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Argus FMB NitrogenFormerly FMB Weekly Nitrogen Report

price guidemarket summary

pause or plateau?Urea prices have risen nearly $50/t in two weeks to reach $445/t fob Yuzhny. The increase is based on sales for February shipment to nearby markets that are in peak season, principally Turkey and Italy.

Traders are selling long positions taken for February and making good money on them. However, there is a growing reluctance to reposition for March, raising the question whether the market is pausing for breath after a rapid run up or has reached a plateau.

Certainly, buyers were deserting the paper market on Thursday and the only trading company buying physical tonnage in Yuzhny this week appeared to be Trammo.

Against this, trader positions are dwindling, Latin American buyers are snapping up Baltic cargoes, Egyptian urea exports are likely to total less than 100,000t in February and Turkey and Italy need more urea. Moreover, Middle East urea prices have moved up, with a trader paying $455/t fob for granular.

While prices may have risen too fast to be sustainable, there is little reason for prices to fall back in the short term. The second quarter is a different story, though.

The US market has traded sideways this week lending no

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argus FmB Nitrogen

yuzhNy vs araB gulF urea prices

Issue 13-06 | Thursday 7 February 2013

FMB nitrogen fertilizer price guide

7-Feb 31-Jan

Prilled urea – fob bulkYuzhny 435-445 408-430Baltic 405-430 396-408Croatia/Romania 455-465 440-450Arabian Gulf 420-425 412-415China 420-422 410-415Brazil (cfr) 430-440 423-430Granular urea – fob bulkArabian Gulf all netbacks 410-455 405-455Arabian Gulf – US netback* 442-454 436-455Arabian Gulf – non US netbacks 410-455 405-450Iran 400-405 395-400Egypt 495-510 495-510Indonesia/Malaysia 415-444 413-444Southeast Asia (cfr) 430-435 428-435Venezuela/Trinidad 420-446 415-439US Gulf (pst barge) 432-442 425-442US Gulf (cfr metric) 468-480 461-480French Atlantic (fca Euro) 390-393 385-395* Basis 35-45,000t freightAmmonium sulphate – bulkfob Baltic (Caprolactam) 215-220 210-215fob Blk Sea (Caprolactam) 220-225 215-220fob Kherson (steel grade) 190-193 190-193cfr S.E. Asia 213-215 210-213cfr Brazil 230-232 220-230Ammonium nitratefob bulk Baltic 345-347 323-325fob bulk Black Sea 348-350 325-327UAN (32%)Nola (short ton) 325-330 322-330Rouen 30% N fot (€ Euros) 245-248 240-241fob Black Sea 325-330 315-325Argus nitrogen indexArgus nitrogen index 266.331 270.905* Composite based on Argus FMB assessments for a basket of nitrogen-based fertilizers. The index is calculated such that 3 January 2009 = 100 for each component class of fertilizers.

ruN up iN prills startiNg to cause coNcerN

350

400

450

500

550AG Granular (All) Yuzhny Prilled

Copyright © 2013 Argus Media Ltd of 10

Argus FMB Nitrogen Issue 13-06 Thursday 7 February 2013

real support to either side. Granular urea barges are selling in the $430s/st fob Nola, with prices trending slightly lower at presstime. This behaviour is not unusual ahead of an industry meeting and a clearer trend should emerge at TFI’s conference in Florida in the coming week.

highlights this week

▪ Trammo buys Yuzhny prills at $445/t fob

▪ Turks buy another 50,000t of urea

▪ Brazilians reject prills at $440/t cfr

▪ Egyptian gas problems continue into February

▪ US market moves sideways

▪ Kaltim signs term contract with Universal

▪ Sri Lanka awards urea tender

▪ AN price rises to $350/t fob Black Sea

▪ Yara moves CAN prices up for March

▪ UAN prices rising across the board

Black sea

yuzhnyPrices have risen further reaching $445/t fob for February loading, the highest level since June. Trammo has been the main buyer again this week, paying $435/t fob Yuzhny for March from AFT and $445/t to DniproAzot for its final February tonnes. Kuibyshev is also reported to have sold 5,000t at $438/t fob.

Traders are selling February positions, but are hesitating about buying for March, uncertain whether netbacks from Mediterranean markets will rise to cover the increased asking prices. Sales in Turkey netback to the mid-$430s/t fob and NF is netting up to $440/t fob on some business in Italy.

