U.S. Gulf/Tampa:
Tampa anhydrous ammonia prices sank back to $1,000/mt CFR for June, down $425/mt from May’s $1,425/mt CFR. Sources had been speculating that prices would fall at least $300-$400/mt CFR, if not more, due to weaker prices in the international market.
Eastern Cornbelt:
The ammonia market was quoted at a flat $1,400/st FOB terminals in the Eastern Cornbelt, down from the prior week’s $1,400-$1,475/st FOB range. The posted price at Lima, Ohio, was down $75/st from the previous $1,475/st FOB level, with the $1,400/st price also confirmed at Huntington, Ind., East Dubuque, Ill., and other Illinois terminals.
Western Cornbelt:
Ammonia pricing was reported in the $1,355-$1,400/st FOB range in the Western Cornbelt, with the low at Port Neal, Iowa, and the high at Palmyra, Mo. Most terminals in Iowa and Nebraska remained at the $1,380-$1,400/st FOB level for the last prompt sales, while pricing in the North Dakota market fell to $1,470-$1,500/st FOB and $1,495-$1,520/st DEL.
In the Southern Plains, sources confirmed the Coffeyville, Kan., ammonia market at $1,225/st FOB in late May.
California:
Anhydrous ammonia reference pricing in California was unchanged at $1,610/st DEL, with aqua ammonia posted at $412-$422/st FOB in the state. A downward price correction is expected this summer, sources said.
Pacific Northwest:
Anhydrous ammonia in the Pacific Northwest remained in the $1,495-$1,555/st DEL range in late May, with terminal prices ranging from $1,450-$1,520/st FOB, depending on location.
Aqua ammonia pricing in the region was steady at the $370/st FOB mark for spring tons.
Western Canada:
Spring ammonia pricing in Western Canada was quoted at C$2,230-$2,250/mt DEL for the last offers.
China:
January-April imports of ammonia were reported at 90,000 mt by Trade Data Monitor. This represents a drop of 75% from the 415,000 mt imported during the same period in 2021.
April imports were also down. China only imported 10,700 mt of ammonia during the month, mostly from Indonesia, compared to the 60,000 mt imported in April 2021.
The reduction in ammonia imports is further evidence of the slowdown caused by reduced demand for industrial products, and to COVID-related closures and slowdowns in phosphate plants in China.
Middle East: Sources said there were more tons available for spot business, but because of price disagreements, nothing has been concluded yet.
Reportedly, Ma’aden is holding out for $1,250/mt FOB, while all potential buyers claim the price is definitely under $1,000/mt. One trader noted that the softening markets in East Asia and North Africa indicated the price should be no higher than $900/mt FOB. However, the price range for spot tons at this time is more speculative than actual.
There are reports that Razi Petroleum in Iran issued a selling tender invitation for three cargoes of 25,000 mt each for loading in June, July, and August. One source said the fact that this invitation was issued indicated the market is not that tight.
Exports of ammonia for January-April were reported at 119,000 mt by Trade Data Monitor, down 37% from the 189,000 mt exported during the same period in 2021. The main buyer in the first four months of this year was India, taking 88,000 mt.
April exports were almost nil compared to the 65,000 mt exported in April 2021. Turkey was the only buyer in April, taking 2,275/mt.
Northwest Europe:
Prices remain high but flexible. Still, said one trader, with production costs for ammonia at $950-$1,000/mt, there is little room for price testing. The current price of $1,200/mt C&F is seen as too high for buyers. At the same time, however, there has been no business to change that public listing.
Sources pointed to a deal into Morocco, possibly from Libya, at $900/mt CFR as evidence that the $1,200/mt C&F price is too high. Nailing down the new price, however, will take more than the occasional deal into Morocco or discussions about what prices should be from Europeans.
Southeast Asia:
Reportedly, Kaltim in Indonesia settled a deal with Trammo for an end-May shipment of two cargoes at 15,000 mt and 25,000 mt each. A third deal of 25,000 mt for OCP was also reportedly booked for the end of May. The price for each cargo was reported around $920/mt FOB.
This price matches up with discussion about the landed prices in Taiwan and South Korea. Sources said discussions between buyers and sellers now seem to be focusing around $980-$990/mt CFR, down from the $1,000+/mt CFR of just a month ago.