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Nitrogen Prices Have Been Lower in Recent Quarters

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Nitrogen prices

In recent quarters, nitrogen fertilizer prices have been lower YoY (year-over-year) including in 1Q17. Overall nitrogen prices continue to impact the profitabilities of some major producers in North America (MOO) and abroad.

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Overall prices

Overall, the average prices of ammonia fell 15% YoY to $308 per ton, while average prices of UAN (urea ammonium nitrate) fell as much as 23% YoY to $160 per ton. Average urea prices also fell 3% YoY to $307 per ton.

Prices by company

Among the companies in the above chart, Terra Nitrogen’s (TNH) ammonia price fell the steepest YoY by as much as 23% to $286 per short ton. CVR Partners’ (UAN) saw its prices fall 16% to $308 per ton, while CF Industries (CF) saw its prices fall 15% YoY to $307 per ton. Agrium’s ammonia prices fell 8% YoY to $405 per ton, while PotashCorp’s (POT) ammonia prices fell 7% YoY to $321 per ton.

As for UAN prices, Terra Nitrogen and CVR Partners saw their realized prices fall 24% and 23% YoY to $154 and $160 per ton, respectively. CF Industries’ UAN prices fell 20% YoY to $171 per ton.

Agrium’s urea prices fell the steepest by as much as 8% to $343 per ton. CF Industries’ prices fell 3% to $248 per ton, while PotashCorp’s urea prices were almost flat YoY at $308 per ton.

Next, we’ll look at margins for the above companies’ nitrogen segments.

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