International ammonia market muted as focus turns to Q3 business

LONDON (ICIS)–Little spot business was confirmed on either side of the Suez, in a relatively quiet week for the international ammonia market.

Prices remain stable for June cargoes, although southeast Asia FOB (free on board) prices increased on a 18,500 tonne spot sale by Indonesian giant Kaltim to Mitsui for late July loading.

Priced at around $220/tonne FOB, the volume will load on two vessels for delivery to long-term customers of the Japanese trader in northeast and southeast Asia.

Kaltim is widely heard to have launched a two-month turnaround at one of its Bontang plants in a move that will reduce export availability until August, although the producer has not confirmed any details of the shutdown.

Manufacturers in the Black Sea, North Africa, and the Middle East appear more bullish about their prospects for the next few weeks as they resist aggressive buyer price targets.

The only other confirmed spot activity saw Trammo purchase volumes in Egypt and Yuzhny at around $195/tonne FOB and $180/tonne FOB, respectively, with the trader also linked to a purchase in Algeria.

Indian spot buyers have yet to enter the market for June or July deliveries, while spot demand from Chinese buyers also appears muted.