For the week ended August 12, 2016, ammonia prices remained mostly flat to negative across various points (MOO). Ammonia is the fundamental fertilizer for various nitrogen and phosphate products.
Last week, average weekly prices moved sideways to negative at four points in North America. At Tampa, prices remained unchanged from a week ago at $270 per metric ton CFR (cost and freight), hitting a five-year low.[1. Using average prices for the week ended August 12 over average prices for the week ended August 5]
Prices at US Gulf NOLA (New Orleans), also moved sideways to $275 per metric ton CFR week-over-week, hitting a five-year low as well. Similarly, the average weekly ammonia price at the Corn Belt of North America was flat at $415 per short ton ($376 per metric ton), hitting a five-year low.
The average weekly ammonia price at Southern Plains fell slightly by 0.6% to $338 per short ton ($306 per metric ton). On an average, Year-over-year (or YoY), prices at these points have fallen by 35%, which explains CF Industries (CF), CVR Partners (UAN), Terra Nitrogen (TNH), and PotashCorp (POT).
Outside North America
Outside North America, ammonia prices were down. In the Middle East, weekly prices fell by 8.8% to $250 per metric ton compared to an average of $274 per metric ton a week ago. Similarly, average prices at the Black Sea fell 4.3% to $199 per metric ton from $208 per metric ton. Average weekly prices in Western Europe fell by 3% to $260 per metric ton from $268 per metric ton a week ago.
Prices at all three points have fallen by 43% YoY and are now at their lowest in five years. Next, let’s look at urea prices.