Fertilizers

HOUSTON (ICIS)– Producer Agrimin Limited said their Mackay Potash project in Western Australia is now advancing towards a final investment decision. In an update on quarterly activities the company said it continues to focus on their project which is planned to be able to manufacture standard and granular sulphate of potash (SOP) products. Current activities include efforts towards project funding and strategic partnerships, design works, environmental approvals as well as product marketing. The Mackay project is set to undertake sustainable extraction of brine from Lake Mackay using a network of shallow trenches, which will be transferred along trenches into a series of solar evaporation ponds. Raw potash salts will crystallize on the floor of the ponds and be collected by wet harvesters and pumped as a slurry to the processing plant that will refine harvested salts into high quality finished SOP ready for direct use by customers. SOP volumes will be hauled by a dedicated fleet of road trains to a purpose-built storage facility at Wyndham Port. At the port it will be loaded via an integrated barge loading facility for shipment to customers. The project’s definitive feasibility study (DFS) was completed in July 2020 and demonstrated that once in operation it could be the world’s lowest cost source of seaborne SOP. The independent technical review of the DFS was completed in April 2021. The company has signed three binding offtake agreements with Sinochem Fertilizer Macao Limited for the supply of 150,000 tonnes/year, Nitron Group for 115,000 tonnes/year and with MacroSource for 50,000 tonnes/year. Agrimin has already completed site-based testing for the salt harvesters, geotechnical sampling and for the sealed haul road. Additionally, the company has worked with its proposed power contractor to refine the project’s site power station design which has resulted in a hybrid diesel, solar, wind and battery solution. Regarding environmental clearance the company said the project is being assessed by the Western Australian Environmental Protection Authority (EPA) and during the quarter it resubmitted the environmental impact assessment response, which included revised management and monitoring plans. It is still expected that the EPA approval will come during the second half of 2024. Agrimin said it is also progressing other secondary approvals, licenses and agreements which included coverage for mining operations project safety and water regulations.

