skip to main content
Close Icon

In order to deliver a personalized, responsive service and to improve the site, we remember and store information about how you use it. This is done using simple text files called cookies which sit on your computer. By continuing to use this site and access its features, you are consenting to our use of cookies. To find out more about the way Informa uses cookies please go to our Cookie Policy page.

Global Search Configuration

Insights on the global ammonia market - looking back at April 2017

The international ammonia price climb has come to a halt during. Improved availability from the Black Sea with good product flow from the TogliattiAzot plant, Rossosh pumping ammonia to the port of Yuzhnyy during April as well as the restart of the OPZ plant in Ukraine, covered the earlier tightness in the typical markets for Black Sea ammonia. Urea production has been halted at OPZ around 20-21 April due to poor market conditions and two ammonia plants continued to run with producer’s strategy to focus entirely on ammonia for the time being.

Spot availability remained scarce out of the Baltic terminals of Sillamäe and Ventspils and only one spot deal has been concluded in the second half of the month by Uralchem and OCI for 11,000 t lifting in May at mid-$330 fob Ventspils.

Spot volume remained limited in the Middle East as the Qafco 6 ammonia/urea plants in Qatar were offline during most of April and Muntajat faced some shortness, which was eventually covered from Saudi Arabia. However, as of late April, some Middle East suppliers reported low probability of spot offering in the market during May as most tonnes are already committed under contract obligations.

Reduced output from Sorfert Algeria, where the merchant ammonia line has been under prolonged maintenance during April, has not stopped the downward pressure on prices. Demand was broadly stable from India and the Far East during April. However, pressure on ammonia prices is emerging from the caprolactam producers as after months of increasing caprolactam values and reported good margins, prices are now weakening in Asia and the United States.

In the United States, the OCI’s subsidiary Iowa Fertilizer Company announced that production has officially started at its new Wever plant in the south east of Iowa, where an estimated merchant ammonia surplus is just around 120,000 t/y. At the same time, the commissioning of the new urea plant by Agrium at Borger, Texas, will lead to a reduction of merchant ammonia supply by around 350,000 t/y. In the domestic market for direct application ammonia, in the short term, ammonia prices look to run flat to softer as preplant demand wanes in many markets. Moreover, there are reports of domestic producers cutting urea production in favour of ammonia.

The market sentiment had visibly shifted from bullish to bearish and by the end of April and prices in are now assessed as soft for the near-term.

This monthly analysis is an extract from the World Fertilizer Review (May 2017), which is produced by highly experienced analysts who look at the market as a whole. The report is a monthly round-up of information on all the major commodities, including ammonia, sulphur, nitrates, potash, phosphate and more.

Download report chapter

Download your ammonia sample chapter from the World Fertilizer Review. 

As well as the comprehensive market overview, the review contains:

  • Published fertilizer price lists
  • Latest sales
  • Shipment information
  • News and company alerts
World Fertilizer Review | Agribusiness Intelligence

What do you need to know? Speak to our team today.

Receive a free demo tailored to your information needs. See how our solutions and expertise give you an advantage.
If you have any questions about our services or would like to know how we can assist your business, please contact us via the form below and we'll get back to you.
See how we help organizations around the world gain a competitive advantage through our broad yet expert coverage of the Agribusiness value chain.
If you currently subscribe to any of our services, you can login via the link below and find more information about our full range of services.