Sulphur transported by rail from the Kashagan and Tengiz projects to seaports on the Russian network dropped by 9pc to 1.85mn t in the first five months of this year, Russian rail data show.
When factoring in sulphur rail shipments from other Kazakh refineries, the drop is smaller at only 6pc.
Morning. After an initial jump in Urea paper y'day that saw Brazil trade $20+/ Nola $30+ up from Fri, sentiment changed towards end of day as selling resistance appeared, bids became shy, oil mkts cane off 8-9%, and now talk of ceasefire in M.East.
AG
Jun $396//$408
Jul $495//$510
Aug $495//$510 – traded $515
Sep $470//$500
Cfr Brazil
Jun $407//$428
Jul $500//$520
Aug $500//$520 – traded $525s, $527s, $531
Sep/Oct $490//$510
Egypt
Jun $440//$470
Jul $500//$520
Aug $500//$520
Nola
Phys: Jun traded $455, Jul $443, $448
Paper:
Jul $430//$440 – traded $435 in 1k
Aug $435//$445 – traded $480, $460
Sep $440//$450
Q3 $435//450
Q4 $435//$470
UAN Nola
Jun $350//$375
Aug $250//$290
Sep $250//$290
DAP Nola
Jun $710//$720
Jul $715//$725
Sep $715//$730
Q3 $710//$720
Q4 $675//$690
Q1 $650//$670
MAP Brazil
Jun $730//$750
Jul $730//$755
Aug $725//$745
Today, the domestic urea market is weak downward, in which the mainstream delivery price of small and medium-sized particles in Zhongshan is 1750-1760 yuan / ton. The short-term market lacks effective positive support, the sentiment is operating in a weak position, and the market continues to develop downward. However, after the close, news of loosening export port inspections was reported, which was likely to boost the market atmosphere and provide a bottom reference support for the time being.
Even if the export quota is not increased, easing the inspection process at ports can only improve the efficiency of cargo export, but it will not lead to a substantial increase in overall export volume.
In essence, export quotas act as a "cap on total volume," while the efficiency of port inspections serves as a "flow rate through the channel." Even if the inspection process at the port is sped up, allowing goods to clear customs and depart the port more quickly, the quantity of goods that ultimately leave the port will still be limited by the fixed quota. In this scenario, accelerating port inspections can be seen as optimizing the "time cost" of the export process, rather than breaking through the "numerical boundary" of the export volume.
In order to facilitate the export of urea by circulation enterprises, the association has actively coordinated with relevant departments to establish a port inspection channel in addition to the existing production site inspection system. Three state-owned fertilizer trading enterprises, including Zhongnong Holding Co., Ltd., Sinochem Fertilizer Co., Ltd., and China National Chemical Construction Co., Ltd., will serve as the execution entities for the port inspection of urea exports. Circulation enterprises can choose either the production site inspection method or the port inspection method, and can entrust one of these enterprises to handle their export business.
If a self-disciplined enterprise has inspection requirements for its port activities, it may submit a request for inspection agency services to the inspection agency responsible for the urea port. Upon reaching an agreement between the two parties, the self-disciplined enterprise will notify the association of its "Urea Self-Disciplined Export Plan," which will then be reviewed and confirmed in writing by the association. Once this is complete, the two parties will sign a contract for agency services, after which the self-disciplined enterprise will be able to organize the collection of export goods at the port.
Zhongnong Group Holding Co., Ltd.: Wang Shan, 13811051995
Sinochem Fertilizer Co., Ltd.: Liu Chang 15117964740; Zhu Jia 15901005778
China Chemical Construction Co., Ltd.: Liu Yin 13521269910
June 19th, #Agropolychim has filed with the Competition Commission of #Bulgaria the agreement to buy 50 % in #Ekofol, the leader in Bulgaria for #specialityfertilizers including #foliar applications.
It is another step in our strategy to evolve together with our clients, the farmers, to more and more #precisionagriculture which includes speciality fertilizers and other additives which can give more with less.
Farmers are under tremendous pressure especially the ones in Southeast Europe. Just to remind you of a few of the challenges:
– the impact of the war in Ukraine which caused gas prices hikes and automatically fertilizer prices increase
– the war caused also vast imports from Ukraine of especially wheat, sunflower and corn which depressed the prices of the ag produce in especially Bulgaria and Romania.
– the EU burocrats continue to hit with more and more #regulations whatever the rhetoric in Brussels; they hear but do not listen.
– the #Mercosur agreement is an aberration and to do this exactly now while it has been under discussion for a decade (!) is even more not comprehensible. It might be good for some ag sectors in Spain and Portugal but that is no excuse to put the rest of EU farmers on non equal footing with the south American colleagues…GMO anyone ?
