US Tampa ammonia price slides to $597/tonne CFR for April loadings

25 March 2013 12:59  [Source: ICIS news]

LONDON (ICIS)--The benchmark Tampa ammonia contract price has fallen for a fifth consecutive month after it was settled at $597/tonne (€460/tonne) CFR (cost and freight) for April loadings, market sources said on Monday.

Amid weaker market sentiment and a seasonal lull, the settlement between fertilizer giant Yara and its customers was agreed at $28/tonne discount to March’s price level of $625/tonne CFR.

The lower US Gulf price is expected to be reflected in a fall in Black Sea ammonia prices when the first April cargoes are purchased in the next few days. Buyers paid $540/tonne FOB (free on board) Yuzhny for March liftings, but the reduced Tampa price is expected to see buyers' price ideas in the $520-525/tonne FOB range.

Ammonia prices have fallen sharply in recent months as a result of softening demand from agricultural and industrial users in India and Asia-Pacific countries such as Korea and Taiwan.

An improved supply/demand balance has also placed downward pressure on prices, with the Tampa price maintaining a bearish trend since the 2012 high of $720/tonne CFR for November loadings.

Prices fell to $685/tonne CFR for December shipments, then to $673/tonne CFR for January and $655/tonne CFR for February, before sliding to $625/tonne CFR for March loadings.

($1 = €0.77)


By: Richard Ewing
+44 208 652 3214



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