $923/mt FOB for the Sept. 1 to Nov. 30 shipping period. The red granular potash market for Canadian customers FOB Saskatchewan mines was reported at the $888/mt FOB level for Sept. 1 through Nov. 30.

The K-Mag market was quoted at $523/mt FOB, and sulfate of potash was reportedly referenced as high as $1,300/mt FOB in Ontario.

SULFUR

Tampa: After one contract for fourth-quarter pricing broke the logjam late the previous week and was settled at $300/lt down from the previous quarter, that deal was cancelled and the phosphate and sulfur industries returned to the trenches. A source said Mosaic was seeking a reduction to a price between $150/lt and $175/lt, which amounted to price cut of $440-$465/lt from the third quarter. The phosphate industry pointed to the rapidly falling world market. Not surprisingly, the sulfur industry did not immediately jump on the settlement, and a final deal will not likely occur for another couple of weeks. When prices began to rise quarter-by-quarter, a source said it would come down far faster than it went up, which was apparently accurate.

Meanwhile, refineries on the Gulf Coast were mostly back to service except Galveston, and inventories were building. At the same time, Mosaic was instituting its phosphate production curtailment at both Donaldsonville and Central Florida and will need less sulfur as a result.

With phosphate prices beginning to take a tumble and inventories building in a slow domestic and international market, a new low price for sulfur could be their salvation. It was not an opportunity they were likely to let slide.

Vancouver: Inventories were building at Vancouver last week, and sulfur vessels had no homes. Soon, new contracts will be signed and prices will take a sharp drop.

At the same time, China continued to sit it out as of late last week and will probably continue to do so as long as the world market remains in freefall. The sulfur demand there was seasonal and it can rely on its inventories for a time, but no one was clear on how long that would be. When they do come back in the market, prices will be lower.

A source said China was re-exporting some of the expensive – $800/mt – sulfur it purchased earlier at around $100/mt, because the phosphate industry there cannot make export sales due to the 135 percent export duty on phosphates and a difficult local market. Based on that, China had no reason to reach a deal with any importers.

Pakistan: Pak-Arab Refinery Ltd. has issued a tender to sell 6,000 mt of sulfur between November-December. The minimum base price is US$385/mt. Bids were due Oct. 15.

MARKET NOTES

India: In the wake of plans to bring more area under cultivation during the coming rabi sowing season, the government expects the demand for fertilizer to rise significantly, which could harm crop yields if adequate availability was not ensured in time. According to an official document, the country would need around 14.42 million mt of urea for the coming rabi season, which is almost 3.09 percent more than the same season last year; 5.02 million mt DAP, up almost 6 percent; and 2.06 million mt of MOP, up almost 5.36 percent from last year. However, the demand for complex fertilizers is expected to fall by around 7 percent, to 4.33 million mt.

Last year, rabi crops were cultivated in around 50.28 million hectares; the country plans to scale up to 53.29 million hectares to make good the losses suffered due to floods during the ongoing kharif season, a senior government official said. Of this, around 28.5 million hectares has been targeted for wheat, up from last year’s actual acreage of 28.19 million hectares. The area under rice is expected to be the same as last year at 4.38 million hectares. Meanwhile, the availability of urea during the current kharif sowing season has been largely below requirement, and barring the availability of MOP, supplies of all others – namely urea, DAP, and complex fertilizers – have been below requirement until Aug. 31, 2008.

Official documents show that until Aug. 31, around 10.99 million mt of urea have been made available to farmers against a requirement of 13.71 million mt. In the case of DAP, around 3.91million mt have been made available against a requirement of 4.27 million mt, while in case of complex fertilizers around 2.85 million mt were available, against a requirement of 4.89 million mt. Only in the case of MOP were supplies more than required. Around 1.78 million mt of MOP was supplied to farmers, against a requirement of 1.72 million mt.

India: The Indian Farmers’ Fertiliser Cooperative Ltd. (IFFCO) may pull out of its Egyptian joint venture with El Nasr for manufacturing and importing phosphoric acid. It has now zeroed in on Jordan, another rock phosphate-rich country, and has incorporated a joint venture company – Jordan India Fertiliser Co. – with the country’s largest rock phosphate miner, Jordan Phosphate Mining Co. (JPMC). Utilities and other facilities are proposed to come up adjacent to the Eshydia mines in Jordan. According to IFFCO Managing Director Dr. U.S. Awasthi, the Egyptian government wanted to change the basic concept with which the joint venture started. “Earlier they said it would be a private free zone, but now they are saying there would be no private free zone and so no concessions would be available,” he said. Awasthi said that with changed market conditions, the Egyptian partner wants all the agreements to be renegotiated. Pointing out that in Egypt laws change frequently and become effective retroactively, he said that “it seems that their entire regulatory framework is too Government-centered, unlike many other countries.”

The MOU with the Jordan company was signed in February of this year, and the company has also been incorporated. “We are now in talks with the consultants and contractors for giving the whole issue a final shape,” said Awasthi. There are two basic differences between the two joint ventures. While in the Egyptian venture IFFCO had 74 percent, in the case of Jordan the cooperative will hold 52 percent, with the foreign partner holding the remaining 48 percent. Simultaneously, investment would also go up from the stipulated $325 million in Egypt to an estimated $350 million in Jordan.

Pakistan: Pakistan’s Privatization Commission (PC) has approved the highest offer of Rs.1. 34 billion (US$17.179 million) at the rate of Rs.70 per share for 100 percent of the shares for the sale of Hazara Phosphate Fertilizers (Private) Ltd. (HPFL). It received the offer from Pak American Fertilizers Ltd., Lahore, during an open bidding process. The National Fertilizer Corp. of Pakistan (Private Ltd. (NFC) owns Hazara, which has a production capacity of 90,000 mt/y of SSP and 110 mt/d of sulfuric acid.