Argus FMB Nitrogen Formerly FMB Weekly Nitrogen Report

Issue 13-06 | Thursday 7 February 2013

market summary price guide

Pause or plateau? FMB nitrogen fertilizer price guide Urea prices have risen nearly $50/t in two weeks to reach 7-Feb 31-Jan $445/t fob Yuzhny. The increase is based on sales for Prilled urea – fob bulk February shipment to nearby markets that are in peak Yuzhny 435-445 408-430 season, principally Turkey and Italy. Baltic 405-430 396-408 Croatia/Romania 455-465 440-450 Traders are selling long positions taken for February and Arabian Gulf 420-425 412-415 making good money on them. However, there is a growing China 420-422 410-415 reluctance to reposition for March, raising the question Brazil (cfr) 430-440 423-430 whether the market is pausing for breath after a rapid run Granular urea – fob bulk up or has reached a plateau. Arabian Gulf all netbacks 410-455 405-455 Arabian Gulf – US netback* 442-454 436-455 Certainly, buyers were deserting the paper market on Arabian Gulf – non US netbacks 410-455 405-450 Thursday and the only trading company buying physical Iran 400-405 395-400 tonnage in Yuzhny this week appeared to be Trammo. Egypt 495-510 495-510 Indonesia/Malaysia 415-444 413-444 Against this, trader positions are dwindling, Latin American Southeast Asia (cfr) 430-435 428-435 buyers are snapping up Baltic cargoes, Egyptian urea Venezuela/Trinidad 420-446 415-439 exports are likely to total less than 100,000t in February US Gulf (pst barge) 432-442 425-442 and Turkey and Italy need more urea. Moreover, Middle East US Gulf (cfr metric) 468-480 461-480 urea prices have moved up, with a trader paying $455/t fob French Atlantic (fca Euro) 390-393 385-395 for granular. * Basis 35-45,000t freight Ammonium sulphate – bulk While prices may have risen too fast to be sustainable, fob Baltic (Caprolactam) 215-220 210-215 there is little reason for prices to fall back in the short fob Blk Sea (Caprolactam) 220-225 215-220 term. The second quarter is a different story, though. fob Kherson (steel grade) 190-193 190-193 cfr S.E. Asia 213-215 210-213 The US market has traded sideways this week lending no cfr Brazil 230-232 220-230 RUN up in prills starting to cause concern Ammonium nitrate fob bulk Baltic 345-347 323-325 yuzhny vs arab gulf urea prices fob bulk Black Sea 348-350 325-327 UAN (32%) Nola (short ton) 325-330 322-330 AG Granular (All) Yuzhny Prilled 550 Rouen 30% N fot (€ Euros) 245-248 240-241 fob Black Sea 325-330 315-325 Argus nitrogen index 500 Argus 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 3 450 January 2009 = 100 for each component class of fertilizers.

400 Argus FMB Nitrogen An Argus Media company View the methodology used to assess nitrogen prices at www.argusmedia.com/methodology. Your 350 feedback is always welcome at [email protected]

real support to either side. Granular urea barges are selling Yuzhny urea line up in the $430s/st fob Nola, with prices trending slightly lower Date Vessel t Shipper/Destination at presstime. This behaviour is not unusual ahead of an industry meeting and a clearer trend should emerge at TFI’s OPZ February conference in Florida in the coming week. Comp Amisos 7,30 0 AF T/Turkey

Comp Oruba 8,000 AF T/Turkey Highlights this week 9 Gokan Keran 27,50 0 Trammo/ Trammo buys Yuzhny prills at $445/t fob 11-12 Pagona 25,000 NF/ ▪ Total 67,8 0 0 ▪ Turks buy another 50,000t of urea Brazilians reject prills at $440/t cfr TIS February ▪ Egyptian gas problems continue into February Comp Rainbow H 27,50 0 NF/Italy ▪ US market moves sideways ▪ Kaltim signs term contract with Universal Ldg Mustafa S 5,600 Koch/Turkey ▪ 3 Louise Bulker 15,700 Keytrade/WCSA ▪ Sri Lanka awards urea tender AN price rises to $350/t fob Black Sea 6 Kamil 10,000 Dreyfus/Cameroon ▪ Yara moves CAN prices up for March 11 Sapphire 3,100 Keytrade/ ▪ UAN prices rising across the board ▪ 12 Tanais Leader 20,000 Mekatrade/ Total 81,900 Total Yuzhny February 149,700 black Sea

