U.S. Gulf/Tampa:
April contracts for ammonia delivered to Tampa were priced at $545/mt CFR, with no new movement reported on the May contract front. Last-done barge levels reported from NOLA continued at $545/st FOB.
Sources remained divided on a possible landing spot for May. Expectations for a mid-April restart of the Waggaman, La., plant prompted speculation of a rollover in the upcoming contract, while some argued that a potential downturn in late-season demand could see May levels fall by $10-$20/mt. Any delays at Waggaman could mean all bets are off, others claimed.
Eastern Cornbelt:
Sources said most of the preplant ammonia business was winding down in the Eastern Cornbelt after a burst of activity in early April, with prices either unchanged or down slightly from last week. The latest offers were reported at $600/st FOB Kingston Mines, Ill.; $610/st FOB Huntington, Ind.; $625/st FOB Trilla and Wood River, Ill.; $630/st FOB Cowden, Ill.; and $650/st FOB Mt. Vernon, Ind., and Henderson, Ky.
“Logistics are bad across the system, (with) severe labor and truck shortages and long truck lines,” said one regional contact. “That said, we saw record daily volumes of ammonia and dry fertilizer go to the ground last week.”
Western Cornbelt:
Ammonia prices remained at $600-$615/st FOB in the Western Cornbelt, with the low reported at Palmyra, Mo., and out of spot locations in Nebraska. Terminal pricing in Iowa ranged from $605-$615/st FOB in mid-April. In the Southern Plains, sources quoted prompt pricing at $575/st FOB Verdigris, Okla., and $600/st FOB Pryor, Okla., and Coffeyville, Kan.
Northern Plains:
The ammonia market remained in a broad range at $590-$675/st FOB regional terminals, depending on location, with the low at Murdock, Minn., and upper end reflecting reference levels at Velva, N.D. Sources continued to report limited delivered tons in the $660-$680/st range in North Dakota, with the low for offers out of Leal, N.D.
Great Lakes:
Ammonia pricing was reported at $570-$610/st FOB in the Great Lakes region, with the low quoted by Michigan sources for tons pulled from Courtright, Ont., and the high FOB Huntington, Ind. The market FOB Lima, Ohio, was pegged at the $590/st FOB level in mid-April.
“Some sellers are below market, no doubt getting out from under some prepay,” said one regional contact.
Black Sea:
Sources reported that a deal between Ostchem and Trammo for a late-April shipment was settled in the upper-$450s/mt FOB. The producer had been arguing for $470/mt FOB, while buyers were trying to hold the line at $450/mt FOB.
The strong demand for ammonia in the world, combined with tight supplies, is continuing to push prices higher. Sources said limited available tons for the rest of April and May will keep upward pressure on the market.
Russian exports of ammonia for February were reported at 316,000 mt, up 13 percent from 281,000 mt for February 2020, according to Trade Data Monitor.Exports for the first two months of the year were up 15 percent, to 634,000 mt from 550,000 mt in 2020.
Middle East:
Limited material is preventing Arab Gulf producers from offering any ammonia tons in the spot market. Sources said while the tight situation has been around for a while, the continued closure of SABIC-4 is making the situation worse for buyers.
India:
Reports are circulating that a number of companies are looking for ammonia, but the buyers are ending up empty handed.
Sources said some of the contracts that provided for ammonia deliveries are closing, with no new deals to replace them. At the same time, the spot market is virtually non-existent because of strong demand in all the major markets.
Southeast Asia:
A recent deal into China reportedly was done at $575/mt CFR. The product, sources said, came from a regional supplier rather than the Arab Gulf.The expensive purchase from a nearby supplier underscored the tight nature of the ammonia market.
Northwest Europe:
Sources said the ammonia price in Antwerp has stabilized at $520-$530/mt C&F on the heels of strong but stable prices from Black Sea and Baltic suppliers. The lack of major pricing jolts from these two regions gave European buyers a small breather from the steady increases that have been happening so far this year.
Sources said prices from Baltic ports are settling around $460-$470/mt FOB despite a strong campaign by buyers for $450/mt FOB.