Fertilizers

HOUSTON (ICIS)–Although Trinidad and Tobago have seen tremendous rainfall and significant winds the last two days, the island nation and its fertilizer operations escaped the heaviest impacts of Hurricane Beryl. Rated at a category 4 as of late on Tuesday, the storm did cause some harm to surrounding island countries but for most of Trinidad and Tobago what was felt was an extended stretch of unfavorable weather, with fertilizers producers emerging unscathed. Produces Yara, which manufactures ammonia at its facilities, said they had been fortunate as the storm passed by yesterday afternoon with plants not suffering any damage or having any production interrupted. With plant operations also in the same vicinity on the island producer Nutrien reported similar positive outcomes with a spokesperson saying, “Happily, zero impact. All running as usual.” Going forward Beryl is now expected to be impacting Jamaica by Wednesday morning. For now, the domestic fertilizer market is carefully watching the track as there are considerable production, storage and transportation interests which stretch along the US Gulf Coast. The current forecast has the storm potentially downgrading slightly as travels more towards making an eventual strike in northern Mexico, or possibly landing further up in southern Texas by the end of this week.

02-Jul-2024

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 28 June. NEWS Brazil Unigel falls short of tolling deal for ammonia plants – Petrobras Petrobras has alleged that Unigel has failed to meet the terms of their tolling agreement for the production of ammonia at two idled plants, the Brazilian state-controlled energy producer said on Friday. Brazil’s Cibra inaugurates new plant in Matopiba Cibrafertil Companhia Brasileira de Fertilizantes (Cibra) has inaugurated a greenfield plant in Sao Luís, Maranhao, the Brazilian fertilizer company has announced. Saudi Arabia, South America offer promising opportunities for base oils Markets such as Saudi Arabia and countries in South America hold potential for growth in the years ahead, industry sources said on Friday. Mexico’s central bank keeps rates unchanged at 11% as inflation ticks up The Banco de Mexico kept on Thursday the main interest rate benchmark unchanged at 11% after the annual rate of inflation has increased since February. Argentina GDP down 5.1% in Q1 but sentiment rises again in May Argentina’s recession may have bottomed out in the first quarter, with a GDP fall of 5.1% year on year, as a leading indicator for economic activity rose in May for the third month. Plant status: Chemours resumes TiO2 production at Mexico plant US producer Chemours has resumed operations at its Altamira, Mexico titanium dioxide (TiO2) facility after it was forced to reduce them due to water shortages in the area. PRICING LatAm PE domestic prices lower in Argentina on weak demand Domestic polyethylene (PE) prices were assessed as lower in Argentina while being unchanged in other Latin American countries.

01-Jul-2024

HOUSTON (ICIS)–Global sustainable technology firm Metso announced it has been awarded  an order by Brazilian producer Galvani Fertilizante to deliver a lime calcination kiln and cooler package for their fertilizer plant in Irece, Brazil. The company said Galvani is taking a significant step at their Irece project by introducing sustainable technological innovation with this new unit expected to produce 350,000 short tons of phosphate concentrate and 600,000 short tons of agricultural limestone annually. Metso will supply a rotary kiln, a rotary cooler and ancillary equipment with the kiln and cooler system a critical part in the process to remove limestone from the phosphate concentrate. The kiln will be the largest lime calciner Metso has ever delivered, measuring almost six meters in diameter and over 140 meters in length. For its part Galvani said the partnership will bring strategic benefits and allow gains in mineral processing at their new unit. “The laying of the foundation stone for this unit, which took place in May of this year, reinforces the importance of this project for the development of the economy of the state of Bahia, in Brazil, and for the generation of jobs and income,” said Marcelo Silvestre, Galvani CEO. “This milestone represents our commitment to innovation and development, boosting our ability to meet the demands of the fertilizer market.”

