Koch
Fertilizer (KF) said March 10 that it is investing approximately $150 million
at its Enid, Okla. nitrogen production facility to increase urea production and
enhance reliability of existing production units as well as improve rail
infrastructure and ammonia truck loading facilities. The project will increase production of ammonia
upgrade products. Once complete, KF Enid will be able to supply up to 1.8
million st of ammonia upgrade products annually. Construction is anticipated to
begin in 2021, with startup occurring in 2022.
Sources report urea
prices in China are now being quoted at $335-$340/mt FOB, down from
$360-$370/mt FOB just last week. The drop comes as production steps up in
China, currently at 160,000 mt/day and as reserves of nearly 10 million mt are
being released for sale. Sources said, however, strong demand in the United
States, Australia, Thailand and Brazil and reduced output in Southeast Asia
could lead to a price rebound. The price fluctuation also takes place as India
is preparing to call its first urea tender of the year, which could also lead
to further changes in pricing ideas. One trader said the market could face a
price bloodbath if the tender is called this week.
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