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Fertilizer Market Report –November 27, 2024
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Fertilizer Market Report – November 27, 2024
In this week’s fertilizer report: Indian Urea Tender Results; Genesis Fertilizers achieves project milestone by entering into FEED agreement with DL E&C, advancing Canada’s proposed low-carbon fertilizer facility; What’s shaping the short-term outlook for fertilizers? Last Week’s North American Urea and Phosphate Action; and Other Industry Tidbits.
News of the Week
According to Green Markets, Indian Potash Ltd. (IPL) closed its urea tender on Nov. 11 with 23 companies offering 2.3 million mt. IPL settled on taking a lower-than-expected volume of 1.028mmt from 13 suppliers. This indicates that the market should expect another tender.
Genesis Fertilizers achieves project milestone by entering into FEED agreement with DL E&C, advancing Canada’s proposed low-carbon fertilizer facility
Genesis Fertilizers has signed a Front-End Engineering Design (FEED) agreement with DL Engineering and Construction (DL E&C), a South Korean global engineering and construction company. This agreement advances Genesis Fertilizers’ plan to finance, design, and construct Canada’s first proposed low-carbon nitrogen fertilizer facility, ensuring a reliable, stable supply for its farmer-owners.
The FEED phase establishes the essential technical and design groundwork for safe and efficient facility construction. DL E&C is set to collaborate with Canada’s PCL Construction to ensure quality, safety, and efficiency throughout preconstruction. Together, they aim to create a comprehensive blueprint that integrates advanced carbon capture technology, targeting the sequestration of up to 1 million metric tonnes of CO2 annually.
What’s shaping the short-term outlook for fertilizers?
At the Market Outlook session during the IFA Strategic Forum 2024, IFA’s Market Intelligence team led by Laura Cross, Armelle Gruere and Étienne ACHARD, broke down the key trends influencing the industry.
- Anticipate a fertilizer demand rebound
- Demand growth is driven by a few key regions
- Global supply continues to face challenges
- Farmers are optimistic
Laura Cross highlighted, “Today, it’s harder than ever to define what is having an impact on your businesses. There are different levels of interactions between what’s happening in the world around us and the fertilizer markets… it’s a complex web of global, sectoral, and cross-commodity forces.”
North America Urea Last Week
According to Green Markets, urea prices in Western Canada were flat WoW in a range of C$$695-$700/mt for the third week in a row. Canada has had a few headwinds in the urea market lately – 1) the North American market is tight which allows Canadian producers to maintain prices; and 2) the Canadian dollar is going against us making imports more expensive.
Last week, the NOLA urea price range tightened slightly to US$307-$314/st from US$308-$315/st the previous week.
As reported by Direct Hedge, the week started with urea Nola spreads of US$305/st bid and US$315/st offer for November. December was quoted at US$310/st bid and US$315/st offer. January was US$315/st bid and $320/st offer and Q1 was US$320/st bid and US$330/st offer. All of these spreads were lower relative to last week’s quotes as the market attempts to find the trading value.
North America Phosphate Last Week
According to Green Markets, the latest delivered Western Canada MAP prices settled flat WoW in a range of C$1,125-$1,160/mt for the third week in a row. MAP supply remains tight across North America as indicated in the commentary above from Itafos.
MAP NOLA prices settled at US$618/st, down from US$635/st the previous week. Trade has been slow as the market attempts to find the value in relatively expensive phosphate prices.
Industry Tidbits
- Visualizing the Decline of the Canadian Dollar
- How much fertilizer will Canada need to import in 2025?
- Innovation, investment and collaboration are keys to boosting productivity
- Global Urea Market Highlights
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