How Did Ammonia Prices Move Last Week?

Last week, nitrogen producers CF Industries (CF), CVR Partners (UAN), Terra Nitrogen (TNH), and PotashCorp (POT) ended in the red. Ammonia is one key product in nitrogen, which is then used in downstream nitrogen fertilizer products (NANR).

Ammonia prices in the Southern Plains experienced the steepest decline in the previous week compared to other points in the chart above. Prices fell 8.5% from $426 per short ton (or $386 per metric ton) to $390 per short ton (or $353 per metric ton). Prices in the Corn Belt also fell to $496 per short ton ($450 per metric ton) from $480 per short ton ($435 per metric ton). However, Ammonia prices at the Tampa Bay point remained unchanged at $315 per metric ton.

Ammonia prices at the international price points were also down week-over-week. Prices in the Black Sea fell the most to $270 per metric ton. In Western Europe, ammonia prices stood at $330 per metric ton CFR (cost and freight), which was a 2.5% decline compared to the average price of $238 per metric ton a week ago. Prices in the Middle East stood at $325 per metric ton FOB (free on board), down from $329 per metric ton FOB in the previous week.

Ammonia is a feedstock to other nitrogen fertilizers such as urea, UAN (urea ammonium nitrate), and even phosphate products such as DAP (diammonium phosphates), and MAP (monoammonium phosphates). Thus, ammonia prices also act as a precursor to prices for other key fertilizers. Next, we’ll look at how urea prices moved last week.