Asian ammonia starts to firm

21 August 1995 00:00  [Source: ACN]

ASIAN ammonia prices are beginning to firm in line with the international market trend. Negotiations last Wednesday between CPDC and bidders in its 15 August tender ended with Sanapik as the lowest offer at below US$230/tonne cfr Taiwan. The CPDC held final talks with Sanapik last Thursday and an award was awaited as ACN went to press.

The CPDC's tender was for 12-15 000 tonne for arrival 3-16 October and original bids ranged US$230-250/tonne cfr Taiwan. Negotiations were held with five of the six bidders last Wednesday: Marubeni, Sanapik, PIC, Fertechem and Transammonia.

The US prices have been firming and Yuzhnyy prices have been around US$175/tonne fob with sellers ideas attempting a rise to US$180/tonne fob for prompt shipments.

Ammonia requirements for India are emerging following the 9 August FAI meeting to plan ammonia procurement for members' requirements. The FAI has apparently decided to buy on spot for the moment and one source indicated that it is on the market for 15 000 tonne for prompt delivery. Paradeep Phosphate's (PPL) enquiry for 35 000 tonne was concluded with Transammonia at US$220/tonne cfr east coast in two cargoes. The first vessel has arrived, the second is for August/September delivery. Marubeni sold an undisclosed amount to FAI at US$220/tonne cfr west coast, credit terms unknown.

Kaltim's debottlenecking is going as planned and when completed in mid-September, will raise capacity at the No 1 1500 tonne/day unit by 15%.

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