– #CBAM is the last invention from DG customs probably not discussed with DG Agri since the effect when fully in place will be that 50 % if the theoretical average profit ( if any) of a grain farmer will be taxed away thru increases of fertilizer prices exclusively caused by CBAM without any compensation whatsoever "because the farmers get already enough subsidies" ( sic in closed chambers in the EU).
I advocate for a regulated ( not a voluntary only) market of carbon certificates to be given to the farmers who do the efforts to put carbon in the soil, avoid nitrogen evaporation and buy ' blue fertilizers ' forget about ' green ferts'.
The fight by the EU farmers for a more reasonable approach continues and in the meantime, Agropolychim will continue to promote "just enough of the right cocktail at the right place at the right time " .
Now let's see how long the Competition Agency will need to make a decision.
I'll provide an update on the situation between Israel and Iran.
The White House has confirmed that the nuclear facility has been completely destroyed, and it's likely that this information was obtained through Israeli informants. Additionally, Israel is aware that Iran has transferred 400 kg of 60% enriched uranium, which can be used to produce one to two nuclear bombs. While Israel has not provided further details, it is clear that they are already planning to take action against this threat.
Today, the port and shipping sector has performed well, but the primary reason for this isn't the impending blockade of the Strait of Hormuz by Iran. Instead, the key factor is that the Houthi militia, Iran's ally, plans to launch an attack on merchant vessels traveling through the Strait of Mandeb. This strait serves as a critical route for vessels heading to the Suez Canal and Europe, making the potential disruption significantly more impactful. The Houthis are adept at exploiting Yemen's strategic location to conduct harassing attacks, and they have even dared to attack American drones and warships on multiple occasions. This is because the weapons they use are relatively inexpensive, and the U.S. military is not capable of effectively countering them due to the high cost of their own missiles. As a result, there isn't a particularly effective solution to this problem in the Strait of Mandeb.
The threat of Iran blocking the Strait of Hormuz has caused market concern, but it remains uncertain whether they actually have the resolve to do so. The probability that Iran will block the Strait of Hormuz by July is only about 25%, and it's likely just a bluff.
Sabic is reporting to have traded 40kt gran urea for July shipment at $478 fob
At 10:00 AM tomorrow (24th), the Information Office of the State Council will hold a press conference, at which the Vice Minister of the Central Propaganda Department responsible for day-to-day affairs, Hu Heping, and other officials will introduce the overall arrangements for the commemoration activities of the 80th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, and answer questions from reporters.
Morning. With the ongoing conflict in the M.East, and supply-side concerns, urea prices saw significant gains last week. Paper framed Fri close:
AG
Jun $396//$408
Jul $490//$500
_[Jul traded $468-$485 last week]_
Aug $485//$500
_[Aug traded $455-$489 l/w]_
Sep $465//$485
Cfr Brazil
Jun $407//$428
Jul $500//$510 – traded $504s Fri
_[Jul traded in $445-$504 range l/w]_
Aug $505//$510
_[Aug traded in $440-$499 range l/w]_
Sep/Oct $495//$515
Egypt
Jun $440//$470
Jul $495//$530
Aug $490//$525
Nola
Phys: Jun traded $420. Jul$426 Fri
Paper:
Jun $375//$400
Jul $425//$435
Aug $437//$445 – traded $450, $445
Sep $445//$455
Q3 $440//450
Q4 $430//$460
UAN Nola
Jun $350//$375
Aug $250//$290
Sep $250//$290
DAP Nola
Jun $710//$720
Jul $715//$725
Sep $715//$730
Q3 $710//$720
Q4 $675//$690
Q1 $650//$670
MAP Brazil
Jun $730//$750
Jul $730//$755
Aug $725//$745
According to market reports, the Iranian Parliament has approved the closure of the Strait of Hormuz, but the final decision rests with the country's top security body.
Since the China Nitrogen Fertilizer Industry Association launched the initiative to "strengthen industry self-discipline and pass on cost savings to farmers," it has received responses from numerous enterprises. On June 21, the association released information about the production, sales, and pricing of urea for various key enterprises. Companies interested in purchasing urea are encouraged to contact these enterprises directly. If you encounter any situation where a company is withholding supply or if there is a discrepancy between the advertised price and the actual price, please report your findings to the Nitrogen Fertilizer Industry Association. Contact information: 010-82032100, email: zgdfgyxh@163.com.
*Prices up*
Spot market sees a $7/mt increase.
*Prices up*
Spot market sees a $21/mt increase.
*Weather impact*
Rain delays in key regions.