U.S. Gulf/Tampa:
July Tampa ammonia prices continued at $585/mt CFR.
IPL confirmed on July 13 that the Waggaman, La., plant returned to full production on June 1, and is producing at nameplate volumes (see related story).
Eastern Cornbelt:
Ammonia fall prepay prices remained at $635-$650/st FOB in the Eastern Cornbelt, depending on location and supplier. CF was reportedly referenced at $635/st FOB in Illinois and $640/st FOB in Indiana, with other reference prices reported at $645/st FOB Lima, Ohio, and $650/st FOB East Dubuque, Ill.
Western Cornbelt:
Ammonia prepay offers for fourth-quarter shipment were unchanged at $635-$650/st FOB in the Western Cornbelt, 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.
Southern Plains:
Fall prepay ammonia offers in the Southern Plains were pegged at $580/st FOB Verdigris and Pryor, Okla., and $600/st FOB Coffeyville, Kan. Gulf Coast terminal pricing was reported at $525-$540/st FOB, with the low at Beaumont, Texas, and the upper end for truck offers FOB Donaldsonville, La.
South Central:
The ammonia market was pegged in the $540-$595/st range FOB terminals in the South Central region, with the low reported for truck offers out of Louisiana production points and the high FOB Memphis for prompt offers. No current offers were reported out of El Dorado, Ark.
Black Sea:
Ammonia prices are steady at $550-$555/mt FOB for the time being, but sources said changes could soon come. Gas prices are reportedly on the rise. At the same time, plants in the area are reportedly ready to shut down for routine maintenance.
Even though the cost of natural gas feedstock is going up, sources reported that an award from OPZ for a two-year tolling agreement for gas and ammonia was signed with DACHEX. Sources said the company is affiliated with Dreymoor.
Russian exports of ammonia for the first five months were up almost 4 percent, at 1.9 million mt from1.85 million mt during the same period last year, according to Trade Data Monitor. The main buyers were Estonia at 425,000 mt, Ukraine at 254,000 mt, and Morocco at 222,000 mt.
May exports this year were cut by more than half, to 344,000 mt from May 2020 exports of 752,000 mt. Ukraine showed one of the most dramatic drops in taking Russian ammonia. May 2021 exports to Ukraine were reported 10,000 mt, down from at 99,000 mt in May 2020.
Middle East:
Ammonia remains tight in the region, with producers focusing on their long-term clients rather than new spot buyers. Rising prices in Asia are pushing up the netbacks in the Arab Gulf. Likewise, another deal into India showed further upward movement in pricing.
The Indian deal of $670/mt CFR showed a netback of $620-$630/mt FOB, depending on the size and urgency of the deals. The Asian business helped confirm the higher end of the range with deals that reflected a netback closer to $630/mt FOB.
India:
FACT closed an ammonia tender on July 13, with no news so far about offers. Other buyers such as PPL and CIL are said to be sending out inquiries far afield from the usual suppliers in the Arab Gulf. Sources said the Indian firms are looking at buying tons from the Black Sea and Egypt. For industry watchers, this indicates the buyers want to buy product and are willing to pay higher prices.
A recent deal into India showed a landed price of $670/mt CFR, which moved up the price another $10/mt. The FACT tender results could show even higher levels if the prices are released.
Southeast Asia:
Reports of ammonia prices of $560-$580/mt CFR for northern China and $550-$570/mt CFR for southern Chinese buyers were dismissed as too low by international traders.These prices, said one trader, reflect deductions for rebates and other discounts that large, long-term buyers often enjoy.
The tightness in the Asian market is expected to keep showing stronger prices. Sources said reduced output by the Mitsubishi plant in Indonesia continues to limit supplies to buyers anxious for more material. The tightness is reflected in increased inquiries from Asian buyers for product from the Caribbean.
Northwest Europe:
More market activity allowed industry watchers to revise their view of the regional ammonia market. Sources now call the market at $570-$600/mt C&F, reflecting a slight lowering of the upper end of the range.
Sources point to the $540/mt FOB currently coming from Baltic suppliers as a basis for pricing out of Europe. At the same time, the Trinidad material finding its way into the Northwest European market is helping set the upper end of the register.
Lastly, sources said the steady but high prices out of the Black Sea and North Africa are providing a solid floor, leaving buyers with little support in their efforts to push back against the rising prices.