U.S. Gulf/Tampa:
Tampa anhydrous ammonia prices were concluded at $1,000/mt CFR for June, down $425/mt from May’s $1,425/mt CFR. Most sources continue with a bearish tone for July, citing the revival of production in Europe, as well as the new Ma’aden ammonia plant coming online.
Eastern Cornbelt:
Prompt ammonia prices remained under pressure in the Eastern Cornbelt as demand shifts to sidedressing. New offers in Illinois, Indiana, and Ohio were confirmed at $1,375-$1,400/st FOB terminals, depending on location, down from last week’s firm $1,400/st FOB level. The posted price FOB Lima, Ohio, remained at the $1,400/st level in early June.
Western Cornbelt:
Ammonia pricing remained at $1,355-$1,400/st FOB in the Western Cornbelt, depending on location.
Northern Plains:
Ammonia pricing in the Northern Plains fell to $1,470-$1,500/st FOB and $1,495-$1,520/st DEL for new prompt offers, down from $1,500-$1,525/st FOB and $1,650-$1,675/st DEL in mid-May.
Middle East:
Ma’aden confirmed its #3 plant was fully operational, although they are still saying it is in the commissioning stage. Sources reported that some material is being discussed for the spot market, but the current asking price is still too high for the market.
Reportedly, producers in the Arab Gulf are still asking $1,250/mt FOB for spot product. Traders said with the ammonia coming from the Ma’aden plant and reduced demand in Southeast Asia, the price needs to be below $900/mt FOB.
While the addition of the Ma’aden material will help ease the supply shortage the market has been suffering through, it will not be enough to replace the tons still missing from the closure of the Black Sea supplies.
Black Sea:
No product is reported out of the area. A news report from Ukraine noted that the closed Togliatti-Odessa pipeline had a small leak. No injuries to citizens in the area were reported.The pipeline was closed following the Russian occupation of Donetsk in 2014, but the local media reported that there was still about 250 mt of ammonia in place.
Northwest Europe:
EuroChem reportedly bought a cargo for Antwerp from a non-Russian source. However, sources could not describe the quantity, the source, nor the price. Prices have been under pressure, said one trader, but without firmer information on this most recent deal, the listed price remains at $1,200/mt C&F.
Product out of the Baltic ports remains at a standstill because of actions taken by the Baltic States against Russia for its invasion of Ukraine. The Ventspils facilities are empty because the Latvian government is not allowing Russian product to cross its borders for storage and then export. Meanwhile the tanks at Sillimae in Estonia are full, but the government is not granting permission for ships to load the Russian ammonia for export.
Sources said the porous E.U. sanctions against Russian gas and oil, combined with the exemptions allowed by the U.S., are raising hopes that production costs for ammonia will come down and that some Russian ammonia will become available.
Indonesia:
The Indonesia government just released the first-quarter export numbers. January-March exports of ammonia were reported at 478,000 mt, according to Trade Data Monitor, down marginally from the 520,000 mt exported during the same period in 2021. The largest single buyer was South Korea, taking 123,000 mt.
March 2022 exports were reported at 163,000 mt, up 14% from 143,000 mt in March 2021. South Korea took just under a quarter of the tonnage with 39,000 mt. Newcomers to the Indonesian market were Tunisia with 28,000 mt and Belgium with 25,000 mt. Neither had made any purchases from Indonesia for at least six years.
The purchases were done just as the sanctions against Russia were taking place and buyers were looking everywhere for whatever tonnage was available. About the same time, OCP in Morocco broke with tradition and also began reaching out to Indonesia for ammonia.
Thailand:
January-April imports of ammonia were reported at 100,000 mt by Trade Data Monitor, down 35% from the 153,000 mt imported during the same period in 2021. The main supplier was Malaysia with 80,000 mt.
April 2022 imports were down marginally, to 45,000 mt from the 58,000 mt imported in April 2021. Malaysia supplied nearly the full amount in April 2022.