All Posts from December 28, 2017

NFL Issues Urea Awards at Lower Prices

Breaking Industry News, Urea

National Fertilizer Ltd. issued awards totaling 387,000 mt at prices slightly below the lowest offer in the tender. East Coast prices dropped to $262.89/mt CFR and the West Coast to $258.88/mt CFR.

The lowest offers in the tender were by Eastern Commodity at $263.03 for the East Coast and $259.02/mt CFR for the West Coast.

The awards went to three companies – Eastern Commodity, Transagri and Comzest. All tonnage reportedly is coming from Iran. Sources said lower prices came because Iran was anxious to liquidate its stockpiles to help move up market prices. One source noted the Iranian focus on India meant no Persian tons were available for an Ethiopia tender that closed this week.

The awards still leave India about 120,000 mt short of what sources said the country needs to end the current season and have enough on hand to start the next.

The awarded product must be shipped by Jan. 20.

ADNOC, OCP Ink Long-Term Sulfur Supply Deal

ADNOC - Abu Dhabi, Breaking Industry News, Sulfur

The Abu Dhabi National Oil Co. (ADNOC) and the OCP Group of Morocco (OCP) have announced the signing of a long-term sales agreement whereby ADNOC will supply OCP with granulated sulfur.

Under the agreement, ADNOC, the world’s largest exporter of sulfur, will steadily supply OCP, the largest worldwide sulfur importer, until 2025. The two parties agreed to consider a gradual increase of the contracted annual volumes. ADNOC exported more than 2 million mt of granulated sulfur to Morocco in 2016.

“Since 2008, OCP has initiated the largest investment program in the fertilizer industry with the objective of doubling its mining capacity and tripling its fertilizer capacity,” said Mustapha El Ouafi, OCP managing director. “Our ambitious program will see OCP further strengthen its position as the world’s largest fertilizer producer and a leading player in the agribusiness value chain. As such, we are committed to further developing a reliable and strategic partnership with ADNOC, the world’s largest sulfur exporter.”

ADNOC and partners produce more than 6 million mt of sulfur annually, exporting it to customers from its handling facilities in Ruwais. The amount of sulfur available for export will increase over the next decade as ADNOC and partners brings new sour gas projects on line, as part of its plans to achieve gas self-sufficiency by 2030.

OCI Increases Stake in OCI Partners

Breaking Industry News

OCI NV has agreed to acquire 7.3 million common units of OCI Partners LP at a total cost of $61 million, implying $8.40 per common unit. The units are being purchased from certain minority unitholders in privately negotiated transactions and represent 8.4 percent of total issued and outstanding common units of OCI Partners. OCI NV expected to complete the acquisition of the units Dec. 27, 2017. Following the transaction, OCI’s ownership in OCI Partners would stand at 88.25 percent.

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