TFI’ 19: Global ammonia prices stable-to-firm ahead of first Q4 spot business

LONDON (ICIS)–The global supply/demand balance for ammonia remains relatively tight, with prices again stable-to-firm week on week, as the fourth quarter looms.

Few spot deals were confirmed, with the headline agreement involving Trammo paying a premium to Petrochemical Industries Company (PIC) for 10,000 tonnes from Bahrain.

The trader paid the Kuwaiti firm $250/tonne FOB (free on board) for the Gulf Petrochemical Industries Company (GPIC) volume – up $10/tonne on recent spot business by the same buyer.

Fears about a major disruption to Saudi availability after Saturday’s attack on an oil facility soon eased, although SABIC has yet to confirm whether its ammonia export plans have changed.

Major manufacturer and exporter Saudi Arabian Mining Company (Ma’aden) confirmed its operations were not impacted by any feedstock restrictions, although only around 72,000 tonnes will likely leave the kingdom this month, down around 50%.

West of Suez, Canadian fertilizer giant Nutrien was forced to shut down one of its four 550,000 tonne/year plants in Trinidad on 17 September due to a water system problem.

The manufacturer has yet to confirm a time line for repairs, or whether a scheduled turnaround will be advanced.

Spot demand from India, South Korea and Taiwan is subdued, with suppliers on both sides of the Suez frequently able to lift cargoes.

Amid limited spot activity, Yara secured nearly 14,000 tonnes from Algerian producer Sofert, and Trammo discharged a similar volume in Poland for Grupa Azoty.

German chemicals titan BASF received around 23,400 tonnes of Egyptian spot material from OCI at the Chinese port of Zhanjiang, with talk that a second spot cargo could head to the port in the next few weeks.

Negotiations between Mosaic and Yara over the Tampa contract price for October loadings of ammonia should pick up pace at The Fertilizer Institute (TFI)  annual conference in Chicago next week.