Prices remain at low levels, in part because of oversupply due to new plant start-ups. However, there has also been a contraction in demand, especially for technical ammonia – industrial markets for ammonia in China and East Asia have been badly affected.
We report on how the fertilizer industry and individual companies are working to mitigate the impacts of the Covid-19 pandemic.
We profile a selection of innovative speciality products and agronomic technologies that have recently been brought to market.
Tecnimont SpA has signed an EPC contract worth approximately e200 million with Gemlik Gübre Sanayii Anonim Sirketi for the construction of a new urea and urea ammonium nitrate (UAN) solutions plant at Gemlik, 125 km south of Istanbul. The plant will have a capacity of 1,640 t/d of granular urea and 500 t/d of UAN, and will be based on Stamicarbon urea technology, a fully owned subsidiary of the Maire Tecnimont group. The scope of work includes engineering, supply of all equipment and materials and construction and erection works. Project completion is planned within about three years of the contract beginning.
Nutrien has temporarily shut down one of the four ammonia plants at its Trinidad production site.
Nutrien is the world’s largest crop nutrient company with a market capitalisation of almost $20 billion (Figure 1). This fertilizer industry giant produces and distributes over 25 million tonnes of potash, nitrogen and phosphate products for agricultural, industrial and feed customers globally. The company’s agriculture retail business also serves over 500,000 growers worldwide through a network of international outlets.
We profile the US ‘big three’ North American phosphate producers, Mosaic, Nutrien and Simplot, and disruptive market entrant Itafos.
Although North America is no longer the world’s largest sulphur exporter, it remains a major producer and consumer, and there are still significant exports and imports of sulphur into and out of the region.
Charlotte Hebebrand, Director General of the International Fertilizer Industry Association (IFA), will end her term with the organisation on May 1st. IFA’s Senior Director of the Agriculture Service, Patrick Heffer, will serve as interim Director General as of 1 May, until a new permanent Director General can be proposed by IFA’s Board of Directors and approved by the membership at the organisation’s General Meeting, with the aim of having a new person in place by July.
The impact of coronavirus on both supply and demand continues to provide considerable uncertainty to the market. With much of Hubei province on lockdown, and a corresponding reduction in ammonia demand for DAP production, Chinese imports appear to be down, pushing more ammonia onto the international market and creating generally bearish sentiment.