Fertilizers - navigating the global downturn

Date:08-03-2020

The sharp global economic downturn caused by the coronavirus pandemic and the collapse in crude oil prices has wide-ranging implications for the fertilizers industry.

Bookmark this Topic Page to stay up to date at this unprecedented time with expert insight and analysis of the impact these developments are having on fertilizer markets.

LATEST HEADLINES

India's FACT ditches latest ammonia purchase tender due to high offers

By Richard Ewing 29-Jul-20 LONDON (ICIS)--Fertilisers and Chemicals Travancore (FACT) on Wednesday scrapped its third ammonia purchase tender in four weeks after another batch of unfavourable offers.

The Indian company had been seeking around 7,500 tonnes of the nitrogen fertilizer for late Q3 delivery to Kochi (Cochin), but offers from three suppliers were all rejected as too high.

India clarifies and says Chinese urea acceptable via traders in tender

By Deepika Thapliyal 28-Jul-20 LONDON (ICIS)--Indian state-run fertilizer importer MMTC Limited has issued a revised addendum to its 30 July urea tender and removed a clause that did not allow traders to offer Chinese urea without registering with the relevant Indian authorities.

Chinese companies still need to register with the Department for Promotion of Industry and Internal Trade (DPIIT) before offering in any tenders in India, according to the revised addendum from MMTC.

MMTC removed a clause that required subcontractors of Chinese product to register with the DPIIT. This will allow non-Chinese traders to offer Chinese urea in the tender, without needing to register with the DPIIT.

Tampa contract for ammonia cargoes rolls over for first time in months

By Richard Ewing 27-Jul-20 LONDON (ICIS)--Fertilizer majors Mosaic and Yara on Friday agreed a rollover in the monthly contract for August loadings of ammonia for Tampa - the first time since early Q2 the key US index did not drop.

The untouched figure of $205/tonne CFR (cost & freight) from July was met with surprise by some industry players who had predicted a fresh fall amid oversupply and bearish sentiment west of Suez.

Ukrainian ammonia and urea producer OPZ finalises gas tolling tender shortlist

By Richard Ewing 21-Jul-20 LONDON (ICIS)--Ukraine's Odessa Port Plant (OPZ) on Tuesday unveiled the shortlist of companies chasing its gas tolling tender, with three suppliers invited to participate in Thursday's electronic auction on commodity exchange Polonex.

At noon local time on 23 July, the state-owned ammonia and urea producer will consider offers from IBE Trade Corp, Maddox SA and current supplier Agro Gas Trading (AGT) for the ten-month tender.

US to investigate phosphate imports from Russia, Morocco

By Julia Meehan 20-Jul-20 LONDON (ICIS)--The US' Department of Commerce (DOC) has announced the initiation of new countervailing duty (CVD) investigations to determine whether producers of phosphate fertilizers in Morocco and Russia are receiving unfair subsidies.

On 26 June, Mosaic announced that it was filing petitions with the DOC and the US International Trade Commission (USITC) to initiate the investigation.

PODCAST: USDA sees less acreage leading to lower ending stocks in July WASDE

By Sylvia Traganida 15-Jul-20 LONDON (ICIS)--Fertilizers senior editor Mark Milam discusses the July World Agricultural Supply and Demand Estimate report from the US Department of Agriculture (USDA), which revealed expectations of lower corn supply and ending stocks because less acreage was sowed this spring.

Ukrainian fertilizer producer OPZ receives five offers in gas tolling tender

By Richard Ewing 14-Jul-20 LONDON (ICIS)--Ukrainian urea and ammonia manufacturer Odessa Port Plant (OPZ) on Tuesday revealed it received five offers under its 13 July gas tolling tender, including an approach from current supplier Agro Gas Trading (AGT).

The remaining quartet comprises IBE Trade Corp, Maddox SA, OKKO Contract Private Enterprise, and SOCAR Energy Ukraine Limited Liability Company, OPZ noted in a short statement on its website not immediately available in English.

Key pair in Ukrainian ammonia transit sector meet for first time since 2010

By Richard Ewing 10-Jul-20 LONDON (ICIS)--Ukrainian ammonia and urea producer Odessa Port Plant (OPZ) on Friday announced a "fruitful" meeting with ammonia pipeline operator Ukrhimtransamiak – the pair's first such talks in a decade.

