11 September 2009 12:50 [Source: ICIS news]
LONDON (ICIS news)--Yuzhny ammonia prices remain firm but are expected to rise soon on tight supply and anticipated demand from the US, market sources said on Friday.
Ukrainian producer Odessa Port Plant (OPZ) sold around 7,000 tonnes to Yara at $260/tonne (€179/tonne) FOB (free on board) this week and the product has already loaded from Yuzhny.
This deal was in line with recent reported business out of Yuzhny, sources noted.
September tonnage from Yuzhny was fully committed and no negotiations or deals were reported yet for October shipment, the sources added.
Producers reported strong demand and said they expected prices to rise soon, saying that $290/tonne FOB would be achievable.
However, traders said that prices at these levels would not be achievable in any end-user markets just yet.
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However, with ammonia inventories low within the
Although Yuzhny producers were confident that prices would rise as October approaches, they were also wary that much higher prices would bring additional Ukrainian ammonia into the market, which could tip the market into surplus.
Both OPZ and
($1 = €0.69)
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