Natural gas prices have touched record highs in Europe, which prompted a rally in global ammonia prices in the last two months. The Dutch TTF day-ahead prices settled at an all-time high of $42.91 per MMBtu on Wednesday, triggering a bull run in the global ammonia market. Ammonia prices settled at $1,120 per ton CFR Northwest Europe and $1,055 per ton FOB Black Sea. The two settlements have climbed 47% and 49%, respectively, since October. Over the same period, prices also rose in the other parts of the world. CFR US Gulf Coast assessment jumped 64% to $1,090 per ton, CFR Far East gained 77% to $1,020 per ton, while FOB Middle East was up 90% to $1,000 per ton.
Market sources said European ammonia plants were shut on rising prices and declining storage of natural gas. With reduced domestic production, European buyers look for imports from the Caribbean, which is typically a major supplier to the US. Middle Eastern suppliers, which typically serve Asian customers, also send available spot cargoes to Europe. Supplies from Southeast Asia also tighten as a major regional supplier face delays in restarting its ammonia plant.