28-Jun-2024

HOUSTON (ICIS)–Swiss fertilizer producer and trader Ameropa and India firm Hygenco Green Energies have announced they have signed a term sheet regarding the potential supply of green ammonia from Hygenco's forthcoming plant in India. The companies said one of the goals of this pact is to enhance green ammonia exports from India and to support the global transition to renewable energy and sustainable agricultural practices. Hygenco will produce green ammonia from a project to be located at the Gopalpur port in Odisha with the first phase anticipated to produce 600 short tons/day, which it plans to achieve by 2027. As designed phase two will double output to 1,200 tonnes/day by early 2028 with the project scheduled to reach full capacity of 1.1 million tons/year of green ammonia by 2030. Looking to capture a significant share of the growing global low-carbon ammonia markets, Hygenco and Ameropa said they are planning to start exporting green ammonia to Europe and Asia with a key focus on establishing a reliable supply chain. Currently Hygenco is the only Indian company with an operational commercial green hydrogen plant, and it plans to invest $2.5 billion in green hydrogen and green ammonia projects in the next three years. “Inspired by the age-old philosophy that the world is one family, we are proud to announce a visionary partnership with Ameropa to support their decarbonization goals,” said Amit Bansal, Hygenco Green Energies CEO. “This term sheet highlights India’s exceptional position to lead globally in this sector, by harnessing its abundant renewable energy resources and strong infrastructure.” India has a target of producing 5 million tonnes of green hydrogen by 2030 and if this is achieved the country is poised to then become a major exporter of green ammonia. For Ameropa, this opportunity is seen as being pivotal to help them make low-impact fertilizers and grow sustainable agricultural practices as well as significantly enhance the company's indirect emissions reduction. “The Swiss trader has decided to support Hygenco's well-advanced plans while nurturing the ambition of a global portfolio of low-carbon ammonia,” said Beat Ruprecht, Ameropa Head of Ammonia.

