Recent deal shows that ammonia market is firming in the US Gulf

11 September 2009 20:27  [Source: ICIS news]

HOUSTON (ICIS news)--The market for ammonia in the US Gulf continued to firm as evidenced by a recent deal, a source said on Friday.

Indeed, ammonia supplies in the US Gulf had been tight since August, resulting in rising prices ahead of anticipated high agricultural demand in September-November.

Potash Corp of Saskatchewan (PotashCorp) said it had recently purchased an ammonia barge at $325/ton (€247/tonne) FOB (free on board) New Orleans.

That would translate, a source said, to $358/tonne. Subtract $15-20 for terminal charges and the vessel price would come out to $340/tonne FOB New Orleans.

“The barge purchase by PotashCorp is a further indication that the ammonia market in the US Gulf continues to firm,” a source said.

The benchmark Tampa contract for September is $325/tonne.

The strength of the upcoming fall fertilizer application season in the US was expected to affect negotiations for the October contract.

($1 = €0.69)

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By: Frank Zaworski
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