Skip to main content

Nitrogen+Syngas 364 Mar-Apr 2020

31 March 2020

Nitrogen Project Listing 2020

Nitrogen+Syngas’s annual listing of new ammonia, urea, nitric acid and ammonium nitrate plants shows that the key areas for new project developments are Egypt, India, Nigeria and Russia. The timing of new Iranian capacity remains subject to external sanctions, while other significant projects are under way in China, Brunei and Uzbekistan, and the new ammonia plant for Ma’aden in Ras Al Khair to produce diammonium phosphate. Currently however the number of new projects scheduled for beyond 2021 is relatively small, although a number of the current batch of projects are likely to slip.

Latest in Outlook & Reviews

Uncharted waters

The fragile ceasefire between the United States and Iran broke down at the start of July, just three weeks after the signing of the June memorandum of understanding, after Iran fired at several vessels who had failed to notify them of their transit of the Strait of Hormuz, and the US retaliated with a missile barrage. While the two month negotiation period it had specified to solve all of the outstanding issues between the two parties had always seemed over-ambitious, market participants had at least expected to have that grace period to arrange for new cargoes and tranship them through the Strait. Now that the ceasefire has ended early, markets are truly entering uncharted waters.

Price Trends

The global sulphur market has entered a holding pattern, as a wave of bearish sentiment has so far failed to move stubbornly high spot prices. The departure of a significant volume of product from the Middle East has emboldened buyers and shifted market sentiment firmly towards bearish, but at time of writing this has so far failed to translate into lower prices. With sellers in no hurry to lower prices and spot availability still tight, the market has stalled as both sides wait for the other to blink first.