February is largely sold out, with one or two trader longs still to place. March, though, is uncommitted, apart from the tonnage that will move to the Ukrainian domestic market.

On Thursday, buyers became very scarce on the paper market as a reaction set in and offers dropped to the low-$430s/t fob Yuzhny for March on FIS.

Trading firm Blue Deebaj made the lowest offer of urea in the Ethiopian tender on 7 February, based on Ukrainian origin. Its offer at $499.50/t cfrlo including 180 days’ credit and local bagging is estimated to netback to $410-415/t fob Yuzhny. The tender requires April delivery.

Stocks at OPZ total about 28,000t of urea.

tuapseIt is understood that Salavat will deliver 10-20,000t of prilled urea to Tuapse during March to be sold and shipped from the Russian terminal, which is owned by Eurochem.

romaniaInteragro has sold prilled urea for March at prices up to $465/t fob to traders. There is a heavy schedule of small vessels loading for Turkey in February.

BalticThere have been no fob sales reported this week in the Baltic, so prices cover a wide range of $405-430/t fob based on netbacks to northern ports from Latin America at the low end and bids in the Grodno tender, which was scrapped, at the high end.

phosagro - Trammo and Keytrade are reported to be offering February contract cargoes at $440-445/t cfr in Brazil, reflecting $405/t fob.

grodno - Held a sales tender on 5 February for 25,000t of prilled urea for end-February/early-March loading in Klaipeda. It claimed to have received bids up to $430-433/t fob but did not sell. It is holding a re-tender on 8 February for the same tonnage.

uralchem - Helm has sold 25,000t of Uralchem urea to Guatemala for mid-February shipment from the Baltic. The netback is put at $410-412/t fob.

yuzhny urea line up

date vessel t shipper/destination

opz February

Comp Amisos 7,300 AFT/Turkey

Comp Oruba 8,000 AFT/Turkey

9 Gokan Keran 27,500 Trammo/

11-12 Pagona 25,000 NF/

Total 67,800

tis February

Comp Rainbow H 27,500 NF/Italy

Ldg Mustafa S 5,600 Koch/Turkey

3 Louise Bulker 15,700 Keytrade/WCSA

6 Kamil 10,000 Dreyfus/Cameroon

11 Sapphire 3,100 Keytrade/

12 Tanais Leader 20,000 Mekatrade/

total 81,900

total yuzhny February 149,700



sBu - Keytrade has been offering a 25,000t mid-February cargo of prilled urea for shipment to east coast Mexico

Biofert - Salavat has not achieved consistent production of granular urea yet at its new plant. Prilled urea production has been cut back while efforts continue and Biofert has no product to offer for the present.

europe

turkeyImporters have booked 45-50,000t of urea this week from Yuzhny and Romania at prices netting back to $430-435/t fob Yuzhny, based on freight at $12-13/t to southern ports.

Gubretas is reported to have purchased another 25,000t of prilled urea from Trammo and some smaller buyers have also stepped in. Cfr levels up to $465/t cfr with credit have been achieved for urea for February loading in the Black Sea. At presstime, there were rumours of lower prices on offer as traders tried to work Baltic positions taken for February.

Kastamonu bought 3,000t of prilled urea from Trammo under its 31 January for 2 x 3,000t of urea. The price was in the mid-$460s/t cfr duty free/paid with 180 days’ credit.

A trader is in the market for a vessel to load 31,000t of urea in Iskenderun prompt for Tartous, Syria.

italyUrea sales are showing netbacks around $510/t fob Egypt for February, based on large cargo freight to Ravenna. Demand for February in northern Italy is put at 60-70,000t of granular urea. NF is selling prilled urea for February at prices netting to $440/t fob Yuzhny.

FranceGranular urea prices are unchanged in La Pallice, where vessel arrivals and slow movement from the port are putting pressure on stocks. Asking prices are €393-395/t fca, with sales taking place in the low-€390s/t. Agrium has 15,000t arriving in February on a 42,000t vessel from Qatar. Yara has a similar quantity booked to arrive in late February.

Prices are higher in other ports, where the lack of small cargoes from Egypt is more keenly felt. Buyers in northern France are paying €397-398/t fca for 2-3,000t lots shipped from Benelux ports.

