US Gulf urea values recover as gas diversions and production cutbacks bring producers to the market; activity elsewhere limited
The PWNI utilizes key nitrogen fertilizer prices to derive a value for nitrogen as a crop nutrient. 2009 is used as the base point for the Index, which provides a useful and straightforward tool to gauge the overall health of the World market for nitrogen fertilizers.
The prices are derived from the Profercy Nitrogen Report and include: prilled and granular urea; Urea Ammonium Nitrate Solution; Ammonium Nitrate; Ammonium Sulphate; and Ammonia (for direct application).
Key components
The prices used to formulate the index are published each week and include:
- Prilled Urea – $per tonne fob Yuzhnyy
- Granular Urea – $per tonne fob Egypt and Arabian Gulf (full range)
- Ammonium Nitrate – $per tonne fob Black Sea
- UAN Solution – $per tonne fob Black Sea
- Ammonium Sulphate (white) – $per tonne fob Black Sea
- Ammonia – $per tonne fob Yuzhnyy
All solid prices are basis bulk. The prices chosen are considered the key and consistently available barometers of spot trade for seaborne tonnage. For example, for urea Yuzhnyy and Egypt are major areas of spot activity.
Product weighting
With the exception of ammonia, the weightings used by the PWNI are based on each products contribution to the World nitrogen trade in 2011. Urea has the highest weighting at over 60%. The weightings for Ammonium Sulphate, UAN and Ammonium Nitrate are 7%, 8% and 11% respectively.
Although largely regarded as an intermediate product, ammonia has been included as a component of the PWNI with its weight based on direct application in the USA. It holds a weighting of 10%.
The Profercy World Nitrogen Index is published every week through the Profercy Nitrogen Service, which offers daily news, weekly analysis and monthly forecasts.
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