26-Jun-2024

SAO PAULO (ICIS)–Brazil’s chemicals producers, represented by trade group Abiquim, have gotten on board with peer groups and trade unions in their lobbying for higher import tariffs for dozens of products as the government’s decision looms. Led by Abiquim, a total of 28 trade groups, trade unions, industrial development groups, one professional association and one company have signed a manifesto pleading for higher import tariffs to safeguard an industry which, in their view, is being threatened by lower priced imports which are produced with lower environmental standards. “The Brazilian chemicals input production chain, fundamental to the country's economic and technological development, faces unprecedented challenges that threaten its very existence and the future of sustainable solutions for Brazilian industry,” said the manifesto. “Ensuring measures to protect the trade balance is vital to maintain the operation of the chemical chain and attract new investments.” In May, chemicals producers – via Abiquim but also as individual companies – proposed increasing tariffs in more than 100 chemicals, most of them from 12.6% to 20%, in a public consultation held by the Brazil’s government body the Chamber of Foreign Commerce (Camex). A decision is expected in August as the latest. Other trade groups in the chemicals chain, such as Abiplast, representing plastics transformers, do not support higher tariffs as most of their members import product to meet their demand, and are doing their own lobbying not to increase tariffs. ABIQUIM LOBBYING GETS PARTNERSAs well as Abiquim, other trade groups within chemicals signed the document, such the Brazilian Association of Alkali, Chlorine, and Derivatives Industry (Abiclor); the Brazilian Association of Fine Chemical, Biotechnology and Specialty Industries (Abifina); and the Brazilian Association of Artificial and Synthetic Fiber Producers (Abrafas) also signed the document. In total, 11 trade groups and 12 trade unions signed the document, as well as industrial development groups and other players in the chemicals chain. See bottom for full list of signatories. The backing of the unions is important because it is likely to resonate in the corridors of power in Brasilia, where the left-leaning government of President Luiz Inacio Lula da Silva got into office thanks in part to the votes of the industrial workers constituency who voted for Lula’s Workers Party (PT) in 2023 under the promise of more and better paid industrial jobs. “The Brazilian chemicals input production chain, fundamental to the country's economic and technological development, faces unprecedented challenges that threaten its very existence and the future of sustainable solutions for Brazilian industry. Ensuring measures to protect the trade balance is vital to maintain the operation of the chemical chain and attract new investments,” said the manifesto. “What we are witnessing by allowing a surge in imports of products without environmental commitments is the failure to comply with a global agenda, with negative contributions to the fight against climate change.” As the left-leaning Lula cabinet aims to increase public spending, the manifesto also touches on Abiquim’s calculations in the decrease in tax receipts by the Brazilian Treasury in 2023, as a consequence of lower imports – the trade group said the state’s receipts decreased during that year by Brazilian reais (R) 8.0 billion ($1.45 billion). “[The decrease in tax receipts] directly impacts investments in the production sector and in several other areas of public policy. Continuing to allow the unbridled entry of chemical products is a paradox for the policy that Brazil has planned in the context of neo-industrialization, while imports already account for 50% of demand in the chemicals industry,” said the manifesto. “Because of this, some plants are idle, with preventive maintenance anticipated, while others are hibernating plants. And this affects not only the production of chemical inputs, but an entire broad supply chain of raw materials, services, and energy supply related to the sector.” The Abiquim-led manifesto was also signed by several trade unions in some of Brazil’s key petrochemicals hubs, such the Chemists Union of Sao Paulo; the Union of Chemical Industries of Rio Grande do Sul (Sindiquim), and the Union of workers in the chemical, petrochemical, plastic and pharmaceutical industries of the State of Bahia (Sindiquímica Bahia). According to Abiquim’s figures, Brazil’s chemicals production and related chain employs around 2 million workers, representing 12% of the country’s industrial GDP. Earlier in June, the director general at Abiquim said in an interview with ICIS that the request for higher tariffs was only one of the proposals presented to the government to safeguard producers' global competitiveness. “What we have presented to the government is the need to undertake action on three main fronts: in the short term, import tariffs, but in the medium and long term we also need a structural plan to address natural gas prices, which are seven times higher in Brazil than in some other jurisdictions, as well as a stimulus plan covering the whole chemicals production chain,” said Andre Passos. The list of signatories to the manifesto also includes one company, one professional association, and two industrial development groups: TRADE GROUPS 1. Chemical Industry Association (Abiquim) 2. Association of Piped Gas Distribution Companies (Abegas) 3. Association of Alkali, Chlorine, and Derivatives Industry (Abiclor) 4. Association of Fine Chemical, Biotechnology and Specialty Industries (Abifina) 5. Association of Pharmaceutical Inputs Industry (Abiquifi) 6. Association of Glass Industries (Abividro) 7. Association of Independent Oil and Gas Producers (ABPIP) 8. Association of Artificial and Synthetic Fiber Producers (Abrafas) 9. Association of Campos Elíseos Companies (Assecampe) 10. Association of Natural Gas Pipeline Transportation Companies (Atgás) 11. Federation of Industries of the State of Alagoas (FIEA) TRADE UNIONS 12. Federation of Chemical Workers of the CUT of the State of Sao Paulo (Fetquim – CUT SP) 13. Single Federation of Oil Workers (FUP) 14. Unified Chemical Union 15. Chemists Union of Sao Paulo 16. Plastic and Paint Industries Union of the State of Alagoas (Sinplast-AL) 17. Industry Union of Chemical Products for Industrial Purposes of the State of Rio de Janeiro (Siquirj) 18. Industry Union of Chemical Products for Industrial Purposes, Petrochemicals and Synthetic Resins of Camaçari, Candeias and Dias D'Avila (Sinpeq) 19. Industry Union of Chemical Products Chemicals for Industrial and Petrochemical Purposes in the State of Sao Paulo (Sinproquim) 20. Union of Chemical Industries of Rio Grande do Sul (Sindiquim) 21. Union of Chemists of ABC (Sao Paulo state region) 22. Union of workers in the chemical, petrochemical, plastic and pharmaceutical industries of the State of Bahia (Sindiquímica Bahia) 23. Union of Workers in the Chemical, Pharmaceutical and Fertilizer Industries of Baixada Santista (coastal Sao Paulo area) 24. National Confederation of the Chemical Branch of CUT (CNQ-CUT) INDUSTRIAL DEVELOPMENT GROUPS 25. Camacari Industrial Development Committee (Cofic) 26. Industrial Development of the Rio Grande do Sul Pole (Cofip RS) PROFESSIONAL ASSOCIATIONS 27. Federal Council of Chemistry (CFQ) COMPANIES 28. Forca Quimica ($1 = R5.51)