In the Med, Unifert is discharging 7,000t of Egyptian urea in Sete, which was scheduled for late January arrival. It is

offering granular at €395/t fca, with Koch quoting the same price. OCI has a 25,000t Middle East granular cargo loading in Ruwais in February that will discharge part in Sete, part in the Spanish Med, completing in Santander.

germanyThe urea market is covered for the first application at least. Prices are static: granular offered at €370-375/t fca in Baltic ports; and prilled at €340-345/t.

spainGranular urea prices have moved up to €405-410/t fca in Med ports and Sevilla, equivalent to $530-535/t cfr. The market is very tight and further increases in price are expected during February. Prilled urea is quoted at $475/t ex-vessel in Med ports.

aFrica

egyptThe production situation is unchanged from last week and can be summarised as follows:

▪ alexfert - not producing due to inadequate gas supply

▪ oci - not producing due to inadequate gas supply

▪ helwan - producing at 60-70% of capacity

▪ mopco - producing at 70-80% of capacity

Mopco may hold a sales tender in the coming week, but will wait until most of the product is in its warehouse before selling to ensure product is available. Exports are likely to total less than 100,000t in February.

libyaYara has sold small cargoes to Italy and Spain for February shipment but demand from those markets has eased this week as asking prices have risen to $430/t fob.

ethiopiaAISE tendered on 7 February for 77,000t of urea for March-April shipment. Offers are shown in the table below, prices in $pt cfrlo Djibouti with 180 days’ credit, including local bagging. The package of freight and other costs from Yuzhny is estimated at $85/t.

aise ethiopia urea tender 7 February - 77,000t

supplier origin lot 1 lot 2

Blue Deebaj Ukraine 499.50 -

Yara Ukraine/Libya - 514.80

Ameropa Russia 522.94 522.94

Indagro Russia/Ukraine 548.00 532.40

Commitrade Ukraine 559.00 -

Midgulf Ukraine/China 584.00 595.00



middle east

FertilFertil has sold a spot cargo of granular urea to a trader at $455/t fob for end-February loading. The cargo is expected to move to either Europe or the US.

QafcoYara will load two cargoes of granular urea for Brazil in February, 44,000t loading currently and another 40-45,000t at the end of the month. Qafco is fully committed on granular for February. omanSIUCI will offer a 35-40,000t spot granular cargo in the coming week for March shipment. Its price ideas are said to be minimum $460/t fob.

picCHS is loading two contract cargoes from PIC in February for the US. PIC will load contract cargoes for Thailand and Australia and is sold out for the month. It has 25,000t spot available for March.

iranProduction at Pardis Petrochemical is returning to full capacity this week (6,000t/day of granular urea) as gas supply has been restored to normal levels; supplies were diverted to domestic use in Iran in January.

PPC has sold 35-40,000t of granular urea for February shipment to Latin America and has 20-25,000t to traders for Africa in two lots.

middle east export sales

supplier Buyer/market ‘000t month

granular

sabic Thailand 50 Feb

Avail 190-200kt Pakistan 25-30 Feb

balance 0kt New Zealand 25 Feb

US 60 Feb

S Africa 25 Feb

Australia 25 Feb

Bangladesh 22 Jan

Qafco Yara/US 100 Feb

Avail 390kt Australia 50 Feb

balance 0kt S Africa 20 Feb

Yara/Thailand 45 Feb

Yara/Europe 50 Feb

Sudan 12 Feb

East Africa 25 Feb

S Korea 35 Feb

Yara/Brazil 85-90 Feb

pic CHS/US 40-45 Feb

Avail 130kt Gavilon/US 40-45 Feb

Balance 20-30kt Thailand 25 Feb

Australia 30 Feb

Oman ADM/US 40 Feb

avail 110kt Koch/US 40 Feb

balance 0kt Trader/US 35 Feb

Fertil OCI/Europe 25 Feb

Avail 70kt Bangladesh 15 Feb

balance 30t

prilled

sabic South Africa 5-10 Feb

Avail 50kt domestic 10-15 Feb

balance 0kt Bangladesh 15 Feb

East Africa 10 Jan

Qafco Sudan 12 Feb

Avail 75kt CFL India 25 Feb

balance 3kt Bangladesh 35 Feb

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asia

sri lankaThe ministry of agriculture bought 24,000t of prilled urea in bags under its tender on 28 January as follows:

▪ Valency/Uzbek - 12,000t at $473.69/t cfr with 270 days

▪ ETA/UAE - 12,000t at $478.47/t cfr with 270 days

BangladeshBCIC will tender on 11 February for 25,000t of granular urea for shipment to Chittagong and 25,000t for Mongla.

chinaTraders have bought much of the granular urea remaining in bonded warehouses at prices in the range $430-440/t fob, mainly from CNAMPGC. Gavilon is reported to be the main buyer. Trammo has also booked a cargo and Helm is offering granular in Brazil for February shipment.

