AMMONIA
AMMONIA
U.S. Gulf/Tampa: The market remained quiet at $355/mt DEL for Tampa.
Eastern Cornbelt: Anhydrous ammonia pricing was steady at $415-$445/st FOB in the region, with the low in Illinois and the upper end in Ohio.
Western Cornbelt: The anhydrous ammonia market was unchanged at $380-$415/st FOB regional terminals for prompt tons, with the upper end FOB Palmyra, Mo.
Southern Plains: Anhydrous ammonia remained at $325-$340/st FOB regional production points, with pipeline terminals in Kansas quoted in the $350-$360/st FOB range.
Agrium alerted customers last week that the next phase of ammonia pipeline testing being conducted by Magellan Midstream Partners L.P. will require the Magellan terminals at Conway and Clay Center, Kan., to be taken out of service. Agrium said it anticipates these terminals will be down from about July 1 through Aug. 8, 2010. Agrium said product availability at its terminals in Borger, Texas, Homestead, Neb., and Early and Garner, Iowa, will not be affected during this testing phase.
South Central: Ammonia out of regional terminals remained at $390-$420/st FOB for the last dealer sales, with the low at Memphis and the upper end FOB Henderson, Ky. Demand was over in the region.
Black Sea: The industry seems to be taking a break. Sources report some producers are ready to shut down for maintenance work, and then remain down until the price recovers.
The current level of $290-$295/mt FOB is not enough for some manufacturers to keep operating. And, one observer noted, with higher gas prices on the way for the fourth quarter, ammonia producers will be hit hard again.
Middle East: Rumors circulated late last week that a major trading house concluded a deal with Iran at $295/mt FOB. For once, said one observer, Iran is not acting as a spoiler on prices.
Arab producers in the region have been complaining that Iranian sales have kept prices from rising to levels more to the producers’ desires. The latest price is higher than what even some Arab producers said was the middle of the market.
One source noted, however, that the amount of ammonia coming out of Iran might begin to slow down now that urea production has started. He said that much of the ammonia that came out of the country in the past couple of months was a result of delays in starting the granular urea plant. With the plant now online, sources say ammonia exports may slow down.
For producers in the area, even with Iranian tons possibly on the decline, there is still little joy.
Indian buyers have been talking to sources other than the Arab Gulf producers. The result has been a lower delivered price. And a lower price on one end means a lower price on the other.
Late last month some producers were saying the market could move into the low $280s/mt FOB. While no one saw any deals at those levels, the low $290s/mt FOB were common knowledge.
With the latest Iran business, sources now say they can use $295/mt FOB as the floor. Sources peg the market at $295-$310/mt FOB.
UREA
UREA
U.S. Gulf: The granular urea barge market last week settled into the $252-$255/st FOB range, with $255/st being called the last done. At press time, sellers were seeking $257/st FOB, while buyers were hoping for a fall back to $252/st FOB. Sources said prills, in short supply, are now garnering a premium.
Eastern Cornbelt: Illinois sources pegged the urea market at $285-$290/st FOB at the low end last week, with the upper end quoted at $305-$310/st FOB in the Ohio market.
Western Cornbelt: Granular urea was quo