China’s acid production continues to grow as new smelters come on-stream. But high domestic demand from phosphate production as export restrictions are lifted and a shortage of copper concentrate may limit the potential for acid exports.
Saudi Aramco has sold another tranche of 1.54 billion shares, amounting to 0.64% of the company’s total ownership. The sale, at 27-29 riyals per share, was oversubscribed by a factor of five, making it more popular than the previous IPO, in 2019, which sold 1.5% of the company’s shares for a total of $29.4 billion. Foreign take up of shares was also higher this time, with more than half of sales to foreign investors, compared to 23% for the 2019 sale. However, it remains relatively small in scale compared to Saudi Arabia’s ambitions as part of its Vision 2030 plan to encourage more foreign direct investment and wean the country off its dependence on oil. Aramco is the world’s largest oil company in terms of both daily crude production and market cap, and remains 82% in the hands of the government and 16% held via the country’s sovereign wealth fund, the Public Investment Fund (PIF).
Brazilian phosphate producer Galvani says that it has begun work on its major phosphate expansion in Bahia state, including a new production plant at Ceará, in partnership with Indústrias Nucleares do Brasil (INB). The company aims to reduce Brazil’s northern and northeastern regions’ reliance on imported fertilizers. The first phase includes $133 million of investment, including $76 million for new phosphate mining at Irecê, and $38 million for Luís Eduardo Magalhães factory, also in Bahia. This expansion will take capacity from 600,000 t/a to 1.2 million t/a by 2026. The expansion at Luís Eduardo Industrial Complex includes expansion of sulphuric acid capacity from 165,000 t/a to 250,000 t/a.
Intermittent supply from China due to export restrictions and US duty changes have kept markets guessing over the past couple of years, and there is no sign of that changing.
Pres-Vac Engineering's innovative high-velocity methanol valves offers shipbuilders unique options in creating more efficient and compliant dual-fuel systems.
Hanwha Corporation and INEOS Nitriles have announced their intention to collaborate in a study for a new low-carbon ammonia facility with carbon sequestration in the USA, with a capacity of more than 1 million tonnes per annum. The location of the plant is yet to be determined. The two companies have agreed heads of terms, under which Hanwha and INEOS will jointly explore the feasibility of a facility to meet the growing global demand for ammonia with low-carbon emissions. A final investment decision is planned for 2026 with planned commercial operation in 2030.
Dundee Precious Metals says that it has sold the Tsumeb smelter, including all associated assets and liabilities, to China’s Sinomine Resources Group for $49 million. Sinomine Resources Group is a Chinese company founded in 1999. Its main business and operations cover four segments: EV-lithium material development and utilisation, rare and light minerals (caesium and rubidium) development and application, geo-tech services and mining property development. Dundee Precious Metals will transfer all assets debt-free and cash-free, subject to normal working capital adjustments. The transaction is subject to customary closing conditions, including approval under the Namibia Competition Act and approvals required from Chinese regulatory authorities for overseas investments, and is expected to close in Q3 2024.
Over the last six months, climate and geopolitical events have disrupted seaborne trade. A record drought in Panama and the unprecedented intensity of attacks on commercial ships by the Houthi rebels in the Red Sea are straining the freight market. Almost 150 ships have been targeted along the latter trade route since the first attack was registered to a non-commercial ship last year.
Although global ammonia supply is set to increase this year, there is a shortage of new merchant capacity after 2024 which may lead to rising prices in the medium term.
BASF, SABIC, and Linde have jointly inaugurated the world’s first demonstration plant for large-scale electrically heated steam cracking furnaces at BASF’s Verbund site in Ludwigshafen, following three years of development, engineering, and construction work. The three companies signed a joint agreement to develop and electrically heated steam cracking furnaces in March 2021.