U.S. Gulf/Tampa:
March Tampa anhydrous ammonia business was concluded at $1,135/mt CFR, the same as February. With major ammonia production cutbacks in Europe, as well as the Waggaman, La., plant offline and the new Ma’aden plant pushed back, price ideas for April are higher.
U.S. Imports:
July-January ammonia imports were up 9.8 percent year-over-year, according to U.S. Census Bureau data, to 1.54 million st from 1.41 million st. January imports were reported at 277,121 st, rising 4.4 percent from the year-ago 265,460 st.
U.S. Exports:
Ammonia exports were off 47.4 percent in July-January, to 212,205 st from the year-ago 403,137 st. January exports were noted at 24,259 st, falling 55.9 percent compared to the year-ago 55,001 st.
Eastern Cornbelt:
Sources reported brisk preplant ammonia movement in southern Illinois during the week, along with higher ammonia prices.
While Nutrien’s ammonia price at Lima, Ohio, was steady from the previous week at $1,475/st FOB, sources said CF moved its terminal pricing in Illinois and Indiana up to $1,450/st FOB, with Koch reportedly pushing prices up to $1,550/st FOB in the Eastern Cornbelt.
Western Cornbelt:
Much of Missouri experienced temperatures in the 60s and 70s as the week progressed, which allowed for a flurry of spring fieldwork and preplant ammonia application in the state. The ammonia market reportedly firmed to $1,375-$1,400/st FOB regional terminals, with the low confirmed at Beatrice, Neb., and the high at Palmyra, Mo.
Southern Plains:
The ammonia market remained at $1,250-$1,305/st FOB production points in the region, with the high reported at Coffeyville, Kan., and the low for the last confirmed business at Verdigris, Okla. Sources pegged the Pryor, Okla., ammonia market firmly at the $1,300/st FOB level for truck tons.
The last truck business out of Gulf Coast terminals was reported at the $1,150/st FOB level.
South Central:
Sources reported limited truck offers for anhydrous ammonia circulating at $1,150/st FOB Donaldsonville, La., and $1,300/st FOB Cherokee, Ala. No truck prices were reportedly being offered at El Dorado, Ark., or Midway, Tenn., at mid-month.
Black Sea:
The war in Ukraine has all exporting ports closed, leaving no market to test prices.
Reportedly, a Turkish buyer was ready to take the Russian material that was loaded on the Gas Cobia a couple of weeks ago. In the end, however, even the Turks did not want to deal with the consequences of buying sanctioned material.
Russian exports for January 2022 – before sanctions were imposed – were reported at 284,000 mt by Trade Data Monitor. This is about 11 percent down from the January 2021 exports of 318,000 mt.
Buyers were spread out in January. Belgium took 64,000 mt and Finland was recorded as receiving 47,000 mt, but sources said this tonnage was most likely re-exported from Finnish ports. In addition, Morocco took 38,000 mt, Turkey 35,000 mt, Tunisia 34,000 mt, and India 20,000 mt.
Middle East:
Late on March 17, SABIC said it sold a cargo of 25,000 mt at $1,230/mt FOB for loading the end of March. The deal came on the heels of a sale last week that moved the listed price into the $1,000s/mt FOB.
Sources said the tonnage was most likely headed to Morocco for OCP. The phosphate giant has been scanning the globe for ammonia to replace the tons it can no longer get from Russia. While the government of Morocco has not signed on to the sanctions imposed on Russia by the U.S. and the European Union, OCP appears to be staying away from Russian material, reportedly because of issues with the financing and insurance necessary to buy the product.
There are reports that OCP reached out as far as Southeast Asia to fulfil its ammonia needs. Reportedly, the company picked up 15,000 mt from Indonesia at $1,200-$1,300/mt CFR.
The weather issues that delayed allowing vessels to dock in the past week seem to have abated. Vessels laden with ammonia and phos acid are said to be heading into the ports for unloading.
Northwest Europe:
A sale of ammonia by Fertiglobe has moved the price to $1,450/mt C&F. Demand remains firm in the area even as more European plants are on the verge of closing.
The Baltic market for ammonia is virtually closed, said sources. The market price has depended on Russian material passing through Baltic state ports and Finland. With buyers refusing to take Russian product and with the Baltic states appearing to be ready to block transit of material through their territories, there is no product to test prices.
The last reported cargo of Russian material in the area was loaded on the Gas Cobia a few weeks ago. Sources said initially the vessel was to unload a small amount in Sweden and then proceed to Antwerp. However, after the sanctions were announced, buyers in both locations reportedly backed off. While the search for another buyer was underway, the ship waited at anchor near Ventspils.
The Gas Cobia is now moving toward Gibraltar. Sources said its initial destination was Turkey, but orders changed again with the vessel enroute.
India:
Buyers continue to look for ammonia, but without the urgency of just a few weeks ago. Sources said the DAP plant operators who need the ammonia seem to be waiting for a strong signal from the government that the higher costs related to production will be absorbed by the government or the selling price of DAP.
For now, the price is holding at $1,060-$1,100/mt CFR, based on spot sales from a week ago. Contract tons continue to arrive at lower price levels based on formulas.
Imports for January 2022 were reported at 120,000 mt by Trade Data Monitor. This is a 54 percent drop compared to January 2021 imports of 264,000 mt. The main suppliers were Saudi Arabia with 57,000 mt and Oman with 48,000 mt.
Southeast Asia:
The ammonia market in Southeast Asia was once considered separate from the larger ammonia markets in India and points west. However, OCP/Morocco reached from the Western Mediterranean to Indonesia for product, bursting the bubble that surrounded the area.
Sources reported that OCP purchased 15,000 mt from Indonesia. While no price was made public, sources said another deal by Petronas/Malaysia at $1,000-$1,050/mt FOB would put the Indonesia price at $990-$1,000 mt.International traders said these price levels would match with the current levels in Northwest Europe.
South Korea ammonia imports for the first two months of the year were reported at 277,000 mt by Trade Data Monitor, up 17 percent from the 237,000 mt imported during the same period in 2021. The main supplies to South Korea were Indonesia with 48,000 mt, Saudi Arabia with 41,000 mt, and Australia with16,000 mt.
February 2022 imports were reported at 113,000 mt, down 7.5 percent from February 2021 imports of 123,000 mt.