Ammonia prices hit $500pt, no early reversal in sight
March 12th, 2021 by Chris Yearsley / CEO, Head of Nitrogen
$500pt ammonia is now a reality, from the USA to China. This week already high Asian prices for ammonia hit $500pt cfr, just one week after $520pt cfr was paid in the USA. There is no sign of the market easing in April as Global demand is running at a strong pace with buyers unable to get ahead of the curve. Production outages remain a major supply issue with Trinidad cut back, Algeria unable to operate at full rates and new issues surfacing. Even marginal supply tempted into the market has been affected with a possible Turkish cargo being withdrawn from sale.
The prolific price run-up will not be sustained for months ahead and a decline is expected in May and June. However, floor prices in 2021 will be vastly ahead of the sub-$200pt fob levels seen in the crisis year of 2020.
$500pt ammonia is now a reality, from the USA to China. This week already high Asian prices for ammonia hit $500pt cfr, just one week after $520pt cfr was paid in the USA. There is no sign of the market easing in April as Global demand is running at a strong pace with buyers unable to get ahead of the curve.
Production outages remain a major supply issue with Trinidad cut back, Algeria unable to operate at full rates and new issues surfacing. Even marginal supply tempted into the market has been affected with a possible Turkish cargo being withdrawn from sale.
The prolific price run-up will not be sustained for months ahead and a decline is expected in May and June. However, floor prices in 2021 will be vastly ahead of the sub-$200pt fob levels seen in the crisis year of 2020.
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Chris Yearsley
CEO, Head of Nitrogen
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