India’s FACT awards ammonia tender $19/tonne higher

28 July 2010 14:55  [Source: ICIS news]

LONDON (ICIS)--Indian fertilizer manufacturer Fertilizers and Chemicals Travancore Ltd (FACT) has made an award under its latest ammonia tender at a price $19/tonne (€15/tonne) higher than its last purchase, market sources said on Wednesday.

Sources said FACT had made an award to Qatar Fertilizer Co (QAFCO) at $360/tonne CFR (cost and freight) under its 22 July tender.

FACT tendered for 7,500 tonnes of ammonia for first week August delivery to Cochin.

The buyer received three offers under the tender, the lowest of which was submitted by QAFCO at $365/tonne CFR.

However, after negotiations a price $5/tonne lower was agreed, sources said.

FACT’s last purchase was made in late June from SABIC at $341/tonne CFR. QAFCO will load the ammonia on the Almajedah in Qatar 31 July-1 August for delivery to FACT.

The producer estimates a netback of around $330/tonne FOB (free on board) based on freight indications of around $30/tonne. However, other sources indicate freight in the mid-$30s/tonne which would imply a netback in the mid-$320s/tonne FOB.

Latest spot business out of Iran has been reported at $315-320/tonne FOB.

($1 = €0.77)

For more on ammonia visit ICIS pricing fertilizers
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By: Rebecca Clarke
+44 20 8652 3214

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