U.S. Gulf/Tampa: Nothing new was reported in the Tampa market last week. Sources reported that a large quantity of NOLA tons were sold below Tampa prices, with the NOLA range quoted at $261-$271/st FOB.
Sources said the drop was justified by falling prices in the Cornbelt, as well as less ammonia earmarked for Mosaic, which announced it would be cutting DAP production. Ammonia producers also saw natural gas prices drop below $2.00/mmBtu again last week.
March NYNEX natural gas closed Feb. 4 at $1.972/mmBtu, compared to the Jan. 28 close of $2.182/mmBtu one week earlier.
Eastern Cornbelt: After the prior week’s sizable drop in ammonia prices in the region, which was spurred by new postings from larger players, sources said spot pricing levels were still holding at $420-$425/st FOB regional terminals in early February, with the low in Illinois and the upper end in Indiana.
Although sources reported no one needling for still-lower ammonia prices last week, they also confirmed that “no one is knocking the door down, either.” Both dealers and retail buyers “are still holding out to make sure they get the lowest price,” said one contact, even with unconfirmed reports of some regional suppliers offering limited price protection for new ammonia orders.
One source said the new lower postings “have really screwed up the market,” undermining efforts by some regional suppliers to hold prices to the prepay levels that had initially yielded some spring commitments. “Some doors have been closed, so to speak,” said one regional contact.
Western Cornbelt: The ammonia market was steady at $360-$415/st FOB in the Western Cornbelt, with the low quoted in Nebraska and the upper end FOB terminals in central Iowa and Missouri. Delivered tons were pegged at $360-$380/st in the region from southern production points.
Southern Plains: The anhydrous ammonia market had reportedly slipped to $280-$285/st FOB on the low end out of some regional production points, with the upper end of the regional range quoted at $340/st FOB pipeline terminals.
South Central: The anhydrous ammonia market was quoted at $380-$420/st FOB in the region, down $25/st or more from last report, with the low at Memphis, Tenn., and the upper end FOB Henderson, Ky.
Black Sea: Pressure is being applied to producers to accept prices as low as $240/mt FOB. The main force is coming from Morocco, where OCP is trying to use its large-scale purchases to get lower prices.
Sources said at least for now, $240/mt FOB is not achievable. Prices are in the $250s/mt FOB for the limited tonnage that is available.
Middle East: Arab producers are long on material. Sources said Sabic in particular is being hit hard by weak demand and buyers demanding lower prices for product.
Namhae reportedly concluded a purchase at $350/mt CFR into South Korea. Sources said the netback on the deal came to $270-$275/mt FOB.