A Look at Ammonia Prices Last Week

The current levels of ammonia prices at several locations are below their comparative levels last year. CF Industries (CF), CVR Partners (UAN), Terra Nitrogen (TNH), and Agrium (AGU) are some of the companies that are impacted by the movement in ammonia prices.

Ammonia is the key nitrogen fertilizer that’s used to make other nitrogen fertilizer products such as urea and phosphorus fertilizers such as ammonium phosphates. Last week, ammonia prices were mostly unchanged.

Ammonia prices at four locations in North America (FXZ) were largely flat last week, except in the Corn Belt where average weekly prices fell ~1% to $367 per metric ton from a week ago. Prices in the Southern Plains of the United States were flat at $299 per metric ton.

Average weekly prices at Tampa Bay were also flat at $240 per metric ton CFR (cost and freight). Average weekly prices at the US Gulf NOLA (New Orleans) were also trading flat at $245 per metric ton. Keep in mind that these two locations are where imports to the United States come in.

On average, ammonia prices have fallen 39% year-over-year at the above four locations.

Last week, the situation for ammonia prices was no different outside of North America. Average weekly prices for ammonia at the Black Sea were trading flat at $170 per metric ton. In the Middle East, weekly prices averaged $230 per metric ton, flat from a week ago. Prices in Western Europe also remained flat last week, averaging $230 per metric ton.

On average, ammonia prices have fallen 50% year-over-year at the above three locations.

Next, we’ll take a close look at the price of urea.