26-Jul-2024

LONDON (ICIS)–Venezuelans go to the polls on Sunday with the hope of a free and fair election, in which case President Nicolas Maduro is widely expected to lose office in a country where the economy has been battered by years of mismanagement, corruption, and US sanctions. In the crude oil-rich country – Venezuela holds the world’s largest reserves – petrochemicals could naturally develop given the raw materials advantage. Back in the 1990s, with crude oil output at its peak, petrochemicals were tilted as a growing and booming sector in the country. The industry never took off. Since 2001, Venezuela has been run by the socialist PSUV party, first under the late President Hugo Chavez, who died in 2013, and later under his appointee successor, Nicolas Maduro, who won an election in 2018 widely seen as not free: the PSUV-led coalition won 256 out of 277 seats in the National Assembly. Venezuela’s demise has been rapid and deep: practically no institution in the country has been spared from the PSUV taking over it, and the election on Sunday has several times been postponed as Maduro tries to cling onto power for as long as he can. The powerful military are still for the most part rallying behind him. A state of terror has been the norm in the past few years, and the economy took a turn for the worse in the late 2010s and pushed around seven million Venezuelans to flee, mostly to neighboring countries or, those with the means, to countries such as the US or Spain. Sunday’s election is momentous because it has been tilted as one in which Maduro could allow a free vote – but many still fear that is not his nature. But independent opinion polls have consistently showed him trailing behind the unity opposition candidate, Edmundo Gonzalez, a 74-year-old diplomat who managed to avoid, like other opposition candidates before him, being banned from running. PETROCHEMICALSBefore North America renewed its status as a global energy power with the advent of the shale gas boom, crude oil derivatives were – and continue to be in most Latin American countries – the only game in town when it comes to petrochemicals raw materials. In the past 30 years, crude oil output peaked in 2000 at slightly more than 3 million barrels/day, stayed mostly stable under Chavez’s rule at around 2.5 million barrels/day, but has been on a downward trend since, according to data from the US Energy Information Administration (EIA). VENEZUELA CRUDE OIL PRODUCTIONJanuary 2000-July 2023 Million barrels/day Source: US’ Energy Information Administration Currently, Venezuela produces around 700,000 barrels/day. The reserves continue to be there, underground, but the facilities to extract that wealth have also been victims mismanagement and have had little maintenance. In 2023, as the world’s energy sector reeled from Russia’s attack against Ukraine, the US softened some of its sanctions on Venezuela – its crude oil was now more needed than ever – and signed the so-called Barbados Accords, which would imply lifting sanctions in exchange for a free and fair electoral process. Maduro backtracked from his word earlier in 2024 – as he kept banning candidates from the opposition to run in the process – and the US reimposed the sanctions which, in the abyss the country is, are used by the government as the excuse for the country’s malaise. Amid this backdrop over the past decades, the 1990s talk about petrochemicals being a sector which could potentially be a powerful exporter of downstream materials to the rest of the world has all but died. In June, the Venezuelan government said it was mulling building production facilities for petrochemicals and fertilizers together with Turkey’s industrial conglomerate Yildirim, but without giving much detail about timelines or budgets. However, such deals have been signed before and nothing came to fruition out of them. Yildrim had not responded to a request for comment at the time of writing. Meanwhile, in an interview with ICIS in May, an executive at chemicals distributor Manuchar – Belgium-headquartered but focused on emerging markets, with strong presence in Latin America – told the sad fate the company was victim of in the late 2010s. By then, the economy worsened sharply and, with it, security – or the lack of it, rather – created a dangerous country to live in, from Caracas to the provinces. The government’s terror state has included paramilitary groups which have had little regard for their own people. Most of Manuchar’s employees fled the country while they still had the means, and the human resources problem forced the company to basically idle all its facilities there, which remain dormant to this day, said Manuchar’s head for South America, Stefan Van Loock “We still have a legal entity in Venezuela, although it is dormant, and we do not have any sales there since the end of the 2010s. During our last months there, the situation had become untenable: we could not import materials, there were hardly any dollars available, so even if you got the imports, you could not pay for them most times…,” he said. “It was also becoming a human resources problem. I saw many Manuchar colleagues resign: ‘I cannot stay in Venezuela any longer, it has become too dangerous, and I am leaving’. It was a combination of all those factors that made us decide to wind down our operations there. We can only hope things improve.” It is interesting to read this piece published on ICIS in 2013 when Chavez died. At the time, there were still hopes petrochemicals could be developed as the country’s crude oil sector was still worth the name. Little we knew how much the country would quickly deteriorate in the next five years, although the article already hinted at constrains which would only become much bigger later. “Venezuela potentially could attract significant petrochemical industry investment although major industry players have tried and failed in the past to establish footholds in the country,” the article’s author, ICIS expert Nigel Davis, wrote at the time. “State-controlled producer Pequiven has plans to nearly triple its plastics production capacity to 1.86 million tonnes/year in 2016 from 694,000 tonnes/year, although its ability to do so is questioned against the backdrop of feedstock, power, and financing constraints.” And looking further into the archives, even with Chavez in power, companies across the world such as major ExxonMobil wanted to tap into Venezuela’s petrochemicals. In this agreement from 2004, the US energy major and domestic producer Pequiven was mulling a 50:50 joint venture to build a $2.5-3 billion petrochemicals complex – once again, it never got to break ground. HOPE LAST THING TO LOSEMillions of Venezuelans abroad are following the electoral campaign and, for the most part, are hoping their compatriots at home go and vote em masse on Sunday: the polls have consistently and overwhelmingly showed Maduro behind, so if a free election is held, the Chavismo may be coming to and in a few months. The structures it leaves behind will take years to dismantle, anyway, and success in building a fairer and freer Venezuela is not guaranteed. Even this week, as he sees his position threatened, Maduro rallied supporters with a violent rhetoric which raised alarms across Latin America: he said that if his party does not win the election, there could be a bloodbath. Even Brazil’s President Luiz Inacio Lula da Silva, normally shy in openly criticizing Maduro as he has a worrying tendency to flirt with far left and authoritarian leaders in the region, was blunt about his feelings. "I was shocked by Maduro's statement that if he loses the election, there will be a bloodbath … Maduro has to learn that when you win, you stay; when you lose, you leave and prepare to run again in the next election," said Lula, quoted by Brazil’s public news agency Agencia Brasil. Lula has sent to Venezuela his personal adviser on foreign policy, Celso Amorim, as part of international delegations who are to be observers in the election. Jose Marquez, a Venezuelan journalist exiled in Buenos Aires, said Sunday’s election could be the last chance to put Maduro out of office, calling on his compatriots to vote em masse against Maduro. “There are people who emigrated who are right now traveling to Venezuela just to vote on Sunday. The fact that there are people in the country who decide not to vote, perhaps in the last opportunity to remove Maduro from power, is disappointing but, above all, very sad,” said Marquez. Front page picture: Facilities operated by PDVSA Source: PDVSA Insight by Jonathan Lopez