During discussions between the heads of the state-owned enterprises, the main topic was further cooperation focused on maintaining the balance of transit and transshipment of ammonia.

Regional supply glut prompts latest cut in Caribbean ammonia capacity

By Richard Ewing 10-Jul-20 LONDON (ICIS)--Only a handful of spot deals were confirmed in the international ammonia market, leaving the latest capacity cut in Trinidad as the main talking point.

Trinidad Nitrogen Company Limited's (Tringen) 500,000 tonne/year plant will go offline in August for an undisclosed period, just weeks after Canadian giant Nutrien idled a pair of 600,000 tonne/year units on the island.

Re-imposed lockdowns, rise in Covid-19 cases cast shadow on crude oil market - IEA

By Jonathan Lopez 10-Jul-20 LONDON (ICIS)--Re-imposed lockdowns in Latin and North America and the pandemic’s resurgence are “casting a shadow” over the outlook for global crude oil rebalancing despite output continuing to fall at pace in June, the International Energy Agency (IEA) said on Friday.

The IEA certified that economic activity is recovering and the worst for the oil market may have passed after the historic falls in demand in April and May as up to 4bn people were placed under some sort of lockdown to contain the spread of coronavirus.

Fertilizer prices to remain low over next six months - bank

By Julia Meehan 6-Jul-20 LONDON (ICIS)--Fertilizers prices are expected to remain low over the next six months owing to the plummeting cost of raw materials, growing production capacity, and mediocre demand, according to Dutch investment bank Rabobank.

In the bank's Semi-Annual Global Fertilizer Outlook, published in June, analysts said the decreasing energy prices on the back of the coronavirus pandemic would have the biggest impact on the industry in coming months.

Oman’s OMIFCO to forge new path on end of Indian agreement

By Deepika Thapliyal 1-Jul-20 LONDON (ICIS) – In India, the urea offtake agreement between the government and Oman India Fertiliser Company (OMIFCO) is unlikely to be extended beyond 14 July 2020, several sources confirmed exclusively to ICIS.

OMIFCO is expected to instead enter into contract agreements with traders for three years to sell around 150,000 tonnes/month or 1.7-1.8m tonnes/year of granular urea.

India Customs tightens clearance process for Chinese imports

By Priya Jestin 3-Jul-20 MUMBAI (ICIS)--India had recently tightened physical checks on imports from China, causing delays in clearing of consigned Chinese goods, consequently clogging ports and freight stations in the south Asian nation.

Instead of the usual random checks of imported cargoes, the Indian customs authorities began subjecting all Chinese imports to full physical scrutiny on 22 June, bringing clearances to a halt until 2 July.

INSIGHT: Fertilizer industry prepared for extended Illinois River closure

By Mark Milam 1-Jul-20 HOUSTON (ICIS)--The deep and active waters of the Illinois River are going to be turning increasingly quiet and less traversed over the next several months as a major maintenance effort commences today.

From 1 July until the end of October, the vital US river, which is a key corridor for the passage of millions of tonnes of crop commodities, chemicals and fertilizers each year, will undergo a concentrated rehabilitation.

Ukraine's OPZ extends natural gas tolling deal with AGT by two months

By Richard Ewing 1-Jul-20 LONDON (ICIS)--Odessa Port Plant (OPZ) on Tuesday announced a two-month extension to its natural gas tolling deal with Agro Gas Trading (AGT), meaning its ammonia and urea plants will run through July and August.

The pair’s deal existing deal expired on 30 June, but with OPZ’s recently launched search for a long-term feedstock tender not expected to conclude until mid-August, a short-term extension was required.

PODCAST: China’s return spells caution for urea market

By Sylvia Traganida 26-Jun-20 LONDON (ICIS)--The rally in urea prices is expected to slow as China resumes exports following the end of its domestic season.

The market has been able to ride out the coronavirus slump so far, but a seasonal slowdown in the coming months would be the real test for producers.

ICIS editors Julia Meehan and Deepika Thapliyal discuss how Brazil and India would be the key regions to determine market trend.

Mosaic files petition for US to investigate Morocco, Russia phosphates imports

By Sylvia Traganida 26-Jun-20 LONDON (ICIS)--Mosaic is filing petitions with the US Department of Commerce and the US International Trade Commission that request the initiation of countervailing duty investigations into imports of phosphate fertilizers from Morocco and Russia, the US-based fertilizer producer said.