Yuzhny Tuapse Prices have risen further reaching $445/t fob for February loading, the highest level since June. Trammo has been It is understood that Salavat will deliver 10-20,000t of the main buyer again this week, paying $435/t fob Yuzhny prilled urea to Tuapse during March to be sold and shipped for March from AFT and $445/t to DniproAzot for its final from the Russian terminal, which is owned by Eurochem. February tonnes. Kuibyshev is also reported to have sold 5,000t at $438/t fob. Romania Interagro has sold prilled urea for March at prices up to Traders are selling February positions, but are hesitating $465/t fob to traders. There is a heavy schedule of small about buying for March, uncertain whether netbacks from vessels loading for Turkey in February. Mediterranean markets will rise to cover the increased asking prices. Sales in Turkey netback to the mid-$430s/t BALTIC fob and NF is netting up to $440/t fob on some business in There have been no fob sales reported this week in the Italy. Baltic, so prices cover a wide range of $405-430/t fob based on netbacks to northern ports from Latin America at the February is largely sold out, with one or two trader longs low end and bids in the Grodno tender, which was scrapped, still to place. March, though, is uncommitted, apart from at the high end. the tonnage that will move to the Ukrainian domestic market. Phosagro - Trammo and Keytrade are reported to be offering February contract cargoes at $440-445/t cfr in On Thursday, buyers became very scarce on the paper Brazil, reflecting $405/t fob. market as a reaction set in and offers dropped to the low- $430s/t fob Yuzhny for March on FIS. Grodno - Held a sales tender on 5 February for 25,000t of prilled urea for end-February/early-March loading in Trading firm Blue Deebaj made the lowest offer of urea in Klaipeda. It claimed to have received bids up to $430-433/t the Ethiopian tender on 7 February, based on Ukrainian fob but did not sell. It is holding a re-tender on 8 February origin. Its offer at $499.50/t cfrlo including 180 days’ credit for the same tonnage. and local bagging is estimated to netback to $410-415/t fob Yuzhny. The tender requires April delivery. Uralchem - Helm has sold 25,000t of Uralchem urea to Guatemala for mid-February shipment from the Baltic. The Stocks at OPZ total about 28,000t of urea. netback is put at $410-412/t fob.

SBU - Keytrade has been offering a 25,000t mid-February offering granular at €395/t fca, with Koch quoting the same cargo of prilled urea for shipment to east coast Mexico price. OCI has a 25,000t Middle East granular cargo loading in Ruwais in February that will discharge part in Sete, part Biofert - Salavat has not achieved consistent production of in the Spanish Med, completing in Santander. granular urea yet at its new plant. Prilled urea production has been cut back while efforts continue and Biofert has no Germany product to offer for the present. The urea market is covered for the first application at least. Prices are static: granular offered at €370-375/t fca in Baltic EUROPE ports; and prilled at €340-345/t.

Turkey Spain Importers have booked 45-50,000t of urea this week from Granular urea prices have moved up to €405-410/t fca in Yuzhny and Romania at prices netting back to $430-435/t Med ports and Sevilla, equivalent to $530-535/t cfr. The fob Yuzhny, based on freight at $12-13/t to southern ports. market is very tight and further increases in price are expected during February. Prilled urea is quoted at $475/t Gubretas is reported to have purchased another 25,000t of ex-vessel in Med ports. prilled urea from Trammo and some smaller buyers have also stepped in. Cfr levels up to $465/t cfr with credit have AFRICA been achieved for urea for February loading in the Black Sea. At presstime, there were rumours of lower prices on Egypt offer as traders tried to work Baltic positions taken for The production situation is unchanged from last week and February. can be summarised as follows:

Kastamonu bought 3,000t of prilled urea from Trammo Alexfert - not producing due to inadequate gas supply under its 31 January for 2 x 3,000t of urea. The price was in ▪ OCI - not producing due to inadequate gas supply the mid-$460s/t cfr duty free/paid with 180 days’ credit. ▪ Helwan - producing at 60-70% of capacity ▪ Mopco - producing at 70-80% of capacity A trader is in the market for a vessel to load 31,000t of urea ▪ in Iskenderun prompt for Tartous, Syria. Mopco may hold a sales tender in the coming week, but will wait until most of the product is in its warehouse before Italy selling to ensure product is available. Exports are likely to Urea sales are showing netbacks around $510/t fob Egypt total less than 100,000t in February. for February, based on large cargo freight to Ravenna. Demand for February in northern Italy is put at 60-70,000t Libya of granular urea. NF is selling prilled urea for February at Yara has sold small cargoes to Italy and Spain for February prices netting to $440/t fob Yuzhny. shipment but demand from those markets has eased this week as asking prices have risen to $430/t fob. France Granular urea prices are unchanged in La Pallice, where Ethiopia vessel arrivals and slow movement from the port are AISE tendered on 7 February for 77,000t of urea for March- putting pressure on stocks. Asking prices are €393-395/t April shipment. Offers are shown in the table below, prices fca, with sales taking place in the low-€390s/t. Agrium in $pt cfrlo Djibouti with 180 days’ credit, including local has 15,000t arriving in February on a 42,000t vessel from bagging. The package of freight and other costs from Qatar. Yara has a similar quantity booked to arrive in late Yuzhny is estimated at $85/t. February. AISE Ethiopia urea tender 7 February - 77,000t Supplier Origin Lot 1 Lot 2 Prices are higher in other ports, where the lack of small cargoes from Egypt is more keenly felt. Buyers in northern Blue Deebaj Ukraine 499.50 - France are paying €397-398/t fca for 2-3,000t lots shipped Yara Ukraine/Libya - 514.80 from Benelux ports. Ameropa Russia 522.94 522.94 Indagro Russia/Ukraine 548.00 532.40 In the Med, Unifert is discharging 7,000t of Egyptian urea Commitrade Ukraine 559.00 - in Sete, which was scheduled for late January arrival. It is Midgulf Ukraine/China 584.00 595.00

Middle East Export Sales Qafco Supplier Buyer/Market ‘000t Month Yara will load two cargoes of granular urea for Brazil in February, 44,000t loading currently and another 40-45,000t Granular at the end of the month. Qafco is fully committed on Sabic Thailand 50 Feb granular for February. Avail 190-200kt Pakistan 25-30 Feb balance 0kt New Zealand 25 Feb Oman US 60 Feb SIUCI will offer a 35-40,000t spot granular cargo in the S Africa 25 Feb coming week for March shipment. Its price ideas are said to Australia 25 Feb be minimum $460/t fob. Bangladesh 22 Jan PIC Qafco Yara/US 100 Feb CHS is loading two contract cargoes from PIC in February Avail 390kt Australia 50 Feb for the US. PIC will load contract cargoes for Thailand and balance 0kt S Africa 20 Feb Australia and is sold out for the month. It has 25,000t spot Yara/Thailand 45 Feb available for March. Yara/Europe 50 Feb Sudan 12 Feb Iran East Africa 25 Feb Production at Pardis Petrochemical is returning to full S Korea 35 Feb capacity this week (6,000t/day of granular urea) as gas supply has been restored to normal levels; supplies were Yara/Brazil 85-90 Feb diverted to domestic use in Iran in January. PIC CHS/US 40-45 Feb Avail 130kt Gavilon/US 40-45 Feb PPC has sold 35-40,000t of granular urea for February Balance 20-30kt Thailand 25 Feb shipment to Latin America and has 20-25,000t to traders for Australia 30 Feb Africa in two lots. Oman ADM/US 40 Feb Avail 110kt Koch/US 40 Feb balance 0kt Trader/US 35 Feb 2013 Argus FMB Asia Fertilizer Conference Fertil OCI/Europe 25 Feb and Exhibition Avail 70kt Bangladesh 15 Feb balance 30t 24-26 April, Beijing, China 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

MIDDLE EAST

Fertil Multiple group discounts now available. Contact us for more information. Fertil 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. argusmedia.com/fertilizer-asia