26-Jun-2024

HOUSTON (ICIS)–Global ammonia marketer Mitsui announced it has agreed with partners to commence construction of an ammonia production facility in the United Arab Emirates (UAE). The project involves the construction of an ammonia production facility in Al Ruwais which is scheduled to start in 2027. It is planned to produce 1 million short tons per year of ammonia with lower carbon emissions compared to conventional supply. To achieve the reductions there will be additional facilities installed in the plant to capture and store levels emitted in the manufacturing process, with plans to begin production of clean ammonia by 2030. Mitsui said it will also offtake a certain volume of the clean ammonia for supplying Japan and other Asian markets for use in fuel applications, chemical and fertilizer feedstock applications, and other industries. The other partners involved in this project are TA'ZIZ, owned by Abu Dhabi National Oil Company, Fertiglobe, and South Korea's GS Energy Corporation.

25-Jun-2024

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 14 June. NEWS  INSIGHT: Brazil, Mexico currencies take a hit, energy policy under Sheinbaum remains in spotlight The Mexican peso continued sliding this week as the new President Elect Claudia Sheinbaum’s Morena party achieved the "super-majority" investors feared, which could open the door to one-party constitutional reforms, while her energy policy remains on the spotlight. Argentina’s inflation down to 276% in May, first fall in 10 months Argentina’s annual rate of inflation fell in May to 276.4%, down from April’s 289.4%, the country’s statistical office, Indec said, the first fall since July 2023 and six months after President Javier Milei took office. Higher import tariffs one leg of wider plan to save Brazil’s besieged chemicals producers – Abiquim Proposals to sharply increase chemicals import tariffs are only one of the three aspects Brazil’s chemicals producers have proposed to the government to save their "besieged” operations, according to the CEO at trade group Abiquim. Mexico’s petchems supply flowing despite Altamira disruption, but industry crisis could continue The drought affecting the Altamira petrochemicals hub in Mexico’s state of Tamaulipas is not yet affecting the supply of chemicals, but the water restrictions for industrial players could continue, sources said this week. Brazilian pulp producer Suzano to acquire 15% stake in Austria’s Lenzing Brazilian pulp producer Suzano has agreed to acquire a 15% stake in Austrian cellulosic fibres company Lenzing for €230 million, paying €39.70/share, officials said on Wednesday. Brazil fertilizers interactive trade flow map January-May 2024 The Ministry of Development, Industry and Foreign Trade for Brazil has released fertilizer trade figures for January-May 2024. Future disruption to Panama Canal will depend on El Nino intensity – expert Despite arrangements put in place to make the Panama Canal fit for a changing climate, future disruption at the Americas key shipping route will depend on a variable no-one can predict: the intensity of future El Niño weather phenomenon, according to an expert at maritime services provider CB Fenton on Tuesday. Mexico’s chemicals output up 7.2% in April, manufacturing up nearly 4.0% Mexico’s chemicals output rose by 7.2% in April, year on year, well above the 3.8% increase in overall manufacturing activity, the country’s statistical office Inegi said on Tuesday. Chemical tanker prices rise as much as 75% since 2020 on lack of liquidity – expert Chemicals tanker prices have risen globally 30-75% in the past four years on a lack of liquidity, an expert at Chile-headquartered chemicals bulk operator Ultratank said on Tuesday. Brazil’s inflation up to 3.93% in May; prices rise sharply in floods-hit state Brazil’s annual rate of inflation rose in May to 3.93%, up from 3.69% in April, with notable price rises registered in food products, especially in the floods-hit state of Rio Grande do Sul, the country’s statistical office IBGE said on Tuesday. Closures of high-cost assets to accelerate in Europe, northeast Asia – ICIS Announcements of closures for high-cost assets, especially in Europe and northeast Asia, are likely to accelerate in coming quarters as the global petrochemicals industry is forced to rationalize, according to an ICIS analyst on Tuesday. Venezuela’s Pequiven, Turkey’s Yildirim mull petchems, ammonia facilities Venezuelan state-owned petrochemicals producer Pequiven has signed an agreement with Turkey’s conglomerate Yildirim to consider building petrochemicals and ammonia facilities in the country, according to the Venezuelan Ministry of Economy. Chile’s Petroquim navigating better than peers pressure from Asian material – exec Polypropylene (PP) producer Petroquim is also facing pressure from lower-priced material sent from Asia, but the company’s “dedicated” service to customers has kept its sales spared from a larger hit, according to the commercial manager at the Chilean company. PRICINGLatAm PP international prices steady to higher on squeezed margins, higher freight rates International polypropylene (PP) prices were assessed as stable to higher across Latin American countries because of higher freight costs and squeezed margins. LatAm PE international prices steady to up on higher offers from abroad International polyethylene (PE) prices were assessed as steady to higher across the region on the back of higher offers from abroad. Plant status: Alpek Polyester’s Altamira plants ceases operations due to water scarcity in Mexico Mexico’s chemicals producer Alpek has declared force majeure for purified terephthalate acid (PTA) out of its 1 million tonnes/year facilities in Altamira, state of Tamaulipas, on the back of the severe drought which has restricted water supplies to industrial companies. Stable PET prices in Mexico prevail amid supply challenges Throughout this week, polyethylene terephthalate (PET) prices have remained stable in Mexico, as per market observations. However, industry participants believe that this stability might not last long.

