U.S. Gulf/Tampa:
June Tampa ammonia prices continued to be called $535/mt CFR.
The industry awaits news on the status of Incitec Pivot’s (IPL) Waggaman, La., ammonia plant. The company told Green Markets that it was due up in late May from its most recent turnaround, but IPL is not expected to give an operational update until August.
Eastern Cornbelt:
Ammonia pricing was steady at $615-$625/st FOB in the Eastern Cornbelt, with the low reported at Illinois and Indiana terminals and the high at Lima, Ohio. Specific terminal pricing for the week included $615/st FOB Kingston Mines, Ill., and Huntington, Ind., and $615-$620/st FOB Illinois terminals at Trilla, Wood River, and Cowden.
Western Cornbelt:
Ammonia pricing was steady at $600-$620/st FOB terminals in Iowa and Nebraska, depending on location, with the Palmyra, Mo., market pegged at the $615/st FOB level. The last delivered offers into Missouri were reported at $585-$590/st for limited tons from Oklahoma.
California:
Anhydrous ammonia was unchanged at $626/st DEL in California, with aqua ammonia referenced at $172/st FOB.
Pacific Northwest:
Ammonia prices were quoted at $615-$650/st FOB in the Pacific Northwest, down roughly $15-$30/st from last report, with delivered tons quoted in roughly the same range. Aqua ammonia remained at $160/st FOB Kennewick, Wash., and $170/st DEL.
Western Canada:
Ammonia pricing in Western Canada was reported in a much tighter range at C$950-$960/mt DEL in early June.
Black Sea:
Ammonia prices have skyrocketed. While some in the industry talked about returning to the halcyon days of $635/mt FOB in 2014, sources said a more realistic price is much less.
Sources reported deals from Turkey to China that reflect a netback of $515-$520/mt FOB. The market is expected to continue to strengthen, but traders said prices are unlikely to top $600/mt FOB before dipping.
Middle East:
Sources said Fertiglobe moved 10,000 mt of ammonia to Ma’aden for $610/mt FOB. The price is some $70/mt higher than the last reported business.
The dramatic move up in pricing was not surprising to industry watchers. The Arab Gulf has been short of ammonia for some time, forcing buyers to look far afield to satisfy their needs. Shutdowns by Ma’aden and now SAFCO add to the tightness in the supply chain.
The ever-dwindling amount of ammonia, along with continued strong demand from Asia, is expected to add fuel to the already hot prices in the region.
Northwest Europe:
The ammonia price, oddly enough, remains steady at $520-$530/mt C&F even as North Africa, Yuzhnyy, and Asia show dramatic growth in pricing levels. The price is not expected to hold as the third quarter opens in a few weeks.
Sources said they expect to see prices move to $550/mt C&F soon. Further increases could come once the Baltic price moves off its current $430-$435/mt FOB.
India:
The $595/mt CFR paid by FACT just a week ago now seems cheap. Sources reported deals into India’s West Coast at $650/mt CFR. Other deals were also reported in that range.
The Indian market is reflective of what can only be described as a hyper-priced market in Asia. Sources are reporting material heading to India and Southeast Asian buyers from just about every major ammonia producer in the world. There are reports of ammonia coming into India from the Caribbean, as well as Mexican product to other Asian buyers.
Southeast Asia:
Asian buyers are taking tons from wherever they can. Sources reported cargoes from Mexico, Yuzhnyy, the Arab Gulf, and locally to regional buyers.
The strong demand and limited tonnage has moved the price to $670/mt CFR, with $700/mt CFR looming on the nearby horizon. Besides the strong demand, the lack of production from plants in Indonesia and Malaysia is also helping guarantee ever-higher prices.
North Africa:
Strong demand for DAP and MAP has OCP in Morocco churning out as much product as possible. That increased production requires a lot more ammonia. Sources reported that OCP is grabbing as many tons as they can from multiple sources.
Brazil:
Ammonia imports for January-May 2021 were reported at 235,500 mt by Trade Data Monitor, up 63 percent from the 145,000 mt reported for the same period last year. The main supplier was Trinidad and Tobago with 220,500 mt.
May 2021 imports were down about 32 percent, to 27,000 mt from 40,000 mt in May 2020. The May 2021 imports were the lowest so far this year. The average monthly import tonnage for this year is about 47,000 mt.