International Fertilizer and Agriculture News - September 1

September 2, 2026

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QatarEnergy, a state-owned marketer, cut September’s Qatar sulfur price (QSP) to $880/tonne FOB Ras Laffan/Mesaieed, reflecting weaker regional shipping conditions. Freight rates remain high due to geopolitical tensions in the Strait of Hormuz, which impacts sulfur shipments from the Middle East compared to cost-effective origins like Vancouver and the US Gulf Coast. Separately, Brazil, leveraging competitive biodiesel production costs and ample feedstock, aims to emerge as a global leader in supplying low-carbon marine fuels. Regulatory progress within the IMO and EU, including RED III sustainability rules, could position Brazilian biodiesel as a core component for maritime decarbonization. Domestic regulatory efforts also support bio-bunkering trials of advanced fuels like HVO and ethanol. Decarbonization frameworks being developed through 2028 promise to reshape fuel supply chains profoundly.

QatarEnergy Cuts September Sulfur Price by USD 10/Tonne

State-owned QatarEnergy Marketing has reduced its September Qatar sulfur price (QSP) to USD 880/tonne (FOB Ras Laffan / Mesaieed Port), down from USD 890/tonne in August. Freight for 30,000-35,000-tonne cargoes to Chinese ports was last assessed on August 27 at USD 145-160/tonne. This implies delivered costs of USD 1,025-1,040/tonne, before further increases from insurance premiums.

Shipping traffic through the Strait of Hormuz remains restricted. Renewed US attacks on Iran have prevented ballast vessels from entering to load and weakened shipowners' confidence in departing safely after loading. Higher costs have reduced the netback for Middle Eastern sulfur shipments versus other supply origins, such as Vancouver and the US Gulf Coast, where freight costs are lower and delivery schedules are more predictable. Vancouver sulfur was last assessed on August 27 at USD 1,050-1,200/tonne, with freight to China at USD 33-37/tonne for typical 50,000-60,000-tonne cargoes. Freight to Indonesia was slightly higher at USD 40-45/tonne.

Biodiesel Could Position Brazil as a Marine Fuel Supplier

Brazil is well positioned to become a leading global supplier of biodiesel for the marine sector, supported by competitive costs, ample feedstock availability and idle production capacity. Brazilian biofuels still face obstacles in meeting some international demand driven by European regulations, but progress in International Maritime Organization (IMO) discussions on shipping decarbonization could expand the market for biodiesel made from soybean oil and other Brazilian feedstocks.

According to Argus assessments, Brazilian biodiesel averaged USD 1,065/m3 in the spot market and USD 1,016/m3 in delivered contracts at Paranagua Port in Parana state over the past 12 months. On a comparable basis, European biodiesel produced in the Netherlands averaged USD 1,146/m3. Brazil's current biodiesel production capacity totals 15.8mn m3/yr, equivalent to 272,700 b/d if operated continuously. However, actual output is around 10mn m3/yr, leaving about 37% of capacity idle, according to hydrocarbons regulator ANP.

State-controlled Petrobras and Raizen have both received ANP approval to sell their own very-low-sulfur fuel oil (VLSFO) blends containing at least 24% biodiesel, known as B24. At present, only Petrobras sells B24 at Brazilian ports.

Whether Brazilian biodiesel can establish a firm position in international fuel markets depends on demand, which is constrained by regulatory factors. European regulations are the main driver of alternative-fuel consumption and restrict eligibility for fuels derived from food or feed crops. The EU Renewable Energy Directive III, or RED III, targets renewable energy consumption in transport at 29% of total consumption by 2030 and classifies soybeans as a feedstock with a high risk of indirect land-use change. This classification is based on higher emissions under a well-to-wheel lifecycle assessment, which accounts for total carbon dioxide emissions from production through fuel combustion.

RED III therefore favors biodiesel produced from waste feedstocks and advanced pathways, such as used cooking oil, agricultural residues and industrial waste. FuelEU Maritime, the EU regulation specifically targeting reductions in greenhouse gas emissions from the maritime sector, applies the RED III sustainability criteria and likewise prioritizes advanced fuels and feedstocks with lower climate impacts.

In December, the IMO may approve a regulatory package supporting the decarbonization of international shipping by 2050. The proposed Net-Zero Framework could create a new route for Brazilian biodiesel to enter the marine fuel market. The proposal would establish fuel-intensity standards and an economic mechanism linked to vessel emissions, with progressive emissions-reduction targets through 2050. Depending on the lifecycle assessment standard adopted, traceability requirements and treatment of indirect emissions, soybean oil biodiesel could be regarded as a low-carbon alternative. This could strengthen Brazil's competitiveness as a supplier of low-emission marine fuels and may unlock demand for biodiesel from various feedstocks from 2028, when the new IMO requirements could take effect, reshaping fuel-consumption decisions in the maritime sector.

Alongside international regulatory developments, Brazil is advancing regulation for bio-bunkering in its domestic waters. In late July, ANP launched a public consultation on revising marine fuel specifications to align Brazilian rules with the IMO's latest decarbonization targets. The proposal recognizes biodiesel, hydrotreated vegetable oil (HVO) and synthetic fuels as drop-in fuels that can be used without modifying engines or bunkering infrastructure. Since 2025, direct-use fuel trials have been carried out under ANP special authorizations. Efen, a joint venture between Prumo Logistica and BP, has conducted HVO bunkering operations at Acu Port in Rio de Janeiro state. Local renewable energy company Be8 has tested its BeVant biofuel in waters off Sao Francisco do Sul in Santa Catarina and in Rio Grande do Sul. Danish company Bunker One also conducted ethanol trials at Santos Port in Sao Paulo state this year.

International Forex News - September 1

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