Tight supply and high prices for granular urea from other origins have prompted the purchases, which are expected to be shipped to the US and South America.

Prilled urea stocks in bonded warehouses are virtually

exhausted. There are a few thousand tonnes left in traders’ hands that are offered at $420/t fob or higher.

taiwanTFC in planning a urea tender on 18 February for 5-10,000t of prilled urea for March shipment.

thailandPrices for contract cargoes of granular urea have moved above $430/t cfr, with some sales by Yara at $435-436/t cfr for February shipments. There are unconfirmed reports of small spot sales at much higher levels.

malaysiaTraders are selling small lots of Chinese prilled urea in containers at $430-435/t cfr. A trader is in the freight market to ship 5,000t cargoes of prilled urea from Palembang to Lahad Datu and Bintulu 11-12 February. This is product sold a few weeks ago below $420/t cfr.

indonesiaKaltim has signed a one-year contract with Universal Harvester in the Philippines to supply 10-15,000 tonnes/month of granular/prilled urea in 2013. The monthly

FmB spot sales selection – 7 February 2013

product origin supplier Buyer destination ’000t $pt bulk shipment

prilled urea

Yuzhny AFT Trammo 5 435 fob March

Yuzhny DniproAzot Trammo 10 445 fob February

Yuzhny Trammo Gubretas Turkey 25 February

Yuz/Romania Trammo Kastamonu Turkey 3 465 cfr 180d February

Uzbekistan Valency MoA Sri Lanka 12 473.69 cfr 270d April

Blue Deebaj AISE Ethiopia 50 499.50 cfrlo Mar/Apr

Ukraine/Libya Yara AISE Ethiopia 27 514.80 cfrlo April

Baltic Helm Incofe Guatemala 25 hi-450s cfr February

granular urea

Abu Dhabi Fertil trader 35 455 fob February

UAE ETA MoA Sri Lanka 12 478.47 cfr 270d April

amsul

China Indagro Mexico ec 18 240s cfr February

China Golden Barley Indonesia 5 215 cfr March

aN

Russia SBU Dreymoor 15 350 fob March

uaN

Egypt Abu Qir Unifert France 15 326.50 fob February

Russia Eurochem US ec 10-15 365 cfr March

Baltic trader Canada 15-20 385-390 cfr Mar/Apr



quantity may vary depending on needs. The urea will be priced under a formula based on the sales tenders held for Indonesian urea.

Ameropa fixed the Darya Ganga to load 33,000t of granular urea in Bontang 2-5 February for Portland, US west coast. Freight was reported at $23/t.

americas

us The granular urea barge market traded in the range $433-440/st fob Nola this week for February, with a slight downward slide beginning late on Tuesday. As of Thursday, there were February physical offers as low as $430-432/st fob Nola in the market.

March barges traded in the range $438-442/st fob Nola with offers decreasing to $434-435/st fob Nola on Thursday.

Much of this week’s activity was attributed to a few traders clearing their books or taking positions ahead of the TFI conference next week. Dealer demand has not surfaced in a significant way yet, and it is clear there is plenty of spring demand ahead. However, the heavy import line-up and the availability of product at the wholesale level should temper any significant price rise.

canadaImporters have begun to inquire for granular urea for March shipment. Russian tonnage has been offered at $530/t cfr for delivery and other offers are reported at $520/t cfr.

mexicoADM, Fertiquim and Pronamex invited offers for 25,000t of prilled urea on 6 February for shipment to the east coast. The lowest offer is reported close to $440/t cfr from Ameropa.

central americaUnder its 5 February inquiry for 25,000t of prilled urea and 10,000t of AN for Guatemala, Costa Rica and Nicaragua, Incofe bought 25,000t of urea from Helm in the high-$450s/t cfr Pto Quetzal. Freight is estimated in the mid/high-$40s/t from St Petersburg/Kotka. It did not buy any AN.

