FACT India buys ammonia up $67/tonne from last purchase

22 September 2009 16:06  [Source: ICIS news]

LONDON (ICIS news)--India’s Fertilizers and Chemicals Travancore Limited (FACT) has made an award to trader Transammonia under its 15 September tender at a price $67/tonne (€46/tonne) higher than its last purchase, market sources said on Tuesday.

FACT has purchased 7,500 tonnes of ammonia from Transammonia at $320/tonne CFR (cost and freight) for late September/early October delivery to Cochin, sources added.

The buyer last purchased ammonia in July at $253/tonne CFR from Saudi Basic Industries Corp (SABIC).

However, since then prices in the Middle East have risen and this was reflected in the offers FACT received under its tender, sources said.

FACT received two offers under the tender: one from Transammonia at $320/tonne CFR and one from SABIC at $330/tonne CFR.

Transammonia had yet to nominate a vessel to make the delivery, however last week it had reportedly indicated that it might make the shipment on the vessel Marycam Swan which was due to load in Iran this week, sources said, estimating that freight on that vessel would be in the mid-$60s/tonne.

($1 = €0.68)

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