ICIS provides independent and unbiased pricing information, news and market analysis for the global Ammonia market. Our network of price reporters, based in Asia, Europe and the US, deliver local insight for each of these markets, which is published in our individual weekly and daily price reports.
If you buy or sell Ammonia or related products, our reports, news and market intelligence will give you the prices and analysis of the factors driving the prices that you need to make confident commercial decisions.
Updated to Q1 2020
Despite the unscheduled shutdown of Yara’s 850,000 tonne/year export-oriented plant in Western Australia, contract and spot material flowed into Asia Pacific and India at steady rates. Yara sourced replacement volume from the Middle East, where Ma’aden and SABIC had surplus volume for sale on a FOB and CFR basis. Geopolitical tension in the Straits of Hormuz had threatened to disrupt supplies from leading exporters like Saudi Arabia, but no disruption or delays actually materialised.The unexpected and lengthy shutdown of Yara’s 850,000 tonne/year export-oriented Pilbara plant in Western Australia gave the Norwegian major several headaches, forcing it deep into the spot market to cover contract commitments across the region. However, cargoes were successfully sourced on a FOB basis from rival producers in Indonesia, Malaysia, and Saudi Arabia, with SABIC also supplying a CFR Thailand cargo. Yara’s urgent requirements soaked up most of the excess volume in the region.
No significant uptick in spot buying was witnessed, with the spread of the coronavirus in China not having any major impact on import volumes. Spot cargoes were sold into China, South Korea and Taiwan, although buyers in India were less active. Yara sourced cargoes from Saudi Arabia for discharge in southeast and northeast Asia, with Trammo inking Indonesian spot deals with Mitsubishi and Kaltim on a regular basis for loading at Luwuk and Bontang, respectively.
Supply was steady, with no maintenance at leading manufacturers or work on the pipeline to the main Black Sea export hub. Only a handful of spot sales were seen in the Black Sea and prices were very stable. Russian production giants Togliattiazot and Rossosh were behind the limited spot business, agreeing deals with buyers in Turkey and trader Trammo, respectively. In the Baltic, Yara and its three long-term suppliers of Russian material – Acron, EuroChem, and URALCHEM – agreed monthly contract prices at around $215/tonne FOB Ventspils/Sillamae.
Demand from industrial and agricultural users was stable, as reflected in limited spot business. Spot sales of 10,000-15,000 tonnes were concluded by manufacturers in France, Poland, and the UK, and Turkey’s Gemlik acquired a 23,400 tonne/month cargo. Amid higher freight rates due to the IMO sulphur cap on marine fuel, a trend of participants agreeing freight deals emerged, notably with Trammo using Togliattiazot vessels to lift material from north Africa for Turkey.
The Tampa contract price of $250/tonne CFR for ammonia – settled each month by phosphates major Mosaic and Norwegian giant Yara – rolled over several times in early 2020, reflecting the even supply/demand balance in the country and wider region. Although scheduled plant maintenance at some of Nutrien’s 550,000 tonne/year units in Trinidad reduced Caribbean import volumes in January and February, the Canadian producer replaced that lost output with some spot cargoes acquired from across the Atlantic.
Agricultural and industrial demand was stable, as reflected in little change to import or export volumes. Seasonal weather meant farmers in many states were unable to carry out much fieldwork in the first weeks of the year. Mosaic’s decision in late February to return phosphate operations to full production – bringing back online about at least 150,000 tonnes/month because strong demand in December and January had depleted its phosphate stocks – was welcomed by suppliers.
We offer the following regional Ammonia analysis and news coverage to keep you informed of factors and developments affecting prices in the Ammonia marketplace.
News & analysis
Regional price assessments, published daily or weekly, enabling you to keep track of trading prices, understand price drivers/fluctuations and set a benchmark for contract price settl ements. ICIS offers reports on over 180 commodities across the global petrochemical, energy and fertilizer markets. Information covered in our price reports includes:
Information is accessed online, via the ICIS dashboard service and is configurable to suit your preferences.
Produced by the ICIS Consulting team, these reports give a robust rolling 12-month price forecast, trade balances and in-depth analysis into where markets are heading – providing a valuable tool to support your short- to medium-term plans.
ICIS pricing intelligence is delivered to you online via the ICIS dashboard. Here you can view your reports and also access other useful services including related news, analysis, historical data and market alerts.
