US ammonia prices rise $160/tonne on tight supply

23 July 2008 16:00  [Source: ICIS news]

LONDON (ICIS news)--Tampa ammonia prices have risen $160/tonne (€101/tonne) following a spot sale and on the back of higher Black Sea ammonia prices in the wake of tight supply and strong demand, market sources said on Wednesday.

 

PotashCorp of Saskatchewan confirmed it had sold 16,500 tonnes of ammonia to Yara at $745/tonne CFR (cost and freight) for first half of August delivery to Tampa.

 

With supply remaining tight in Yuzhny and higher prices expected there, $745/tonne CFR was expected to set the minimum level for August Tampa contract price discussions, market sources said.

 

This price is up $160/tonne from the July Tampa contract price of $585/tonne CFR.

 

Tampa prices had been expected to rise on the back of higher numbers in the Black Sea port of Yuzhny due to tight supply and strong demand.

 

Latest business in Yuzhny was at $650/tonne FOB (free on board) but there are indications producers are looking for prices of $750-800/tonne FOB (free on board) for new sales. Freight Yuzhny-Tampa is indicated around $90/tonne.

 

Tampa suppliers had already indicated they would be looking for prices above $700/tonne CFR for August.

 

($1 = €0.63)

 

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By: Rebecca Clarke
+44 20 8652 3214

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