AMMONIA
U.S. Gulf/Tampa: Buyers and sellers are reportedly still at loggerheads over Tampa prices for March. While buyers are trying to hold the line as much as possible, sellers are looking for a significant boost over February’s $515/mt DEL. February was up $40/mt over January, and sources say a $40/mt plus increase for March is not out of the question.
Eastern Cornbelt: Anhydrous ammonia was steady at $675-$680/st FOB Illinois terminals.
Western Cornbelt: The anhydrous ammonia market was steady at $630-$670/st FOB regional terminals, depending on location and time of delivery.
Southern Plains: The anhydrous ammonia market remained at $590-$615/st FOB regional terminals for prompt tons, with the low out of southern production points and the upper end out of pipeline terminals in the Kansas market.
South Central: The ammonia market was quoted at $665-$675/st FOB terminals in the region, with the low reported out of Memphis, Tenn., and the high at Henderson, Ky.
Middle East: Prices keep moving up in the region. Sources report a sale of 23,000 mt to Mitsui from Sabic at $460/mt FOB late last week. That deal moves the price up another $5/mt from the previous week.
One trader noted that the price could have run up even higher if it wasn’t for the ever-present Iranian tons.
Sales to India from the area are being pegged to the Iranian price. And that usually means only Iran is supplying the tons.
The Arab producers all report mostly full order books and healthy contracts. One producer agent said there is no reason for his company or other producers to lower prices.
The Sabic sale was described as an alignment of need, availability, and an agreeable price. The fact that the deal went for $460/mt FOB, said one trader, was evidence enough that the product was not destined for India.
The most likely end user is in East Asia.
The last Iranian price was put in the mid-$440s/mt FOB, but that was a couple of weeks ago. Sources say the Iranians are more than willing to follow the upward trend in prices. Chances are, said one source, that March will show significantly higher prices from Iran as the Arab producers continue to push prices up as well.
Sources peg the market at the close of last week at $455-$460/mt FOB.
A plus for buyers was recent news that the Saudi Ma’aden project now has ammonia production online and available to the ammonia market until the project’s DAP facilities are up and running. The ammonia unit is expected to ship its first product in March.
Black Sea: Industry observers see strong demand from the United States and Europe as the main drivers in pushing up the Yuzhnyy price. Late last week a sale at $485/mt FOB was reported, with higher prices expected going into March. The sources could not name the buyer of the material, but they did say the tonnage was sufficient enough to be an important marker in the market.
The Yuzhnyy market appears to be the main beneficiary of the disturbances in Libya.
Yara announced it is closing its operations in Libya until the situation stabilizes. Most of the ammonia that came out of the plant is sold to Europe. Traders say that European buyers are being forced to look elsewhere for their tonnage. The Baltic and Black Sea suppliers are the logical sources.
The price for Yuzhnyy is pegged at $480-$485/mt FOB, with growth expected.
North Africa: Unlike the uprising in Egypt, the revolt against the government in Libya has the potential of seriously affecting the ammonia market in the Mediterranean.
Yara is closing its facility until things calm down. The ammonia from the Ya