Consequently, phosphate consumption during 2022 had a considerable and much anticipated drop. Unlike potash and nitrogen, phosphate prices soared last year after the war in Ukraine began, despite the input’s lower exposure to Russia. (As a proxy for production costs, a low ratio indicates that urea prices are more likely to remain stable.) Global demand for urea will benefit from price stability around current levels and will slowly rise throughout 2023 as it transitions from sluggish in 2022 to healthier in 2024. It wasn’t until natural gas prices began to decline seasonally that ammonia followed suit, nearly halving the ratio. The subsequent price mismatch led the ammonia/urea ratio to skyrocket. Nevertheless, the necessity of buying back lost demand sent urea prices on a downward trend before they struck ammonia. Nitrogen-based fertilizers are very volatile, given their intrinsic connection with oil and natural gas. “When the moving average becomes positive, the negative cyclical period that started at the end of 2021 will be over, which is positive for consumption,” notes Fonseca. The Spot Affordability Index, which shows the relative price of a basket of commodities in comparison to a basket of fertilizer, is already in positive territory, with the 12-month moving average trending higher and on track to reach positive territory in the coming months. ![]() The combination of these two factors is helping affordability.” However, global consumption may take two or three years to recover, and the speed of recovery will depend on how long the current positive cycle lasts. “On the commodities side, values remain above average in some cases due to tighter stocks. “Most fertilizer prices are gradually returning to their historical averages, and in some cases, like urea, current values are below historical levels already,” says Bruno Fonseca, Senior Analyst – Farm Inputs at Rabobank. By that time, reasonable commodities prices were the only reason unaffordability didn’t surpass the record set in 2009 during the global economic crisis. Affordability deteriorated further when fertilizer prices hit new record-high levels after Russia invaded Ukraine. Starting in the first half of 2021, fertilizer prices began to trend higher due to supply constraints resulting from the Covid-19 pandemic. But in most cases, demand will take a while to return to pre-pandemic levels. According to a new Rabobank report, affordability is starting to improve, and a rapid recovery in consumption is possible in some regions in 2023. The acquisition will also provide Tariq Glass Industries Limited with access to Balochistan Glass Limited’s extensive customer base and distribution network.Extreme market volatility and record-high prices severely impacted fertilizer demand in 2022. This acquisition is expected to strengthen Tariq Glass Industries Limited’s position in the glass container market in Pakistan and provide an opportunity to diversify its product portfolio. Tariq Glass is a leading manufacturer of glass containers in Pakistan, with a wide range of products including tableware, pharmaceutical bottles, and glass bottles for the beverage industry.īalochistan Glass Limited, on the other hand, is a listed company engaged in the manufacturing and sale of glass containers for the food and beverage industry. ![]() On behalf of TGL, AKD Securities Limited, (Manager to the Offer) had submitted a public Announcement of Intention, in accordance with the Securities Act, 2015. ![]() On March 21, 2023, TGL expressed its intention to acquire 50% of the voting shares of MMM Holding (Private) Limited, which currently holds 78.61% of the voting shares of Balochistan Glass Limited, a listed company. This agreement is subject to obtaining all the requisite corporate and regulatory approvals and compliance with all applicable laws. (MLN): Tariq Glass Industries Limited (PSX: TGL) has signed a Share Purchase Agreement with Baluchistan Glass Limited (BGL) to acquire 50% voting shares of MMM Holding (Private) Limited (MMM) which holds 84.34% voting shares of BGL.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |