U.S. Gulf/Tampa:
Tampa for April was concluded at $1,625/mt CFR, up some 43 percent, or $490/mt, from March and February business at $1,135/mt CFR.
Eastern Cornbelt:
Spotty ammonia applications in the region were slowed by wet, cold conditions during the week. Ammonia pricing remained at $1,450/st FOB terminals in Illinois and Indiana, and $1,475/st FOB Lima, Ohio.
Western Cornbelt:
Inclement weather conditions once again slowed preplant ammonia activity in the Western Cornbelt. The ammonia market was unchanged at $1,375-$1,400/st FOB regional terminals in late March, with the low confirmed at Beatrice, Neb., and the high at Palmyra, Mo.
Northern Plains:
Sources said preplant ammonia movement was still weeks away in the Northern Plains, but prices were inching higher in late March.
The ammonia market was quoted at $1,480-$1,500/st FOB regional terminals, where available, with the high reported at Velva, N.D., and reflecting a $50/st increase. Sources continued to report no tons or pricing available at Leal, N.D. The last confirmed delivered business for spring tons remained at the $1,550/st level in North Dakota.
Great Lakes:
The ammonia market was quoted at $1,450-$1,475/st FOB in the Great Lakes region, with the low reported at Huntington, Ind., and the high at Lima, Ohio. No current offers were confirmed at Courtright, Ont.
Black Sea:
Shipping product out of Ukraine is still not possible, leaving no method for price testing. Activity in the southern portion of the Black Sea, however, continues as Turkey looks to buy product.
Sources reported the Russian ammonia aboard the Gas Cobia is being offered at a discount to Turkish buyers. The product was loaded in Ventspils just as sanctions against Russia were imposed because of its invasion of Ukraine. Because of the sanctions, finding a buyer for the product was difficult. The ship tarried outside Ventspils for a while before heading to the Mediterranean and potential buyers in Turkey.
There are also reports that Turkey is looking at stepping up its purchases of Iranian ammonia. Last year, Turkey reported importing 17,000 mt of Iranian ammonia. Even if it could buy more Iranian product, that country only exported 541,000 mt to all its customers in 2021, according to Trade Data Monitor. Russian exports to Turkey alone were pegged at 525,000 mt in the same year.
Middle East:
Arab Gulf producers are said to now be looking at $1,400/mt FOB for spot deals. However, sources said no deals have been confirmed at that level yet.
Producers are in an enviable position, said one observer. Demand from India remains strong, providing suppliers with a steady customer base with long-term contracts. At the same time, European demand is stepping up with the removal of Russian material because of sanctions imposed on that country. The new Arab Gulf price appears to be based on a netback from talks with a European buyer.
Turkey is reportedly looking to buy more Iranian ammonia to make up for the purchases lost because of the closures of the Ukrainian ports in the Black Sea.
North Africa:
The loss of Russian ammonia because of the closure of Black Sea ports and the economic sanctions related to the war in Ukraine now has OCP looking for alternative suppliers. The company claims it is covered through June. Sources reported, however, that the phosphate producer is discussing barter arrangements with Brazil and Argentina.
Trade Data Monitor reported that Brazil exported 36,000 mt in 2021, mostly to neighboring countries. So far this year, Brazil sent 19,000 mt to South Africa, India, and Madagascar.
Product from North Africa is being courted for Europe. Sources said talks seem to be ongoing, with some extra cargos expected in May.
Northwest Europe:
Lower gas prices in Europe will allow some ammonia plants to remain open. However, said one source, even the combined efforts of the facilities cannot make up for the Russian ammonia lost due to sanctions.
Prices are expected to continue to rise, but with limited public business, confirmation of spot prices is difficult. Sources reported an unconfirmed sale by Trammo to a Greek buyer at $1,650-$1,700/mt CFR. No details of the buyer or quantity were available.