17-Jun-2024

TORONTO (ICIS)–Canadian rail labor union Teamsters Canada Rail Conference (TCRC) will hold a new strike vote because an earlier mandate for industrial action will expire on 30 June, it said in an update. In early May, about 9,300 unionized conductors, train operators and engineers at rail carriers Canadian National (CN) and Canadian Pacific Kansas City (CPKC) voted for a strike as early as 22 May. However, Canada’s federal labor minister then referred the matter to the Canada Industrial Relations Board (CIRB) for a decision about a strike’s impacts on public safety and health. A legal strike or lockout cannot occur until a CIRB decision, and it is unclear when that decision will be made. TCRC said in its update that under Canadian labor law, the strike mandate from May is set to expire on 30 June. In order to be in a position to strike once the CIRB makes its decision, TCRC will therefore conduct a new strike ballot, beginning 14 June and running until 29 June, it said. WHEN COULD A STRIKE START?As the CIRB process is ongoing, the board has extended the deadline for affected industry trade groups to make submissions from 31 May to 14 June. After the CIRB decision, TCRC would have to give 72 hours’ notice before a strike can begin. The CIRB may grant the rail carriers’ request for a 30-day extension, starting from the decision date, before the 72-hour notice can be served. The rail carriers have estimated that given the CIRB process, a strike will not start before mid-to-end July. The parties do not have to wait for the CIRB process to run its course. Instead, they can continue bargaining and reach an agreement at any time. However, TCRC said that since the strike was referred to the CIRB, the rail carriers “have completely withdrawn any commitment to negotiate”. The rail carriers have proposed binding arbitration, but TCRC has rejected this. IMPACT ON CHEMICALS The uncertainties around the timing of rail labor disruption are affecting Canadian chemical, fertilizers and other manufacturers. Canadian chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail, while in the fertilizers industry about 75% of all fertilizers produced and used in Canada is moved by rail. In the run-up to potential strikes, producers need to prepare, longer strikes can force them to curtail production or shut down plants, and after a strike ends it can take weeks for normal operations to resume. The impacts may be limited to some extent as the CIRB can order that rail shipments of certain essential products, for example water treatment chemicals, be maintained during the strike. Thumbnail photo source: Canadian National

