Tag: Demand

We look ahead at fertilizer industry prospects for the next 12 months, including the key economic and agricultural drivers likely to shape the market during 2022.

Belarus sanctions, freight costs and strong demand are pushing MOP pricing to new heights, says Andy Hemphill, senior editor for potash and sulphuric acid at ICIS Fertilizers.

Recent spikes in natural gas prices, particularly in Europe, have highlighted the tightness of natural gas markets around the world going into the northern hemisphere winter. Are ammonia and methanol producers on for a run of high gas prices in 2022?

It’s a slightly dispiriting fact about the sulphur industry that most of its producers don’t really want it. If you’re a refiner or a sour gas producer, you mainly care about the diesel and gasoline or natural gas that you can process and sell, and the sulphur is just the inconvenient component that the law and your customers force you to remove. But at times when sulphur prices, as they have at the start of this January, reach levels as high as $300/t, then the industry standing joke is that sulphur suddenly stops being a by-product or waste product, and starts to become a ‘co-product’ instead.

The feed phosphates industry is caught between conflicting trends currently, according to Alberto Persona of the Fertecon fertilizer team at IHS Markit. While the long-term demand-side fundamentals look broadly stable, there is still likely to be a fight for market share due to competition from substitute products and the emergence of new projects.

With globalisation seemingly in retreat, the protectionist impulse is seeing a rise in barriers to trade, from quotas and tariffs to anti-dumping actions and domestic subsidies.

Scanfeld™ is the world’s first remote sensing solution for fully automated early-warning gas leak detection for chemical plants. Using FTIR spectroscopy, Scanfeld™ identifies hundreds of different gases in real time from kilometres away. With just a few Scanfeld™ sensor units, large production sites, tank farms, or gas loading areas can be monitored reliably. Gas leaks are quickly detected, and the formation of dangerous gas clouds is monitored, measured, and visualised. René Braun of Grandperspective discusses how the system works and how it is being applied in industry.

Global nitrogen and methanol markets are currently in the grip of a crisis in feedstock prices. Mostly this is about Europe’s dependence on imported natural gas, but – particularly on the methanol side – it has also been exacerbated by high coal prices in China, where heavy rains have led to flooding in Shanxi province, the source of one third of China’s coal. These have followed similar floods in Henan in July, and come at a time when China is facing power rationing due to a lack of electricity supply. The world economy’s long-awaited bounce back from the covid pandemic has also led to a general global surge in energy demand, and consequently higher oil and gas prices.

In China, requirements for methanol to produce olefins, mainly propylene and ethylene, from coal, has driven much of the growth in global methanol demand over the past decade. However, a new wave of ethylene cracker investment may put a stop to new MTO plant building.

China’s private sector Shenghong Petrochemical refining complex is targeting a startup in late November, following the receipt of its first cargo of crude in October. The greenfield refining complex in the eastern Lianyungang petrochemical zone has a capacity of 16 million t/a, including a 320,000 bbl/d crude unit – the largest single stream CDU in China – and a 76,000 bbl/d naphtha reformer. Product capacities include 56,000 bbl/d of gasoline, 41,000 bbl/d of diesel and 32,000 bbl/d of jet fuel. Construction began in mid-2019, delayed from 2018 by late approval of its environmental impact assessment, but has been achieved within two months of the scheduled completion date in spite of the coronavirus pandemic. Shenghong Petrochemical is owned by Eastern Shenghong, a producer of petrochemical products and chemical fibres.