Ammonia vessels redirected from closed Ukrainian port following invasion: trade sources

Ammonia vessels entering Ukraine's Yuzhny port will have to be redirected as the port and its associated pipelines were closed due to Russian's military invasion, trade sources said Feb. 24.

At least one known vessel and potentially several others were being redirected from the Ukrainian port though which Russia ships much of its ammonia product to Turkey and Morocco.

Russia exported $2.14 billion in ammonia and fertilizers to Europe in 2020, according to UN Comtrade data, including $250 million in product to Turkey and $240 million to Morocco.

Baltic ports were "okay, at least for now," one European ammonia trader said. "Suppose we wait and see how the sanctions hit." The US and some European nations announced expansive sanctions against Russia this week over its aggression toward Ukraine.

A US trader said details were scarce around the port and pipeline closures, but would continue to monitor as the situation unfolded in Ukraine.

"It's hard to say right now on price reaction," a second US-based trade source said. "We'll keep on monitoring."

S&P Global Platts assessed the CFR Northwest Europe ammonia price at $1,150/mt Feb. 24, up $75 day on day based on higher input natural gas prices. FOB Black Sea prices were assessed at $1,125/mt, also up $75 on day as they trailed delivered prices.