IFA '12: Mexico's Fertinal to ramp up phosphates production in June

22 May 2012 12:37  [Source: ICIS news]

DOHA, Qatar (ICIS)--Mexican phosphate fertilizer producer Grupo Fertinal is scheduled to increase output back to normal levels after extended scheduled maintenance, a company source said on Tuesday.

Production at the 85,000 tonne/month facility was reduced to 50-60% of capacity for maintenance in April to accommodate the first phase of an 18-month revamp programme.

Fertinal confirmed diammonium phosphate (DAP) and mono-ammonium phosphate (MAP) output would return to near-full capacity early next month, enabling the next stage of work to reduce the volume of sulphuric acid imports and decrease the energy costs incurred during production.

The slowdown resulted in the producer selling out of DAP and MAP tonnes for April and May early in the second quarter, as strong demand emerged in Latin America.

Fertinal confirmed it has now sold out for July, with two 30,000-35,000-tonne cargoes of MAP sold in the mid-$580s/tonne FOB (free on board) to traders.

The likely destination for the cargoes is Brazil, which is expected to import a total of 400,000 tonnes of DAP and MAP during June and July.

Russian phosphate fertilizer producer concluded the last MAP business to Latin America at slightly above $600/tonne FOB.

A firming phosphates market driven by strong MAP demand has placed Mexican, Russian, Moroccan and US producers in a comfortable position going forward into June.

The Fertilizer Industry Association (IFA) conference runs from 20-23 May.

For more information on phosphates and other fertilizers, please visit ICIS pricing fertilizers
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By: Karen Thomas
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