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

ASIA exhausted. There are a few thousand tonnes left in traders’ hands that are offered at $420/t fob or higher. Sri Lanka The ministry of agriculture bought 24,000t of prilled urea in Taiwan bags under its tender on 28 January as follows: TFC in planning a urea tender on 18 February for 5-10,000t of prilled urea for March shipment. ▪ Valency/Uzbek - 12,000t at $473.69/t cfr with 270 days ▪ ETA/UAE - 12,000t at $478.47/t cfr with 270 days Thailand Bangladesh Prices for contract cargoes of granular urea have moved BCIC will tender on 11 February for 25,000t of granular urea above $430/t cfr, with some sales by Yara at $435-436/t cfr for shipment to Chittagong and 25,000t for Mongla. for February shipments. There are unconfirmed reports of small spot sales at much higher levels. China Traders have bought much of the granular urea remaining in Malaysia bonded warehouses at prices in the range $430-440/t fob, Traders are selling small lots of Chinese prilled urea in mainly from CNAMPGC. Gavilon is reported to be the main containers at $430-435/t cfr. A trader is in the freight buyer. Trammo has also booked a cargo and Helm is offering market to ship 5,000t cargoes of prilled urea from granular in Brazil for February shipment. Palembang to Lahad Datu and Bintulu 11-12 February. This is product sold a few weeks ago below $420/t cfr. Tight supply and high prices for granular urea from other origins have prompted the purchases, which are expected Indonesia to be shipped to the US and South America. Kaltim has signed a one-year contract with Universal Harvester in the Philippines to supply 10-15,000 tonnes/ Prilled urea stocks in bonded warehouses are virtually month of granular/prilled urea in 2013. The monthly

US gran urea imports from offshore Ameropa fixed the Darya Ganga to load 33,000t of granular urea in Bontang 2-5 February for Portland, US west coast. Month Origin 000t Comments Freight was reported at $23/t. July-December arrivals - actual 2,331 December 657 January 625 Yara Qatar 50 AMERICAS Sabic S Arabia 60 Koch Oman 45 US Agrium Argentina 25 The granular urea barge market traded in the range Gavilon China 55 $433-440/st fob Nola this week for February, with a slight CHS Kuwait 45 downward slide beginning late on Tuesday. As of Thursday, PCS Trinidad 50 there were February physical offers as low as $430-432/st Eurochem Russia 35 fob Nola in the market. Gavilon Bahrain 40 ADM Oman 45 March barges traded in the range $438-442/st fob Nola with Trammo Abu Dhabi 35 east coast offers decreasing to $434-435/st fob Nola on Thursday. Koch Indonesia 20 west coast Ameropa Indonesia 30 west coast Gavilon Oman 45 Much of this week’s activity was attributed to a few traders CHS Venezuela 45 clearing their books or taking positions ahead of the TFI February 575 conference next week. Dealer demand has not surfaced in CHS UAE 45 a significant way yet, and it is clear there is plenty of spring Gavilon Bahrain 45 demand ahead. However, the heavy import line-up and the Yara Qatar 50 availability of product at the wholesale level should temper Sabic S Arabia 60 any significant price rise. Koch Oman 40 east coast ADM Oman 45 west coast Canada Gavilon Oman 35 Importers have begun to inquire for granular urea for March Eurochem Russia 35 shipment. Russian tonnage has been offered at $530/t cfr PCS Trinidad 40 Ameropa Indonesia 45 for delivery and other offers are reported at $520/t cfr. Gavilon China 50 Trammo Indonesia 30 Mexico Mekatrade Venezuela 25 ADM, Fertiquim and Pronamex invited offers for 25,000t Trammo Indonesia 30 of prilled urea on 6 February for shipment to the east March 622 coast. The lowest offer is reported close to $440/t cfr from Ameropa Indonesia 60 Ameropa. Yara Qatar 100 Sabic S Arabia 60 Central America Koch Oman 45 Under its 5 February inquiry for 25,000t of prilled urea and ADM Oman 40 Trammo UAE 35 10,000t of AN for Guatemala, Costa Rica and Nicaragua, Helm Oman 47 Incofe bought 25,000t of urea from Helm in the high-$450s/t CHS Kuwait 80 cfr Pto Quetzal. Freight is estimated in the mid/high-$40s/t Gavilon Bahrain 45 from St Petersburg/Kotka. It did not buy any AN. Eurochem Russia 35 PCS Trinidad 50 Indagro has been checking freight for 25-30,000t of urea Gavilon Malaysia 25 loading in Qatar for Pto Quetzal, Guatemala, in February but no sale is reported. YTD total 4810 July 2011-March 2012 3274 Brazil change 1536 The highest price paid for prilled urea in Brazil in 2013 is % increase 47 $430/t cfr. Koch, Trammo and Keytrade are reported to have offered February cargoes this week at $440-445/t cfr quantity may vary depending on needs. The urea will be but have found no takers. The market is calm in Brazil and priced under a formula based on the sales tenders held for no one has to buy prilled urea for February/early-March Indonesian urea. loading.

