U.S. Gulf/Tampa: Nothing new was reported in the Tampa or NOLA markets last week.
January NYMEX natural gas closed Dec. 4 at $3.649/mmBtu, down significantly from the pre-Thanksgiving $4.403/mmBtu posted on Nov. 25. Sources noted the big drop-off in oil prices and its impact on gas.
Eastern Cornbelt: The ammonia market in the Eastern Cornbelt was unchanged at $650-$660/st FOB regional terminals for spot tons, with no spring prepay offers on the table.
Western Cornbelt: The anhydrous ammonia market in the Western Cornbelt remained at $615-$660/st FOB, with the low in Nebraska and the upper end FOB Palmyra, Mo.
Missouri sources quoted delivered ammonia at $640-$650/st from southern production points. No spring prepay programs were circulating for ammonia yet, sources reported.
California: Anhydrous ammonia was steady at $785/st DEL in California, with aqua ammonia also unchanged at $212/st FOB.
Pacific Northwest: The anhydrous ammonia market had reportedly slipped to $650-$685/st DEL in the Pacific Northwest, depending on location. Aqua ammonia remained at $172-$175/st FOB in the region.
Western Canada: The anhydrous ammonia market remained at $782-$827/mt DEL in Western Canada, depending on location.
India: FACT is back in the market. The cooperative called a tender to close Dec. 8 for two shipments each of 7,500 mt. The first lot is to arrive at the FACT facility at Kochi Dec. 26-30. The second lot must arrive Jan. 6-10, 2015.
The tender call came on the heels of FACT awarding a 3,000 mt deal to CIFL for $615/mt CFR the last week of November.
Sources report that CIFL is sourcing its product out of Iran. Iran has played a growing role in the FACT tenders. Sources say a major enticement has been the willingness of the Iranian producers to offer prices $20-$30/mt lower than what industry watchers calculate is the current Arab contract price.
The estimated freight on the Iranian cargo is about $50/mt, leaving a netback of $565/mt FOB into Iran.
Middle East: The Arab producers in the Gulf remain happy with their contracts and see no reason to go chasing after business.
Sources report the last bit of public business was several weeks ago, when Mitsubishi took a cargo from PIC at a reported $620/mt FOB. One trader said other prices floating around ranged from $615-$635/mt FOB. It all depended on who was doing the talking, he said.
The confidence of the Arab producers rests with all the contracts they hold. Sources say spot tons from an Arab producer are few and far between, and then only when the price is very high.
Between managed reductions in production and long-term contracts, the Arab producers have little reason to be aggressive in seeking new business.
The one main spot player in the area has been Iran. Sources put the netback for the small order it got from FACT/India at $565/mt FOB. The order was for only 3,000 mt. One observer warned against making too much out of the price for such a small amount.
A new number may pop up this week when FACT closes its tender for two cargoes of 7,500 mt each to be shipped between Dec. 26 and Jan. 10. Sources expect Iran to take the business, if for no other reason than it is willing to offer deep discounts for its product.
Black Sea: Sources say the market in the region can best be described as confusing.
There are reports of material from OPZ sitting unsold at Yuzhnyy, while other material keeps flowing out.
Part of the issue, say sources, is that producers in the region are asking more than buyers are willing to pay. The producers’ perception that they de