July 15 International Fertilizer and Agriculture News

Iran Says More Than 200 Vessels Have Applied for Hormuz Permits Since June

The authority said on Tuesday that more than 200 non-Iranian vessels coordinated with Iran’s Persian Gulf Strait Administration, or PGSA, to transit the Strait of Hormuz in the three weeks after Tehran and Washington signed a memorandum of understanding last month.

The establishment of the PGSA was part of Tehran’s move to strengthen control over shipping in and around the key Strait of Hormuz after the outbreak of the U.S.-Israel war in late February. Tehran required vessels intending to transit the Strait to apply for permission from the PGSA in advance. In many cases, this also included payment of fees to the administration.

The fee was waived for 60 days under the memorandum of understanding signed on June 18, which aimed to lay the groundwork for reopening the Strait to commercial shipping, ending fighting, and starting final peace negotiations.

But last week, as Iran and the United States began exchanging fire, tensions around control and management of the Strait resurfaced. Iran again announced the closure of the Strait over the weekend of July 11-12, while U.S. President Donald Trump announced on Monday that Washington would reimpose a maritime blockade on Iran.

“In the three weeks after the signing of the memorandum of understanding, and before the Strait was closed due to recent U.S. military provocations in the region, more than 200 non-Iranian vessels coordinated their movements with the PGSA,” the agency said.

A breakdown released by the PGSA showed that 41% of vessels applying for permits were “tankers.” Bulk carriers accounted for 27%, container ships for 18%, and LNG carriers for 2%.

The PGSA said 53% of applicant vessels were sailing eastbound, preparing to leave the Middle East Gulf through the Strait, while the remaining 47% were sailing westbound into the Gulf.

Among eastbound vessels, 21% were bound for China, 20% for India, and 29% for the Asia-Pacific region. Another 22% were heading to the broader Middle East, including ports in Oman, Saudi Red Sea ports, and Fujairah in the UAE.

Among westbound vessels, 21% came from India, 19% from China, and 20% from other Asian countries. The PGSA said 24% of vessels entering the Middle East Gulf through the Strait came from ports “in the region.”

The PGSA said 79% of vessels that coordinated with it before transiting the Strait also purchased insurance from the authority. The report said 14% of vessels that had applied were still awaiting permits. The agency said the PGSA takes an average of 50 hours to issue a permit.

Annaba Phosphate Port Expansion Accelerates: Update

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. Algerian phosphate rock producer and Sonarem subsidiary Somiphos currently loads cargoes of up to 55,000 tonnes.

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 Keberit in Souk Ahras Province.

The government said last month that the IPP is “planned to enter production in the first quarter of 2027, coinciding with 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.

Argus understands that the Bled El Hadba mine will supply the Oued Keberit facilities. The mine is already operating and continuing to build inventories. Somiphos said it will export and sell part of the phosphate rock from Bled El Hadba before the Oued Keberit phosphoric acid production starts.

Somiphos also expects to complete a 1 million tonnes/year expansion at its Djebel Onk mine in July 2027. Its target is to reach output of 1.8 million tonnes in 2026.

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.

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.