Terra Nitrogen Co LP

The petroleum (or pet) coke index remained unchanged from the previous week during the week ending July 22, 2016.

Ammonia prices in the Southern Plains had the steepest fall of 10.5% last week, continuing the previous week’s trend.

The fertilizer industry moves in cycles and with most companies experiencing a decline in margins, the industry seems to be in the bottom cycle.

Last week, nitrogen producers CF Industries (CF), CVR Partners (UAN), Terra Nitrogen (TNH), and PotashCorp (POT) ended in the red.

Natural gas is the key raw material for the production of nitrogen fertilizers such as ammonia and urea.

Ammonia prices for Tampa CFR (cost and freight) moved down 1.6% to $315 per metric ton compared to $320 per metric ton in the previous week.

In the international market, ammonia at the Black Sea, Ukraine, inched up to $275 per metric ton FOB, a rise of 1.9% from the previous week.

Ammonia was trading at $310 per metric ton as of the week ending March 4, 2016. It fell $1 from the previous week ending February 26, 2016.

Coal, or petroleum coke, is widely used by nitrogen fertilizers producers in China. Declining coal prices negatively impact natural gas-based producers.

In this series, we’ll cover how costs in the United States, China, and Europe influence nitrogenous fertilizer prices along with other factors.