06 December 2007 12:19 [Source: ICIS news]
NEW DELHI (ICIS news)--North African phosphoric acid producers are pushing for substantial price hikes on existing contracts due to high fertilizer prices and increased input costs, said Indian phosphate fertilizer producers on Thursday.
North African producers such as OCP settled with Indian phosphate fertilizer producers in the middle of 2007 at $566.25/tonne CFR (cost, insurance and freight), while market talk has been of prices hitting $1,000/tonne CFR for 2008 contracts.
“The rumour is that acid producers want to hike prices from 1 January, even on existing contracts,” said one producer on the sidelines of the Fertilizer Association of India’s (FAI) conference here.
No official comment from North African suppliers was available but with Indian buyers already nervous at the prospect of higher prices being paid for 2008 contracts, the news there may be revisions to existing contracts could result in phosphate fertilizer producers curtailing production of finished fertilizers, exacerbating tight supply and leading to fresh demand for imports.
The FAI conference is taking place from 5-7 December.
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