Market and product

LONDON (ICIS)--Yuzhny ammonia prices jumped $20/tonne (€15.40/tonne) on last business on the back of limited supply and strong demand, market sources said on Friday.

Yara paid $430/tonne FOB (free on board) to NF Trading for 10,000 tonnes of Ukrainian ammonia for lifting from Yuzhny in the second half of January.

Prior to this, last reported business had been at $410/tonne FOB for January loading.

Yuzhny ammonia availability has been hampered over the last month or so by bad weather, which temporarily closed the Ukrainian port on several occasions and delayed shipments.

Vessels have also been delayed getting to Yuzhny and then to their final destinations by restrictions passing the Bosphorus strait, which saw some vessels delayed by up to 12 days each way. Over the winter transit is restricted to daylight hours, and fog and bad weather has delayed things further.

At the same time, availability in the region has been further restricted after unplanned shutdowns at two plants in Algeria, causing buyers to look for product from other sources nearby at a time when demand levels are strong.

North African phosphates production is at high levels due to good demand for phosphate fertilizers, and as such ammonia requirements are strong.

Demand from the US and Europe is also currently strong, with US demand expected to pick up over the next couple of months ahead of the spring application season.