US Gulf ammonia increases to $585/tonne

24 June 2008 20:41  [Source: ICIS news]

HOUSTON (ICIS news)--Yara has purchased 12,500 tonnes of ammonia for the US Gulf from Potash Corporation of Saskatschewan (PotashCorp) at $585/tonne (€374/tonne), a source close to the transaction said on Tuesday.

The price is a jump for spot US Gulf CFR (cost and freight) ammonia, which was trading at around $515-517/tonne in the week ended 19 June, according to global chemical market intelligence service ICIS pricing.

The shipment is to load in Yuzhny during the first half of July on the Sombeke and arrive in Tampa later that month, the source said.

The more than 13% price increase comes at a time when the global food crisis has placed a premium on fertilizer chemicals.

Further complicating matters is the flooding in the US cornbelt, which has decimated many of the country’s crops and will likely lead to more aggressive planting next season, in turn increasing demand for ammonia. 

($1 = €0.64)

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By: David Rosen

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