02 July 2010 14:47 [Source: ICIS news]
LONDON (ICIS news)--Tunisian phosphate fertilizer producer Groupe Chimique Tunisien (GCT) has agreed second-half and third-quarter 2010 sulphur contracts with its suppliers, market sources said on Friday.
GCT was understood to have agreed second-half contracts with two ?xml:namespace>
Adnoc and KPC had initially been looking for a price in the $90s/tonne CFR, according to officials from both companies. The agreed price, netting back to the $50s/tonne FOB (free on board), was below KPC’s price ideas for eastern customers. The KPC official said this was a result of price competition with
Meanwhile, sources said that GCT had failed to conclude a contract with Saudi Aramco for the second half of 2010. The producer’s initial price idea for
Russian producer GazpromExport (GPE) had indicated earlier that it would not be able to offer in the $80s/tonne CFR to North African buyers due to production costs, according to a GPE official.
GCT only renewed its second-half contracts with one of its two Italian suppliers at $60/tonne CFR, because the other supplier would not have enough sulphur availability to supply to the buyer for the third quarter.
GCT has also agreed second-half and third-quarter agreements with European suppliers in the low $80s/tonne CFR, sources said.
During the second-quarter, the buyer rejected price offers from a major European producer in the high $140s/tonne CFR, citing comfortable inventory levels.
All of GCT’s contract negotiations for the second-half and third-quarter of 2010 have now ended, sources said. Meanwhile, contract negotiations for another North African buyer,
($1 = €0.80)
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