US ammonia benchmark soars for September, Saudi plant shutdown to hurt supply
Profercy’s World Nitrogen Index fell for the sixth week in a row with the market for both granular and prilled urea remaining weak. Cfr prices have fallen in a number of markets, with only US Gulf prices remaining healthy. North African prices for granular urea have resisted major price falls with demand in Europe relieving some pressure on producers.
The 2.21 point drop in the Index was influenced by a $20pt drop in the low-end of our quoted range for Middle East granular urea. The fall is a consequence of lower returns for product in markets such as Latin America.
Ammonia markets remain firm with the top end of Profercy’s Yuzhnyy ammonia range increasing by $30pt last week reflecting recent sales. Subsequently, the Tampa ammonia contract price between a major ammonia producer and US importer rose by $120pt to $580pt cfr Tampa.
Profercy’s World Nitrogen Index, based on prices published on 20 March, finished at 178.93, down 2.21.
The Nitrogen Index falls 2.21, despite significant gains for ammonia.
The Profercy World Nitrogen Index is published every week and is based on price ranges provided by the Profercy Nitrogen Service. This includes prilled and granular urea, UAN, AN, ammonium sulphate and ammonia.
Profercy’s Nitrogen Service includes daily news, weekly analysis and monthly forecast reports. For more detailed information on specific products and individual markets, please sign up for a free trial or for more information on the Profercy Nitrogen Service, please click here.
The methodology behind the Profercy World Nitrogen Index can be found here.
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