Qatar plant to boost urea supplies


By Roger Chesher


MOST of the activity in the world of fertiliser this week has not been at the farm gate, but very much behind the scenes.


The joint owners of the Qatar Fertiliser Company (Qafco) – Qatar Petroleum and Norsk Hydro – have approved a project to construct a new US$535m (365m) ammonia and urea factory in Qatar.


Capable of manufacturing 2000t/day of ammonia and 3200t of urea, the plant will make Qafco the worlds largest single ammonia and urea facility producing in excess of 4.8m tonnes each year.


While it is too early to say what impact this will have on our home markets, it is a further indication of Hydros commitment to fertiliser as a core business and illustrates the global nature of fertiliser production.


Larger volumes of efficiently produced urea available in world markets should help to keep the price of nitrogen at a reasonable level, even though urea sales represent less than 10% of our home market.


On-farm, arable buyers are too busy with drilling to even think about fertiliser sales.


PK sales are still surprisingly slow and all is quiet on the import front.


However, some nitrogen is moving, mainly on to dairy farms where signs of buoyancy are creeping back.


CURRENT PRICES


















New-season nitrogen (SP5) 34.5%

October domestic nitrogen

Imported urea

Imported AN

Blended 20.10.10 and 25.0.16

Blended 25.5.5
Liquid nitrogen, 37kg/100l or 29.6% N/t


September 112-114


No published price


Granular 115-120

88 ex-dock
100 delivered fresh

113-115

107-113

120



















NPK

September, pay cash

NS products

Complex 25.5.5

112-118

112-114

15.15.20

No market


20.10.10/29.5.5

118-120


17.17.17

No market













After-cut NK cash

0.24.24

TSP (47% P2O5) bagged

Muriate of Potash (60% K2O) bagged

110-115 – market virtually over

112-114

125

122

 

IRELAND

Forecast prices
















 
Urea

CAN


24.6.12


0.16.36


Complex compounds
27.6.6


Northern Ireland

No market

110

130-135

No market

130















 

CAN


24.21/2.10


Urea, imported


27.21/2.5


Republic of Ireland*

140-145

175

No market

170-175

*Note in the Republic of Ireland nutrients are expressed as elements not oxides. Analyses will not be directly comparable with those used in the UK.

*Prices in the Republic are IR

  • IR1=UK78.31p; US$1=UK68.17p on 13 September

     

    Note All illustrated prices are based on 24-tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably.

    Source: Bridgewater Partnership

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