US Gulf/Tampa:
Falling natural gas prices in Europe and plentiful ammonia supplies in NOLA are expected to pressure the Tampa ammonia price for June. Yara announced that it was bringing its Ferrara, Italy, nitrogen plant back up. Other industry observers doubted there would be a mad rush to return European plants to production, however, as the cost to do so is still high compared to simply importing product.
NOLA observers said prices are under pressure, and have fallen from the recent $335-$345/st FOB to sub-$300/st FOB.
Eastern Cornbelt:
Ammonia prices in the Eastern Cornbelt dropped again as demand remains light ahead of the sidedress season. The market was quoted at $490-$500/st FOB in the region, down from last week’s $500-$550/st range, with the low confirmed in Illinois and Indiana and the high in Ohio.
Western Cornbelt:
Ammonia slipped to $450-$490/st FOB in the Western Cornbelt, down from last week’s $465-$500/st, with the low confirmed in Nebraska and the high in Missouri. The Fort Dodge, Iowa, market was quoted at the $465/st FOB level at midweek.
Southern Plains:
The ammonia market was quoted at $450-$490/st FOB production points in Oklahoma and Kansas, depending on location. The latest truck offers out of Beaumont, Texas, were pegged at the $335/st FOB level.
As one source put it, however, “I wouldn’t put any credibility in the pricing that is out there. No one wants to buy unless they are running conversions for 10-34-0, and they don’t want that either.”
South Central:
Truck offers for ammonia dropped to $335-$350/st FOB Gulf Coast terminals in the wake of the softer Tampa price for May. Other terminal prices in the South Central region were lower as well at $350/st FOB Hopewell, Va., and $400/st FOB Cherokee, Ala., and Midway, Tenn.
Black Sea:
The renewal of the deal allowing Ukrainian grain to ship from Black Sea ports has also rejuvenated Russia’s interest in reopening the Togliatti-Odessa ammonia pipeline, closed early in the Ukraine war. Efforts to reopen the pipeline have been criticized by many in the industry due to the dangers of moving ammonia through a war zone.
In order to once again move its ammonia out in quantity, Russia has stepped up efforts to enhance the port in Taman, located near Crimea. The Russian government hopes to upgrade the port to handle ammonia by be end of the year, and to increase the facility’s shipping capacity in coming years.
Northwest Europe:
Sources said the market has gone quiet. Talks of deals continued at the current $370s/mt CFR level and below, but with no confirmed sales. The imported price remains lower than what it costs European companies to produce ammonia. Sources put the production cost around $400/mt ex-plant, with the rate a bit lower at more efficient plants.
Italian producer Ferrara has restarted its ammonia and urea production. The plant’s current output will be focused on covering existing contracts, instead of offering material to the spot market. The facility has a nameplate ammonia capacity of 600,000 mt/y.
Russian efforts to export ammonia include setting up a system to move product out of a port near St. Petersburg. Sources said the limited capacity for ammonia loading in the Russian Baltic ports has led Russian suppliers to devise a plan to load ammonia directly from railcars to a holding vessel. The product will then be transferred to other ships for delivery to international buyers. The plan is expected to be operational in June.
Middle East:
Sources reported steady business related to contract sales from the Arab Gulf. No new spot deals were reported.
January-April ammonia exports from Iran totaled 195,000 mt, Trade Data Monitor reported, a roughly 18% increase from the year-ago 165,000 mt. April exports were noted at 52,000 mt, up marginally from 49,000 mt shipped in April 2022. India received the bulk of the April tonnage with 46,000 mt, while Turkey took the 6,000 mt balance.
South Korea:
January-April ammonia imports were counted at 361,000 mt, according to Trade Data Monitor, a 32% decline from 527,000 mt recorded through same period of 2022. The drop confirmed reports of lower ammonia demand in South Korea during the first quarter of the year.
April imports softened 44% year-over-year, to 66,000 mt from 119,000 mt. Saudi Arabia supplied 45,000 mt, while Indonesia sent 21,000 mt.