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Apr 02, 2024

MARKET COMMENT: Northwest Europe ammonia

Gary Hornby 09-May-2023 LONDON (ICIS)–The ICIS Northwest Europe ammonia-to-hydrogen assessment tracked sideways during late April and early May with mixed fundamentals cancelling each other out and

Gary Hornby

09-May-2023

LONDON (ICIS)–The ICIS Northwest Europe ammonia-to-hydrogen assessment tracked sideways during late April and early May with mixed fundamentals cancelling each other out and the assessment unchanged on a weekly basis.

The ammonia-to-hydrogen northwest Europe assessment remained flat at €4.47/kg on 5 May, still comfortably lower than previous levels seen with ammonia pricing finding some support as demand showed signs of picking up in pace contrasted by weaker energy contracts.

Baseload electrolysis in the Netherlands lost value for the sixth straight week to be assessed at €5.95/kg with both gas and power pricing on offer amid healthy supply.

AMMONIA MARKET

Demand for ammonia showed some signs of picking up in pace during the early days of May with requirements for both ammonium nitrate and calcium ammonium nitrate heard increasing.

Enquiries from Turkey remains for May and June, with low ammonia prices spurring buying interest and weather conditions improving in the US leading to buyers heading into the market.

However, Asian demand is remaining weak due to low interest in the phosphates market.

GAS MARKET

The ICIS Dutch TTF June ’23 contract came under pressure in early May trading with comfortable fundamentals seeing market participants failing to take long positions on the European gas hubs.

LNG volume delivery rates remains solid with demand largely steady on the back of temperatures increasing as the Summer ’23 delivery period progresses.

European LNG regas rates were 144TWh in April 2022 compared to 154TWh in April this year, with rates for the 1-4 May gas days this year up 3% on an annual basis, data from ICIS showed.

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