Indagro has been checking freight for 25-30,000t of urea loading in Qatar for Pto Quetzal, Guatemala, in February but no sale is reported.

BrazilThe highest price paid for prilled urea in Brazil in 2013 is $430/t cfr. Koch, Trammo and Keytrade are reported to have offered February cargoes this week at $440-445/t cfr but have found no takers. The market is calm in Brazil and no one has to buy prilled urea for February/early-March loading.

us gran urea imports from offshore

month origin 000t comments

July-december arrivals - actual 2,331december 657January 625Yara Qatar 50Sabic S Arabia 60Koch Oman 45Agrium Argentina 25Gavilon China 55CHS Kuwait 45PCS Trinidad 50Eurochem Russia 35Gavilon Bahrain 40ADM Oman 45Trammo Abu Dhabi 35 east coastKoch Indonesia 20 west coastAmeropa Indonesia 30 west coastGavilon Oman 45CHS Venezuela 45February 575CHS UAE 45Gavilon Bahrain 45Yara Qatar 50Sabic S Arabia 60Koch Oman 40 east coastADM Oman 45 west coastGavilon Oman 35Eurochem Russia 35PCS Trinidad 40Ameropa Indonesia 45Gavilon China 50Trammo Indonesia 30Mekatrade Venezuela 25Trammo Indonesia 30march 622Ameropa Indonesia 60Yara Qatar 100Sabic S Arabia 60Koch Oman 45ADM Oman 40Trammo UAE 35Helm Oman 47CHS Kuwait 80Gavilon Bahrain 45Eurochem Russia 35PCS Trinidad 50Gavilon Malaysia 25

ytd total 4810July 2011-march 2012 3274change 1536% increase 47



Yara is offering Qatari granular urea from early-February and late-February vessels. Offers are on a Yuzhny-linked formula basis, with buyers saying there is a price ceiling. Helm is offering Chinese granular for February loading at $460/t cfr. Venezuelan granular has been offered at $460-465/t cfr.

uruguayIsusa is receiving offers for a part cargo of granular urea for March arrival. Spot offers of Middle East urea are reported in the high-$460s/t cfr. However, Isusa is asking suppliers to sell on a formula price basis.

argentinaProfertil has raised its domestic price for granular urea to $550/t ex-warehouse from $530/t.

ammoNium Nitrates/sulphate

Black sea/BalticAN is very scarce in the Black Sea and Baltic forcing traders to bid up for any tonnage available. Russian producers have allocated only small quantities for export in February-March, keeping the bulk of their AN for the domestic market.

Dreymoor is reported to have bought 15,000t of AN from SBU at $350/t fob for March.

Acron will have 15-20,000t to sell for March loading in Riga and is asking in the high-$340s/t fob Riga. Other producers are indicating price ideas up to $350/t fob Baltic but are not offering firm.

europeOn 7 February, Yara announced a €4/t increase in its official price for CAN 27 to €277/t cif inland for March deliveries in northern Germany, Belgium and the Netherlands. The price for deliveries in southern Germany is €281/t cif inland.

The price increase follows a €3/t rise announced for February that has yet to be implemented in the market. There is a substantial part of the CAN market still to be covered in Germany for spring 2013 and higher prices are expected to be realised when farmers start to purchase the remaining requirement.

OCI raised its official price for CAN 27 to €273/t cif inland on 4 February, aligning itself with the level set by Yara for February. Eurochem Agro is reported to have announced a price of €280/t cif inland for its CAN.

There are cheaper stocks of CAN unsold in the distribution pipeline, and actual selling prices still reflect €265/t cif inland rather than any higher number.

In France, AN prices are unchanged, with Yara quoting an official level of €362/t delivered in bulk and GPN not quoting. Imported AN is on offer at €335-337/t fca bagged for Lithan/GrowHow UK product in the northwest and €330/t fca bagged for Georgian AN from a vessel expected in Nantes at the end of February.

BrazilOffers of standard grade amsul have moved up to $230-240/t cfr for March, with granular amsul offered at $330/t cfr by Fitco. Demand is slowing with the main requirements from sugar cane growers in the northeast and for coffee in the southeast, where the market will be over in March.