26-Jul-2024

HOUSTON (ICIS)–US fertilizer producer CF Industries announced that it is moving forward with a carbon capture and sequestration (CCS) project at its Yazoo City, Mississippi complex that is expected to reduce carbon dioxide (CO2) emitted to the atmosphere from the facility by up to 500,000 tonnes annually. As part of the project the company has signed a definitive commercial agreement with ExxonMobil for the transport and sequestration in permanent geologic storage of the CO2 with sequestration expected to start in 2028. The producer is going to spend approximately $100 million at Yazoo City to build a CO2 dehydration and compression unit to enable CO2 to be generated as a byproduct of ammonia production and subsequently be captured to be transported and stored. Once sequestration by ExxonMobil has commenced, CF said expects the project to qualify for tax credits which provides a credit per metric ton of CO2 sequestered. “We are pleased to advance another significant decarbonization project that will keep CF Industries at the forefront of low-carbon ammonia production while also helping us achieve our 2030 emissions intensity reduction goal,” said Tony Will, CF Industries Holdings president and CEO. “This decarbonization project also will increase the availability of nitrogen products with a lower-carbon intensity for customers focused on reducing the carbon footprint of their businesses.” The producer added that once sequestration starts, the Yazoo City complex will be able to manufacture products with a substantially lower carbon intensity than conventional ammonia production sites. Most of the ammonia produced at the Yazoo City Complex is upgraded into nitrogen fertilizers such as urea ammonium nitrate solution (UAN) and ammonium nitrate (AN) or upgraded into diesel exhaust fluid. AN produced at Yazoo City is used as fertilizer and by the mining industry as a component of explosives. CF said demand for these products with lower carbon intensity is expected to increase significantly as agriculture and mining industries work to lower emissions in their supply chains.

25-Jul-2024

HOUSTON (ICIS)–Salt Lake Potash Limited (SO4) has reached a significant milestone in developing organic sulphate of potash (SOP) in Australia as it has produced its first volumes at its Lake Way project in Wiluna, Western Australia. With the project in development for over seven years, SO4 was acquired by Sev.en Global Investments in October 2022 and it has subsequently made significant investments in all aspects of the production process. This includes the installation of new flotation units in the process plant which has been fundamental to successfully managing the diverse feedstock from the pond network. The process plant remains in the commissioning phase, but officials said the production of SOP after years of effort provides significant proof of the operating ability of the system. “This important step confirms the capability of the SO4 team to conceptualize, design, construct and operate the SOP mining and production facilities and achieve world-class SOP quality parameters,” said Mark Sykes, Sev.en Global Investments, Australian country manager. “We are proud of the entire team, who have demonstrated a high level of commitment and endurance to reach a key milestone.” Sev.en Global said it is looking forward to bringing the project to full production and establishing itself in the market to supply Australian agriculture and global markets with high-quality sustainable fertilizer suitable for use in organic farming.

