Weekly: Yara expands ammonia footprint, TiO2 demand, CATL restart, SOH Traffic

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Weekly: Yara expands ammonia footprint, TiO2 demand, CATL restart, SOH Traffic

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Chemicals

Weekly: Yara expands ammonia footprint,

TiO2 demand, CATL restart, SOH Traffic

Industry Overview

Yara buys GCA after Darrow falls through 06 July 2026

Yara has agreed to acquire the Gulf Coast Ammonia (GCA) facility in Texas City for $1.3 Equity

billion (we assume total capex spent on the GCA facility was ~$800mn to 1 bn), securing United States

ownership of a 1.3 mtpa ammonia plant that is expected to reach stable operations by Chemicals

the end of 2026. The transaction is strategically attractive as it increases Yara's Matthew DeYoe, CFA

exposure to lower-cost U.S. natural gas while providing additional flexibility to supply Research Analyst

both internal needs and external customers. We view the deal as modestly positive for BofAS+1 646 855 5746

the ammonia market since ownership by Yara increases the likelihood that low-cost U.S. matthew.deyoe@bofa.com

ammonia could eventually be integrated into its global production system, potentially Hakim Sanfo

Research Analyst

reducing the amount of merchant product ultimately floating on the market. BofAS

+1 646 743 1557

TiO2 demand revised lower in FY26 hakim.sanfo@bofa.com

TZMI recently lowered its 2026 global TiO2 demand forecast by 1.2%, citing an energy

supply shock related to ongoing geopolitical conflict. In Europe, demand remains subdued Acronyms:

as weak industrial activity and flat y/y coatings demand continue to contribute to elevated

inventory levels. In North America, demand softened in Q2 and is expected to remain under DIY: Do it Yourself

pressure in 2H26 amid persistent weakness in DIY and macroeconomic pressures in new

Resi: Residential