There is interest in several cargoes of AN for March shipment, but no fresh offers in the market. Price indications are $355-360/t cfr from buyers. Russian suppliers have not started to offer yet and will wait for prices to move higher.

mexicoIndagro has sold 18,000t of Chinese capro grade amsul to a buyer on the east coast in the $240s/t cfr. Trammo is in the freight market for 10,000t to load in Savannah, US, at the end of February/early-March for 1-2 ports east coast Mexico.

Far eastPrices for Chinese amsul are firming as traders have begun to take long positions for March. This is partly in anticipation of an aid tender for North Korea and partly because capro grade prices are low relative to fob levels in the Black Sea.

Trammo, Indagro and LSH have bought 6,000t cargoes of capro grade amsul at $196/t fob this week. Golden Barley has sold 5,000t of capro grade amsul at $215/t cfr for March shipment to Indonesia. Prices for steel grade amsul have risen to $188/t fob China.

indiaMFL asked suppliers to extend their offers under its 30 January tender for 28,000t of amsul. Quantum, which offered lowest, refused to do so and the tender will lapse.

kenyaNCPB has issued a new tender for 25,000t of CAN closing on 26 February for April delivery.



uaN solutioNs

Freight for UAN cargoes loading in the Mediterranean and Black Sea has risen sharply following a surge in the CPP market, which pays higher freight than UAN. Vessels are scarce and quotes for 25-30,000t Black Sea/Egypt-US east coast have risen to $45-48/t from the high-$30s previously.

usThe UAN market has traded at $325-330/st fob Nola for March, and next business expected to be concluded above $330/st. Producer asking prices are $5/st higher at $335/st fob Nola for the second quarter.

Production problems at various sites across the US and Canada have contributed to the recent run up in prices as well as tight international availability. End-user demand for UAN in the wheat belt is strong as some are considering substituting additional UAN for some urea because of the dry conditions.

Eurochem has sold a part cargo of Russian UAN 32 at $365/t cfr for March shipment to the east coast. A trader has bid $370/st cfr for an early-March cargo.

canadaImporters have begun to buy UAN for April shipment to eastern Canada, with inquiries reported from the main buyers including Yara, Sylvite and La Co-op Federee. There is demand both for UAN for shipment to the Great Lakes and to Montreal/Three Rivers.

Some sales are reported to have been agreed in the range $385-390/t cfr. CF is offering at $410/t ex-Courtright.

FranceUAN 30 prices have moved up over the past week, reaching €247-248/t fca Rouen from €242/t fca at the start of February. Some suppliers have moved asking prices for March to €255/t fca and the latest purchase in Egypt is equivalent to €260/t fca.

Farmers have begun to take delivery from distributors and some drawdown from the tanks in Rouen is starting.

New cargoes are relatively scarce in February. Agrium is loading 15,000t in Egypt 7-8 February for Rouen. Litfert will load 21,000t 10-12 February in Klaipeda for Rouen/Ghent and Interore is shipping one vessel from Lithuania.

lithuaniaAchema is reported to be fully committed on UAN 32 through April following sales to traders for North America

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and Europe. Prices for March cargoes are understood to be around $325/t fob Klaipeda.

russiaEurochem has sold a part cargo of UAN 32 to the US at a price netting back around $325/t fob for March shipment.

Acron will load one vessel of around 50,000t in February for the US Gulf to minimize the problems caused by ice at Sillamae. It has 50,000t of March tonnage still to sell.

romaniaKoch has fixed the m/t Resolve to load 25,000t of UAN 32 prompt in Constantza for the US. Another trader has 25,000t to load in late-February/early-March.

egyptAbu Qir held a sales tender on 5 February for 25,000t of UAN 32 for 9-14 March loading. It sold only 15,000t to Unifert at $326.50/t fob for loading from 7 February. Unifert will supply the UAN to Agrium, which has fixed the m/t YM Jupiter at about $30/t for Rouen, France.

The previous sales by Abu Qir were at $300-302/t fob for end-January loading. Availability of vessels is limited in the Mediterranean, which prevented traders booking a larger cargo for the US.

Abu Qir has issued a new tender, closing on 12 February, for 15,000t for 15-18 February loading.

australiaCSBP has invited offers by 13 March for 25,000t of UAN 32 for late-April delivery to Kwinana.

NeWs

New marketing company in QatarQafco has announced that a new company named Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat) has been established by the State of Qatar to market all its chemical and petrochemical products on an exclusive basis.

The new company will assume responsibility for sales and marketing of urea, ammonia and other products produced by Qafco with effect from 1 March.

Qafco Marketing will be moved to Muntajat, which will take title to the products that it sells. Existing contracts held with Qafco will have to be amended.

Effective 1 February, Yousef Al-Kuwari has joined Muntajat as executive director, sales and marketing, and Ali Al-Sanadi has joined as director, sales and marketing of the fertilizer division.

livesey joins dragon FertiliserDragon Fertiliser has appointed David Livesey as Director, Nitrogen Trading.

Previously he was urea product manager, senior vice president trading for Keytrade AG which he joined in 1999, and an executive committee and compliance committee member. In addition to urea, David Livesey was responsible for the business of all products traded by the company to specific markets such as India and Pakistan.

David Livesey commenced his career in fertilizers at commodities trader Philipp Brothers, and subsequently held positions trading fertilizers for Marc Rich and Sinochem UK.

John Scollay, Chairman of Dragon Fertilizer said: “We are delighted to have David Livesey join as our Director, Nitrogen Trading. He has a wealth of experience in fertilizer trading and in Asian markets. David’s contribution will enable us to develop a leading position in sourcing and delivering nitrogen fertilizers, as Dragon Fertiliser continues to expand in its 20th year”.

egyptian gas problems affect lNg sectorsOperations at Egypt’s 5m tonnes/year Damietta LNG facility have been halted after the Egyptian government restricted the supply of feed gas to the facility.

The facility is 80% owned by Union Fenosa Gas, a 50-50 joint venture between Spain’s Gas Natural Fenosa and Italy’s Eni, with the remainder held by Egyptian state-run companies.

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Argus FMB Nitrogen Issue 13-06 | Thursday 7 February 2013

illuminating the markets

Registered officeArgus House, 175 St John St, London, EC1V 4LW Tel: +44 20 7780 4200 Fax: +44 870 868 4338 email: [email protected]

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Fis cash settled swaps – 7 February 2013

month Bid offer mid Basis

urea (prill) fob yuzhny (mt)

Feb 430 432 431 5 mt

Mar 420 428 424 5 mt

Apr 405 415 410 5 mt

urea (gran) fob barge Nola (s ton)

Feb 428 432 430 3 st

Mar 432 434 431 1.5 st

Apr 434 442 438 1.5 st

Urea (gran) fob Egypt (mt)

Feb 485 500 493 5 mt

Mar 455 475 465 5 mt

Apr 445 460 453 5 mt

Fertilizer derivatives

For further swaps information contact:

Ron Foxon & Alexey Paliy,

FIS Ltd - Office : +44 207 090 1122 or

Cell: +44 7738726557 [email protected]

“The facility is not currently operating due to a lack of feed gas because of Egypt’s unilateral decision to restrict the supply,” Union Fenosa Gas told Argus. “We are hopeful that this dispute can be promptly resolved through amicable negotiations.”

Union Fenosa Gas would not comment on how long the plant would be off line or whether it would be able to meet its term supply commitments, but claimed it was doing everything it could to remedy the situation. It also denied market rumours that the company was considering selling out of the project.

Upstream production issues and growing domestic demand have put a strain on Egypt’s exports over the past few months.

The Damietta plant receives its feed gas from the Egyptian national gas grid and Egyptian authorities took the decision to cut exports after recent attempts to ramp up operations at the facility caused domestic shortages.

Liquefaction at Damietta fell to just 930,528m³ of LNG in the second quarter of 2012, the last quarter for which figures are available, a 32% decline from the first quarter and 40% lower than a year earlier. Production in the first half of 2012 was 2.3m m³ of LNG, a 41% decrease on the 3.9m m³ of LNG produced in the first half of 2011.

The 7.2m t/year Idku plant — operated by BG, Petronas, GDF Suez and Egyptian state-run companies — has also suffered production issues recently, with regular offtaker BG recently warning customers in Chile that it may not be able to meet supply commitment from the facility.

A floating storage and regasification terminal is due to become operational in Egypt by May, with the first cargoes likely to start arriving shortly after that. Earlier this week, Egyptian utility Egas announced it was evaluating the results of a supply tender and would award a licence to import LNG within two weeks.

argus fmb nitrogen · fmb nitrogen fertilizer price guide 7-feb 31-jan prilled urea – fob bulk...

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