International Fertilizer and Agriculture News - August 28

Turkey's Tupras Awards September Domestic Sulfur Tender

A lack of export outlets has led to lower sulfur prices in Turkish refiner Tupras' latest domestic-market tender.

The refinery fully awarded its September electronic tender at USD 856-882/tonne across different lot sizes. Compared with the previous tender held on July 28, when prices were USD 849-912/tonne, the midpoint declined by USD 11.5/tonne. Prices fell because Turkey's continuing sulfur export ban restricts local producers to supplying the domestic market.

The awards were as follows: From Izmir, lots ranging from 100-750 tonnes, totaling 4,500 tonnes, were awarded at USD 866-875/tonne, compared with August prices of USD 909-912/tonne. From Izmit, lots ranging from 100-1,500 tonnes, totaling 12,000 tonnes, were awarded at USD 856-867/tonne, compared with August prices of USD 849-852/tonne. From Kirikkale, lots ranging from 100-650 tonnes, totaling 2,250 tonnes, were awarded at USD 872-884/tonne, compared with August prices of USD 876-882/tonne.

United Kingdom Lists Schemes Eligible for CBAM Carbon-Price Relief

The UK government today published a non-exhaustive list of schemes that will be recognized as carbon prices paid in the country of origin for imports covered by its forthcoming carbon border adjustment mechanism, or CBAM.

The list currently includes emissions trading systems in the European Union, China, Japan, Kazakhstan, South Korea, Montenegro, New Zealand and Switzerland; carbon taxes in Chile, Serbia, Singapore and South Africa; Australia's Safeguard Mechanism; Canada's federal output-based pricing system; India's carbon credit trading scheme; and Taiwan's carbon fee. The government said it would publish updates “in due course” as further schemes are assessed, recognizing that some regional schemes may already meet the criteria established last month and that other schemes under development may become eligible in the future.

To apply for relief from UK CBAM liabilities, importers must first calculate the effective carbon price paid. This requires calculating the various elements under a qualifying pricing scheme from total installation emissions, including total liable emissions, additional charges above the threshold, free allowances received, payments for greenhouse-gas removals, and electricity-price emission thresholds. Emissions for each element are then multiplied by the price per tonne of carbon dioxide equivalent for that element during the previous calendar quarter. Where the price is not fixed, an average price is used. These amounts are added together and divided by the original total emissions of the installation.

Carbon-price relief is then calculated by multiplying the effective carbon price by the embedded emissions of the relevant goods covered by the scheme. The amount is converted into pounds sterling and deducted from the CBAM liability. The UK CBAM will take effect on January 1, 2027, applying an effective carbon price to specified imports of aluminum, cement, fertilizers, hydrogen, iron and steel.