CRU is launching its latest Ammonium Nitrates Market Outlook in February 2015.
West European producers had a good year in 2014; nitrates premiums were sustained above long-term averages and a weak West European gas market allowed producers purchasing gas from hubs (NBP, TTF, Zeebrugge et al) on a spot basis to lower their production costs. The result was a year of stable, and in some cases rising, profitability.
However, this was not enjoyed by all. European producers purchasing on long-term, oil-indexed contracts for imported Russian or North African gas still faced gas prices in excess of $10/MMBtu. As the oil-index typically functions on a 6-9 month lag, costs would have been unmoved by collapsing oil prices in 2014.
CRU's latest Ammonium Nitrates Market Outlook considers:
- What does 2015 hold for nitrates premiums?
- What effect will the falling rouble have on the nitrates industry?
- What impact will collapsing oil prices have on profitability?
- Is any new ammonium nitrate capacity coming on stream in 2015?