U.S. Gulf/Tampa: There was nothing new to report in the Tampa market. Sources speculated that July may see a price rollover, as there doesn’t appear to be too much headway in either direction.
The long-stagnant NOLA ammonia barge is getting an NA this week, as it has been a long, long time since fresh business was confirmed. That said, some argue that the NOLA barge market is primed for more activity now that new production is coming online in the area within the next six months and beyond. The same was also predicted when OCI returned the Beaumont, Texas, ammonia plant to production and PotashCorp built capacity at Geismar, La. Should activity resume, the price will make a return.
The NYMEX natural gas price closed June 11 at $2.825/mmBtu, up from June 4’s $2.626/mmBtu.
Eastern Cornbelt: Anhydrous ammonia demand was “basically dead” in the Eastern Cornbelt last week, according to sources. The last done spot business in Illinois was quoted at the $595/st FOB level, with the upper end tagged in the $610-$620/st range in Indiana.
Western Cornbelt: Nebraska sources reported limited ammonia demand for sidedress applications on sandy ground last week. The market was pegged at $565-$570/st FOB on the low end in Nebraska, with the upper end quoted at the $590-$600/st FOB level in Iowa and Missouri.
Several sources said they anticipate much lower prices when summer fill programs are offered in the region.
Southern Plains: The anhydrous ammonia market remained at $520-$540/st FOB regional production points for spot tons, with the upper end of the range pegged at $565-$570/st FOB Kansas pipeline terminals.
One source reported rumors of at least one ammonia fill program offer at the $480/st FOB level out of a regional production site for tons delivered in the third or fourth quarter. “The pricing offer wasn’t quite as aggressive as what I was thinking,” he said, noting that no other programs were circulating yet last week.
South Central: The anhydrous ammonia market was reported at $585-$595/st FOB in the region for the last business, with the low at Memphis, Tenn., and the upper end FOB Henderson, Ky.
Black Sea: It seems prices have stagnated. With levels at $380-$390/mt FOB, sources say the Yuzhnyy ammonia market may have ended its downward trend.
Middle East: Higher prices seem to be the norm in the Arab Gulf. First Trammo paid $404/mt FOB to Sabic late last month, and then followed up with another purchase at the same level with Fertil.
While most of the product moving out of the area is based on contracts, the Trammo business represents spot business and is a good reflection of the shape of the market in general.
Southeast Asia: Kaltim sold 20,000-25,000 mt in an auction late last week to Mitsui. Sources say the deal closed at $437/mt FOB. Once sent on to its final home, sources estimate the price will reflect a nearly $50/mt increase in the delivered price.
Industry watchers are still scratching their heads trying to figure out who is desperate enough to accept such a large price increase in one shot.
India: Buyers are now looking at imported prices around $440/mt CFR from Iran. Product from other sources – notably Arab producers – is said to be running about $10-$20/mt higher, based on not only the source, but also the final discharge port.