TUNISIA: GCT has indicated that it is currently not committing to new contract sales on DAP/TSP until further notice given ongoing production disruptions. GCT points out that it continues to execute existing commitments with its customers and that it has therefore not declared a force majeure on current outstanding contracts. The Tunisian producer says that disruption to rail transportation between the phosphate rock mining site and the phosphate manufacturing sites is the main cause to the shutdown in DAP/TSP production despite reports that disruption is also being caused by a miners’ strike action at the Gafsa site which began midweek last week. GCT had been sourcing rock supplies from inventories at the DAP plant at Gabes and the TSP plants at Sfax and M’dilla since civil unrest in the country began in early January and it is understood that rock stocks have now been largely depleted. Sources close to the producer’s operations say that new deliveries of feedstocks such as ammonia, sulphur and sulphuric acid have been halted, as ammonia and sulphuric acid storage facilities remain largely full. It remains uncertain when DAP/TSP production will be resumed. Some speculate that the outage could last three to four weeks depending on the outcome of negotiations between GCT’s management and its miners, and on when the rail link becomes fully operational.
AEV Price at posting:
51.7¢ Sentiment: Buy Disclosure: Held
