Corrected: Black Sea ammonia prices fall to $620/tonne FOB on Yara purchases

08 November 2012 16:54  [Source: ICIS news]

Correction: In the ICIS story headlined "Black Sea ammonia prices fall to $620/tonne FOB on Yara purchases" dated 8 November 2012, please read in the penultimate paragraph ...November shipments... instead of ...October shipments... A corrected story follows. 

LONDON (ICIS)--Ammonia prices in the Black Sea for December loadings are down nearly 5% from November after Yara purchased a combined 90,000 tonnes from two major producers at $620/tonne (€484/tonne) FOB (free on board), sources said on Thursday.

That price is $30/tonne lower than previous business in Yuzhny. Yara has bought 50,000 tonnes from NF Trading and 40,000 tonnes from OPZ, with the cargoes scheduled to load on three vessels during December.

Yara is also heard to have purchased 12,000 tonnes of ammonia in the Baltic at $625/tonne FOB, down $10/tonne on previous business in that region. The cargo will load at a port in Latvia or Estonia next month, although its destination is unknown.

Separately on Thursday, Finland-headquartered NF Trading sold a mid-sized 23,500-tonne cargo to Japan’s Mitsui at a price heard to net back to around $630/tonne FOB. That cargo will load in early December and will go to India or Asia Pacific.

According to sources, Mitsui is eager to acquire another mid-sized Yuzhny cargo for loading in late December as it looks to fulfill all its contract commitments amid robust demand and tight supply.

Ammonia buyers in India and Asia Pacific are increasingly turning to European producers due to soaring prices from usual suppliers in the Middle East and North Africa. Their situation has been exacerbated recently by major plant turnarounds in Qatar, Bahrain and Egypt.

Further west, ammonia supplies in the key ammonia-producing country of Trinidad have been squeezed by natural gas curtailments that have reduced gas supplies by as much as 40% for several months.

Earlier this month, the contract price of benchmark US Tampa ammonia for all November shipments jumped $5/tonne to $720/tonne CFR (cost and freight).

Given the lower prices in the Black Sea, the Tampa price level is now almost certain to fall when contract prices for December are set in the next 10 days.

($1 = €0.78)


By: Richard Ewing
+44 208 652 3214



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