US Gulf/Tampa:
Tampa ammonia for April fell 26%, or $155/mt, to $435/mt CFR from March’s $590/mt CFR. Most sources had been expecting a sizeable drop in light of lower natural gas prices in Europe and the US, as well as plentiful ammonia supplies.
Eastern Cornbelt:
While the last postings for ammonia remained at $725-$750/st FOB in the Eastern Cornbelt, sources continued to talk of lower prices for serious offers. “I think most suppliers will compete for tons, so it seems that might be flexible,” said one contact.
The significant drop in the April Tampa ammonia price also signaled a likely drop in terminal levels, some sources said.
Western Cornbelt:
Ammonia remained at $670-$710/st FOB in the Western Cornbelt, with the low reported in Nebraska and the high in eastern Iowa. Sources continued to speculate that better deals could be had, however, citing reports of $625-$650/st FOB offers in the Northern Plains.
Northern Plains:
Ammonia pricing slipped to $625-$650/st FOB terminals in North Dakota and Minnesota as of March 24, below the prior $670-$700/st FOB offers, with the low confirmed at Velva, N.D. Delivered offers were reportedly competing with FOB terminal levels on a spot basis.
Northwest Europe:
International traders in early March predicted the Tampa price would need to come off by at least $100/mt to bring balance to the market. The $155/mt drop announced late in the week is expected to have a rollover impact on the Northwest European price.
Even with gas prices dropping in Europe, the final price of ammonia from the factories was too expensive for the Northwest Europe market. Buyers were also upset with the Northwest Europe price, declaring it too high for the global marketplace. The price drop at Tampa is expected to push the European price down to levels buyers are more willing to accept.