U.S. Gulf/Tampa: While it was still too early to talk about February Tampa ammonia, sources last week were speculating for some new business at NOLA, what with Mosaic’s ammonia plant back at full production and the company cutting back DAP production. Sources were expecting that some new business would eventually break loose on the barge market.
Eastern Cornbelt: The prompt ammonia market was reported in the $690-$700/st FOB range in the Eastern Cornbelt last week. Spring prepay ammonia was pegged at $710-$725/st FOB, with the lower numbers in the Illinois market and the upper end quoted in the Indiana market.
A winter storm system brought plenty of lake effect snow to parts of northern Indiana and Ohio during the first days of 2012. Sources said up to a foot of snow fell on parts of northern Indiana early in the week. Heavy lake-effect snow was also reported in northern Ohio early in the week.
Western Cornbelt: The ammonia market was tagged at $660-$690/st FOB Western Cornbelt terminals for prompt tons.
Northern Plains: Minnesota sources quoted spot ammonia tons in the $660-$680/st FOB range in early January. Delivered ammonia in the North Dakota market was quoted at $750/st for spring prepay.
Unseasonably warm weather settled over the Northern Plains region in early January, breaking temperature records in numerous locations in the Dakotas. Sources expressed concern about the lack of snow in the region in early January, which leaves winter wheat and alfalfa crops vulnerable to winter kill if temperatures plunge.
Great Lakes: The spot ammonia market in the Great Lakes region had reportedly slipped to $690-$700/st FOB terminals, while spring prepay offers ranged from $725-$750/st FOB. Michigan sources reported the upper end of the prepay range FOB Courtright, Ontario, while the low was reported FOB Huntington, Ind.
The Great Lakes region experienced varying degrees of winter as 2011 gave way to 2012. Freezing rain hit southeastern Wisconsin during the final days of 2011, while a powerful winter storm brought up to 18 inches of snow and gusty winds to parts of Michigan in early 2012.
Black Sea: Sources report the market continues to soften and producers are suffering.
OPZ announced just as the year ended that it would be shutting down its ammonia production until prices regain some strength.
Sources now peg the Yuzhnyy market at $440-$450/mt FOB, but without naming a specific buyer. Asian sources tend to agree with that price assessment.
Australia: Orica restarted its ammonia plant late last week The facility has been closed since November, when one of its pipes leaked, releasing ammonia gas into the neighboring area.
Local opposition to the restart of the plant remains strong, according to local media. Sources report the company is taking the plant up slowly to ensure no further mishaps.
During the time of the closure, Orica had to import ammonia on a spot basis. Cargoes came from the Arab Gulf, Indonesia, and Malaysia. The emergency purchases cut into ammonia supplies in those areas and helped prop up prices.