Decoding Ammonia Market Barriers, Biden-McCarthy, OPEC and that Saudi-Russia situation

Freight Up! Fuel oil, iron ore, steel and other commodity insights from Freight Investor Services

In this episode:

• Discover the challenges in green ammonia production and how market turbulence affects the shipping industry.

• Investigate the role of Brent Crude Futures Complex prices on international economies.

• Uncover the implications of the OPEC+ meeting and its relation to Iranian oil transportation.

• Delve into long-term iron ore contracts, seaborne coal valuations, and the impact of China's demand.

• Determine the effects of e-commerce on shipping, the last-mile delivery market, and workforce deficits.

The Future of Ammonia Market We talk with Kieran Walsh about the expected impact of green ammonia. The ammonia market is moving toward green ammonia, a more environmentally friendly alternative to traditional grey ammonia. Green ammonia, which is produced using renewable energy through the process of electrolysis, has the potential to significantly reduce environmental impacts associated with grey ammonia, such as methane emissions. However, green ammonia production currently faces several challenges that need to be overcome, including capital investments, infrastructure, and fixed-price supply contracts to attract investors. The market is volatile and uncertain, but there is potential for green ammonia to have a significant impact on seaborne ammonia trade from the middle of next year. During the Freight Up! podcast, Richard Stevenson highlights ammonia's potential in energy transportation, mentioning its convenience in moving energy from one location to another, and its environmental benefits for net energy importers. He also noted the challenges faced by green ammonia, including the need for a fixed price offtake agreement to encourage investment in infrastructure by shipping companies. FIS has the Argus Northwest Europe Futures contract, which allows oil traders to manage risk and create speculative positions in green ammonia.We also talk with Archie Smith, Kerry Deal and Hao Pei.Timestamped summary of this episode: 00:01:11 - The Future of Ammonia Market, Richard Stevenson, Strategic Advisor to FIS, discusses the two buckets of the ammonia market, grey ammonia, and green ammonia, and the barriers to the adoption of green ammonia. 00:08:37 - The State of the Ammonia Market, Kieran Walsh, the ammonia broker, says that decarbonization efforts have made ammonia a key part of energy transition and decarbonization. 00:14:33 - Fuel Oil Market Update, Archie Smith, the fuel oil broker, says that the Brent Crude Futures Complex is still uncertain, but he hopes that the uncertainty will be lifted after the weekend. 00:15:16 - OPEC uncertainty, Archie Smith discusses the upcoming OPEC meeting and the uncertainty surrounding it with Russia hinting at no changes to quotas or production. 00:18:36 - Capes and Panamaxes, Kerry Deal reports on the struggles in the Capes market due to decreasing congestion at Chinese ports and slowing exports from Brazil. 00:23:10 - Ferrous Complex Outlook, Hao Pei shares insights from a shipping conference, including the expectation of a narrower price range for the Ferrous Complex in the second half of 2023.