Egyptian Urea Plant to Resume Production; No Bids Received in India RCF Tender; Cameroon’s Fertilizer Imports Continue to Grow; Extreme Weather May Trigger Increase in Agricultural Product Prices, Potentially Driving Up Global Potash Prices.
Egyptian Urea Plant to Resume Production
Egyptian producer ABU QIR announced that it will gradually resume urea production as natural gas supplies are restored (production was halted on June 24). The company's granulated urea and prilled urea plants have annual capacities of 650,000 tons and 580,000 tons, respectively.
Other Egyptian suppliers, such as Kima, NCIC, Helwan, and Mopco, reported no changes in their urea production status, with all output remaining idle since last week. Urea production has been impacted since May 20, as Egypt prioritized supplying natural gas to power plants to meet summer cooling demands. On June 25, the Egyptian Prime Minister stated that the country would spend $1.18 billion on importing liquefied natural gas and fuel oil this summer to prevent daily power outages.
No Bids Received in India RCF Tender
Indian fertilizer importer RCF received no bids for its tender, which closed on June 29, seeking to purchase 50,000 tons of 15-15-15 and 30,000 tons of 10-26-26 fertilizers. The tender was issued on June 20, requiring delivery to the east coast of India by July 25. As Indian buyers search for alternatives to diammonium phosphate, demand for high-phosphate NPK grades like 10-26-26 and 12-32-16 is expected to rise. The latest CFR price for diammonium phosphate on June 27 was $436-443 per ton.
Cameroon’s Fertilizer Imports Continue to Grow
According to a report by the National Statistics Institute of Cameroon, the country’s fertilizer import values have steadily increased over the past three years. From 2021 to 2023, imports were 36.6 billion, 66.5 billion, and 70.9 billion CFA francs, respectively, totaling 173.9 billion CFA francs (approximately $290 million). During the same period, 203,000 tons, 130,000 tons, and 228,000 tons of fertilizer were imported. The increase in fertilizer imports has worsened Cameroon’s trade deficit, which exceeded 2 trillion CFA francs (approximately $3.33 billion) for the first time in 2023, while domestic fertilizer production has yet to make significant progress.
In 2013, Germany’s Ferrostaal announced plans to build a fertilizer plant in Limbe, Southwest Region, with an annual production capacity of 600,000 tons of ammonia and 700,000 tons of urea, but the project was abandoned due to high natural gas supply costs. In June 2023, the acting Minister of Mines, Industry, and Technological Development stated that three fertilizer plant projects are still underway.
Extreme Weather May Trigger Increase in Agricultural Product Prices, Potentially Driving Up Global Potash Prices
This summer, extreme weather has swept across the Northern Hemisphere, affecting many countries with high temperatures, droughts, and floods. Major grain-producing regions such as Southeast Asia, the United States, Russia, Ukraine, and India have recently experienced extreme heat and abnormal rainfall, leading to concerns over grain supply and rising prices.
Data shows that the FAO Cereal Price Index averaged 118.7 points in May, up 7.1 points (6.3%) month-on-month, mainly due to concerns over poor crop conditions affecting the 2024 harvest. Rising food prices may enhance farmers' affordability of production inputs like fertilizers, potentially benefiting upstream fertilizer demand, especially potash.
In this context, countries may increase grain planting areas or improve yield demands, thus increasing the use of potash to enhance crop drought resistance and yield, driving further growth in potash market demand.
Attention: The above information is for commercial reference only due to the diversity of information collected, and Kelewell is not responsible for the authenticity of the data.
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