The US spring season is already in full swing and all urea imports that were delivered over the winter are now being distributed across the Midwest. With very high inventories, American appetite for additional spot loads will be minimal, analysts describe the situation in the US.
Ammonium nitrate prices continue to move down rapidly – Russian AN fell a further 10% below USD 250/t fob Baltic ports last week, which will be of interest to buyers not sensitive to Russian sanctions such as Brazil and perhaps some African buyers , say traders. This is certainly a price level that AN producers not integrated with ammonia production cannot compete with.
Ammonia prices also continued their downward trend, with the Middle East price falling nearly $70/t as Asia’s demand for ammonia is almost non-existent, fertilizer analysts say. While the lower prices have prompted some buying activity, the ammonia sector remains severely oversupplied and prices will continue to fall until supply and demand are balanced, it said.
Brazil, another major buyer, is also plentiful in urea, and local buyers are pressuring traders to offset recent price falls caused by the Indian tender, analysts say.