23-Jul-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 19 July. Westlake appoints Jean-Marc Gilson as new CEO, effective today US-based chemical and building materials producer Westlake Corp has appointed Jean-Marc Gilson as president and CEO, effective 15 July. He succeeds Albert Chao, who becomes executive chairman of the Westlake board of directors. SW '24: US fertilizer demand lacking as farm economics unsupportive Unfavorable farming fundamentals, including weaker grain prices, high cost of credit, and weather issues will continue to hit demand for fertilizers, said market participants on the sidelines of the Southwestern fertilizer conference (14-18 July). SHIPPING: USG-Asia liquid chem tanker rates plunge on ample space availability after Beryl Liquid chemical tanker rates from the US Gulf to Asia are plunging this week as plant shutdowns and delays in the aftermath of Hurricane Beryl have led to “gaping large holes of space”, shipping brokers said on Wednesday. INSIGHT: OUTLOOK: US chems may see revival of programs, UN plastic treaty The US chemical industry could see the return of some popular trade and chemical-safety programs later this year, and customers of the major railroads could get their first chance to switch carriers if they get bad service. Global IT issues impact energy trading; Trayport services return IT issues that impacted energy trading systems on Friday morning were gradually being resolved, with market participants regaining access to critical applications. ICIS Economic Summary: US eyes coming interest rate cuts as consumer spending, inflation eases With solid progress on disinflation and the labor market easing, financial markets are sharpening their focus on the coming interest rate cut cycle, with the first move expected in September. Ten-year Treasury yields are collapsing and economically sensitive stocks surging, as consensus moves to as much as three cuts of 25 basis points by the Federal Reserve in 2024 and further easing next year.

22-Jul-2024

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 19 July. NEWS Braskem Idesa ethane supply more stable, PE prices to recover in H2 2025 – exec Supply of ethane from Pemex to polyethylene (PE) producer Braskem Idesa is now more stable after a renegotiation of the contract – but the global PE market remains in the doldrums, according to an executive at the Mexican firm. INSIGHT: Colombia’s wide single-use plastics ban kicks off amid industry reluctance Colombia’s single-use plastic ban, which affects a wide range of products, kicks off amid some industry reluctance after a hurried implementation, and with provisions to revise the legislation after a one year trial period. Brazil’s chemicals capacity utilization falls to record low in May at 58% The utilization rate at Brazil's chemical plants fell to 58% in May, the lowest level since records began in 1990, the country’s chemicals trade group Abiquim said on Wednesday. Brazil’s floods hit GDP growth in 2024 but strong recovery in 2025 – IMF The IMF has revised Brazil’s economic outlook for 2024, with GDP growth now forecast at 2.1%, down from an earlier projection of 2.2%, because of the floods in Rio Grande do Sul. Mota-Engil, PEMEX agree to build new ammonia, urea and AdBlue plant in Mexico Mota-Engil, through its subsidiary MOTA-ENGIL MEXICO, has signed an agreement with Pemex Transformación Industrial, a subsidiary of state-owned energy major Petróleos Mexicanos (“PEMEX”), to construct a fertilizer plant in Escolin in the state of Vera Cruz. Harvest Minerals undertakes rare earth elements exploration at Brazil fertilizer project Fertilizer producer Harvest Minerals announced a two-phase rare earth elements exploration program has commenced at its Arapua project in Brazil. Stolthaven Terminals chosen as potential operator for Brazil green ammonia export terminal Logistics firm Stolthaven Terminals announced that in cooperation with Global Energy Storage (GES), it has been selected as the only potential operator to design, build and operate a green ammonia terminal in Brazil to be located within the industrial export zone at Pecem in the state of Ceara. Silver Valley Metals selling Idaho project to refocus on Mexico lithium and SOP project Brownfield exploration company Silver Valley Metals announced it has signed an asset purchase agreement for the Ranger-Page project in Idaho which will allow it to refocus efforts at its lithium and potash project in central Mexico. BHP enters into further agreement with Vale over 2015 Brazil dam failure BHP announced it has entered into an agreement with Vale regarding group action proceedings in the UK in respect of the Fundao Dam failure in Brazil which occurred in 2015. PRICING Lat Am PE international prices stable to up on higher US export offers International polyethylene (PE) prices were assessed as steady to higher across Latin American countries on the back of higher US export offers. PP domestic prices fall in Argentina on sluggish demand, ample supply Domestic polypropylene (PP) prices were assessed lower in Argentina on the back of sluggish demand and ample supply. In other Latin American countries, prices were unchanged. US Gulf sees PVC price decline, Latin America stays stable Polyvinyl chloride (PVC) demand in Brazil has shown fluctuations from weak-to-stable this July, accompanied by sufficient supply. Although market prices have stabilized, local prices continue to face pressure following a recent price drop in the US Gulf market.

