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Tag: Urea

Liquidators to sell Interagro plants

Two fertilizer plants, formerly part of the Interagro Group, are being offered for sale by the liquidator, Sierra Quadrant. The factories, Ga-Pro-Co in Săvinești and Donau Chem at Turnu Măgurele, are available for direct negotiation starting at €17.8 million plus VAT and €18 million plus VAT, according to the liquidator, with a public auction to be held in September. Assets available include plants for the production of ammonia, urea, nitric acid, ammonium nitrate and liquid fertilisers, as well as transportation infrastructure for both road and rail.

Price Trends

Ammonia benchmarks on both sides of the Suez were little changed in mid-June with a seemingly balanced supply-demand outlook, although those of a more bullish persuasion continue to support the notion that prices will soon – if they have not done so already – reach a floor. In Algeria, while activity was limited, producer Sorfert was believed to be seeking prices of $410415/t f.o.b. for July delivery, up $10-15/t and equivalent to >$450/t c.fr NW Europe. Imminent tariffs on imports of Russian fertilizers into the EU may trigger an uptick in downstream capacity utilisation across the continent.

Another month of market turmoil

Ju ne saw fertilizer markets – urea markets in particular – thrown into chaos by the widening of hostilities in the Middle East. Israel’s and then the United States’ strikes on Iranian nuclear facilities and the retaliatory attacks on Israel and Qatar for a while held out the potential for the conflict to widen, perhaps even leading to attempts to close the straits of Hormuz at the entrance to the Gulf, something not seen since the ‘tanker war’ of the 1980s when Iraq tried to cripple Iran’s oil exports during the eight year Iran-Iraq War.