July 14 International Fertilizer and Agriculture News

Tampa Third-Quarter Liquid Sulfur Price Hits Record USD 705/lt

The third-quarter delivered contract price for molten sulfur in Tampa, Florida, has reached a record high of USD 705/long ton, up USD 50/long ton from USD 655/long ton in the previous quarter.

The 8% increase set a new record after the second-quarter settlement had already exceeded the 2008 peak. Spot exports have taken advantage of insufficient sulfur outflows from the Middle East, with prices far above contract levels. The latest assessment for U.S. Gulf refinery spot exports on July 9 was USD 1,100-1,150/tonne.

In the second quarter, U.S. Gulf exports moved into unusual markets, including North Africa for fertilizer production and East Africa for Copperbelt consumers, as Middle East export flows declined.

The moderate contract range is understood to reflect downstream fertilizer market affordability concerns, as phosphate fertilizer demand has weakened under high prices. This reflects a broader global trend, as rising costs have prompted domestic sulfur consumers in many regions to discount in order to secure fertilizer production.

In addition, some sulfur producers in the U.S. Gulf lack infrastructure to export solid sulfur, leaving them dependent on domestic liquid sulfur consumers. They are also concerned that demand destruction could cause storage tanks at production sites to fill.

Algeria Accelerates Annaba Phosphate Port Expansion

Algeria’s Ministry of Engineering and Infrastructure said more workers and equipment will be deployed this month for the Annaba phosphate port expansion project in Algeria, with the goal of completion in the first quarter of 2027.

The project workforce will be doubled, and Annaba “will be equipped with more machinery and equipment... aimed at accelerating the pace of work and ensuring on-time project delivery,” Algeria’s state media reported, citing the ministry.

The core of the project is the construction of a deepwater berth capable of handling 80,000-tonne vessels, which will enhance the “logistics competitiveness” of Algeria’s phosphate rock and fertilizer exports.

The port expansion is part of Algeria’s Integrated Phosphate Project, or IPP, a collaboration between state-owned energy company Sonatrach and state-owned mining company Sonarem. The IPP includes development of the Bled El Hadba phosphate deposit and construction of phosphoric acid, sulfuric acid, and ammonia facilities at Oued Kebrit in Souk Ahras Province.

The Algerian government said last month that the IPP is “planned to enter production in the first quarter of 2027, coinciding with the completion of the Annaba port expansion project and readiness to export the first phosphate shipments.”

According to Argus analysts, the IPP Souk Ahras phosphoric acid production facility will have annual capacity of 900,000 tonnes P2O5, with potential phosphate rock demand of around 3 million tonnes/year.

Argus understands that the Bled El Hadba mine will supply the Souk Ahras facilities. The mine is already operating and continuing to build inventories.

Algerian phosphate rock producer and Sonarem subsidiary Somiphos is expected to complete a 1 million tonnes/year expansion at its Djebel Onk mine by mid-2027. According to Argus analysts, its current phosphate rock capacity is around 1.5 million tonnes/year.

After the expansion is completed, Somiphos is expected to supply up to 1 million tonnes of phosphate rock to Indonesia under an agreement signed in January with state-owned fertilizer group Pupuk Indonesia.

Hormuz Transit Remains Sparse After U.S.-Iran Conflict: Update

Vessel transits through the Strait of Hormuz decreased further after a new round of conflict between U.S. and Iranian forces over the weekend.

U.S. and Iranian forces expanded the scope of attacks for two consecutive days on Saturday and Sunday, striking defensive targets, while Iran resumed attacks on vessels and oil infrastructure in the Middle East Gulf.

According to U.S. Central Command, U.S. forces in the Middle East launched another round of attacks on Iran at 22:00 GMT on Sunday. Kuwait’s Ministry of Defense said Iranian forces attacked a Kuwaiti border checkpoint and an offshore oil facility earlier on Sunday.

Iran’s Islamic Revolutionary Guard Corps said early Sunday that the Strait of Hormuz would be closed until further notice, after the United States carried out a new round of strikes on Iranian military targets on Saturday. The IRGC also claimed that its attack on a U.S. military base in Kuwait caused U.S. casualties. Central Command disputed this.

Central Command also questioned Tehran’s claim that it had closed Hormuz. “Iran does not control the Strait,” Central Command said on social media. “Traffic is open.”

But visible AIS data for maritime traffic showed no vessels passing through the Strait, although some vessels may have switched off tracking systems while transiting. Rising security risks may limit such attempts and threaten the early recovery in Gulf crude and product exports.

Iranian forces appeared to attack the Cyprus-flagged container ship GFS Galaxy on Saturday as it passed through the Strait of Hormuz via the southern route near Oman. The vessel was hit nine nautical miles east of the Oman coast, forcing the crew to abandon ship in lifeboats. The UK Maritime Trade Operations agency said the lifeboats were recovered by local authorities. The vessel appeared to have turned off its AIS tracking system at the time.

In another IRGC statement released by Sepah News early Sunday, the force claimed that its aerospace unit had attacked a logistics support center at Oman’s Duqm port and refueling platforms associated with a U.S. aircraft carrier.

Duqm is far from the Strait of Hormuz and was attacked early in the war, but has since been less affected. Oman’s state news agency also reported drone attacks in Musandam Governorate, Oman’s northernmost province. Oman condemned the attacks, the agency added.

French Nitrogen Demand Surges After Subsidy Announcement

French demand for straight nitrogen fertilizers, especially urea and UAN, surged after the government announced subsidies on July 9.

Farmers purchasing straight nitrogen fertilizers between June 1 and September 30 will receive at least EUR 50/tonne, or USD 57/tonne, in support. This may rise to EUR 70/tonne if fertilizers account for more than 10% of operating costs.

Urea purchases accelerated immediately, with prices rising from around EUR 460/tonne to EUR 495/tonne. Interest also strengthened in sulfur-enriched granular urea, 40N+14SO3, with big-bag business reported at EUR 460/tonne.

Demand for UAN 30 also surged, but prices initially remained unchanged at EUR 370/tonne, with large sales volumes in Rouen. Some offers reached EUR 380/tonne today, while several suppliers withdrew offers pending reassessment of market levels next week.

The impact on AN 33.5 and CAN 27 was smaller, but some European producers withdrew market offers.

Market participants are also concerned that the subsidy may further divert demand away from NPK fertilizers and ammonium sulfate, which are not covered by the support program.