U.S. Gulf/Tampa:
July Tampa ammonia prices continued at $585/mt CFR.
U.S. Imports:
Ammonia imports for July-May were down 7.5 percent, according to the Department of Commerce (DOC), to 2.38 million st from 2.57 million st during the same period last year. Imports firmed 8.2 percent in May, however, to 252,102 st 233,037 st.
U.S. Exports:
Ammonia exports firmed 11.5 percent in July-May, to 504,728 st from the year-ago 452,542 st. May shipments stood at 40,462 st, rising 138.9 percent year-over-year from 16,939 st.
Eastern Cornbelt:
Ammonia prices continued to climb in the Eastern Cornbelt. Sources said CF raised its prices $10/st on July 7, with prompt or fall prepay prices firming to $635/st FOB in Illinois and $640/st FOB in Indiana. The posted price at Lima, Ohio, was reported at $645/st FOB, while 4Q prepay offers at East Dubuque, Ill., were quoted at the $650/st FOB level.
Western Cornbelt:
Ammonia prepay offers for fourth-quarter shipments edged up to $635-$650/st FOB in the Western Cornbelt in early July, with the low confirmed at Palmyra, Mo, and the high at Fort Dodge, Iowa. The prepay market in Nebraska was pegged at the $640/st FOB level for October-December shipment.
In the Southern Plains, sources reported 4Q ammonia prepay offers at $580/st FOB Pryor and Verdigris, Okla., and $600/st FOB Coffeyville, Kan.
Northern Plains:
Ammonia pricing in the Northern Plains was quoted at $570-$620/st FOB, with the low for the last prompt/fill offers and the high for fall prepay. The last prompt delivered offers in the region were reported at the $645/st level.
Black Sea:
Suppliers reported limited material for export, so they are focusing on contract sales. The ammonia price from the last spot deal of a week ago is holding at $550-$555/mt FOB. Producers, however, are strongly arguing that the next deal that comes along will have to be at $600/mt FOB.
The large jump, sources said, is justified because of strong demand from Southeast Asia and limited material from the Arab Gulf. Buyers in Asia are looking as far afield as the Caribbean for product, so checking out availability from the Black Sea fits in without a problem.
Middle East:
Ammonia supplies from the area are severely limited. Plant shutdowns, combined with strong global demand, is keeping the region out of the spot business.
The last spot price of $610/mt FOB is still the public price. Sources said once material becomes available, however, producers will be expecting prices closer to $650/mt FOB. One trader said that level is highly likely to happen.
India:
To the surprise of the industry, an award was issued by FACT for a July ammonia shipment of 7,500 mt. Sources said FACT agreed to pay $660/mt CFR for a cargo to be shipped later this month.
FACT was also looking for an August shipment, but no offers were made. A new tender is slated to close on July 13 for 7,500 mt to be shipped in early August.
The confirmation of the FACT award tightens the import market price from last week, when sources estimated a deal into India at $650-$670/mt CFR.
Northwest Europe:
Higher prices in the Black Sea and North Africa, and a firming level from Baltic ports, have moved the Northwest Europe ammonia price up to $570-$615/mt C&F. Sources said with duty paid, the price moves to $600-$645/mt CFR.
The Baltic price for July is pegged at $540/mt FOB. Rising Yuzhnyy prices and reduced availability for Europe from the Caribbean could mean higher August prices.
Brazil:
Ammonia imports for the first half of the year were up about 78 percent, to 322,000 mt from 181,000 mt during the same period last year, according to Trade Data Monitor. Imports for June 2021 were up dramatically as well, to 87,000 mt from 36,000 mt in June 2020.
Second-quarter imports this year jumped almost 100 percent, to 186,000 mt from 96,000 mt in 2020.