Yara is offering Qatari granular urea from early-February There are cheaper stocks of CAN unsold in the distribution and late-February vessels. Offers are on a Yuzhny-linked pipeline, and actual selling prices still reflect €265/t cif formula basis, with buyers saying there is a price ceiling. inland rather than any higher number. Helm is offering Chinese granular for February loading at $460/t cfr. Venezuelan granular has been offered at $460- In France, AN prices are unchanged, with Yara quoting 465/t cfr. an official level of €362/t delivered in bulk and GPN not quoting. Imported AN is on offer at €335-337/t fca bagged Uruguay for Lithan/GrowHow UK product in the northwest and Isusa is receiving offers for a part cargo of granular urea for €330/t fca bagged for Georgian AN from a vessel expected March arrival. Spot offers of Middle East urea are reported in Nantes at the end of February. in the high-$460s/t cfr. However, Isusa is asking suppliers to sell on a formula price basis. Brazil Offers of standard grade amsul have moved up to $230-240/t Argentina cfr for March, with granular amsul offered at $330/t cfr by Profertil has raised its domestic price for granular urea to Fitco. Demand is slowing with the main requirements from $550/t ex-warehouse from $530/t. 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 AMMONIUM NITRATES/SULPHATE shipment, but no fresh offers in the market. Price indications are $355-360/t cfr from buyers. Russian suppliers Black Sea/Baltic have not started to offer yet and will wait for prices to AN is very scarce in the Black Sea and Baltic forcing traders move higher. to bid up for any tonnage available. Russian producers have allocated only small quantities for export in February-March, Mexico keeping the bulk of their AN for the domestic market. Indagro 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 Dreymoor is reported to have bought 15,000t of AN from freight market for 10,000t to load in Savannah, US, at the SBU at $350/t fob for March. end of February/early-March for 1-2 ports east coast Mexico.

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 Far East are indicating price ideas up to $350/t fob Baltic but are not Prices for Chinese amsul are firming as traders have offering firm. begun to take long positions for March. This is partly in anticipation of an aid tender for North Korea and partly Europe because capro grade prices are low relative to fob levels in the Black Sea. On 7 February, Yara announced a €4/t increase in its official price for CAN 27 to €277/t cif inland for March deliveries in Trammo, Indagro and LSH have bought 6,000t cargoes of northern Germany, Belgium and the Netherlands. The price capro grade amsul at $196/t fob this week. Golden Barley for deliveries in southern Germany is €281/t cif inland. has sold 5,000t of capro grade amsul at $215/t cfr for March shipment to Indonesia. Prices for steel grade amsul have The price increase follows a €3/t rise announced for risen to $188/t fob China. February that has yet to be implemented in the market. There is a substantial part of the CAN market still to be India covered in Germany for spring 2013 and higher prices are expected to be realised when farmers start to purchase the MFL asked suppliers to extend their offers under its 30 remaining requirement. January tender for 28,000t of amsul. Quantum, which offered lowest, refused to do so and the tender will lapse.

OCI raised its official price for CAN 27 to €273/t cif inland Kenya on 4 February, aligning itself with the level set by Yara for February. Eurochem Agro is reported to have announced a NCPB has issued a new tender for 25,000t of CAN closing on price of €280/t cif inland for its CAN. 26 February for April delivery.