12-Jun-2024

MUMBAI (ICIS)–India has relaxed import rules on polyester staple fibre (PSF), filament and spun yarns to help its domestic downstream textile industry boost exports. Importers of these raw materials whose end-products were meant for exports will no longer be restricted to secure cargoes only from Bureau of International Standards (BIS)-certified producers, with immediate effect, based on a 6 June notification issued by the Ministry of Chemicals and Fertilisers. Their imports qualify under the advance authorization scheme, which allows duty-free imports of inputs for export purposes. Eligibility under this scheme is being determined by committees appointed by the government. “The announcement has given a relief to the manmade fibre (MMF) textile product exporters enabling them to improve their export performance that had been significantly affected in the last two years,” S K Sundraraman, chairman of industry body Southern India Mills Association (SIMA) said in a statement on 7 June. SIMA as well as the Confederation of Indian Textile Industry (CITI) had been seeking exemptions from the mandatory Bureau of Indian Standards (BIS) certification of raw material imports under the Quality Control Order (QCO) since it was announced in April 2021 and took effect in October 2023. Previously, raw materials can only be purchased from BIS license holders. While domestic manufacturers of raw materials have obtained BIS licenses, applications from foreign manufacturers have remained pending, thereby constraining local textile production. Manufacturers and exporters of goods that used specialty fibres and yarns as raw material were impacted by the QCO as they faced problems procuring the goods from global suppliers, SIMA stated. Focus article by Priya Jestin

11-Jun-2024

HOUSTON (ICIS)–Canadian firm Arianne Phosphate announced that the government of Canada has added phosphate to the country’s critical mineral list, which it said acknowledges the fundamental importance and necessity of this mineral. The criteria for the Canadian critical mineral list are that the mineral is deemed essential to the nation’s economy and security, necessary for a transition to a sustainable low-carbon economy, can be a source for international allies and is a mineral whose supply is threatened. Minister of Energy and Natural Resources Jonathan Wilkinson said by updating the list Canada is taking a proactive step for its economy. “Investments in critical mineral projects create good jobs for workers, more avenues for Canadian innovation and lower emissions across the country – all part of our plan to build a cleaner Canada and a prosperous, sustainable economy,” said Wilkinson. Arianne Phosphate has been advancing on its Lac a Paul project in in Quebec’s Saguenay-Lac-Saint-Jean region and said it is now fully permitted and shovel ready. It noted that it hosts the largest independent greenfield phosphate deposit where it can produce a very high-purity and low-contaminant phosphate concentrate, ideal for use in both fertilizer and technical-grade applications. This includes the production of purified phosphoric acid which is required for lithium-iron-phosphate batteries. “The addition of phosphate to the critical mineral list not only recognizes the importance of the mineral but, the challenges the west has in securing the necessary supplies,” said Brian Ostroff, Arianne Phosphate president. “We welcome the Canadian government’s decision to add phosphate to its list and, along with the Quebec government’s recent decision to do the same, believe this will be a significant driver for Arianne as we look to conclude our ongoing discussions with potential partners and financiers.” Ostroff said an operating Canadian-based phosphate mine, along with the construction of a downstream purified phosphoric acid facility, would help ease the increasing concern over supply and start to address future needs. Arianne is currently undergoing a prefeasibility study designed to review the potential for constructing a large-scale phosphoric acid plant in the Saguenay region. The facility would be able to convert high-purity igneous phosphate concentrate into a purified phosphoric acid for use in downstream applications. As currently envisioned, the facility would be capable of producing 350,000 tonnes of battery-grade purified phosphoric acid and over 200,000 tonnes of a secondary phosphoric acid for use in specialty fertilizers and animal feeds.

10-Jun-2024