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Section: CRUNS Market & Features

Price Trends

Ammonia markets were quiet in June, though both CF Industries and Grupa Azoty were reported to be looking for July tonnes and the enquiry will test how tight the market is going forward. Algeria has traded in the $400-405/t f.o.b. range, suggesting c.fr values in Europe might be slightly higher at $450-460/t c.fr. Supply from Algeria has been and continues to be somewhat restricted because of constraints caused by the hot weather. Gas supply however is easing in Egypt and further ammonia exports should emerge shortly.

Methods to mitigate metal dusting in syngas production

Industrial plants using synthesis gas at elevated temperatures risk metal dusting attack on the equipment, which are typically made of steels or Ni-based alloys. Parameters which impact the metal dusting risk are discussed and factors affecting the material selection and processing are described. One important focus is surface preparation, showing that grinding (40 grit) improves the metal dusting resistance compared to glass bead blasting and brushing. The surface treatment outweighs the impact of welds or the manufacturing route.

Price Trends

The ammonia market reverted to recent norms at the end of April, with prices more or less unchanged in the east, and several benchmarks west of Suez moving downward in line with May’s Tampa settlement. Following a trio of high-priced c.fr spot deals many wondered whether such business would be replicated in Asia, but the hype did not live up to the expectation, with the majority of tonnes continuing to move on a contract basis into the likes of South Korea and Taiwan, China. The $430/t c.fr concluded into China has been attributed to both supply uncertainty and an uptick in domestic demand, though several inland prices declined this week, rendering price direction difficult.