U.S. Gulf/Tampa: Nothing new was reported in the market last week, except perhaps for speculation about March Tampa pricing. While some see another significant price drop, others suggest suppliers may dig in their heels.
February NYMEX natural gas rolled off the board Jan. 28 at $2.866/mmBtu, up slightly from Jan. 22’s $2.835/mmBtu. March traded Jan. 29 at $2.719/mmBtu.
Eastern Cornbelt: Sources described the regional markets as quiet last week, although some terminals were filling tanks to cover upcoming spring sales.
Anhydrous ammonia remained at $610-$635/st FOB regional terminals, depending on location and time of delivery. The market out of Illinois locations was generally reported at $610/st FOB for prompt and $625/st FOB for prepay. Indiana terminals locations were roughly $10/st higher, with the Huntington market pegged at the $630/st FOB mark for spring tons.
Western Cornbelt: The anhydrous ammonia market remained at $570-$620/st FOB regional terminals in the Western Cornbelt, with the low in Nebraska and the upper end FOB Palmyra, Mo. Central Missouri sources reported delivered ammonia at $615-$620/st from southern production points. Ammonia out of Iowa terminals was unchanged at $585-$610/st FOB, depending on location and time of delivery.
Northern Plains: The ammonia market was reported at $600-$610/st FOB river terminals in Minnesota for spring tons, with spring prepay also reportedly being offered at $615-$620/st FOB Velva, N.D.
Several regional suppliers were not offering any tons for fill or prepay last week, with reports of sold-out inventories from those locations. The last delivered sales in the North Dakota market were reported at the $615/st level for spring tons.
Great Lakes: The anhydrous ammonia market in the Great Lakes region was quoted at $625-$630/st FOB, with the upper end reported by Michigan sources FOB Courtright, Ont.
Middle East: Sales from Arab suppliers into Asia are being pushed down into the low $500s/mt CFR. Sources say this makes the netback about $450/mt FOB and lower.
The issue people will be watching, however, is how quickly this calculation makes its way into publicly posted prices. So far, say sources, the transactions into Asia are largely a part of long-term deals on a formula basis.
Black Sea: Sources report that prices out of Yuzhnyy have slipped below $400/mt FOB. The only bright side, said one trader, is that at least product is still coming out of the area.