US Tampa ammonia falls $22/tonne for June

30 May 2013 23:47  [Source: ICIS news]

HOUSTON (ICIS)--Fertilizer producer Yara confirmed on Thursday it has agreed to sell approximately 50,000 tonnes to Mosaic for $565/tonne (€435/tonne) for June loading, down $22/tonne from the previous month.

The May price was $587/tonne CFR (cost & freight).

The June figure would reflect a Yuzhny price at $495/tonne FOB (free on board), and a source said the product will be shipped from Trinidad. This settlement would be close to what industry participants were discussing at the International Fertilizer Industry Association (IFA) conference in Chicago last week as being the price level for the ammonia.

Earlier this month the Black Sea price climbed slightly after Yara purchased 85,000 tonnes from NF Trading at $515/FOB.  

The source said that while not unusual, currently the Tampa and Yuzhny markets are disconnected. One reason the Black Sea price is higher is that recent curtailment issues have limited traders and caused them to source material from that region.

Currently in Trinidad, ammonia plants are operating under a 15% natural-gas curtailment and are anticipated to remain that way until mid-June, a source said. In April the curtailment was 20-25%.

Most of the product ends up in the US, as roughly 65% of domestic imports of ammonia come from Trinidad.

($1 = €0.77)

By: Mark Milam
+1 713 525 2653

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