Industry closely watching Egypt

Concerns over huge demonstrations in Egypt were a main topic for the fertilizer industry last week, as Egypt in recent years has become a significant producer, particularly of urea. Although NOLA urea prices in the U.S. did spike during the week, sources said Egypt was likely not the only reason they cited Pakistan coming into the market for 225,000 mt, as well as buyers entering the market after prices initially sank.

For the U.S. urea market, Egypt provided 141,686 st for the fertilizer year July-November 2010, whereas YTD July-Nov. total urea imports into the U.S. have been 2.27 million st, according to the U.S. Department of Commerce. Urea imports from Egypt have doubled from last year, and overall U.S. imports are up significantly from the year-ago 1.74 million st.

For the most part, sources told Green Markets that product was still moving from the Egyptian ports, though later in the week there were reports of congestion. Of more concern was getting product by truck from the plants, most of which are inland, to the port.

“We are an equity owner in the facility with Egyptian partners,” said an Agrium Inc. spokesman on Feb. 1. “The MOPCO nitrogen facility is operating and exporting normally, the expansion of the two trains also continues on track. However, we are watching developments in Egypt closely.”

The situation heightened as the week progressed, however, as demonstrators supporting President Hosni Mubarak clashed with anti-Mubarak protesters. Friday, Feb. 4, could be a pivotal day as that was the time set by anti-Mubarak protesters for Mubarak to step down.

The protests did cause the Arab Fertilizer Association to cancel its conference, slated for the first week of February.

U.S. Imports of Egyptian Fertilizers (short tons)