22-Jul-2024

HOUSTON (ICIS)–Spanish fertilizer firm Highfield Resources has entered a non-binding letter of intent for cooperation with Yankuang Energy Group and other investors which would give the company funding for its Muga Potash project and acquisition of a greenfield development in Saskatchewan, Canada. Yankuang Energy Group would become the largest shareholder under the deal, which would see the company and other investors, collectively referred to as the Cornerstone Placement. provide $220 million in funding for Muga phase one, which Highfield confirms is construction ready. The producer said Yankuang Energy intends to provide up to $90 million to support the Cornerstone Placement with the other strategic investors providing the remaining balance in exchange Highfield will issue the investors new ordinary shares. Beyond allowing it to advance the Spanish project, this agreement would also pave the way company officials said for the transformation of Highfield into a globally diversified potash company as they would receive the Southey Potash project in Saskatchewan. This would be completed by the acquisition of the shares in Yancoal Canada, a subsidiary of Yankuang Energy, who currently has this development, which is described as a greenfield potash mine project. Southey is located approximately 60km north of Regina, Saskatchewan, Canada and is being designed as a solution mining operation with environmental approval in place and a feasibility study completed. Highfield added that there is a high confidence reserve estimate at the project with significant resource potential and that it is forecasted to have a mine life of more than 65 years. The planned annual production is estimated at 2.8 million tonnes/year of muriate of potash (MOP). The producer said the combination of Southey and Muga is expected to turn Highfield into a more significant potash market participant as it could eventually have a total production capacity potential of 3.8 million tonnes/year of MOP.

19-Jul-2024

NASHVILLE (ICIS)–Unfavorable farming fundamentals, including weaker grain prices, high cost of credit, and weather issues will continue to hit demand for fertilizers, said market participants on the sidelines of the Southwestern fertilizer conference (14-18 July). Grain prices have slumped to the lowest level since December 2020 as Tropical Storm Beryl was expected to bring rains to the Midwest. This could boost yields at a time when prices are already under downward pressure due to ample availability. "The US farmer is in the worst shape that I have seen in my career, and this is concerning," said a trader with over 15 years of experience. Urea prices in the US are the cheapest in the world right now, as expected for this time of the year due to it being the offseason. Some market players believe prices are low domestically to discourage more imports. Importers may even look at re-exports to Brazil and Latin America if urea prices in New Orleans decline below $290-295/short ton FOB Nola. The level of $290/short ton FOB Nola is equivalent to $360/tonne CFR (cost & freight). For now, the urea level in Nola is in the mid $300s/short ton FOB Nola for July shipment. The phosphates market is getting more attention than urea in the US given the lack of availability for monoammonium phosphate (MAP) due to countervailing duties (CVD) on product arriving from Russia and Morocco. The lack of MAP availability is seeing prices trade at around $120/tonne premium to diammonium phosphate (DAP), when usually the premium is $20/tonne. There is more demand for triple phosphate (TSP) as some players are forced to switch due to the lack of MAP supply. The CVD rate for Russian producer PhosAgro is currently at 28.50%, while for Morocco the process is under review and could result in an increase in CVDs from 2.12% to 14.21% in October/November. Thumbnail shows crops being grown at a farm. Image by Shutterstock.

