What Did Last Week Hold for Ammonia Prices?
Nitrogen fertilizers account for about two-thirds of total NPK 1 consumption globally. Ammonia is the fundamental fertilizer to other nitrogen fertilizers such as UAN (urea ammonium nitrate) as well as phosphate products such as DAP (diammonium phosphate) and MAP (monoammonium phosphate). Let’s see how ammonia prices moved last week.
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Ammonia prices in North America
For the week ending July 15, ammonia prices remained broadly flat in North America compared to a week ago. In the Corn Belt region, average ammonia prices stood at $415 per short ton (or $376 per metric ton) week-over-week.
Similarly, ammonia prices at the Southern Plains of North America were at an average price of $340 per short ton ($308 per metric ton) compared to the previous week. At Port Tampa Bay, the average prices of ammonia also remained unchanged from the previous week at $285 per metric ton.
Ammonia prices at these three points remain significantly suppressed by an average of 27%, 32%, and 38% YoY (year-over-year), respectively. This week’s flat prices for ammonia highlight continued weakness in the agricultural environment (MXI). It’s pressuring companies such as Agrium (AGU), Terra Nitrogen (TNH), CVR Partners (UAN), and CF Industries (CF).
Outside North America
Weakness in ammonia prices outside North America continued last week as well. Average ammonia prices in the Middle East fell 2.7% to an average of $290 free on board per metric ton week-over-week—down from $298.
Ammonia prices in the Black Sea remained unchanged from the previous week at an average of $250 per metric ton. In Western Europe, ammonia prices stood at an average of $310 per metric ton cost and freight. It also remained unchanged from the previous week.
The prices at these three points in the international market are down by 28%, 38%, and 33% YoY, respectively.
In the next part, we’ll look at urea prices.
- Nitrogen, Phosphorous, and Potassium ↩