13 August 2008 12:17 [Source: ICIS news]
LONDON (ICIS news)--Moroccan phosphoric acid producer Office Cherifien des Phosphates (OCP) has agreed third- quarter contracts with Indian buyers at a price up $325/tonne from the second quarter, India trader sources said on Wednesday.
The new price was reported at $2,310/tonne CFR (cost and freight) although no-one at OCP was available to confirm the deal.
The news ends months of wrangling between OCP and Indian buyers.
OCP had consistently indicated that it would hold out for $2,500/tonne CFR, in line with what it had already achieved in European markets, arguing that prices needed to increase to cover rising sulphur feedstock costs.
However, reports that another North African producer, Groupe Chimique Tunisien (GCT), had provisionally settled at $2,200/tonne CFR with its Indian buyers were thought to have undermined OCP’s position, traders said.
GCT was now understood to be renegotiating its third-quarter price with customers in light of the price achieved by OCP.
During the protracted negotiations, phosphoric acid supplies to Indian buyers, who use the product to manufacture finished phosphate fertilizers, were disrupted, sources said, in turn reducing output of domestically produced fertilizers.
However, OCP was now indicating that it would ship four vessels within the next week to bolster supplies.
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