RUXX Report: Russian and Ukrainian Ammonia Prices Fluctuate Amid Demand Growth
Thursday, July 8, 2010 at 06:45AM New York -- Russian and Ukrainian prices for ammonia can deviate from those in the US and Europe, making it difficult to establish long-term pricing structure for this fertilizer, according to the annual Ammonia Prices report published by RUXX, a Dow Jones-calculated index and a research group tracking Russian companies. Recent analysis of ammonia transactions in the Ukrainian port of Yuzhny, one of the largest ammonia exporters in the CIS countries, suggests the published market prices of this fertilizer are often inaccurate.
“Given the fluctuation in vessel sizes, port procedures, contracts and voyage destinations, Yuzhny’s ammonia freight price is extremely subjective and should be determined on a case by case basis,” said John Foley, research director for RUXX.
Because Nitrochem, Transammonia and Yara, Yuzhny’s top ammonia exporters, keep their long-term contracts with buyers confidential, the published numbers are unreliable, Foley said.
Additional reasons Foley cited are Yuzhny’s high port expenses: the ammonia prices there are higher by about $3-5 per metric ton.
Basic materials, ammonia