US Gulf/Tampa:
After last week’s $80/mt drop in pricing for the February Tampa ammonia contract, to $445/mt CFR from January’s $525/mt, ammonia prices for truck tons out of Gulf Coast terminals reportedly slumped to $400-$410/st FOB for new offers, down from $475-$500/st FOB in January.
Eastern Cornbelt:
Ammonia remained under pressure in the Eastern Cornbelt, with reports of prompt fill offers in the $550-$575/st FOB range and spring prepay pricing at $590-$600/st FOB, depending on location.
Western Cornbelt:
Ammonia was steady at $550-$580/st FOB or DEL in Iowa and Nebraska for prompt tons, with spring prepay prices now reported in the $580-$600/st FOB range, depending on location.
Southern Plains:
The ammonia market continued to soften in the Southern Plains, with sources describing spot prices as “subject to a phone call to discuss.” Current offers were quoted at $460-$540/st FOB production points for prompt tons, depending on location and supplier, well below the last confirmed offers at $535-$580/st FOB for fill and $620-$625/st FOB for prepay.
South Central:
Ammonia prices for truck tons out of Gulf Coast terminals in Louisiana and eastern Texas reportedly dropped to $400-$410/st FOB for new offers, down from $475-$500/st FOB in January. The upper end of the South Central ammonia market was quoted at the $425/st FOB level for recent spot offers out of Midway, Tenn.
India:
January-November ammonia imports totaled 2.2 million mt, Trade Data Monitor reported, up 9% from the year-ago 1.99 million mt. Saudi Arabia led suppliers with 863,000 mt, while Bahrain and Oman sent 350,000 mt and 355,000 mt, respectively. November imports were 194,000 mt, slightly above the 191,000 mt received in November 2022.
Middle East:
While no spot deals were reported, current discussions indicate ammonia pricing at $310-$340/mt FOB, sources said. That range appears to be workable for buyers and sellers, said one trader, and may show up in deals for March shipment.
The war-zone status of the Red Sea and Gulf of Aden has kept prices into Europe higher than buyers were hoping for, though Iranian cargoes bound for Turkey are an exception. Sources said these vessels appear to be transiting the Red Sea and Suez Canal without issue.
There were reports of a sale from Qatar to Thailand at $340/mt CFR. Considering the current pricing ideas in the Arab Gulf, sources speculated that Marubeni, the trader handling the transaction, could end up losing money on the deal.
Northwest Europe:
Buyers in Northwest Europe had hoped to see falling prices after the announcement of the lower Tampa price. Product shipping from the Arab Gulf to Europe is facing higher freight costs, however, while ships taking the Red Sea/Suez Canal passage to Europe have seen a spike in insurance rates due to the region’s status as a war zone. The resulting firmer shipping costs mean prices into Northwest Europe are holding at $500/mt CFR.
Turkey is reportedly getting product not only from Iran, but also Venezuela. Sources estimated the price into Turkey at $400/mt CFR.
Thailand:
Thailand imported 353,000 mt of ammonia in 2023, according to Trade Data Monitor, up 11% from the 317,000 mt received in 2022. Malaysia shipped 165,000 mt, followed by Indonesia with 54,000 mt. Imports totaled 36,000 mt for December, more than tripling the 11,000 mt reported one year earlier.