U.S. Gulf/Tampa:
Tampa ammonia prices jumped $100/mt for April, to $545/mt from the $445/mt CFR posted in March. Later in the week, NOLA barges were reported to have traded at $545/st FOB, up from $500/st FOB.
While NOLA ammonia plants were reported to have come back up, supplies were said to have been depleted by the longer-than-expected turnaround at the Waggaman, La., plant and the unplanned outage at Yara Freeport. Good agricultural and improved industrial demand have also been cited.
Eastern Cornbelt:
Ammonia prices continued to range from $570-$650/st FOB in the Eastern Cornbelt, with the low at Kingston Mines, Ill., and the high at Mount Vernon, Ind. Other terminal prices included $585/st FOB Lima, Ohio; $590/st FOB Huntington, Ind., and Illinois terminals at Albany, Peru, and Seneca; $600/st FOB Cowden, Ill., and Terra Haute, Ind.; $610/st FOB Trilla, Ill.; $620/st FOB Frankfort, Ind.; and $650/st FOB Henderson, Ky.
Western Cornbelt:
Ammonia prices in the Western Cornbelt in late March continued to be reported at $570/st FOB Palmyra, Mo., and $580-$615/st FOB terminals in Nebraska and Iowa, depending on location.
Northern Plains:
The ammonia market was reported in a wide range at $590-$675/st FOB regional terminals, depending on location, with the upper end confirmed at Velva, N.D.
There were reports of limited delivered tons in the $660-$680/st range in North Dakota, with the low for offers out of Leal, N.D., but sources said producers were reluctant to quote delivered pricing because “no manufacturer wants to deal with arranging freight.”
Eastern Canada:
No current pricing was reported for ammonia out of Courtright, Ont., in late March.
Black Sea:
Sources said given the current situation in the global ammonia market, the price in Yuzhnyy should be near $480/mt FOB. Sources said the real price is closer to $430/mt FOB, however, largely because of limited material for the spot market.
Most of the product going out of Yuzhnyy is under some form of long-term formula. The excess material that helps set the spot market is limited and does not appear often.
Middle East:
Arab Gulf material is limited. Sources said the last spot deal showed a price of $430/mt FOB, which one trader said fits with estimated netbacks from Far East deals. Quickly after that, the supply for spot business dried up. Demand remains strong in all buying areas, just as supply is limited.
The blockage of the Suez Canal by the Ever Giver could affect ammonia shipments. A cargo of 40,000 mt for India slated to arrive in early April has already been delayed.
India:
High prices in the global ammonia market are keeping the main buyers away from the market. Sources added that some of the phosphate producers are also holding off until the new fiscal year begins on April 1.
The change in the fiscal year could also mean a shift in how much producers will be able to charge for their product. Sources said DAP producers, in particular, are hurting because of high prices for inputs, including ammonia. One international trader said the producers might be more willing to step up and make some ammonia purchases if they get assurances that the plants will not have to run at a loss.
Northwest Europe:
Movement in Yuzhnyy and the Baltics is putting upward pressure on the Antwerp ammonia price. Sources noted a sale from a Baltic supplier at $320/mt FOB. This deal came after Koch reportedly settled on a $370/mt FOB purchase earlier this month. The shift has moved the range for the Antwerp price to $460-$500/mt C&F.
How much longer such a range will occur is up to the market. For now, sources said demand in Europe is strong and European production is not up to the task.
Southeast Asia:
Malaysia reportedly closed a deal into Thailand for a netback of $480/mt FOB. The price is the equivalent of $530/mt CFR into China and South Korea.
China:
The Chinese government released ammonia import numbers this week. According to Trade Data Monitor, February imports were recorded at 118,000 mt, compared with 67,000 mt in February 2020.
While February imports were up year-over-year, January-February imports this year were down compared with last year, at 124,000 mt versus 205,000 mt.
Colombia:
Yara recently procured a 3,000 mt lot at $550/mt CFR.