16-Jul-2024

LONDON (ICIS)–Caprolactam (capro) availability in Europe has been very tight until recently, following a shortage of sulphur and low downstream demand. However, slow capro demand has helped to balance the market. Senior capro editor Marta Fern joins senior fertilizer editors Julia Meehan and Sylvia Traganida to discuss current developments and what lies ahead for the market.

16-Jul-2024

SAO PAULO (ICIS)–Earlier this week, the head of Brazil’s chemical producers’ trade group Abiquim accompanied President Luiz Inacio Lula da Silva during his official visit to Bolivia and returned with deals which could potentially increase and liberalize natural gas supplies to Brazil. The chemicals industry in Brazil consumes around a third of all-natural gas available, according to Abiquim. Prices in the largest Latin American economy, however, are considerably higher than in the US, the other large economy in the Americas. Therefore, natural gas supplies – how to increase them and how to make them more affordable – has been on Abiquim lobbying agenda for some time now. Nearly a year ago, Brazil’s minister for energy and mines, Alexandre Silveira, was the star guest at an Abiquim event presenting a study on how to increase supplies. At the time, Silveira thanked them for the kind invitation but he came to basically say the government had little to do and it should be the private sector leading the effort. Truth be told, Brazil’s cabinet has much to say and much it could do about energy. The rather overwhelming and dominant position of Petrobras – a ministry in all effects, with its CEO always handpicked by whoever is the president – gives the energy major a key role in what Brazil's energy landscape looks like. Its interest in natural gas has always been very limited, injecting the supplies it gets from crude oil production back into the system. However, Abiquim and Petrobras earlier this year signed an agreement to explore joint projects on natural gas supplies. In June, Abiquim said in an interview with ICIS there would be news on that front within weeks, but nothing has been announced yet. One year on since Silveira attend that event in Sao Paulo, it seems industrial trade groups come and go in Brasilia’s corridors of power as they please. The current left-leaning administration and manufacturing companies have a common goal, expressed in different wishes: the former, more and better paid manufacturing jobs to please Lula's Workers Party (PT) core constituency; the latter, higher sales and profits, and improving their competitiveness can be an important part of that. Thus, this week Lula invited to go to Bolivia with him trade groups or associations representing sectors directly affected by Brazil’s high natural gas prices. Among them, Abiquim’s director general, Andre Passos. Never shy in using strong words, Abiquim said the week’s agreements in Bolivia represented a “historic step” for Brazilian chemicals which could come to partly fix its competitiveness problem. “The visit to Bolivia is in line with the objectives of the Gas Para Empregar [Gas for Jobs] program and could represent an immense short-, medium- and long-term opportunity for the natural gas market, with the possibility of even using gas from Argentina through Gasbol [pipeline connecting Bolivia’s fields with Brazil’s south and most industrialized states],” said Abiquim. “Based on the conversations held, it will now be possible to start rounds of negotiations for the contracting of Bolivian and Argentine gas without the participation of Petrobras, which will be essential to increase competition in the gas market, enabling greater liquidity, and even helping to make natural gas from the pre-salt viable.” Abiquim added that Brazil’s Ministry of Mines and Energy was “essential in making this moment a reality” and in helping private players to make progress on being able to directly contract gas in Bolivia. In Brazil, the Ministry for Energy and Petrobras are the two decisive voices in energy policy. Abiquim’s diplomatic words thanking the ministry is just another way of saying they are pleased to see Petrobras losing the nearly full control it has had in issues related to the natural gas supply from Bolivia. This, of course, occurs as Abiquim's largest member and commanding voice is Brazilian polymers major Braskem, of which Petrobras owns 36.1%. A GIANT SEEKING GASBrazil has for several years been importing natural gas from Bolivia, via the pipeline Gasbol, which links the producer’s fields with Brazil’s southern and more industrialized states. Gasbol is the longest natural gas pipeline in South America with 3,150 kilometers (1,960 miles). According to Brazil’s Ministry of Energy and Mines, Bolivia is Brazil's