U.S. Gulf/Tampa:
August Tampa ammonia prices shot up $40/mt, firming to $625/mt CFR from July’s $585/mt CFR. Prices had been under pressure to move up to follow other international trades in Southeast Asia and Europe in particular. Some market observers, however, questioned whether the move was really necessary, citing full production at NOLA.
Eastern Cornbelt:
Ammonia prompt and fall prepay prices were steady at $635-$650/st FOB in the Eastern Cornbelt, depending on location and supplier.
Western Cornbelt:
Ammonia pricing was unchanged at $635-$650/st FOB in the Western Cornbelt for prompt or fall prepay offers, with the low confirmed at Palmyra, Mo, and the high at Fort Dodge, Iowa. In the Southern Plains, prepay offers have reportedly edged up to $615-$635/st FOB in Oklahoma and Kansas.
Northern Plains:
Ammonia pricing in the Northern Plains remained at $570-$620/st FOB, with the low for the prompt/fill offers and the high for fall prepay. Delivered ammonia prepay was pegged at the $645/st level in North Dakota for the last offers.
Eastern Canada:
The last offers for anhydrous ammonia were quoted at C$770-$775/mt FOB Courtright, Ont.
Black Sea:
An ammonia deal was made into Turkey for 5,000 mt that showed a netback of $590/mt FOB. The jump in price came on the heels of traders speculating that the market had reached its peak at $560/mt FOB.
One trader said it was difficult getting to the $560/mt mark earlier in July, leading many to believe there was not much room for price increases out of Yuzhnyy. However, sources said everything needed to move the price up again just fell into place.
Sellers are now talking about $605/mt FOB, and few are willing to bet against them.
Middle East:
Supplies of ammonia from the Arab Gulf remain limited. Sources said the tightness in the market is now being demonstrated by an increase in talks among traders and producers involving swapping out orders to ensure contracted orders are fully covered.
The absence of any spot material in the area is not allowing for any changes in the public price of $620-$630/mt FOB.
India:
Sources said FACT still needs ammonia, even though it scrapped its tender last week. The problem facing the buyer is the limited tonnage available and the ever-rising prices. Another tender will be called soon, said one source.
Major contract buyers such as IFFCO and CIL are said to be shopping around for product from any source. The lack of ammonia in the Arab Gulf has led these buyers to send out inquiries around the world. As a result, they are facing ever-higher prices for fewer tons.
Northwest Europe:
Sources reported that Fertiglobe sold a cargo of 10,000 mt to CF in the U.K. that set the new Northwest Europe price at $678/mt C&F. The increase is no surprise, given the rise in prices at Yuzhnyy and Tampa, said one trader. Additional pressure is also coming from Baltic ports.
Sources said some deals for August have been concluded using Yuzhnyy prices as the basis for a Baltic price. Other buyers are ready to close out August price talks right at the end of the month. The tightness of the market has a lot of players holding their pricing levels close to their vests.
North Africa:
Sources said OCP/Morocco appears to still be taking as much ammonia as it can, but instead of using it to produce DAP, MAP, or NPKs, it is generating more phos acid for export.
Sources said talks for third-quarter prices of phos acid between Morocco and India are still ongoing. One trader said a final price will not likely be settled until the end of this quarter.
Producers in Libya, Egypt, and Algeria appear to be running at normal rates, with cargoes being snatched up as soon as they are available for export.
Thailand:
Imports of ammonia for the first half of the year are up 21 percent, to 210,000 mt from 173,000 mt during the same period last year, according to Trade Data Monitor.Malaysia supplied the bulk of the material this year at 135,000 mt.
June imports for 2021 totaled 32,000 mt, down slightly from 33,000 mt in June 2020. Second-quarter imports were up 43 percent, to 115,000 mt from 80,000 mt last year. Malaysia was the top supplier at 68,000 mt in the second quarter, followed by Australia at 39,000 mt.