CF’s price realization
While CF Industries’ (CF) shipments rose in 2Q17, as we discussed in the earlier part of this series, price realizations continued to disappoint. This was pretty much the case for other players (MXI) including PotashCorp (POT), CVR Partners (UAN), and Terra Nitrogen (TNH). Let’s look at how each of CF’s segment’s realized prices performed during 2Q17.
In 2Q17, CF Industries’ price realization suffered in four of its five segments. The Ammonia segment saw its realized prices fall the most compared to the other segments by as much as 18% year-over-year to $338 per metric ton and $411 per metric ton in 2Q16.
Next up was the Granular Urea segment, which saw its prices fall ~14% year-over-year to $212 per metric ton from $247 per metric ton in 2Q16. UAN (Urea Ammonium Nitrate) prices also fell 13% year-over-year to $175 per metric ton from $202 per metric ton a year ago in 2Q16.
The Other Nitrogen Products segment’s realized prices also took a hit during the 2Q17 quarter. They fell ~12% year-over-year to $155 per metric ton from $177 per metric ton in 2Q16.
On the other hand, the AN (ammonium nitrate) segment saw its realized prices rise 5% year-over-year to $208 per metric ton from $199 per metric ton a year ago.
Next, we’ll discuss the gross margins for each of the above segments.