UAN Solutions Argus FMB is expanding its European fertilizer coverage Freight for UAN cargoes loading in the Mediterranean and Argus Media is a fast-growing global media company providing essential information to the fertilizer industries. Black Sea has risen sharply following a surge in the CPP We are currently looking for someone to join our London- market, which pays higher freight than UAN. Vessels are based editorial team to cover specific fertilizer markets and scarce and quotes for 25-30,000t Black Sea/Egypt-US east report on deals and price movements in order to produce coast have risen to $45-48/t from the high-$30s previously. our twice-monthly European report as well as contributing to our weekly fertilizer reports and providing daily news updates. US The UAN market has traded at $325-330/st fob Nola for This is an excellent opportunity to forge your career March, and next business expected to be concluded above covering the economically and politically influential sector $330/st. Producer asking prices are $5/st higher at $335/st of global fertilizers. You will apply and develop your skills across daily news reporting, market analysis and report fob Nola for the second quarter. writing in this fast-paced environment with the highest standards of journalistic independence and integrity. Production problems at various sites across the US and There are opportunities to travel and present papers at Canada have contributed to the recent run up in prices as conferences. well as tight international availability. End-user demand Essentially, we are looking for a bright, confident and multi- for UAN in the wheat belt is strong as some are considering lingual person with an inquisitive mind and someone who is substituting additional UAN for some urea because of the fluent in one or more of the following languages — Spanish, dry conditions. Italian and French. Eurochem has sold a part cargo of Russian UAN 32 at $365/t The role requires extensive liaison with our wide base of cfr for March shipment to the east coast. A trader has bid industry contacts — producers, traders and buyers — in the European fertilizer industry, in order to build an accurate $370/st cfr for an early-March cargo. picture of the various fertilizer markets within Europe in terms of price movements, deals and other industry news Canada across a range of fertilizer products and country markets. Importers have begun to buy UAN for April shipment to Key responsibilities eastern Canada, with inquiries reported from the main • Monitor and assess markets to produce daily market buyers including Yara, Sylvite and La Co-op Federee. There updates, analysis and news is demand both for UAN for shipment to the Great Lakes and • Initially work on our European fertilizer report but this will to Montreal/Three Rivers. be expanded to include coverage of other regions and markets • Daily contact with traders, brokers, investors and key Some sales are reported to have been agreed in the range market figures to build relationships $385-390/t cfr. CF is offering at $410/t ex-Courtright. • Contribute copy to daily market updates, our online news service and weekly market reports France • Attend meetings, conferences and industry events to build contacts, report on news and represent Argus UAN 30 prices have moved up over the past week, reaching €247-248/t fca Rouen from €242/t fca at the start of Skills and experience February. Some suppliers have moved asking prices for • Candidates with language skills in French, Spanish and March to €255/t fca and the latest purchase in Egypt is Italian will be given preference equivalent to €260/t fca. • A graduate with a strong degree • Ability to develop, source and write industry relevant news to deadline Farmers have begun to take delivery from distributors and • Excellent writing, grammar and numeracy skills (these will some drawdown from the tanks in Rouen is starting. be tested as part of the interview process) • Excellent communication skills with the ability to network New cargoes are relatively scarce in February. Agrium is and build contacts with industry executives loading 15,000t in Egypt 7-8 February for Rouen. Litfert will • Strong co-ordination and time management skills with the ability to work well within a team load 21,000t 10-12 February in Klaipeda for Rouen/Ghent and Interore is shipping one vessel from Lithuania. If you are interested in joining a dynamic and fast-growing publishing company then please send a covering letter and Lithuania your CV to Gemma Crozier, HR Manager at: [email protected] or call 44 20 7780 4344 Achema is reported to be fully committed on UAN 32 through April following sales to traders for North America

and Europe. Prices for March cargoes are understood to be NEWS around $325/t fob Klaipeda. New marketing company in Qatar Russia Qafco has announced that a new company named Qatar Eurochem has sold a part cargo of UAN 32 to the US at a Chemical and Petrochemical Marketing and Distribution price netting back around $325/t fob for March shipment. Company (Muntajat) has been established by the State of Qatar to market all its chemical and petrochemical products Acron will load one vessel of around 50,000t in February on an exclusive basis. for the US Gulf to minimize the problems caused by ice at Sillamae. It has 50,000t of March tonnage still to sell. The new company will assume responsibility for sales and marketing of urea, ammonia and other products produced Romania by Qafco with effect from 1 March. Koch has fixed the m/t Resolve to load 25,000t of UAN 32 prompt in Constantza for the US. Another trader has Qafco Marketing will be moved to Muntajat, which will take 25,000t to load in late-February/early-March. title to the products that it sells. Existing contracts held with Qafco will have to be amended. Egypt Effective 1 February, Yousef Al-Kuwari has joined Muntajat Abu Qir held a sales tender on 5 February for 25,000t as executive director, sales and marketing, and Ali Al-Sanadi of UAN 32 for 9-14 March loading. It sold only 15,000t to has joined as director, sales and marketing of the fertilizer Unifert at $326.50/t fob for loading from 7 February. Unifert division. will supply the UAN to Agrium, which has fixed the m/t YM Jupiter at about $30/t for Rouen, France. Livesey joins Dragon Fertiliser

