US Gulf/Tampa:
Expectations continued this week for a lower Tampa ammonia price in July, with some contacts projecting a level in the mid- to upper-$200s/mt CFR. June Tampa prices fell to $340/mt CFR from May’s $380/mt CFR. The launch of summer fill programs fueled a further drop in inland ammonia prices during the week.
Eastern Cornbelt:
Summer fill programs for ammonia were launched during the week. Koch was first out of the gate on June 12 at $365/st FOB Henry, Ill., and $370-$375/st FOB in the rest of Illinois for June-July offers, with a $10/st increase reportedly scheduled for August-September.
CF followed on June 13 at $360/st FOB in Illinois and $365/st FOB in Indiana, while CVR was reportedly referenced at $345/st FOB East Dubuque, Ill., for June-July shipments. Ammonia fill offers in the Lima, Ohio, market were pegged in the $360-$365/st FOB range.
Those levels were down roughly 13-14% from the last confirmed prompt ammonia offers in the Eastern Cornbelt, which fell in the $410-$425/st FOB range in early June.
Western Cornbelt:
Ammonia fill prices were launched during the week at $340-$350/st FOB in the Western Cornbelt, $325/st FOB in Kansas, $300/st FOB Verdigris, Okla., and $290/st FOB Enid, Okla., with reports of delivered fill pricing in the $350-$380/st range, depending on location and supplier.
Ammonia fill in the Northern Plains was confirmed at the $350/st DEL level in Minnesota at midweek.
California:
Ammonia prices were lower in California following a summer reset on June 16, with new postings at $580/st DEL, down significantly from the last $890/st DEL reference price. Aqua ammonia dropped as well, to $159/st FOB Stockton and $169/st FOB Sycamore from the previous $237/st FOB and $247/st FOB postings, respectively.
Pacific Northwest:
The region was awaiting a summer reset on ammonia, but new prices had not yet been announced by press time. The last prompt business was pegged at the $695/st FOB or DEL level in the Pacific Northwest, with aqua ammonia referenced at the $180/st FOB mark.
Western Canada:
Delivered June pricing for limited ammonia offers in Western Canada was pegged at the C$900/mt level at mid-month, down from the last confirmed C$960-$1,040/mt DEL range. Sources said fill offers are expected in the C$600s/mt DEL range when programs are launched.
Black Sea:
The region’s primary business continues to stem from buying interest in Turkey. Source reported offers into Turkey now coming in the low-$290s/mt CFR, mostly for Iranian and Baltic Russian material.
Middle East:
Sources noted growing reserves and a lack of new spot deals in the Arab Gulf. Prices remained at an estimated $200-$210/mt FOB.
The potential reinstatement of the 5.5% tariff on ammonia imported into the EU could leave some Arab Gulf producers looking for other buyers. Unfortunately for them, said one source, most of the buyers located east of the Suez Canal are already oversupplied. Buyers in Asia are said to be willing to purchase more product, but only at ever-lower prices.
Northwest Europe:
There were no new spot deals to shift official prices. However, sources said discussions are now focusing on the $350s/mt CFR and should soon end up in that area.
A tariff of 5.5% on ammonia imported into the EU was slated to automatically be reimposed on June 17. The tariff was suspended in December 2022, a reaction to high gas prices that made securing European ammonia too expensive.
The EU is looking at renewing the suspension even though gas prices have come off since the beginning of the year. In a June 15 statement, an EU spokesperson said the recent rebound in gas prices has the EU considering extending the suspension.