main supplier of natural gas supplying two thirds of its imports. Meanwhile, natural gas represents 86% of Bolivia's exports to Brazil. Regarding natural gas, the trip this week aimed at easing access to that gas for Brazilian private sector players, until now quite constrained in what they could purchase given that natural gas bilateral trade has practically been a state-controlled affair via Petrobras. That was one of Brazil’s delegation legs, led by trade groups such Abiquim, Abrace Energia representing energy consumers, trade group for industrialists in Sao Paulo state FIESP, Abvidro representing the glass sector, and Aspacer and Anfacer, both representing the ceramics industry. Brazil’s minister for energy and mines, Alexandre Silveira, and Petrobras’ new CEO, Magda Chambriad, were also part of the delegation. While the company she now presides over may lose the upper hand in natural gas trade with Bolivia, Chambriad said – according to the Ministry of Energy and Mines’ press office – that the new natural gas production areas in Bolivia are going through the environmental licensing phase and could start up as soon as 2025. “The increase in gas supply to Brazil translates into lower prices in the country,” concluded the ministry. As it normally happens, many of the deals signed this week will be worth only the paper they are written in in some years’ time. However, they could be meaningful if just a few of them were to be implemented: the Bolivian Ministry for Hydrocarbons and Energy, in charge of all areas mentioned so far, published this week as many as 12 press releases on as many agreements. For example, and again related to Brazil’s thirst for natural gas, private companies had conversations about potential imports from Argentina but via the Bolivian Gasbol. MERCOSUR – AND MILEILula went to Bolivia after having visited Paraguay for a summit of Mercosur, the trade bloc formed by Argentina, Brazil, Paraguay, and Uruguay and which this year welcomed Bolivia as a member. However, Argentina’s Javier Milei refused to participate in the summit, perhaps for the best. He has insulted Lula so many times and in so colorful manners that it may be hard to try and establish any personal relationship – the two have never met face to face. To make his preferences clear, instead of attending the Mercosur summit, Milei went to Brazil’s state of Santa Catarina for an international event of right-wing and far-right figures. “No political rift will prevent dialogue with our Argentine brothers and sisters,” said Silveira before travelling to the summit, quoted by the public news agency Agencia Brasil. But increasingly more people are wondering what Mercosur’s future will look like. Despite Lula and his Spanish counterpart Pedro Sanchez good intentions when Spain was the holder of the EU’s rotatory presidency in 2023, both leaders were unable to push their sides to conclude the free trade deal between the two blocs, which has been in the making more than 20 years. The financial weekly The Economist also wondered this week about the bloc’s importance, highlighting Milei’s absence. In an opinion-ed article – those without byline which would represent the publication’s view – it said that the host’s rebuffs to Mile for not attending may well fall in deaf ears. “It was an especially pointed snub. Skipping the twice-yearly get-together of the presidents of Mercosur, Milei chose instead to speak to the hard right at a Conservative Political Action Conference in Brazil … The reality is that Mercosur is no longer so important. Even the host, Santiago Peña of Paraguay, admitted that ‘Mercosur is clearly not going through its best moment’,” said the article. “Milei has never formally met Luiz Inácio Lula da Silva, Brazil’s president, whom he slags off as ‘corrupt’ and a ‘communist’ (Brazil’s supreme court quashed Lula’s conviction – and he is a socialist). But political incompatibilities go back further: Jair Bolsonaro, Brazil’s former leader, and Alberto Fernández, Milei’s Peronist predecessor, similarly shunned each other.” THE FIGURES In 2023, trade flows between Brazil and Bolivia totaled $3.31 billion, with a surplus of $278 million for Brazil, according to official figures. Bolivia was the 35th main destination for exports and the 30th country of origin for Brazilian imports. Brazil was the main destination for Bolivian exports and the second country of origin for its imports. The main products exported by Brazil to Bolivia were those from the steel sector (iron and steel, bars, angles, and profiles, 6.1% of the total), and passenger cars (3.8%). The main products imported by Brazil from Bolivia were natural gas (86%) and chemical fertilizers (4.8%). Insight by Jonathan Lopez

11-Jul-2024