The previous sales by Abu Qir were at $300-302/t fob for Dragon Fertiliser has appointed David Livesey as Director, end-January loading. Availability of vessels is limited in the Nitrogen Trading. Mediterranean, which prevented traders booking a larger cargo for the US. Previously he was urea product manager, senior vice president trading for Keytrade AG which he joined in 1999, Abu Qir has issued a new tender, closing on 12 February, for and an executive committee and compliance committee 15,000t for 15-18 February loading. member. In addition to urea, David Livesey was responsible for the business of all products traded by the company to Australia specific markets such as India and Pakistan.

CSBP has invited offers by 13 March for 25,000t of UAN 32 David Livesey commenced his career in fertilizers at for late-April delivery to Kwinana. commodities trader Philipp Brothers, and subsequently held positions trading fertilizers for Marc Rich and Sinochem UK.

2013 Argus FMB Fertilizer Conferences John Scollay, Chairman of Dragon Fertilizer said: “We are delighted to have David Livesey join as our Director, Africa: 13-15 March, Dakar, Senegal Nitrogen Trading. He has a wealth of experience in fertilizer Asia: 24-26 April, Beijing, China trading and in Asian markets. David’s contribution will East Europe: 26-28 June, Budapest, Hungary enable us to develop a leading position in sourcing and West Europe: 30 Oct- 1 Nov, Istanbul, Turkey delivering nitrogen fertilizers, as Dragon Fertiliser continues to expand in its 20th year”.

Egyptian gas problems affect LNG sectors Operations 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, argusmedia.com/Fertilizer with the remainder held by Egyptian state-run companies.

“The facility is not currently operating due to a lack of feed A floating storage and regasification terminal is due to gas because of Egypt’s unilateral decision to restrict the become operational in Egypt by May, with the first cargoes supply,” Union Fenosa Gas told Argus. “We are hopeful that likely to start arriving shortly after that. Earlier this week, this dispute can be promptly resolved through amicable Egyptian utility Egas announced it was evaluating the results negotiations.” of a supply tender and would award a licence to import LNG within two weeks. 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 FERTILIZER DERIVATIVES everything it could to remedy the situation. It also denied market rumours that the company was considering selling FIS Cash Settled swaps – 7 February 2013 out of the project. Month Bid Offer Mid Basis Urea (Prill) fob Yuzhny (mt) Upstream production issues and growing domestic demand have put a strain on Egypt’s exports over the past few Feb 430 432 431 5 mt months. Mar 420 428 424 5 mt Apr 405 415 410 5 mt The Damietta plant receives its feed gas from the Egyptian Urea (gran) fob barge NOLA (s ton) national gas grid and Egyptian authorities took the decision Feb 428 432 430 3 st to cut exports after recent attempts to ramp up operations at the facility caused domestic shortages. Mar 432 434 431 1.5 st Apr 434 442 438 1.5 st Liquefaction at Damietta fell to just 930,528m³ of LNG Urea (gran) fob Egypt (mt) in the second quarter of 2012, the last quarter for which Feb 485 500 493 5 mt figures are available, a 32% decline from the first quarter Mar 455 475 465 5 mt and 40% lower than a year earlier. Production in the first Apr 445 460 453 5 mt 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. For further swaps information contact: The 7.2m t/year Idku plant — operated by BG, Petronas, GDF Ron Foxon & Alexey Paliy, Suez and Egyptian state-run companies — has also suffered FIS Ltd - Office : +44 207 090 1122 or production issues recently, with regular offtaker BG recently warning customers in Chile that it may not be able to meet Cell: +44 7738726557 [email protected] supply commitment from the facility.

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