ICIS dashboard also makes it easy for you to create pricing charts, download price history and export data to create tailored analytical models.
ICIS weekly margin reports deliver the detail you need to understand how production costs and prices are affecting margins, enabling you to judge the likely impact on your business and optimise your upstream and downstream business decisions.
The Supply and Demand Window on the ICIS Dashboard provides a snapshot view of historical and forecast information for supply and demand, production capacity and trade flows – a key tool to help safeguard future investments within the chemicals market.
24-hour global coverage of breaking news in the petrochemical industry, including updates on production, shutdowns and key transacted deals, keeping you informed of market developments as they happen. The ICIS news service allows you to customise the market alerts delivered to your email inbox, providing the business-critical information you need straightaway.
If you want to keep updated on the factors driving price movements in the global chemical markets, ICIS Chemical Business provides a summary of the information you need to support your business decisions. Every week, our global team of experts digests and summarises the key issues and their potential impact on the market – all in one magazine.
An expert view of supply and demand comprising four fully-reconciled databases, giving you access to extensive data for more than 100 markets. Information is included on global and regional trade flows, production, capacity and sources of demand in the short-, medium- and long-term. Data can be downloaded, customised and queried to support your planning requirements and your strategic decisions.
ICIS provides specialist training courses across the global petrochemicals, base oils and fertilizers industries. Our training team of industry experts can help you increase your knowledge of the industry and gain the insight and know-how needed to operate and trade effectively.
Find out more about ICIS training courses >>
ICIS produces a series of highly informative and timely conferences. Extensive research is carried out to ensure that each programme delivers the information you need and addresses current industry issues. We source speakers who have the appropriate expertise and experience to deliver excellent quality papers.
Find out more about ICIS conferences >>
Working closely with you to understand your strategies, challenges and ambitions, the ICIS consulting team deliver tailored advice and solutions to suit your unique requirements. With many years’ experience of guiding business leadership teams, we show you how market conditions can make a positive or negative impact on your long-term plans.
ICIS expert consultants can provide your organisation with the insight, intelligence and data needed to build and grow your business in China. We can help you to gain a clear view on the short and long-term supply and demand picture in the chemicals, energy, iron and steel, non-ferrous metals and paper and pulp markets in China.
ICIS launches Global Ammonia Markets General Methodology Consultation more >>
ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.
Over 25 years of reporting on key chemicals markets, including Ammonia, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in preserving our editorial integrity. Our global network of reporters in Houston, London, Singapore, Shanghai, Guangzhou, Mumbai, Perth and Moscow ensures unrivalled coverage of established and emerging markets.
Ammonia is one of the main sources of nitrogen in fertilisers, as it contains 82% of nitrogen (N), which is essential for the life of plants. Ammonia (NH3) is produced through a chemical reaction (electrolysis).
Ammonia is a colourless, highly water-soluble gas with an intense, pungent, suffocating odour. It is alkaline and caustic, corrosive to copper and galvanised surfaces and is a powerful irritant. It is soluble in chloroform, ether and is easily liquefied under pressure. Liquid ammonia will attack some forms of plastics, rubber, and coatings.
Ammonia’s major use is as a nitrogen source in fertilisers where it is both applied directly and used to produce derivatives including ammonium nitrate, urea, ammonium phosphates and ammonium sulphate.
Urea plants are integrated with ammonia production as they require the carbon dioxide by-product from ammonia units.
Ammonia also has a number of industrial end uses. Ammonium nitrate is used to make explosives while the medical grade is decomposed to nitrous oxide (laughing gas). Ammonium bicarbonate has applications in baking powder formulations, in fire extinguishers and as a blowing agent in the manufacture of polymers.
Ammonia is used in the production of hexamethylene diamine (HMDA) for nylon, acrylonitrile (ACN) for fibres and plastics, caprolactam for nylon, isocyanates for polyurethanes, and hydrazine.
Other uses for ammonia include as a refrigerant, a cleaning and bleaching agent, and a household cleaner. It is also used in metal treating operations.
LONDON (ICIS)--A fresh fall in the monthly Tampa contract price set a bearish tone in the global ammonia market heading into June. The $17/tonne slide to $218/tonne CFR (cost and freight) in the...Read
LONDON (ICIS)--The absence of key players due to national holidays in many countries kept activity in the international ammonia market relatively muted. Sentiment remains bearish on both sides of...Read