India’s FACT to close sulphur tender amid weaker market

28 May 2010 15:51  [Source: ICIS news]

LONDON (ICIS news)--Indian fertilizer manufacturer Fertilizers and Chemicals Travancore Ltd (FACT) will close a sulphur tender on 2 June against the backdrop of a weaker market, sources said on Friday.

The new tender is for 17,000 tonnes of sulphur for delivery to Cochin 20-25 June. Offers are to remain valid until 8 June. Market sources also said offers for 20,000 tonnes would be rejected.

FACT last bought a 20,000-tonne cargo from trader Swiss Singapore at $191.50/tonne (€155/tonne) CFR (cost and freight) under its 6 April tender.

However, weaker spot prices have been evident in India since FACT’s last tender award due to softer demand, hence the market expects offers under this new tender to be lower.

A new low in Indian spot prices was set this week by Indian Farmers Fertilizer Cooperative Limited (IFFCO), which purchased 30,000 tonnes of sulphur at $133/tonne CFR for June shipment to Paradeep, India. The price was $21/tonne below the last reported business into India at $153.50/tonne CFR.

Meanwhile, the weaker market has prompted indications from Abu Dhabi National Oil Company (Adnoc) that it will adjust its June sulphur price downwards from the May price of $145/tonne FOB (free on board).

($1 = €0.81)

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By: Freda Gordon
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